REGISTERED NUMBER: 11203032 (England and Wales)

LANGSTONE QUAYS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

Mrs S Bansal

Dr A Bansal

Mr C R Jenno

Mrs P J Walker

REGISTERED OFFICE:

Lion Quays Hotel Limited

Weston Rhyn

Gobowen

Oswestry

SY11 3EN

REGISTERED NUMBER:

11203032 (England and Wales)

AUDITORS:

FWC Advisory Ltd

29 Wood Street

Stratford-Upon-Avon

Warwickshire

CV37 6JG

The directors present their strategic report for the year ended 30 November 2025.

REVIEW OF BUSINESS

The year ended 30 November 2025 represented a period of stabilisation and recovery for Langstone Quays Resort following the operational and trading challenges experienced in prior years.

Whilst the wider hospitality sector continued to experience inflationary pressures affecting payroll, utilities, food costs and consumer spending, the Group delivered an improved trading performance through disciplined cost management, enhanced revenue management and continued focus on operational efficiency.

During the year management continued to strengthen operational controls, improve labour efficiency and develop revenue opportunities across accommodation, food and beverage, weddings, conferences and leisure operations. Continued investment in digital marketing and revenue management supported occupancy and average room rate despite a challenging market.

Turnover increased to £4.87 million (2024: £4.82 million), whilst operating profit increased from £301,765 to £369,084. Profit before taxation also increased to £369,084 (2024: £301,555), reflecting improved commercial performance and continued focus on operational efficiency. Net assets increased from £4.74 million to £5.11 million during the year.

Key Performance Indicators

The directors monitor performance using the following key performance indicators:

o Revenue - monitored to assess overall trading performance across accommodation, leisure and ancillary operations.

o Average Room Rate (ARR) - used to measure achieved room pricing and yield management performance.

o EBITDA - used to evaluate underlying operational performance and cash generation.

o Gross Margin - reviewed to assess pricing, purchasing efficiency and supplier management.

o Cash Flow - monitored to ensure sufficient liquidity to meet operational requirements and capital commitments.

o Net Debt and Covenant Compliance - reviewed regularly in relation to banking facilities and financial resilience.

The directors consider these KPIs to provide an appropriate assessment of trading performance, financial efficiency and liquidity.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's principle risks continue to include operating within a sector exposed to economic uncertainty, inflationary pressures, changing consumer spending patterns and labour market challenges.

The directors actively manage these risks through detailed forecasting, close monitoring of working capital, disciplined cost control and selective investment in facilities and technology.

The Group also remains exposed to interest rate movements and financing risk. During the year the directors continued to engage with funding partners regarding the long-term financing structure of the business.

ON BEHALF OF THE BOARD:

Mrs P J Walker - Director

19 August 2026

The directors present their report with the financial statements of the company for the year ended 30 November 2025.

PRINCIPAL ACTIVITY

The principal activity of the company continued to be the ownership and operation of Langstone Quays Resort, providing hotel accommodation, conferencing, weddings, leisure, and hospitality services.

DIVIDENDS

No dividends will be distributed for the year ended 30 November 2025.

FUTURE DEVELOPMENTS

Whilst no significant capital developments are currently planned, the Group has made provision for essential repairs and maintenance outside of routine operational expenditure to ensure the continued quality of its facilities.

DIRECTORS

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

Mrs S Bansal

Dr A Bansal

Mr C R Jenno

Mrs P J Walker

PRICE RISK, CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK

The company aims to mitigate liquidity risk and cash flow risk by managing working capital, and as a result, it continues to closely monitor the working capital requirements. In addition, the directors continue to work with the company’s bank to ensure that these working capital requirements are met.

OBJECTIVES AND POLICIES

The company's objective is to deliver high-quality guest experiences while working towards sustainable and profitable growth. Policies focus on service quality, staff development, customer satisfaction, prudent financial management, cost control and risk management. These policies are reviewed regularly by the directors.

GOING CONCERN

The directors have considered the Company's financial position, forecast cash flows and banking arrangements when assessing the Company's ability to continue as a going concern.

During the year, certain financial covenants under the Company's banking facilities were not met. These matters have been discussed with Punjab National Bank, which has confirmed

its ongoing support for the Company and its commitment to progressing the refinancing of the Group's banking facilities.

The directors have prepared forecasts which indicate that the Company is expected to have sufficient resources to meet its obligations as they fall due.

MEDIUM-SIZED COMPANIES EXEMPTION

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

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.

AUDITORS

The auditors, FWC Advisory Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs P J Walker - Director

19 August 2026

Opinion

We have audited the financial statements of Langstone Quays Limited (the 'company') for the year ended 30 November 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 30 November 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 page four, 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.

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 group and the parent company through discussion with the directors and from our general commercial experience. The identified laws and regulations were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.

The group and parent company are subject to laws and regulations which have a direct effect on the financial statements and the disclosures contained therein. These have been identified as: the financial reporting framework under which the group and company operates - Financial Reporting Standard 102; Statutory Instrument 2008/410 - The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008; the Companies Act 2006 and taxation legislation including pay as you earn; value added tax; corporation tax and pensions legislation.

In addition to the above, the group and parent company are subject to other operational laws and regulations where non-compliance may have a material effect on the financial statements. Non-compliance of such laws and regulations may result in litigation, the imposition of fines or the closure of the business which could have a material impact on amounts or disclosures in the financial statements. We have identified the following laws and regulations which are more likely to have significant effect as: compliance with licencing laws; food hygiene laws; health and safety laws; General Data Protection Regulation (GDPR) and employment law.

Audit procedures designed to respond to the risks of material misstatement due to irregularities, including fraud:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statements items including a review of financial statements disclosures. We reviewed the group and parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the group and parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the senior statutory auditor drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to possible indication of management bias. At the completion stage of the audit, the senior statutory auditor's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

Auditing standards limit the audit procedures required to identify non-compliance with other operational laws and regulations to enquiry of directors and management and inspection of any correspondence. If a breach of operational regulations is not evident from relevant correspondence or disclosed to us, an audit is unlikely to detect that breach. In addition, the further removed non-compliance with laws and regulations is from the events and transactions included in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting to an error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Due to the inherent limitations of an audit, there is an unavoidable risk that, despite properly planning and performing our audit in accordance with accounting standards, some material misstatements may not have been detected.

In addition, the risk of not detecting material misstatement from due to fraud is higher than the risk of one not being detected through error as fraud may involve deliberate concealment through collusion, forgery, misrepresentations and intentional omissions.

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.

Michelle Vincent (Senior Statutory Auditor)

for and on behalf of FWC Advisory Ltd

29 Wood Street

Stratford-Upon-Avon

Warwickshire

CV37 6JG

19 August 2026

TURNOVER

4

4,874,620

4,815,655

Cost of sales

(2,889,829

)

(2,828,526

)

GROSS PROFIT

1,984,791

1,987,129

Administrative expenses

(1,615,707

)

(1,685,364

)

OPERATING PROFIT

6

369,084

301,765

Interest payable and similar expenses

8

-

(210

)

PROFIT BEFORE TAXATION

369,084

301,555

Tax on profit

9

2,322

(206

)

PROFIT FOR THE FINANCIAL YEAR

371,406

301,349

PROFIT FOR THE YEAR

371,406

301,349

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

371,406

301,349

FIXED ASSETS

Tangible assets

10

238,196

256,384

CURRENT ASSETS

Stocks

11

39,896

39,465

Debtors

12

7,760,640

7,063,476

Cash at bank and in hand

11,320

29,643

7,811,856

7,132,584

CREDITORS

Amounts falling due within one year

13

2,895,933

2,603,933

NET CURRENT ASSETS

4,915,923

4,528,651

TOTAL ASSETS LESS CURRENT LIABILITIES

5,154,119

4,785,035

PROVISIONS FOR LIABILITIES

16

38,708

41,030

NET ASSETS

5,115,411

4,744,005

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

5,115,311

4,743,905

SHAREHOLDERS' FUNDS

5,115,411

4,744,005

The financial statements were approved by the Board of Directors and authorised for issue on 19 August 2026 and were signed on its behalf by:

Mrs P J Walker - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2023

100

4,442,556

4,442,656

Changes in equity

Total comprehensive income

-

301,349

301,349

Balance at 30 November 2024

100

4,743,905

4,744,005

Changes in equity

Total comprehensive income

-

371,406

371,406

Balance at 30 November 2025

100

5,115,311

5,115,411

1.	STATUTORY INFORMATION

Langstone Quays 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.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal place of business is Langstone Hotel, Northney Road, Hayling Island, PO11 0NQ.

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 in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions 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;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

The financial statements of the company are consolidated in the financial statements of Langstone Quays Hotel Limited. These consolidated financial statements are available from its registered office, Lion Quays Hotel & Spa, Weston Rhyn, Gobowen, Oswestry, Shropshire, SY11 3EN.

Going concern

The directors have considered the financial position of the company and its ability to continue as a going concern. The company is reliant on the support of its directors, bankers, and other related parties to meet its liabilities as they fall due. Excluding, the amounts due to the company by its parent undertaking, the company has net liabilities of £2,356,086, of which £1,814,268 (page 22) are due to related parties which are not payable on demand. The parent company holds the freehold from which the company trades along with the bank borrowings. The consolidated position of the group shows a loss before tax of £3,010,998 for the year ended 30 November 2025. Excluding the impairment charge recognised during the year, the Group would have reported a loss before tax of £487,953, compared to a loss before tax of £741,954 for the previous year, reflecting improved commercial performance and continued focus on operational efficiency. However, the directors have a reasonable expectation that the group will continue to operate and meet its liabilities as they fall due, with the continued support of the investors and lenders, and therefore, the financial statements have been prepared on a going concern basis.

Revenue

Revenue 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 fairvalue of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue is recognised as follows:

Rooms

Revenue is recognised when the rooms are occupied.

Food and beverages

Revenue is recognised at the point of sale, when the food and beverages have been provided.

Health club and spa memberships

Revenue is recognised over the period of membership.

Health club and spa treatments and products

Revenue is recognised when the goods or service has been provided.

Deferred revenue consisting of deposits paid in advance are recognised on the day that services are

performed.

Tangible fixed assets

Property, plant and equipment are initially measured at cost and subsequently 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:

Asset Class

Depreciation method and rate

Plant and machinery

20% straight line

Fixture and fittings

10% - 25% straight line

Office equipment

20% - 25% straight line

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.

Impairment of non-current assets

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 is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of

inventories 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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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 financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as

reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. 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

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 goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Pension costs and other post-retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Rooms

2,362,758

2,258,977

Food and beverages

2,038,849

2,067,254

Healthclub and spa

357,651

366,911

Other

115,362

122,513

4,874,620

4,815,655

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

4,874,620

4,815,655

4,874,620

4,815,655

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,949,033

1,933,597

Social security costs

160,269

118,303

Other pension costs

29,910

28,290

2,139,212

2,080,190

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

2025

2024

Hotel & Front of House Services

92

95

Management and Admin

10

11

Leisure Club

7

6

109

112

Included in costs above is £297,258 (30 November 2024 - £277,388) of employee costs recharged to the company from a related party hotel.

2025

2024

£

£

Directors' remuneration

81,958

79,996

The remuneration for the period ended 30 November 2025 is in respect of directors' salary recharged from a related party hotel.

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Equipment hire

10,749

11,769

Depreciation - owned assets

68,171

73,870

7.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

9,000

9,000

For other services

Taxation compliance services

1,000

1,000

All other non-audit services

5,000

5,000

6,000

6,000

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest

-

210

9.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2025

2024

£

£

Deferred tax

(2,322

)

206

Tax on profit

(2,322

)

206

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

369,084

301,555

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

92,271

75,389

Effects of:

Depreciation in excess of capital allowances

5,234

3,936

Group relief

(97,505

)

(78,782

)

Other adjustment

-

(543

)

Deferred tax charge (credit)

(2,322

)

206

Total tax (credit)/charge

(2,322

)

206

10.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Office

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 December 2024

24,975

618,822

211,015

854,812

Additions

42,625

15,515

(3,157

)

54,983

Reclassification/transfer

-

(5,000

)

-

(5,000

)

At 30 November 2025

67,600

629,337

207,858

904,795

DEPRECIATION

At 1 December 2024

5,475

397,456

195,497

598,428

Charge for year

5,545

55,956

6,670

68,171

At 30 November 2025

11,020

453,412

202,167

666,599

NET BOOK VALUE

At 30 November 2025

56,580

175,925

5,691

238,196

At 30 November 2024

19,500

221,366

15,518

256,384

Property, plant and equipment with a carrying amount of £238,196 (2024 - £256,384) have been pledged to secure bank borrowings of the parent company. Additional information is given in note 20.

11.

STOCKS

2025

2024

£

£

Stocks

39,896

39,465

The carrying amount of inventories includes £39,896 (2024 - £39,465) have been pledged to secure bank borrowings of the parent company. Additional information is given in note 20.

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

119,781

113,341

Amounts owed by group undertakings

7,469,175

6,854,761

Other debtors

25,946

25,000

Prepayments and accrued income

145,738

70,374

7,760,640

7,063,476

The carrying amount of trade and other receivables includes £7,760,640 (2024 - £7,063,476) have been pledged to secure bank borrowings of the parent company. Additional information is given in note 20.