Company No: 05367160 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Tangible assets	4	1,400,146		1,447,667
		1,400,146		1,447,667
Current assets
Stocks	5	18,463		14,078
Debtors	6	174,615		173,204
Cash at bank and in hand		6,197		27,378
		199,275		214,660
Creditors: amounts falling due within one year	7	( 662,946)		( 630,183)
Net current liabilities		(463,671)		(415,523)
Total assets less current liabilities		936,475		1,032,144
Creditors: amounts falling due after more than one year	8	( 469,360)		( 510,652)
Provision for liabilities		( 115,159)		( 114,515)
Net assets		351,956		406,977
Capital and reserves
Called-up share capital	9	1		1
Profit and loss account	10	351,955		406,976
Total shareholders' funds		351,956		406,977

For the financial year ending 31 July 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Horton Grange Country House Hotel Limited (registered number: 05367160) were approved and authorised for issue by the Board of Directors on 27 July 2026. They were signed on its behalf by:

CJ Watt Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Horton Grange Country House Hotel Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Horton Grange Country House Hotel Berwick Hill Road, Seaton Burn, Newcastle Upon Tyne, NE13 6BU, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Prior year adjustment

During the year the directors identified that an amount previously recognised in the revaluation reserve should have been included within retained earnings. The error has been corrected retrospectively as a prior year adjustment in accordance with FRS 102 Section 10. Further details have been provided in note 2 of the financial statements.

Turnover

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

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	not depreciated
Plant and machinery	20 % reducing balance
Vehicles	25 % reducing balance
Fixtures and fittings	20 % reducing balance
Office equipment	10 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

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

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

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Prior year adjustment

During the year, the directors identified that a revaluation reserve had been incorrectly recognised in respect of long leasehold land and buildings. Under the company’s accounting policy and the requirements of FRS 102 Section 1A, the amount should not have been presented in revaluation reserve and has instead been treated as part of retained earnings. This error relates to a prior period and has therefore been corrected retrospectively in accordance with FRS 102 Section 10 - Accounting Polices, Estimates and Errors.

		As previously reported		Adjustment		As restated
Year ended 31 July 2024		£		£		£
Profit and loss account		84,976		322,000		406,976
Revaluation reserve		322,000		(322,000)		0

3. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	24		26

4. Tangible assets

	Land and buildings		Plant and machinery		Vehicles		Fixtures and fittings		Office equipment		Total
	£		£		£		£		£		£
Cost
At 01 August 2024	879,927		162,809		105,811		1,131,666		48,145		2,328,358
Additions	0		0		0		66,886		6,470		73,356
At 31 July 2025	879,927		162,809		105,811		1,198,552		54,615		2,401,714
Accumulated depreciation
At 01 August 2024	0		132,051		16,284		686,746		45,610		880,691
Charge for the financial year	0		3,076		22,382		94,512		907		120,877
At 31 July 2025	0		135,127		38,666		781,258		46,517		1,001,568
Net book value
At 31 July 2025	879,927		27,682		67,145		417,294		8,098		1,400,146
At 31 July 2024	879,927		30,758		89,527		444,920		2,535		1,447,667

The fair value of the company's long leasehold land and buildings was previously revalued by an independent valuer. Had this class of asset been measured on a historical cost basis, the carrying amount would have been £557,927 (2023 - £557,927).

5. Stocks

	2025		2024
	£		£
Stocks	18,463		14,078

6. Debtors

	2025		2024
	£		£
Amounts owed by related parties	148,461		150,800
Prepayments	26,154		20,504
Corporation tax	0		1,900
	174,615		173,204

Amounts owed by related parties are interest free and repayable on demand.

7. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans (secured)	29,573		29,218
Trade creditors	36,098		38,788
Amounts owed to directors	408		6,646
Accruals	124,460		118,288
Other taxation and social security	59,347		66,565
Obligations under finance leases and hire purchase contracts	11,540		10,938
Other creditors	401,520		359,740
	662,946		630,183

Creditors within one year include bank loans and overdrafts which are secured of £22,500 (2024: £22,500).

Assets held under hire purchase are secured on the assets to which they relate.

Amounts owed to directors are interest free and repayable on demand if they remain in a credit position. If they become overdrawn interest is charged at 3.75%.

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

	2025		2024
	£		£
Bank loans (secured)	408,203		437,955
Obligations under finance leases and hire purchase contracts	61,157		72,697
	469,360		510,652

Creditors due after one year include bank loans and overdrafts which are secured of £387,750 (2024: £401,250).

Assets held under hire purchase are secured on the assets to which they relate.

9. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 0.01 each	1		1

10. Reserves

Profit and loss reserves of £351,955 (2024: £406,976) include £322,000 (2024: £322,000) relating to unrealised gains arising from the revaluation of long leasehold property and other fair value adjustments through the profit and loss account. These gains are not distributable until realised.