The Nare Hotel Company Limited

Contents

Strategic Report	1
Directors' Report	2
Statement of Directors' Responsibilities	3
Independent Auditor's Report	4 to 6
Profit and Loss Account	7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 to 23

The Nare Hotel Company Limited

Strategic Report for the Year Ended 31 December 2025

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

Principal activity

The principal activity of the company is that of running a hotel.

Fair review of the business

2025 saw a 2% increase in rooms sold compared to 2024 and room rates decreased by 2% in 2025, mitigating the increase in room sales to leave overall income broadly equal to 2024.

Gross margins decreased by 1% compared to 2024 with gross profit percentage reduced to 86% from 87% in 2024.

Overheads increased by 4% compared to last year. Operating profit decreased by 22% on 2024.

The hotel continues to closely monitor its customer service and maintains its strategy of being service driven to uphold the excellent reputation of the hotel both nationally and internationally.

The company continues to be in a strong net asset position of £14,707,906 (2024 - £14,755,139).

The directors review Key Performance Indicators (KPIs) such as room rates, occupancy rates and wages as a percentage of turnover. These indicators help the directors to maintain profitability and positive operating cash flows. The disclosure of these KPIs is deemed to be prejudicial to the interests of the company.

Principal risks and uncertainties

In line with other hospitality businesses, the principal business risks and uncertainties facing the company surround inflation in the cost of goods and a challenging labour market.

Operational risks continue to arise from the challenging employment environment arising from both Brexit and COVID-19 and a challenging supply chain. The company is mitigating these risks by constantly updating its staff recruitment and retention policy, and securing bulk supplies where possible.

The company mitigates general risks and uncertainties through good communication with long-standing customers and continued investment in the hotel to maintain the high standards on which its reputation is built.

The company's trading activities also expose it to a number of financial risks, including cash flow and overall liquidity risk. The company manages this through the tight control of costs and regular cash flow reviews.

Approved by the Board on 9 September 2026 and signed on its behalf by:

......................................... Mr T G H Ashworth Director

The Nare Hotel Company Limited

Directors' Report for the Year Ended 31 December 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Directors of the company

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

Mr T G H Ashworth

Mrs K A Ashworth

Mr M Ashley Miller (ceased 31 August 2025)

Mr T Riley (ceased 24 June 2025)

The following director was appointed after the year end:

Mr Liam Chamberlain (appointed 1 January 2026)

Going concern

The financial statements have been prepared on a going concern basis. The Directors acknowledge the Parents net current liability position as at the year end of £874,503 (2024 - £874,503). This is as a result of intercompany debt and the director's have satisfied themselves on the validity of applying the going concern basis of preparation as assurances have been given to its parent that the amount owed to them can be called upon for repayment should it impact the going concern of the company.

Financial risk management objectives and policies

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

Disclosure of information to the auditors

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

Approved by the Board on 9 September 2026 and signed on its behalf by:

......................................... Mr T G H Ashworth Director

The Nare Hotel Company Limited

Statement of Directors' Responsibilities

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

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

•	make judgements and accounting estimates that are reasonable and prudent;

•	state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

The Nare Hotel Company Limited

Independent Auditor's Report to the Members of The Nare Hotel Company Limited

Opinion

We have audited the financial statements of The Nare Hotel Company Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Statement of 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 December 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 auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

The Nare Hotel Company Limited

Independent Auditor's Report to the Members of The Nare Hotel Company Limited

Opinion on other matter prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

•	adequate accounting records have not been kept, 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 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Nare Hotel Company Limited

Independent Auditor's Report to the Members of The Nare Hotel Company Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.

Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

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

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

Use of our report

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

......................................
James Barrett (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
PL1 3GW

9 September 2026

The Nare Hotel Company Limited

Profit and Loss Account

Year Ended 31 December 2025

	Note	2025  £	2024  £
Turnover	3	5,776,498	5,748,826
Cost of sales		(819,912)	(721,695)
Gross profit		4,956,586	5,027,131
Administrative expenses excluding depreciation costs		(4,147,498)	(3,988,634)
Operating profit before depreciation costs		809,088	1,038,497
Depreciation costs		(367,999)	(347,334)
Operating profit	4	441,089	691,163
Other interest receivable and similar income	8	3,719	14,688
Interest payable and similar charges	9	(276,086)	(315,963)
Profit before tax		168,722	389,888
Taxation	10	(42,300)	(97,874)
Profit for the financial year		126,422	292,014

The above results were derived from continuing operations.

The Nare Hotel Company Limited

Statement of Comprehensive Income

Year Ended 31 December 2025

	2025  £	2024  £
Profit for the year	126,422	292,014
Deferred tax movement on revalued fixed assets	16,301	16,301
Total comprehensive income for the year	142,723	308,315

The Nare Hotel Company Limited

Balance Sheet

31 December 2025

	Note	2025 £	2024 £
Fixed assets
Tangible assets	11	20,384,879	20,633,946
Current assets
Stocks	12	167,038	187,211
Debtors	13	6,968,233	6,931,673
Cash at bank and in hand		1,000,304	1,104,156
		8,135,575	8,223,040
Creditors: Amounts falling due within one year	14	(7,585,379)	(7,605,233)
Net current assets		550,196	617,807
Total assets less current liabilities		20,935,075	21,251,753
Creditors: Amounts falling due after more than one year	14	(3,624,178)	(3,835,174)
Provisions for liabilities	17	(2,602,991)	(2,661,440)
Net assets		14,707,906	14,755,139
Capital and reserves
Called up share capital		10,700	10,700
Share premium reserve		1,532,077	1,532,077
Fair value reserve		6,986,306	7,035,208
Profit and loss account		6,178,823	6,177,154
Shareholders' funds		14,707,906	14,755,139

Approved and authorised by the Board on 9 September 2026 and signed on its behalf by:
 

......................................... Mr T G H Ashworth Director

Company Registration Number: 02323722

The Nare Hotel Company Limited

Statement of Changes in Equity

Year Ended 31 December 2025

	Share capital £	Share premium £	Fair value reserve £	Profit and loss account £	Total £
At 1 January 2025	10,700	1,532,077	7,035,208	6,177,154	14,755,139
Total comprehensive income	-	-	16,301	126,422	142,723
Dividends	-	-	-	(189,956)	(189,956)
Transfers	-	-	(65,203)	65,203	-
At 31 December 2025	10,700	1,532,077	6,986,306	6,178,823	14,707,906