Registered number: 01576403
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their strategic report together with the audited financial statements for the year ended 31 December 2025.
The Company’s principal activity continues to be the ownership and operation of a collection of high-quality hotels and associated hospitality businesses in the New Forest National Park in Hampshire.
The hotels are operated under the New Forest Collection brand and are supported by a central support function based in Lyndhurst.
Rockingham Partners continued to manage the portfolio throughout the year. The focus remained on improving trading performance, strengthening operational controls and developing the weddings, leisure and corporate segments of the business.
Turnover increased by £420,955, or 5.7%, from £7,449,613 in 2024 to £7,870,568 in 2025.
Gross profit increased from £2,992,147 to £3,266,959 and the gross profit margin improved from 40.2% to 41.5%. Administrative expenses increased by 1.3%, from £4,553,460 to £4,612,683.
The operating loss reduced from £1,339,181 in 2024 to £1,116,581 in 2025. Interest payable and similar expenses reduced from £865,497 to £613,791, reflecting changes in the Company’s financing arrangements.
As a result, the loss for the financial year reduced from £2,353,478 in 2024 to £1,837,833 in 2025.
The hotels are operated under the New Forest Collection brand and are supported by a central support function based in Lyndhurst.
Rockingham Partners continued to manage the portfolio throughout the year. The focus remained on improving trading performance, strengthening operational controls and developing the weddings, leisure and corporate segments of the business.
Turnover increased by £420,955, or 5.7%, from £7,449,613 in 2024 to £7,870,568 in 2025.
Gross profit increased from £2,992,147 to £3,266,959 and the gross profit margin improved from 40.2% to 41.5%. Administrative expenses increased by 1.3%, from £4,553,460 to £4,612,683.
The operating loss reduced from £1,339,181 in 2024 to £1,116,581 in 2025. Interest payable and similar expenses reduced from £865,497 to £613,791, reflecting changes in the Company’s financing arrangements.
As a result, the loss for the financial year reduced from £2,353,478 in 2024 to £1,837,833 in 2025.
Following the year end, the Company has continued to focus on improving revenue, operating efficiency and profitability across the hotel portfolio.
Subsequent to the year end, following a strategic review of the Company’s property portfolio, the directors commenced a process to market Burley Manor Hotel for sale.
The sale process remains ongoing and no transaction had been agreed at the date of approval of these financial statements. Accordingly, no adjustment has been made to the financial statements in respect of the proposed disposal. As the process is at an early stage, the financial effect cannot yet be reliably estimated.
The Company continues to receive the support of its ultimate parent company and ultimate shareholder.
Subsequent to the year end, following a strategic review of the Company’s property portfolio, the directors commenced a process to market Burley Manor Hotel for sale.
The sale process remains ongoing and no transaction had been agreed at the date of approval of these financial statements. Accordingly, no adjustment has been made to the financial statements in respect of the proposed disposal. As the process is at an early stage, the financial effect cannot yet be reliably estimated.
The Company continues to receive the support of its ultimate parent company and ultimate shareholder.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Economic and trading risk
A significant proportion of the Company’s revenue is derived from discretionary leisure, wedding and corporate expenditure. Demand is therefore affected by consumer confidence, general economic conditions and the financial position of businesses and households.
The Company seeks to manage this risk through active revenue management, flexible pricing, targeted marketing and the development of a balanced mix of leisure, wedding, corporate and food and beverage business.
Cost inflation and employment costs
The Company is exposed to increases in payroll, food, utilities, insurance and other operating costs. Changes in National Insurance contributions and the National Minimum Wage have placed particular pressure on hospitality-sector margins.
Management monitors departmental payroll and operating costs regularly and takes appropriate action to protect margins while maintaining service standards.
Liquidity and financing risk
The Company operates with a significant level of external and related-party borrowing and remains dependent upon the availability of sufficient working capital and the continued support of its lenders and ultimate shareholder.
Cash flow is monitored closely against short- and medium-term forecasts. The directors maintain regular communication with the Company’s lenders and ultimate shareholder to ensure that its financing requirements are identified and addressed.
A significant proportion of the Company’s revenue is derived from discretionary leisure, wedding and corporate expenditure. Demand is therefore affected by consumer confidence, general economic conditions and the financial position of businesses and households.
The Company seeks to manage this risk through active revenue management, flexible pricing, targeted marketing and the development of a balanced mix of leisure, wedding, corporate and food and beverage business.
Cost inflation and employment costs
The Company is exposed to increases in payroll, food, utilities, insurance and other operating costs. Changes in National Insurance contributions and the National Minimum Wage have placed particular pressure on hospitality-sector margins.
Management monitors departmental payroll and operating costs regularly and takes appropriate action to protect margins while maintaining service standards.
Liquidity and financing risk
The Company operates with a significant level of external and related-party borrowing and remains dependent upon the availability of sufficient working capital and the continued support of its lenders and ultimate shareholder.
Cash flow is monitored closely against short- and medium-term forecasts. The directors maintain regular communication with the Company’s lenders and ultimate shareholder to ensure that its financing requirements are identified and addressed.
The directors have prepared cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements. The forecasts take account of reasonably possible changes in trading performance and the Company’s financing requirements.
The forecasts do not assume the completion of the proposed sale of Burley Manor Hotel or the receipt of any proceeds from that sale during the forecast period.
The ultimate controlling party has confirmed their continued support and ability to provide financial support to the Company as required.
Should trading performance fall below expectations, the directors have considered the mitigating actions available to the Company. These include controlling payroll and other operating expenditure, deferring non-essential capital expenditure and seeking further financial support where required.
Having considered the forecasts, available mitigating actions and the continued support of the ultimate controlling party, the directors have a reasonable expectation that the Company has adequate resources to meet its liabilities as they fall due and to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going-concern basis.
The forecasts do not assume the completion of the proposed sale of Burley Manor Hotel or the receipt of any proceeds from that sale during the forecast period.
The ultimate controlling party has confirmed their continued support and ability to provide financial support to the Company as required.
Should trading performance fall below expectations, the directors have considered the mitigating actions available to the Company. These include controlling payroll and other operating expenditure, deferring non-essential capital expenditure and seeking further financial support where required.
Having considered the forecasts, available mitigating actions and the continued support of the ultimate controlling party, the directors have a reasonable expectation that the Company has adequate resources to meet its liabilities as they fall due and to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going-concern basis.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company gives appropriate consideration to its financial risk management objectives and policies.
Price risk
The Company is exposed to price risk through inflationary increases in the cost of food, utilities, payroll and other goods and services. Management monitors these costs and reviews pricing, purchasing arrangements and operating efficiencies in response.
Liquidity risk
The Company manages its cash and borrowing requirements with the aim of ensuring that it has sufficient resources to meet the operating and financing needs of the business.
Cash flow risk
Cash flow is monitored as part of the Company’s day-to-day control procedures. The board reviews short- and medium-term cash flow forecasts regularly to ensure that appropriate facilities and funding arrangements are in place.
Credit risk
The Company regularly reviews outstanding debts and its customer credit arrangements to reduce the likelihood of bad-debt losses.
Price risk
The Company is exposed to price risk through inflationary increases in the cost of food, utilities, payroll and other goods and services. Management monitors these costs and reviews pricing, purchasing arrangements and operating efficiencies in response.
Liquidity risk
The Company manages its cash and borrowing requirements with the aim of ensuring that it has sufficient resources to meet the operating and financing needs of the business.
Cash flow risk
Cash flow is monitored as part of the Company’s day-to-day control procedures. The board reviews short- and medium-term cash flow forecasts regularly to ensure that appropriate facilities and funding arrangements are in place.
Credit risk
The Company regularly reviews outstanding debts and its customer credit arrangements to reduce the likelihood of bad-debt losses.
The directors will continue to focus on developing the New Forest Collection brand, increasing revenue and improving the profitability and cash generation of the business.
The Company will continue to develop its wedding, leisure and corporate markets and encourage customers to book directly, reducing its reliance on online travel agents and associated commission costs.
The directors also remain focused on employee retention, training and development, recognising the importance of service quality and operating efficiency to the future success of the business.
The directors will continue to consider the appropriate financial and operating structure for the hotel portfolio, including progressing the proposed sale of Burley Manor.
The Company will continue to develop its wedding, leisure and corporate markets and encourage customers to book directly, reducing its reliance on online travel agents and associated commission costs.
The directors also remain focused on employee retention, training and development, recognising the importance of service quality and operating efficiency to the future success of the business.
The directors will continue to consider the appropriate financial and operating structure for the hotel portfolio, including progressing the proposed sale of Burley Manor.
Due to the nature of the Company’s operations, the directors consider turnover, gross profit, gross profit margin and operating result to be important measures of performance.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors seek to promote the success of the Company for the benefit of its members as a whole, having regard to the Company’s stakeholders and the matters set out in section 172 of the Companies Act 2006.
The board operates a standing agenda aligned with the Company’s operating and reporting cycles, covering matters requiring approval, review, endorsement and monitoring.
The Company’s principal stakeholders include its shareholders and lenders, customers, employees, suppliers and the communities and environments in which it operates. In making decisions, the directors consider the likely long-term consequences and the potential impact on each stakeholder group.
The Company seeks to maintain open and constructive relationships with its stakeholders. This includes regular communication with shareholders and lenders, engagement with employees, monitoring customer feedback, maintaining appropriate relationships with suppliers and considering the impact of its activities on the local community and environment.
The directors consider that the actions taken during the year and after the year end support the Company’s objective of establishing a more sustainable and profitable hotel business.
The board operates a standing agenda aligned with the Company’s operating and reporting cycles, covering matters requiring approval, review, endorsement and monitoring.
The Company’s principal stakeholders include its shareholders and lenders, customers, employees, suppliers and the communities and environments in which it operates. In making decisions, the directors consider the likely long-term consequences and the potential impact on each stakeholder group.
The Company seeks to maintain open and constructive relationships with its stakeholders. This includes regular communication with shareholders and lenders, engagement with employees, monitoring customer feedback, maintaining appropriate relationships with suppliers and considering the impact of its activities on the local community and environment.
The directors consider that the actions taken during the year and after the year end support the Company’s objective of establishing a more sustainable and profitable hotel business.
This report was approved by the board and signed on its behalf.
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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.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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.
The loss for the year, after taxation, amounted to £1,837,833 (2024 - loss £2,353,478). The directors have not recommend the payment of a dividend.
The directors who served during the year were:
The Company has maintained throughout the year directors' and officers' liability insurance for the benefit of the Company, the directors and its officers. The company has entered into qualifying third party indemnity arrangements for the benefit of all its directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the year and remain in force.
Please refer to the Strategic Report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Subsequent to the year end, following a strategic review of the Company’s property portfolio, the directors commenced a process to market Burley Manor Hotel for sale.
The sale process remains ongoing and no transaction had been agreed at the date of approval of these financial statements. As the process is at an early stage, the financial effect cannot yet be reliably estimated.
The sale process remains ongoing and no transaction had been agreed at the date of approval of these financial statements. As the process is at an early stage, the financial effect cannot yet be reliably estimated.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW FOREST HOTELS PLC
We have audited the financial statements of New Forest Hotels Plc (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Analysis of Net Debt, the Statement of Financial Position, the Statement of Cash Flows, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW FOREST HOTELS PLC (CONTINUED)
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW FOREST HOTELS PLC (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial
reporting legislation, and general regulations such as health and safety, general data protection regulation and
copyright law. There are no industry specific laws and regulations which would be deemed to have a significant impact
on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part
of our procedures on the related financial statement items.
reporting legislation, and general regulations such as health and safety, general data protection regulation and
copyright law. There are no industry specific laws and regulations which would be deemed to have a significant impact
on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part
of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to
management, and those responsible for legal and compliance procedures. We corroborated our inquiries through our
review of Board minutes.
management, and those responsible for legal and compliance procedures. We corroborated our inquiries through our
review of Board minutes.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:
might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect
fraud;
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;
controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the following areas:
organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions;
°Misappropriation of funds through fraudulent supplier ledger and payroll activity; and
°Manipulation of amounts subject to significant judgement or estimate.
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 Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW FOREST HOTELS PLC (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
3000a Parkway
Hampshire
PO15 7FX
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 29 form part of these financial statements.
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