ACCOUNTS - Final Accounts

Operating profit/(loss)

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

Registered number: 09329964

Q.N. (HOLDINGS) LIMITED

CONSOLIDATED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Q.N. (HOLDINGS) LIMITED

COMPANY INFORMATION

Directors	Q Ahmed
	N Ahmed


Registered number	09329964


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


Independent auditors	Haslers Assurance LLP
	Chartered Accountants & Statutory Auditor
	Old Station Road
	Loughton
	Essex
	IG10 4PL

Q.N. (HOLDINGS) LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Directors' report	3
Directors' responsibilities statement	4
Independent auditors' report	5 - 9
Consolidated statement of comprehensive income	10
Consolidated balance sheet	11 - 12
Company balance sheet	13
Consolidated statement of changes in equity	14 - 15
Company statement of changes in equity	16
Consolidated statement of cash flows	17
Consolidated analysis of net debt	18
Notes to the financial statements	19 - 38

Q.N. (HOLDINGS) LIMITED

GROUP 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 group increased by 3.7% (2024: -15%). One of the hotels went through major refurbishment, resulting in some rooms not being available to be used. Inflationary pressures remained during the year; however, the group managed to keep cost increases below the inflation rate.

The group made a pre-tax loss of £409,709 (2024: £1,273,728 loss).

Future Developments

The group is exploring rebranding one of its hotels to another brand in 2026.

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.

Section 172(1) statement

Section 414CZA(1) of the Companies Act 2006 requires the directors to explain how they considered the matters set out in section 172(1) (a) to (f) of the Companies Act 2006 (‘S172 (1)’) when performing their duty to promote the success of the company. When making decisions, each director ensures that they act in the way that would most likely promote the company’s success for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the following matters:

(a) The likely consequences of any decision in the long term

The directors understand the business and the evolving environment in which the company operates, including the challenges of operating in the current inflationary period. The directors are actively looking at ways to reduce its energy costs and consumption.

(b) The interests of the company’s employees

The directors recognise that the success of the business depends on attracting, retaining and motivating high quality employees. The directors take into account the implications of decisions which may affect their perception as a responsible employer, on determining remuneration and benefits, and on providing a healthy and safe workplace environment, where relevant. The company utilises the services of an external company to audit that the company is providing a safe and healthy working environment to its employees. The company hosts a Celebrate Service week which as created to say a big ‘thank you’ to all our colleagues who go above and beyond to deliver True Hospitality. We celebrate and recognise colleagues who make our guests and those we interact with every day, feel welcome and care for, recognised and respected.

Page 1

Q.N. (HOLDINGS) LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

(c) The need to foster the company's business relationships with suppliers, customers and others

The directors seek to promote strong mutually beneficial relationships with suppliers, customers, the regulators and authorities. Such general principles are critical in the delivery of the company’s strategy. The Company has strong relationships with suppliers by adhering to the payment terms. The loyalty programmes insures that the customer feels valued and rewarded for his business.

(d) The impact of the company’s operations on the community and the environment

The company is committed to understanding the interests of these stakeholder groups. The directors receive information on these topics on a periodic basis to provide relevant information for specific board decisions. The company participates in the Green Engage programme and is committed to reducing its carbon footprint.

(e) The desirability of the company maintaining a reputation for high standards of business conduct

The directors recognise the importance of acting in ways which promote high standards of business conduct. The board periodically reviews and approves clear operating frameworks to ensure that its high standards are maintained both within the businesses and the business relationships the company has with stakeholders. As a result of these reviews it was felt important to carry out the Open Lobby refurbishments in 2 of the hotels.

(f) The need to act fairly as between members of the company

The directors aim to act fairly as between the company’s members when delivering the company’s strategy. The company is an Equal Opportunities employer and conducts regular audits to insure that this is being met. The company also has a thorough grievance procedure.

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

Q Ahmed

Director

Page 2

Q.N. (HOLDINGS) 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.

Principal activity

The principal activity of the company continued to be that of a holding company. The principal activity of the group continued to be that of hotels and similar accomodation.

Results and dividends

The loss for the year, after taxation, amounted to £669,781 (2024 - £1,273,728 loss).

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 and the Group'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 and the Group'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 3

Q.N. (HOLDINGS) LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2025

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

Q.N. (HOLDINGS) LIMITED

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

Opinion

We have audited the financial statements of Q.N. (Holdings) Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated analysis of net debt, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the Parent Company's affairs as at 31 December 2025 and of the Group's 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 Group 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 Group's or the Parent 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 5

Q.N. (HOLDINGS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. (HOLDINGS) 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 Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the Parent Company 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.

Page 6

Q.N. (HOLDINGS) LIMITED

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

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 4, 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 Group's and the Parent 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Page 7

Q.N. (HOLDINGS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. (HOLDINGS) 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 Group 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 8

Q.N. (HOLDINGS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. (HOLDINGS) 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

Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL

23 September 2026

Page 9

Q.N. (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	8,997,324	8,676,678
Cost of sales		(5,252,819)	(5,264,859)
Gross profit		3,744,505	3,411,819
Administrative expenses		(3,594,321)	(3,787,695)
Exceptional administrative expenses		-	(444,486)
Other operating income	5	47,162	33,521
Operating profit/(loss)	6	197,346	(786,841)
Interest payable and similar expenses	10	(607,055)	(486,887)
Loss before taxation		(409,709)	(1,273,728)
Tax on loss	11	(260,072)	-
Loss for the financial year		(669,781)	(1,273,728)


Unrealised surplus on revaluation of tangible fixed assets	-	499,187
Reversal of deferred taxation	-	567,887
Other comprehensive income for the year	-	1,067,074
Total comprehensive income for the year	(669,781)	(206,654)

The notes on pages 19 to 38 form part of these financial statements.

Page 10

Q.N. (HOLDINGS) LIMITED

REGISTERED NUMBER: 09329964

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	14		16,000		17,250
Tangible assets	15		16,562,130		16,625,430
			16,578,130		16,642,680
Current assets
Stocks	17	46,055		52,610
Debtors	18	2,179,603		1,751,412
Cash at bank and in hand	19	217,590		1,026,674
		2,443,248		2,830,696
Creditors: amounts falling due within one year	20	(2,693,275)		(2,968,898)
Net current liabilities			(250,027)		(138,202)
Total assets less current liabilities			16,328,103		16,504,478
Creditors: amounts falling due after more than one year	21		(7,132,686)		(7,150,000)
Provisions for liabilities
Deferred taxation	24	(510,720)		-
			(510,720)		-
Net assets			8,684,697		9,354,478

Capital and reserves
Called up share capital	25	9,700	9,700
Share premium account	26	17,476,650	17,476,650
Revaluation reserve	26	3,563,639	3,563,639
Capital redemption reserve	26	990,300	990,300
Profit and loss account	26	(13,355,592)	(12,685,811)
Equity attributable to owners of the Parent Company		8,684,697	9,354,478
		8,684,697	9,354,478

Page 11

Q.N. (HOLDINGS) LIMITED

REGISTERED NUMBER: 09329964

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2025

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 19 to 38 form part of these financial statements.

Page 12

Q.N. (HOLDINGS) LIMITED

REGISTERED NUMBER: 09329964

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Investments	16		1,000,000		1,000,000
			1,000,000		1,000,000
Current assets
Debtors	18	7,084,193		6,331,052
Cash at bank and in hand	19	1,016		759,001
		7,085,209		7,090,053
Creditors: amounts falling due within one year	20	(1,049,677)		(1,036,967)
Net current assets			6,035,532		6,053,086
Total assets less current liabilities			7,035,532		7,053,086

Creditors: amounts falling due after more than one year	21		(7,132,686)		(7,150,000)

Net liabilities			(97,154)		(96,914)

Capital and reserves
Called up share capital	25		9,700		9,700
Capital redemption reserve	26		990,300		990,300
Profit and loss account brought forward		(1,096,914)		(985,300)
Loss for the year		(240)		(111,614)
Profit and loss account carried forward			(1,097,154)		(1,096,914)
			(97,154)		(96,914)

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 19 to 38 form part of these financial statements.

Page 13


		Q.N. (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Share premium account	Capital redemption reserve	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£	£
At 1 January 2025	9,700	17,476,650	990,300	3,563,639	(12,685,811)	9,354,478
Comprehensive income for the year
Loss for the year	-	-	-	-	(669,781)	(669,781)
Total comprehensive income for the year	-	-	-	-	(669,781)	(669,781)
At 31 December 2025	9,700	17,476,650	990,300	3,563,639	(13,355,592)	8,684,697

The notes on pages 19 to 38 form part of these financial statements.

Page 14


		Q.N. (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Capital redemption reserve	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£	£
At 1 January 2024	9,700	17,476,650	990,300	2,496,565	(11,412,083)	9,561,132
Comprehensive income for the year
Loss for the year	-	-	-	-	(1,273,728)	(1,273,728)
Surplus on revaluation of freehold property	-	-	-	275,937	-	275,937
Surplus on revaluation of leasehold property	-	-	-	223,250	-	223,250
Reversal of deferred taxation	-	-	-	567,887	-	567,887
Other comprehensive income for the year	-	-	-	1,067,074	-	1,067,074
Total comprehensive income for the year	-	-	-	1,067,074	(1,273,728)	(206,654)
At 31 December 2024	9,700	17,476,650	990,300	3,563,639	(12,685,811)	9,354,478

The notes on pages 19 to 38 form part of these financial statements.

Page 15

Q.N. (HOLDINGS) LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2025	9,700	990,300	(1,096,914)	(96,914)
Comprehensive income for the year
Loss for the year	-	-	(240)	(240)
At 31 December 2025	9,700	990,300	(1,097,154)	(97,154)

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2024	9,700	990,300	(985,300)	14,700
Comprehensive income for the year
Loss for the year	-	-	(111,614)	(111,614)
At 31 December 2024	9,700	990,300	(1,096,914)	(96,914)

The notes on pages 19 to 38 form part of these financial statements.

Page 16

Q.N. (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Loss for the financial year	(669,781)	(1,273,728)
Adjustments for:
Amortisation of intangible assets	1,250	1,250
Depreciation of tangible assets	677,052	544,131
Loss on disposal of tangible assets	-	51,888
Interest paid	607,054	486,887
Taxation charge	260,072	-
Decrease/(increase) in stocks	6,555	(4,086)
(Increase) in debtors	(428,191)	(419,956)
Increase/(decrease) in creditors	75,988	(890,063)
Corporation tax (paid)/received	(102,351)	143,764
Net cash generated from operating activities	427,648	(1,359,913)

Cash flows from investing activities
Purchase of tangible fixed assets	(613,752)	(1,419,843)
Sale of tangible fixed assets	-	273,250
Net cash from investing activities	(613,752)	(1,146,593)
Cash flows from financing activities
New secured loans	-	7,150,000
Repayment of loans	-	(5,529,563)
Interest paid	(607,054)	(486,887)
Net cash used in financing activities	(607,054)	1,133,550
Net (decrease) in cash and cash equivalents	(793,158)	(1,372,956)
Cash and cash equivalents at beginning of year	1,010,748	2,383,704
Cash and cash equivalents at the end of year	217,590	1,010,748

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	217,590	1,026,674
Bank overdrafts	-	(15,926)
	217,590	1,010,748

Page 17

Q.N. (HOLDINGS) LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2025


At 1 January 2025	Cash flows	At 31 December 2025
£	£	£

Cash at bank and in hand	1,026,674	(809,084)	217,590
Bank overdrafts	(15,926)	15,926	-
Debt due after 1 year	(7,150,000)	17,314	(7,132,686)
Debt due within 1 year	(9,107)	(31,102)	(40,209)
	(6,148,359)	(806,946)	(6,955,305)

The notes on pages 19 to 38 form part of these financial statements.

Page 18

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Q.N. (Holdings) Limited is a private company limited by shares incorporated in England and Wales, registration number 09329964. The registered office is QN House Unit 4, Loughton Business Centre, 5 Langston Road, Loughton, Essex, IG10 3FL. The principal activity of the company is that of a holding company. The principal activity of the group 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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

Page 19

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Going concern

The company Q.N. (Holdings) Limited has a bank loan facility with METRO Bank of £7,150,000. 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 Group 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:

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

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

2.5

Operating leases: the Group 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.

2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 20

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

2.9

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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.10

Exceptional items

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

Page 21

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.11

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

2.12

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.

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:

Freehold property	-		See Below
Long-term leasehold property	-		See Below
Plant and machinery	-	15%	Straight Line
Motor vehicles	-	15%	Straight Line
Fixtures, fittings and equipment	-	15%	Straight Line
Computer 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.

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.

Page 22

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.13

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 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.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.15

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

2.16

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.

2.17

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.18

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.

Page 23

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

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 Group'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

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.

Page 24

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

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 assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 25

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

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 land and buildings
The group 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 valuations were carried out in the year to 31 December 2024. These valuations were 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.

Turnover

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

Hotel Operations	8,997,324	8,676,678
	8,997,324	8,676,678

All turnover arose within the United Kingdom.

Page 26

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

5.	Other operating income
		2025	2024
		£	£

Net rents receivable	47,162	33,521
	47,162	33,521

Depreciation of tangible fixed assets	677,052	544,131
Exchange differences	1,250	1,250
Other operating lease rentals	36,322	36,322

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

57,185

Page 27

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8.	Employees
	Staff costs, including directors' remuneration, were as follows:

		Group	Group
		2025	2024
		£	£


Wages and salaries	3,750,643	3,571,015
Social security costs	371,437	266,561
Cost of defined contribution scheme	67,616	60,909
	4,189,696	3,898,485

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

	Group	Group	Company	Company
	2025	2024	2025	2024
	No.	No.	No.	No.

Hotel service staff	194	163	-	-
Administration and management staff	14	30	-	-
Directors	2	2	2	2

	210	195	2	2

9.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	108,884	128,581
Group contributions to defined contribution pension schemes	1,321	1,321
	110,205	129,902

During the year retirement benefits were accruing to no directors (2024 - NIL) in respect of defined contribution pension schemes.

Page 28

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	577,143	486,887
Other interest payable	29,912	-
	607,055	486,887

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

	Deferred tax
	Origination and reversal of timing differences	510,720	-


	Tax on loss	260,072	-

Page 29

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.Taxation (continued)

Loss on ordinary activities before tax

(409,740)

(1,273,727)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	(102,435)	(318,432)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,841	182,700
Deferred tax movement on capital allowances for year in excess of depreciation	291,621	-
Capital Allowances for year in excess of depreciation	-	(18,330)
Unrelieved tax losses carried forward	104,708	122,791
Utilisation of tax losses	(4,114)	-
Other differences leading to an increase (decrease) in the tax charge	(31,549)	31,271
Total tax charge for the year	260,072	-

Factors that may affect future tax charges

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

12.	Exceptional items
		2025	2024
		£	£

Writeoff of Directors Loan Balance	-	399,442
Writeoff of Intercompany Balances	-	(62,242)
Finance Arrangement Costs	-	107,286
	-	444,486

Page 30

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £240 (2024 - £111,614 loss).

14.	Intangible assets
	Group

		Franchise fees
		£
	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

The company had no intangible fixed assets at 31 December 2025 or 31 December 2024.

Page 31


		Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

	15.	Tangible fixed assets
		Group

	Freehold property	Long-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£	£
Cost or valuation
At 1 January 2025	4,654,570	9,449,412	1,059,889	287,490	7,956,296	23,407,657
Additions	-	-	9,670	-	604,082	613,752
At 31 December 2025	4,654,570	9,449,412	1,069,559	287,490	8,560,378	24,021,409
Depreciation
At 1 January 2025	-	-	1,027,383	57,461	5,697,383	6,782,227
Charge for the year on owned assets	-	-	9,255	43,124	624,673	677,052
At 31 December 2025	-	-	1,036,638	100,585	6,322,056	7,459,279
Net book value
At 31 December 2025	4,654,570	9,449,412	32,921	186,905	2,238,322	16,562,130
At 31 December 2024	4,654,570	9,449,412	32,506	230,029	2,258,912	16,625,429

Page 32

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2025	1,000,000
	At 31 December 2025	1,000,000

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

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

The registered office of all subsidiaries is QN House, Loughton Business Centre, 5 Langston Road, Loughton, Essex, IG10 3FL.

Investments of Q.N. Hotels (Wrexham) Limited and Swanfield Limited are held indirectly through the Company's 100% investment in Q.N. Hotels Limited.

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

17.	Stocks
		Group	Group
		2025	2024
		£	£

Food and drink	46,055	52,610
	46,055	52,610

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 33

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£



Trade debtors	193,880	225,720	-	-
Amounts owed by group undertakings	-	-	6,419,260	5,666,119
Other debtors	1,325,457	1,228,725	664,933	664,933
Prepayments and accrued income	660,266	296,967	-	-
	2,179,603	1,751,412	7,084,193	6,331,052

19.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	217,590	1,026,674	1,016	759,001
Less: bank overdrafts	-	(15,926)	-	-
	217,590	1,010,748	1,016	759,001

20.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank overdrafts	-	15,926	-	-
Bank loans	17,314	-	17,314	-
Trade creditors	1,560,494	899,710	-	-
Amounts owed to group undertakings	-	-	985,300	985,300
Corporation tax	9,176	362,171	-	-
Other taxation and social security	464,099	569,100	-	-
Other creditors	285,746	344,732	-	-
Accruals and deferred income	356,446	777,259	47,063	51,667
	2,693,275	2,968,898	1,049,677	1,036,967

Page 34

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank loans	7,132,686	7,150,000	7,132,686	7,150,000
	7,132,686	7,150,000	7,132,686	7,150,000

The company has an outstanding loan at year end with METRO bank of £7,150,000 (2024: £7,150,000).

The loan is secured by a charge over the group's leasehold & freehold property, as well as certain other assets, supported by cross-company guarantees provided by group undertakings.

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

22.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Amounts falling due within one year
Bank loans	17,314	-	17,314	-
Amounts falling due 1-2 years
Bank loans	110,769	17,314	110,769	17,314
	110,769	17,314	110,769	17,314
Amounts falling due 2-5 years
Bank loans	7,021,918	7,132,686	7,021,918	7,132,686
	7,021,918	7,132,686	7,021,918	7,132,686

	7,150,001	7,150,000	7,150,001	7,150,000

Page 35

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

23.	Financial instruments
		Group	Group
		2025	2024
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	217,590	1,026,674

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

24.	Deferred taxation
	Group

	2025	2024
	£	£

At beginning of year	-	(567,887)
Charged to profit or loss	(510,720)	-
Charged to other comprehensive income	-	567,887
At end of year	(510,720)	-

	£Nil deferred tax in the Company for the year ended 31 December 2025 (2024: £Nil).
	The deferred taxation balance is made up as follows:
		Group
		2025
		£

	Accelerated capital allowances	(510,720)
		(510,720)

25.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

9,700 (2024 - 9,700) Ordinary Shares shares of £1.00 each	9,700	9,700

Page 36

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

26.

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.

Capital redemption reserve

The capital redemption reserve account represents non-distributable reserves arising on the repurchase of the company's own shares.

Profit and loss account

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

27.	Pension commitments

The Group operates a defined contribution retirement scheme for all qualifying employees. The assets of the schemes are held separately from those of the company and in an independently administered fund.

The pension cost charge represents contributions payable by the Group to the fund and amounted to £67,616 (2024: £60,909). Contributions totaling £23,783 (2024: £28,553) were payable to the fund at the balance sheet date and are included in creditors.

28.	Commitments under operating leases
	At 31 December 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2025	2024
		£	£

	Not later than 1 year	25,133	19,087
		25,133	19,087

Page 37

Q.N. (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

29.

Related party transactions

During the year, the group was charged rent of £Nil (2024: £96,000) for the use of a property owed by a company under common control.

During the year the group received a management charge of £40,000 (2024: £25,000) from a company under common control.

As at 31 December 2025, amounts due from other companies under common control amounted to £1,281,404 (2024: £1,203,792). As at 31 December 2025, directors owed the group £Nil (2024: £6,212). As at 31 December 2025, a director was owed £22,895 by the group (2024: £9,107).

30.	Controlling party

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

Page 38