The board presents their annual report and financial statements for the year ended 31 December 2025.
The company’s performance during the year was broadly in line with expectations, given the ongoing challenges within the hospitality sector. Total turnover for the year was 3.1% lower than in 2024, primarily due to a disappointing performance in the first half of the year. However, trading improved in the second half, which outperformed the equivalent period in 2024. As a result, Operating loss increased compared with the prior year.
Both Rooms and Food & Beverage revenues underperformed against 2025 in the first half of the year, but showed marked improvement during the second half. The leisure segment continues to be impacted by the cost-of-living crisis, with discretionary consumer spending remaining constrained. In response, management diversified its market focus and implemented operational changes to better accommodate corporate business and social meetings and events. This strategic shift helped to mitigate midweek trading gaps and contributed to stabilising overall revenue.
The business continues to undertake regular reviews and forecasts of its cost base. Key cost drivers remain payroll and food costs, both of which have been significantly affected by inflation. Wage growth has been influenced by increases in the National Minimum Wage, as well as ongoing labour market pressures. These increases have been partially offset through the restructuring of the management team and the introduction of enhanced controls over wage growth and labour efficiency.
The business actively manages its exposure to key risks through established financial risk management strategies.
Revenue Risk
Revenue risk is managed by optimising the balance between price point and occupancy levels. Robust revenue management practices, including daily competitor benchmarking, are in place.
Price volatility in food and beverage operations poses a risk, particularly when inflationary pressures cannot be passed on to the customer. This is mitigated through daily ordering based on forecasted demand to reduce waste, and by using flexible, adaptable menus.
Credit Risk
Credit risk exposure remains low, as the majority of revenue is received in advance or at the point of service. Where credit is extended, it is limited to clients that meet established credit criteria.
Cost Base Risk
Labour costs are managed through compliance with statutory wage regulations and optimised rota planning. Food price inflation continues to impact margins, which is mitigated through detailed menu costing, waste minimisation, and sourcing high-quality yet cost-effective ingredients. Supplier negotiations for advance purchase terms also help to secure better pricing, balanced against cashflow considerations.
Energy remains the largest non-direct cost. Timely renewal of energy contracts is crucial, as favourable pricing typically requires longer-term commitments. The business closely monitors contract renewal timelines, sets consumption targets, and implements best practices to reduce energy usage.
Liquidity Risk
Cashflow is monitored on a weekly basis. With most revenue collected on a cash basis, forecasting is relatively accurate and allows alignment with payroll and supplier payment schedules.
The outlook for 2026 remains challenging as economic instability continues to influence trading conditions. However, management expects the benefits of 2025's strategic sales initiatives, aimed at increasing midweek corporate and weekend leisure business, to positively impact performance in the latter half of the year.
Notable developments during the year included further reductions in the operational cost base and enhancements to sales and marketing capabilities. The Relais Henley’s signature restaurant was also rebranded and relaunched in partnership with a well-known local chef, supporting the overall positioning of the business.
While the trading environment remains uncertain, the company is focused on maintaining strict cost control while actively pursuing new and alternative revenue streams. In the longer term, as the leisure market recovers, the business is well positioned to capitalise on emerging opportunities and drive sustained profitability.
THE RED LION HOTEL (HENLEY) LIMITED
KPIs | 2025 | 2024 | |
Gross profit margin | 20% | 24% | |
Operating profit margin | (59%) | (41%) | |
Accommodation revenue % Turnover | 57% | 56% | |
Food and Beverage revenue % Turnover | 40% | 40% | |
Administration expense % Turnover | 79% | 64% | |
Employee expense % Turnover | 70% | 63% | |
THE RELAIS HENLEY HOLDING LIMITED
KPIs | 2025 | 2024 |
Gross profit margin | 20% | 24% |
Operating profit margin | (79%) | (41%) |
Accommodation revenue % Turnover | 57% | 56% |
Food and Beverage revenue % Turnover | 40% | 40% |
Administration expense % Turnover | 101% | 64% |
Employee expense % Turnover | 70% | 63% |
NOTE: differences in administrative expenses between entities
The business remains committed to delivering a high-quality hospitality experience for both guests and the local community. This commitment is underpinned by ongoing investment in both its physical assets and its team. Opportunities to further enhance and promote the success of The Relais Henley are regularly reviewed and aligned with evolving market demands.
Promoting the Success of the Company
The director has a strong understanding of the business and the dynamic environment in which it operates, supported by extensive experience in the hospitality industry. The strategy set by the board aims to strengthen the group’s position and brand presence within the local market.
The director recognises that employees of The Red Lion Hotel (Henley) Limited are fundamental to achieving the company’s objectives and strategic ambitions. The ongoing success of the business depends on attracting, retaining, and motivating a skilled and engaged workforce. As a responsible employer, the company considers the impact of its decisions on employees and the broader workforce, taking into account matters such as pay, benefits, health and safety, and the overall working environment.
Successful delivery of the group’s strategy also depends on strong collaboration with other entities within the wider group. Strategic decisions and objectives are made with due consideration to the needs of the group as a whole and the support it provides.
On behalf of the board
The board presents their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 12.
No ordinary dividends were paid. The board do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Verallo, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The Relais Henley Holding Limited have an unsecured revolving facility held with The International Stock Exchange of up to £30 million, which can be drawn upon to help support The Red Lion Hotel (Henley) Limited. At 31 December 2025 had been utilised to the value of £12,738,456 (2024 - £10,703,456), and does not fall payable until 2045.
We have audited the financial statements of The Relais Henley Holding Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
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 group’s and the parent company’s ability to continue as a going concern for a period of at least twelve months from the date of approval of the financial statements.
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.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the board and other management (as required by auditing standards), the policies and procedures regarding compliance with laws and regulations;
we considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
we considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
we considered the procedures and controls that the parent company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: //https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and-ethics/auditors-responsibilities-for-the-audit. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The notes on pages 18 to 38 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,948,371 (2024 - £1,559,242 loss).
The Relais Henley Holding Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales, company registration no. 12871082. The registered office is Century House, Wargrave Road, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 2LT.
The group consists of The Relais Henley Holding Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The parent company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel and disclosure of transactions between wholly owned members of the group have not been included.
The consolidated group financial statements consist of the financial statements of the parent company The Relais Henley Holding Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the balance sheet date the group and company's current liabilities exceeded its current assets by £6,523,550 (2024 - £6,631,340) and £6,081,825 (2024 - £6,168,455) respectively, and its total net liabilities equaled £10,947,691 (2024 - £8,464,291) and £10,820,281 (2024 - £7,871,911) respectively. The board has prepared the financial statements on a going concern basis, which assumes the group and company will continue in operational existence, and will be able to meet its liabilities as they fall due, for a period of at least twelve months from the date of approval of the financial statements.
In reaching this conclusion, the board has reviewed the budgets and forecasts for the foreseeable future and has considered the support obtained from the group's parent company, that the £2,760,971 (2024 - £3,695,971) amounts owed to the parent company, along with £3,304,157 accrued interest in relation to the Eurobond, will not be recalled for the foreseeable future, to the detriment of the group and company's creditors. The parent company has further pledged to provide financial support to the group to enable it to meets its financial obligations for a period of 12 months from the approval of the financial statements.
The board continues to review the impact of economy on the operations and financial position of the group.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Sale of accommodation
The contract to provide accommodation is established when the customer books accommodation. The performance obligation is the right to use accommodation for a given number of nights, and the transaction price is the room rate for each night determined at the time of the booking. The performance obligation is met when the customer is given the right to use the accommodation, and so revenue is recognised for each night as it takes place, at the room rate for that night.
Customers may pay in advance for accommodation. In this case the company has received consideration for services not yet provided. This is treated as a contract liability until the performance obligation is met.
Sale of food and beverage
The contract is established when the customer orders the food or drink item and the performance obligation is the provision of food and drink by the outlet. The performance obligation is satisfied when the food and drink is delivered to the customer, and revenue is recognised at this point at the price for the items purchased.
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 profit and loss account.
Land is not subject to depreciation.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors 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.
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.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, and loans from fellow group companies, 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the group 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 group.
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 fixed 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Reserves
The group and company’s reserves are as follows:
Called up share capital reserve represents the nominal value of the shares issued.
Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.
In the application of the group’s accounting policies, the board are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The directors exercised judgement in determining that the continuing losses and net liability position of The Red Lion Hotel (Henley) Limited constituted indicators of impairment and that a detailed assessment of the recoverable amount of the group's hotel property and the company's loan receivable from the subsidiary undertaking was required.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The company depreciates its tangible fixed assets over their estimated useful lives, taking into account their residual values. These estimates are based on management’s experience with similar assets, industry practice, and expectations regarding future use and technological developments.
The determination of useful lives and residual values involves a degree of judgement. Actual outcomes may differ, particularly if asset utilisation or market conditions change significantly. If useful lives were to change by one year in either direction, the annual depreciation charge would change by approximately £68,175.
The directors assessed the recoverability of the group's hotel property and the company's loan receivable from The Red Lion Hotel (Henley) Limited.
The assessment was prompted by the continuing operating losses and net liability position of the subsidiary. In assessing recoverable amount, the directors considered forecast trading performance, cash flow projections, an independent external valuation and other market evidence available at the reporting date.
The external valuation was prepared as at 30 November 2025. Having considered additional market evidence and comparable property data available at the reporting date, the directors concluded that a valuation of £8 million was appropriate and the property impaired accordingly.
As a result of this assessment, impairment provisions were recognised against the company's loan receivable from its subsidiary undertaking and against the carrying value of the hotel property within the consolidated financial statements.
The assessment remains sensitive to future trading performance, hotel occupancy levels, operating margins, financing conditions and market property valuations. Accordingly, actual outcomes may differ from those estimated. Should future trading performance and market conditions improve beyond those reflected in the current assessment, this may support the reversal of impairment losses in future periods where permitted under FRS 102.
The directors reviewed the recoverability of the loan due from The Red Lion Hotel (Henley) Limited and recognised an impairment charge of £2,016,727 during the year. The assessment incorporated forecast trading performance, cash flow projections, an independent external valuation and other market evidence available at the reporting date.
Following an impairment review, the directors recognised an impairment charge of £360,848 against the carrying value of the hotel property. The recoverable amount was determined using the valuation and assumptions described above.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
At 31 December 2025 the trading company had tax losses amounting to £7,178,476 (2024 - £6,037,509), of which £2,475,956 (2024 - £2,480,581) has been utilised to offset the deferred tax liability of £618,989 (2024 - £731,832) in relation to accelerated capital allowances. A balance of £4,702,520 (2024 - £3,556,928) remains available to be carried forward and offset against future trading profits.
No deferred tax asset has been recognised in respect of the unutilised trading losses and capital losses, as recovery is dependent upon the generation of future taxable profits and chargeable gains, the timing and amount of which cannot be determined with sufficient certainty.
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
More information on impairment movements in the year is given in note 11.
The carrying value of land and buildings comprises of land valued at £2,348,101.
Impairment Review
During the year, the directors performed an impairment review in respect of the hotel property due to the continued operating losses and net liability position of the subsidiary. In assessing recoverable amount, the directors considered forecast trading performance, cash flow projections, an independent external valuation and other market evidence available at the reporting date.
The external valuation was prepared as at 30 November 2025. Having considered additional market evidence and comparable property data available at the reporting date, the directors concluded that a valuation of £8 million was appropriate and the property impaired accordingly.
As the carrying value of the property exceeded the estimated recoverable amount, the directors recognised an impairment charge of £360,848 within operating expenses.
On 2 October 2020 the group acquired 100% of the issued capital of The Red Lion Hotel (Henley) Limited.
The loans to subsidiaries are repayable on demand as the company has agreed to support for a period of 12 months, therefore it is shown as a non-current fixed asset investment. This has not been amortised as this is considered to be one year and one day.
Impairment of Loan Receivable
During the year, the directors reviewed the recoverability of the loan due from The Red Lion Hotel (Henley) Limited in accordance with Sections 11 and 12 of FRS 102.
The loan is unsecured and its recoverability is dependent upon the financial position and future profitability of the borrower. In assessing recoverability, the directors considered the subsidiary's net asset position, forecast future trading performance and available evidence regarding the value of the underlying hotel property.
The external valuation was prepared as at 30 November 2025. Having considered additional market evidence and comparable property data available at the reporting date, the directors concluded that a valuation of £8 million was appropriate and the property impaired accordingly.
Following this review, the directors concluded that the recoverable amount of the loan was lower than its carrying value and accordingly recognised an impairment charge of £2,016,727 during the year.
The directors consider the remaining carrying value of the loan to be recoverable based on the estimated recoverable amount of the underlying business at 31 December 2025.
Details of the company's subsidiaries at 31 December 2025 are as follows:
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.
The amounts owed to group undertakings are unsecured, interest-free and repayable on demand.
The long term creditor represents listed notes on The International Stock Exchange, to the value of £12,738,456 (2024 - £10,703,456). The loan notes of the Eurobond are held by a company related by mutual controlling parties. The Eurobond has an unsecured revolving facility of up to £30 million. The bond is not repayable until 2045 and is subject to interest at 7% per annum of the amount drawn.
The provision represents expected repairs and maintenance costs of the building to be settled within the next 12 months. The basis has been applied at 4% of turnover, which the board believe represents the value to repair the property to its current condition.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The Company has one class of ordinary shares which carry full voting rights.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company had no commitments under non-cancellable operating leases as at the balance sheet date
The company has taken advantage of the exemption allowed under FRS 102 s.33 1A not to disclose transactions with wholly owned members of the group.
During the year the company had consultancy costs with a company with a common director totaling £43,000 (£nil).
During the period, the company had transactions of £nil (2024 - £113,333) with a director as a result of reversal of management fees. At the balance sheet date, the total owed amounted to £nil (2024 - £1,810) in accruals. No interest is charged on the balance.