REGISTERED NUMBER: 00623417 (England and Wales)

GREENCLOSE HOTELS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

Miss P A Leach

J A C Leach

Mrs C R Gibson

R A C Leach

J R Hiley-Jones

R J Haycocks

SECRETARY:

Miss P A Leach

REGISTERED OFFICE:

Pennington House

Ridgeway Lane

Lymington

Hampshire

SO41 8AA

REGISTERED NUMBER:

00623417 (England and Wales)

SENIOR STATUTORY AUDITOR:

Gary Brown FCCA

AUDITORS:

Hopper Williams & Bell Limited

Statutory Auditor

Chartered Accountants

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

BANKERS:

Santander

Bridle Road

Bootle

Merseyside

L30 4GB

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

During the year, Greenclose Hotels Limited was the operator of three four-star hotels: Careys Manor Hotel and Senspa (in Brockenhurst, Hampshire), the Montagu Arms Hotel (in Beaulieu, Hampshire) and the Imperial Hotel (in Llandudno, North Wales). Across these properties the company operated six restaurants. All are open to non-residents.

In March 2025, Careys Manor Hotel and Senspa was sold to Myst Hotels and Resorts Limited, and so the company ceased trading out of this location at this time. All trading activities and fixed assets have been transferred to the new owners.

REVIEW OF BUSINESS

The results of the company during the year were sales of £11.0m (2024: £16.4m) and an operating profit of £1,882,848 (2024: £689,877).

Business Environment

The four-star hotel market in each of the company's locations is highly competitive with comparisons between competitors made readily available to consumers through on-line distribution and review websites.

Within this competitive environment, the company continues to differentiate itself from its competitors by promoting its attractive buildings and locations and providing excellent customer service and dining propositions.

Strategy

The company's overriding objective is to achieve attractive and sustainable rates of growth and returns primarily from organic growth but also to explore other growth opportunities.

There are four key elements to the company's strategy for growth. They are:

-

Developing the properties to respond to evolving consumer tastes and demands;

-

Investment in the properties in terms of increasing and updating bedroom stock, enhancing public areas and improving infrastructure assets;

-

A continued focus remains on reducing energy consumption and payback of 12 months has been achieved on implementing voltage optimisation with a 9% saving per property.

-

Targeted and agile marketing across the various customer market sectors to maximise occupancy and yield.

FUTURE OUTLOOK

Following the sale of Careys Manor, new general managers have been appointed at both the Montagu Arms and Imperial Hotel which is an opportunity to improve operational efficiency and customer offering.

Notwithstanding the current business climate, revenues have the potential to be resilient. It is acknowledged that constrained consumer spending resulting from those inflationary forces combined with unpredictable UK weather and a post "Staycation Boom" slump, has the ability to negatively impact the company's revenues. Nevertheless, there are opportunities to generate upsides for businesses.

Considering these and other future uncertainties, our continued focus is to make the businesses more agile, more flexible and more efficient, investing in market leading technology wherever possible, in order to maximise profitability and cash reserves throughout the coming few years.

This focus on efficiency, which we expect to have no negative impact on the guest experience, coupled with our continuing commitment to providing excellent customer service, high quality facilities, and actively maintaining and improving our hotel properties, will help us maintain our market leading position into the future in each of the company's locations.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks affecting the company are set out below:

Risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them.

Economic Environment

The challenges of the inflationary economy have thankfully now backed off to a more normal level. The lead in time for forward bookings continues to be late and can be heavily impacted by weather. Price resistance from a cautious consumer continues, although certain sectors appear more resilient than others.

Competition

The company operates in a highly competitive market in each of its locations. Accordingly, the company seeks to price competitively, market effectively, deliver excellent customer service and obtain positive feedback in public forums such as TripAdvisor in order to maintain and grow market share. To deliver this, the company has employed dedicated marketing and yield management personnel with a customer focussed General Manager leading each business unit.

Employees

The company's performance depends largely on its managers and staff, and we recognise that our employees are our most valuable asset. The resignation of key individuals and the inability to recruit people with the required experience and skills could adversely impact the company's results. To mitigate these risks the company operates an induction and learning programme for all employees and has implemented and continues to develop a number of incentive schemes linked to the company's results that are designed to retain key individuals. In addition, the company's move to developing multi-skilled team members provides resilience across each property's operations in addition to providing greater efficiency.

Supply Chain

The company purchases from many suppliers to provide high quality and whenever possible, organic, free range and locally sourced food to serve to its guests. There are a few significant suppliers and as such the company is potentially exposed to potential supply chain disruptions due to high reliance on these suppliers. The company mitigates this risk through having multiple sources for various key requirements, and employs effective supplier selection and procurement processes supplemented by appropriate insurance coverage.

Financing and interest costs

The wider group of companies is primarily financed by a bullet repayment loan which has been extended for a further two years, and currently enjoys a fixed rate of interest of 4%. Whilst the Bank of England has decreased its base rate of interest over the last 12 months, the cost of borrowings is likely to be higher when the facility falls due for repayment. The directors have embarked on a strategic planning process, which will deal with the strategic financing risk through exploring opportunities to drive better returns from the existing estate, evaluate assets and commercial activities, and present the best possible case for potential funders.

KEY PERFORMANCE INDICATORS

The main key performance indicators used by the company are turnover and gross margin percentage. In 2025 these KPIs were as follows:

Turnover - £11.0m (2024: £16.4m)

Gross margin percentage - 39.4% (2024: 45.7%)

ON BEHALF OF THE BOARD:

J A C Leach - Director

27 July 2026

The directors present their report with the financial statements of the company for the year ended 31 October 2025.

DIVIDENDS

The total distribution of dividends for the year ended 31 October 2025 was £370,000 (2024: £Nil).

FUTURE DEVELOPMENTS

Information in respect of the company's future developments has been included within the strategic report.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2024 to the date of this report.

Miss P A Leach

J A C Leach

Mrs C R Gibson

R A C Leach

J R Hiley-Jones

R J Haycocks

EMPLOYMENT POLICIES

The employment policies of the company embody the principles of equal opportunity and are tailored to meet the needs of its different businesses and the local areas in which they operate. This includes suitable procedures to support the company's policy that disabled persons (whether registered or not) shall be considered for employment and subsequent training, career development and promotion on the basis of their aptitudes and abilities.

The company has adopted a policy of encouraging each business, together with its employees, to create communication, consultation and involvement groups so ensuring that each employee has a role in receiving and giving feedback on those matters that are important to all employees. At least twice a year, via the management of each business, employees are given the chance to give feedback on all areas of the business. This commitment to involve more employees in the consultation, communication and involvement forums reflects the company's philosophy of encouragement and participation in the success of its business and the important part that each employee plays in its long term success.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J A C Leach - Director

27 July 2026

Opinion

We have audited the financial statements of Greenclose Hotels Limited (the 'company') for the year ended 31 October 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 October 2025 and of its 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Principles and the relevant tax compliance regulations for the company.

- We obtained an understanding of how the company is complying with these frameworks through discussions with management.

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence.

- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

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

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 a Report of the Auditors 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.

Gary Brown FCCA (Senior Statutory Auditor)

for and on behalf of Hopper Williams & Bell Limited

Statutory Auditor

Chartered Accountants

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

29 July 2026

TURNOVER

11,016,761

16,443,470

Cost of sales

(6,674,381

)

(8,935,093

)

GROSS PROFIT

4,342,380

7,508,377

Administrative expenses

(2,515,563

)

(6,937,742

)

1,826,817

570,635

Other operating income

56,031

119,242

OPERATING PROFIT

4

1,882,848

689,877

Provision against intercompany

balance

5

(301,031

)

-

1,581,817

689,877

Interest receivable and similar income

50,539

-

1,632,356

689,877

Amounts written off investments

6

-

(287,465

)

1,632,356

402,412

Interest payable and similar expenses

7

(671,769

)

(964,218

)

Other finance costs

22

(181,000

)

(25,000

)

PROFIT/(LOSS) BEFORE TAXATION

779,587

(586,806

)

Tax on profit/(loss)

8

(139,659

)

18,318

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

639,928

(568,488

)

PROFIT/(LOSS) FOR THE YEAR

639,928

(568,488

)

OTHER COMPREHENSIVE INCOME

Actuarial gains/(losses) on pension

149,000

(300,000

)

Income tax relating to other comprehensive income

(170,000

)

77,000

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(21,000

)

(223,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

618,928

(791,488

)

FIXED ASSETS

Intangible assets

10

62,201

56,975

Tangible assets

11

380,963

1,179,766

Investments

12

964,152

964,152

1,407,316

2,200,893

CURRENT ASSETS

Stocks

13

86,457

185,638

Debtors

14

6,790,951

10,986,263

Cash at bank and in hand

3,316,010

286,954

10,193,418

11,458,855

CREDITORS

Amounts falling due within one year

15

(2,006,179

)

(3,747,746

)

NET CURRENT ASSETS

8,187,239

7,711,109

TOTAL ASSETS LESS CURRENT LIABILITIES

9,594,555

9,912,002

CREDITORS

Amounts falling due after more than one year

16

-

(21,034

)

PROVISIONS FOR LIABILITIES

19

(73,789

)

(111,130

)

PENSION LIABILITY

22

-

(508,000

)

NET ASSETS

9,520,766

9,271,838

CAPITAL AND RESERVES

Called up share capital

20

1,009,448

1,009,448

Share premium

21

106,404

106,404

Retained earnings

21

8,404,914

8,155,986

SHAREHOLDERS' FUNDS

9,520,766

9,271,838

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2026 and were signed on its behalf by:

J A C Leach - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 November 2023

1,009,448

8,947,474

106,404

10,063,326

Changes in equity

Total comprehensive income

-

(791,488

)

-

(791,488

)

Balance at 31 October 2024

1,009,448

8,155,986

106,404

9,271,838

Changes in equity

Dividends

-

(370,000

)

-

(370,000

)

Total comprehensive income

-

618,928

-

618,928

Balance at 31 October 2025

1,009,448

8,404,914

106,404

9,520,766

1.	STATUTORY INFORMATION

Greenclose Hotels Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable to the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, the principal accounting policies adopted are set out below.

The disclosure requirements of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £1.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Greenclose Hotels Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Greenclose Holdings Limited, whose registered office is: Pennington House, Ridgeway Lane, Lymington, Hampshire, SO41 8AA.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate primarily to the valuation of the defined benefit pension scheme. There are no other areas of critical judgement.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax. Turnover in respect of hotel accommodation and bar and restaurant takings is recognised over the duration of the stay. Turnover in respect of spa and health club memberships is recognised evenly over the duration of the membership.

Goodwill

Goodwill arises in the company due to an intra-group hive up of assets and liabilities from a subsidiary company, Imperial Hotel (Llandudno) Limited, to Greenclose Hotels Limited in a prior year.

Amortisation is charged so as to allocate the cost of goodwill less its residual value over the estimated useful life, using the straight-line method. Goodwill has been fully amortised.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Website development costs are being amortised evenly over their estimated useful life of three years.

Computer software is being amortised evenly over its estimated useful life of three years.

Amortisation charges are included in administrative expenses in the Income Statement.

Tangible fixed assets

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

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

Leasehold property

- Over the period of the lease

Fixtures and fittings

- 6-33% straight line and 15% reducing balance

Computer equipment

- 33% straight line

Motor vehicles

- 25% reducing balance

Long leasehold property has been fully depreciated.

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 recognised in the income statement.

Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the income statement.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are valued using the FIFO basis.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Hire purchase agreements:

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account.

Operating lease agreements:

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits as incurred.

Pension costs and other post-retirement benefits

The company operates a defined benefit pension scheme for employees. The company has adopted the full provisions of FRS102. The standard requires the company to recognise the fair value of the pension scheme's assets and liabilities, net of the associated deferred tax credit. Scheme assets are measured at fair value. Scheme liabilities are measured using the projected unit method, and are discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability.

The Greenclose Pension Fund is a funded scheme and the assets are held separately from those of the company in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities.

The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to the operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the income statement and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on scheme assets is recognised in other comprehensive income. Actuarial gains and losses are recognised immediately in other comprehensive income.

Any defined benefit plan asset is recognised only to the extent that the company expects to be able to recover the surplus either through reduced contributions in the future or through refunds from the plan.

In February 2016, the defined benefit pension scheme was closed to future accrual.

The company also operates a defined contribution pension scheme. Contributions payable to the scheme are charged to profit or loss in the period to which they relate.

Financial assets

The Company has elected to apply the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities

Basic financial liabilities which include trade and other payables, are initially measured at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of the proceeds received net of direct issue costs. Dividend's payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

5,163,883

7,167,366

Social security costs

457,902

550,224

Other pension costs

11,531

384,988

5,633,316

8,102,578

The average number of employees during the year was as follows:

2025

2024

Administration

21

26

Hotel Staff

252

326

273

352

2025

2024

£

£

Directors' remuneration

124,212

276,995

Directors' pension contributions to money purchase schemes

-

14,733

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

-

3

Defined benefit schemes

1

1

4.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

60,767

59,740

Depreciation - owned assets

257,879

408,649

Profit on disposal of fixed assets

(2,147,870

)

-

Website development costs amortisation

13,386

15,637

Computer software amortisation

16,749

14,243

Auditors' remuneration

40,100

38,200

Auditors' remuneration for non audit work

17,016

33,665

Further analysis of the amounts payable to the company's auditors is given below:

2025

2024

£

£

Fees payable to the company's auditor for the audit of the company

and the consolidated financial statements

40,100

38,200

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

- Taxation services

2,950

2,950

- Other services

14,066

30,715

57,116

71,865

5.	EXCEPTIONAL ITEMS

2025

2024

£

£

Provision against intercompany

balance

(301,031

)

-

6.

AMOUNTS WRITTEN OFF INVESTMENTS

2025

2024

£

£

Amounts written off

investments

-

287,465