The directors present the strategic report for the period ended 26 October 2025.

The principal activity of the business continued to be that of hoteliers.

The final stage of the 3 year refurbishment programme was completed, with a further 21 rooms, 2 conference bars and our main dining space, the Brasserie, all undergoing major transformations. This work will complete the period of significant investment in the hotel product and allow us to now consolidate and push for growth in revenue, improvement in service, and tighter control of costs.

The landscape for businesses in the UK this year remains difficult with the current governments policies being regularly changed and putting huge pressure on the hospitality industry. The significant increase in national insurance costs, the amendments to employee rights regulations, and the ever increasing minimum wage has led to a need to focus on payroll costs and tighten recruitment. Business rate rises and removal of hospitality reliefs have also put a strain on margins. Suppliers are also being affected by the same pressures which inevitably leads to higher costs which we have to battle between absorbing and regrettably passing on to our customers. All in all a difficult environment across the sector, but thankfully one we are in a strong position to overcome.

The key financial performance indicators are those which communicate the financial performance and strength of the company as a whole, being turnover and profit levels. During the year, turnover increased from £19,383,906 in 2024 to £20,242,108 and gross profit increased from £9,016,835 in 2024 to £9,243,440, with a net profit of £1,663,499 being added to reserves.

The principal risks and uncertainties of the company are continually monitored by the directors, who seek to mitigate such risks. The company responds to the highly competitive nature of the hotel industry by continually improving the standard of its products, both in terms of facilities and levels of service.

In accordance with Section 172(1) of the Companies Act 2006, the directors of AB Hotels Limited have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, they have had regard to the following factors:

•    Long-term Consequences: The directors have consistently made strategic decisions and exercised judgment with a long-term perspective, aiming to ensure sustainable growth and stability for the company. This includes continual investment in upgrading and maintaining the hotel.

•    Interests of Employees: The directors have placed great importance on the interests and welfare of our employees. Initiatives such as the provision of role specific training schemes, first aid training, workplace safety measures and welfare facilities for the use of employees within the hotel reflect our commitment to creating a supportive and productive work environment.

•    Business Relationships: We have fostered strong relationships with guests, suppliers and other business partners. The directors understand that these relationships are vital for the company's success and have made decisions that enhance these partnerships, ensuring mutual growth and respect.

•    Impact on Community and Environment: The directors are mindful of the company's role in the wider community and its environmental responsibilities. The company is committed to achieving best practice environmental and social sustainability and has partnered with EarthCheck, the world’s leading certification, consulting and advisory group for sustainable destinations and tourism organisations.

•    Maintaining Company Reputation: The directors recognise the importance of upholding a strong and ethical reputation. Our business practices and policies are designed to reflect our commitment to integrity and corporate responsibility.

•    Acting Fairly Between Members: In all decisions, the directors have strived to act fairly between the members and shareholders of the company, ensuring transparency, equity, and respect.

On behalf of the board

The directors present their report and financial statements for the period ended 26 October 2025.

The results for the period are set out on page 9.

No interim dividends were paid during the year and the directors do not recommend payment of a final dividend.

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through staff consultations and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

We have fostered strong relationships with guests, suppliers and other business partners. The directors understand that these relationships are vital for the company's success and have made decisions that enhance these partnerships, ensuring mutual growth and respect.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2025 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per average employee number for the year, being a recommended ratio for the sector.

The company continually strives towards minimising the hotel’s overall footprint on the environment by implementing sustainable initiatives aimed at improving the hotel’s performance, reducing the use of energy and water and minimising the production of waste.

The company complies with all relevant legislation and regulations, and aims to achieve international best practice. We have appointed a team of dedicated individuals, headed up by a Sustainability Officer who collectively have the responsibility for improving the Hotel’s sustainable performance. Special consideration is given to employing and empowering employees, and wherever possible, sustainable products and services are sourced locally in accordance with Fair Trade principles. The company encourages and continually trains staff to actively represent the hotel’s commitment to environmental and social sustainability to all key stakeholders, guests, suppliers and contractors.

The directors are responsible 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements 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 company will continue in business.

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of AB Hotels Limited (the 'company') for the period ended 26 October 2025 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including 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 company's affairs as at 26 October 2025 and of its profit for the period 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures

in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,

including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is

detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• obtaining an understanding of the legal and regulatory framework applicable to the company by considering the nature of the industry in which the company operates and enquiring of management; and

• identifying the key laws and regulations considered to have a direct impact on the financial statements including the UK Companies Act 2006, UK Generally Accepted Accounting Practice and UK tax legislation. Other regulations identified which were not considered to have a direct impact on the financial statements but which were considered central to the ability of the company to operate were food safety and hygiene regulations, the Licencing Act and Health and Safety Act; and

• assessing how the company is complying with the applicable legal and regulatory framework by making further enquiries of management and observing the company's control environment regarding compliance with regulations and fraud prevention; and

• assessing the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by considering the effectiveness of the company’s accounting systems and controls and how these were monitored by management. Where the risk of material misstatement was considered to be higher in certain areas, further audit procedures were designed to address this increased risk; and

• discussing amongst the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud.

Our procedures to respond to risks identified included the following:

• reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

• enquiry of company staff responsible for compliance to identify any instances of non-compliance with laws and regulations; and

• reviewing supporting documentation confirming compliance with specific laws and regulations considered central to the ability of the company to operate; and

• enquiry of management, those charged with governance and other relevant parties around actual and potential litigation claims; and

• reviewing supporting documentation regarding actual and potential litigation claims; and

• performing audit work over revenue recognition including analytical procedures and substantive tests of detail of a sample of revenue transactions; and

• performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and

• communicating identified laws and regulations and potential fraud risks to all engagement team members and assessing whether there are any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

AB Hotels Limited is a private company limited by shares incorporated in England and Wales. The registered office is West Walk Building, 110 Regent Road, Leicester, LE1 7LT.

These financial statements have been prepared in accordance with applicable accounting standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold land and buildings. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements present information about the company as an individual undertaking and not about its group. The results of the subsidiary undertaking are immaterial to the group. The company has therefore taken advantage of the exemptions provided by Section 402 of the Companies Act 2006 not to prepare group accounts.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. Significant loans provided by the directors are included within current liabilities. The directors have confirmed that they only intend to request repayment of these loans should the company's finances permit such repayments.

The financial statements are drawn up to the nearest Sunday to 31 October and cover the period for the 52 weeks ended 26 October 2025. Comparative data is for the 52 weeks ended 27 October 2024.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, net of VAT. Turnover in respect of accommodation is recognised overnight for each night the customer stays whilst other sales, including food, beverage and leisure facilities, are recognised at the point of sale.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land is not depreciated. The estimated residual value of freehold buildings is such that their depreciable amount is insignificant. Accordingly, no depreciation is charged on freehold buildings.

The company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use a previous GAAP revaluation as the deemed cost for the freehold property held at the date of transition to FRS 102.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset's cash generating unit is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the profit and loss account unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Stocks are stated at the lower of cost and net realisable value.

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

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

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

The tax currently payable is based on taxable profit for the year. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates defined contribution schemes for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable.

Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

The annual depreciation charge for tangible assets is sensitive to changes in the estimated residual values of the assets. Residual values are reassessed annually and amended when necessary to reflect current estimates.

All turnover originates in the United Kingdom from the company's principal activity.

The average monthly number of persons (including directors) employed by the company during the period was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2024 - 6).

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

The company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use a previous GAAP revaluation as the deemed cost for the freehold property held at the date of transition to FRS 102. The freehold property was last revalued in 1993. The resulting revaluation adjustments were taken to the revaluation reserve.

If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

These financial statements are separate company financial statements for AB Hotels Limited.

Details of the company's subsidiaries at 26 October 2025 are as follows:

The address of the registered office of the above subsidiary is the same as the company's registered office address as given in the company information page of these financial statements.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances for financial reporting purposes:

The company operates defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the company in independently administered funds.

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

The revaluation reserve represents the surplus arising on the revaluation of freehold property net of associated deferred tax.

The profit and loss reserves comprise retained profits and losses for the current and prior periods.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Certain directors are trustees of the AB Hotels Limited Retirement Pension Scheme ("the scheme"). During the period rent amounting to £160,000 (2024: £160,000) was paid to the scheme in respect of staff accommodation. Interest of £Nil (2024: £22,800) was incurred during the period in respect of a loan to the company from the scheme which was fully repaid in the prior period.

Creditors falling due within one year include directors’ loan account balances of £15,473,656 (2024: £16,785,176) owed to certain company directors. Interest totalling £268,161 (2024: £648,827) was paid on these loan balances to certain directors during the period.