ACCOUNTS - Final Accounts

Operating loss

The operating loss is stated after charging:

Registered number: 02850880

Q.N. HOTELS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Q.N. HOTELS LIMITED

COMPANY INFORMATION

Directors	Q Ahmed
	N Ahmed


Company secretary	Q Ahmed


Registered number	02850880


Registered office	QN House
	Unit 4 Loughton Business Centre
	5 Langston Road
	Loughton
	Essex
	IG10 3FL


Independent auditors	Haslers Assurance LLP
	Chartered Accountants & Senior statutory auditor
	Old Station Road
	Loughton
	Essex
	IG10 4PL

Q.N. HOTELS LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2
Directors' responsibilities statement	3
Independent auditors' report	4 - 7
Statement of comprehensive income	8
Balance sheet	9
Statement of changes in equity	10
Notes to the financial statements	11 - 26

Q.N. HOTELS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

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

Business review

Turnover in the Company increased by 4.2% (2024: 3%). This was despite some rooms being unavailable due to refurbishment. Inflationary pressures remained during the year; however, the Company managed to keep these below inflation.

The Company made a pre-tax loss of £223,994 (2024: £1,005,933 loss).

Future Developments

The Company is not planning any significant capital expenditure in the next 12 months.

Principal risks and uncertainties

The principal risks and uncertainties facing the business (apart from those associated with a general economic downturn) relate to the management of cash and borrowing requirements.

Key performance indicators

In the opinion of the directors, the key performance indicators are occupancy, average room rate and revenue per available room.

This report was approved by the board on 23 September 2026 and signed on its behalf.

Q Ahmed

Director

Page 1

Q.N. HOTELS 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.

Results and dividends

The loss for the year, after taxation, amounted to £192,445 (2024 - loss £1,005,933).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

Q Ahmed

N Ahmed

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, Haslers Assurance LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 September 2026 and signed on its behalf.

Q Ahmed

Director

Page 2

Q.N. HOTELS LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2025

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 to 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.

Page 3

Q.N. HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED

Opinion

We have audited the financial statements of Q.N. Hotels Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, 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 loss 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 United Kingdom, including the Financial Reporting Council'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.

Page 4

Q.N. HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 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.

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 Directors' report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement 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.

Page 5

Q.N. HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED (CONTINUED)

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 an Auditors' 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:

Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Companies Act 2006, GDPR, Employment and Health & Safety legislation, tax legislation.

We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations.

We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below:

The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates.

Procedures performed to address these were as follows:

• Walkthrough testing was carried out to identify and assess the design effectiveness of controls management have in place to prevent and detect fraud, including known of suspected instances or non- compliance with laws and regulations and fraud,

• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,

• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatements due to fraud,

• Assessing the appropriateness of accounting estimates and challenging any significant assumptions or
judgements made by management,

• Incorporating testing of manual journal entries that were posted throughout the year. In particular, we focused on material journal entries, round sum journal entries, unauthorised journals, and journal entries posted outside normal business working hours. These were scrutinised for evidence of unusual entries.

Page 6

Q.N. HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED (CONTINUED)

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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' 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 Auditors' 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.

Matthew Wells ACA (Senior statutory auditor)

for and on behalf of

Haslers Assurance LLP

Chartered Accountants

Senior statutory auditor

Old Station Road

Loughton

Essex

IG10 4PL

23 September 2026

Page 7

Q.N. HOTELS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	3,769,914	3,627,554
Cost of sales		(2,228,880)	(2,221,408)
Gross profit		1,541,034	1,406,146
Administrative expenses		(1,626,934)	(1,801,541)
Exceptional administrative expenses		-	(337,201)
Other operating income	5	47,162	33,521
Operating loss	6	(38,738)	(699,075)
Interest payable and similar expenses	9	(185,256)	(306,858)
Loss before tax		(223,994)	(1,005,933)
Tax on loss	10	31,549	-

Total comprehensive income for the year

(192,445)

(1,005,933)

The notes on pages 11 to 26 form part of these financial statements.

Page 8

Q.N. HOTELS LIMITED

REGISTERED NUMBER: 02850880

BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	12		16,000		17,250
Tangible assets	13		5,386,477		5,229,166
Investments	14		1,394,536		1,394,536
			6,797,013		6,640,952
Current assets
Stocks	15	20,328		22,286
Debtors: amounts falling due within one year	16	6,452,587		6,326,502
Cash at bank and in hand	17	136,075		198,931
		6,608,990		6,547,719
Creditors: amounts falling due within one year	18	(5,985,211)		(5,794,533)
Net current assets			623,779		753,186
Total assets less current liabilities			7,420,792		7,394,138
Provisions for liabilities
Deferred tax	20	(219,099)		-
Net assets			7,201,693		7,394,138

Capital and reserves
Called up share capital	21	1,000,000	1,000,000
Share premium account	22	17,476,650	17,476,650
Revaluation reserve	22	322,979	322,979
Profit and loss account	22	(11,597,936)	(11,405,491)
		7,201,693	7,394,138

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2026.

Q Ahmed

Director

The notes on pages 11 to 26 form part of these financial statements.

Page 9

Q.N. HOTELS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Share premium account	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2025	1,000,000	17,476,650	322,979	(11,405,491)	7,394,138
Comprehensive income for the year
Loss for the year	-	-	-	(192,445)	(192,445)
Total comprehensive income for the year	-	-	-	(192,445)	(192,445)
At 31 December 2025	1,000,000	17,476,650	322,979	(11,597,936)	7,201,693

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2024	1,000,000	17,476,650	322,979	(10,399,558)	8,400,071
Comprehensive income for the year
Loss for the year	-	-	-	(1,005,933)	(1,005,933)
Total comprehensive income for the year	-	-	-	(1,005,933)	(1,005,933)
At 31 December 2024	1,000,000	17,476,650	322,979	(11,405,491)	7,394,138

The notes on pages 11 to 26 form part of these financial statements.

Page 10

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Q.N. Hotels Limited is a private company limited by shares incorporated in England and Wales, registration number 02850880. The registered office is Qn House Unit 4 Loughton Business Centre, 5 Langston Road, Loughton, Essex, IG10 3FL. The principal activity of the company continued to be that of Hotelier services.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

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 the 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 Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Q.N. (Holdings) Limited as at 31st December 2025 and these financial statements may be obtained from Companies House.

Page 11

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Going concern

The immediate parent company Q.N. (Holdings) Limited has a bank loan facility with METRO Bank of £7,150,000 of which this company is included within a cross guarantee. Funding drawn under this facility is available for use across the Q.N. (Holdings) Group. The Group's ability to continue as a going concern remains financially dependent upon this bank loan.

In addition, the Group is subject to certain financial and non-financial covenants in respect of its banking arrangements. Should these covenants be breached, this may adversely affect the Group's access to funding and cast significant doubt upon the Group's ability to continue as a going concern. The directors have paid close attention to the cashflow projections over the period to 31 December 2027 and at the time of approving the financial statements, based on the budgets and post year-end results, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Based on the above, the directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Turnover is recognised when services have been rendered, and is derived primarily from the rental of rooms, conference and banqueting, food and beverage sales.

Turnover is derived from hotel operations, and arose wholly in the United Kingdom.

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 12

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Franchise fees

years

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.11

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property	-		See below
Plant and machinery	-	15%	straight line
Fixtures, fittings and equipment	-	15%	straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Long-term leasehold property is held at fair value, determined by external valuers and and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 14

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 15

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Page 16

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

3.	Judgments in applying accounting policies 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.

Key sources of estimation uncertainty
The estimates and assumptions which have a signifcant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of leasehold property
The company has adopted the revaluation model for its land and buildings. At the end of each reporting period, the directors update their assessment of the fair value of each property, taking into account the most recent independent valuations. The directors determine a property’s value within a range of reasonable fair value estimates.

The last formal valuation was carried out in the year to 31 December 2024. This valuation was carried out by an independent RICS Chartered Surveyor. The valuation technique used in arriving at the value of the land and buildings in these financial statements was based on discounted future cash flows as valuers considers this approach to the one most likely to be adopted by potential purchasers. The valuation model considers the present value of net cashflows to be generated by the property taking into account expected rental growth and occupancy rate among other things. The expected net cashflows are discounted using a risk adjusted discount rate. The valuation of property at fair value is a source of significant estimation uncertainty as determining this involves the use of significant assumptions which include the discount rate.

Page 17

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Turnover

An analysis of turnover by class of business is as follows:
	2025	2024
	£	£

Hotelier Activities	3,769,914	3,627,554
	3,769,914	3,627,554

All turnover arose within the United Kingdom.

5.	Other operating income
		2025	2024
		£	£

Other operating income	47,162	33,521
	47,162	33,521

Fees payable to auditors	63,450	63,450
Depreciation	334,027	250,278
Other operating lease rentals	14,236	14,236
Amortisation	1,250	1,250

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

63,450

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Wages and salaries	1,597,889	1,527,971
Social security costs	157,109	111,969
Cost of defined contribution scheme	22,497	21,761
	1,777,495	1,661,701

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Director	2	2
Hotel Service Staff	88	75
Administration and Management staff	8	13

	98	90

9.	Interest payable and similar expenses
		2025	2024
		£	£

	Bank interest payable	185,256	306,858
		185,256	306,858

Page 19

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Corporation tax
Current tax on profits for the year	(250,648)	-

	Deferred tax
	Origination and reversal of timing differences	219,099	-


		(31,549)	-

Loss on ordinary activities before tax

(223,994)

(1,005,932)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	(55,999)	(251,483)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	846	180,916
Capital allowances for year in excess of depreciation	-	(18,330)
Unrelieved tax losses carried forward	55,153	94,359
Other differences leading to an increase (decrease) in the tax charge	(31,549)	(5,462)
Total tax charge for the year	(31,549)	-

Factors that may affect future tax charges

There are group tax losses carried forward to be utilised against future profits.

Page 20

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.	Exceptional items
		2025	2024
		£	£

Director loan write-off	-	399,442
Intercompany loan write-off	-	(62,241)
	-	337,201

12.	Intangible assets

		Franchise fee
		£
	Cost
	At 1 January 2025	25,000
	At 31 December 2025	25,000
	Amortisation
	At 1 January 2025	7,750
	Charge for the year on owned assets	1,250
	At 31 December 2025	9,000
	Net book value
	At 31 December 2025	16,000
	At 31 December 2024	17,250

Page 21

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Tangible fixed assets

	Long-term leasehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 January 2025	4,342,365	1,059,890	4,491,669	9,893,924
Additions	-	9,670	481,668	491,338
At 31 December 2025	4,342,365	1,069,560	4,973,337	10,385,262
Depreciation
At 1 January 2025	-	1,027,383	3,637,375	4,664,758
Charge for the year on owned assets	-	9,255	324,772	334,027
At 31 December 2025	-	1,036,638	3,962,147	4,998,785
Net book value
At 31 December 2025	4,342,365	32,922	1,011,190	5,386,477
At 31 December 2024	4,342,365	32,507	854,294	5,229,166

14.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2025	1,394,536
	At 31 December 2025	1,394,536

Page 22

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

Q.N. Hotels (Aylesbury) Limited	Ordinary shares	100%
Q.N. Hotels (Wrexham) Limited	Ordinary shares	100%
Swanfield Limited	Ordinary shares	100%

Q.N. Hotels (Aylesbury) Limited has been dissolved as of 2nd June 2026

15.	Stocks
		2025	2024
		£	£

Food and drink	20,328	22,286
	20,328	22,286

16.

Debtors

					2025	2024
					£	£


Trade debtors	29,859	124,214
Amounts owed by group undertakings	5,751,488	5,624,287
Other debtors	633,899	544,295
Prepayments and accrued income	37,341	33,706
	6,452,587	6,326,502

17.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	136,075	198,931
Less: bank overdrafts	-	(15,926)
	136,075	183,005

Page 23

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank overdrafts	-	15,926
Trade creditors	423,928	250,049
Amounts owed to group undertakings	5,175,065	4,567,310
Corporation tax	9,177	331,825
Other taxation and social security	101,078	211,295
Other creditors	143,453	249,823
Accruals and deferred income	132,510	168,305
	5,985,211	5,794,533

The company forms part of a cross company guarantee securing the Metro bank borrowings of Q.N. (Holdings) Limited. At 31 December 2025 these borrowings amounted to £7,150,000 (2024: £7,150,000).

The bank has a charge over the leasehold property and other assets of the company in respect of these borrowings.

Finance costs incurred on the Metro loan are borne by the entities over which the bank holds security, apportioned at the market value of the secured properties.

19.	Financial instruments
		2025	2024
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	136,075	198,931

Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.

20.	Deferred taxation

		2025
		£

	Charged to profit or loss	(219,099)
	At end of year	(219,099)

Page 24

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.Deferred taxation (continued)

The deferred taxation balance is made up as follows:
	2025	2024
	£	£

	Accelerated capital allowances	(219,099)	-
		(219,099)	-

21.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

1,000,000 (2024 - 1,000,000) Ordinary shares of £1.00 each	1,000,000	1,000,000

22.

Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs

Revaluation reserve

The revaluation reserve represents cumulative effects of fair value adjustments net of deferred tax and other adjustments

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments

23.	Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £22,497 (2024: £21,761). Contributions totalling £12,475 (2024: £11,559) were payable to the fund at the balance sheet date.

Page 25

Q.N. HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

	Not later than 1 year	19,642	12,886
		19,642	12,886

25.

Related party transactions

The Company has taken advantage of the exemptions conferred in FRS 102 Section 33 not to disclose transactions with other group companies where 100% of the voting rights are controlled within the group.

As at 31 December 2025, amounts due from other companies under common control amounted to £615,471 (2024: £512,860). As at 31 December 2025 directors owed QN Hotels Limited £Nil (2043: £6,212).

Within the year, a connected company was charged £40,000 (2024: £25,000) in respect of management services provided throughout the year.

26.	Controlling party

The immediate and ultimate parent company is Q.N. (Holdings) Limited, a company incorporated in England and Wales.

The ultimate controlling party are Q Ahmed and N Ahmed by virtue of their shareholding.

Page 26