Company No: 02345854 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2026		2025
		£		£
Fixed assets
Tangible assets	3	3,668,578		3,722,877
		3,668,578		3,722,877
Current assets
Stocks		50,400		50,407
Debtors	4	24,474		32,029
Cash at bank and in hand		61,326		706,171
		136,200		788,607
Creditors: amounts falling due within one year	5	( 469,660)		( 499,829)
Net current (liabilities)/assets		(333,460)		288,778
Total assets less current liabilities		3,335,118		4,011,655
Creditors: amounts falling due after more than one year	6	( 1,687,205)		( 2,330,620)
Provision for liabilities	7	( 166,872)		( 132,099)
Net assets		1,481,041		1,548,936
Capital and reserves
Called-up share capital		100		100
Revaluation reserve	8	1,486,506		1,528,304
Profit and loss account		( 5,565 )		20,532
Total shareholder's funds		1,481,041		1,548,936

For the financial year ending 30 April 2026 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Warm Welcome Hotels (Southern) Limited (registered number: 02345854) were approved and authorised for issue by the Board of Directors on 05 October 2026. They were signed on its behalf by:

P B M Cliff Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Warm Welcome Hotels (Southern) Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 9 Lady Park Road, Livermead, Torquay, Devon, TQ2 6UA, United Kingdom. The principal place of business is Bedford Hotel, 1 Plymouth Road, Tavistock, Devon, PL19 8BB.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors note that the business has net current liabilities of £333,148. The Company is supported through loans from the Parent Company. The directors have received assurances that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the Parent Company will continue to support the Company. After making enquiries, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer.

Revenue from services is recognised as they are delivered. Accommodation sales, including deposits received in advance, are recognised as turnover on the day of stay.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	depreciated over the life of the lease
Fixtures and fittings	15 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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 deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in other operating income over the period in which the related costs are recognised, and timing differences are presented as other debtors or deferred income within the balance sheet. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

2. Employees

	2026		2025
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	109		116

3. Tangible assets

	Land and buildings		Fixtures and fittings		Total
	£		£		£
Cost/Valuation
At 01 May 2025	4,134,755		2,192,563		6,327,318
Additions	0		53,687		53,687
At 30 April 2026	4,134,755		2,246,250		6,381,005
Accumulated depreciation
At 01 May 2025	687,420		1,917,021		2,604,441
Charge for the financial year	58,609		49,377		107,986
At 30 April 2026	746,029		1,966,398		2,712,427
Net book value
At 30 April 2026	3,388,726		279,852		3,668,578
At 30 April 2025	3,447,335		275,542		3,722,877

Revaluation of tangible assets

The company's freehold and leasehold land and buildings were revalued on 30 April 2013 by an independent valuer. This valuation was conducted at open market value. The fair value of the freehold land and buildings has not materially changed since this date.

Had the company's land and buildings been measured on a historical cost basis, the values in the below table would apply.

	2026		2025
	£		£
Historical cost	2,632,968		2,632,968
Accumulated depreciation	(767,822)		(754,934)
Carrying value	1,865,146		1,878,034

The deferred tax attributable to the revalued land and buildings has been considered and £37,075 (2025 - £31,998) has been provided for in the financial statements.

4. Debtors

	2026		2025
	£		£
Trade debtors	14,989		22,033
Prepayments	3,984		4,997
Other debtors	5,501		4,999
	24,474		32,029

5. Creditors: amounts falling due within one year

	2026		2025
	£		£
Trade creditors	75,732		46,450
Amounts owed to Group undertakings	0		401
Accruals and deferred income	263,820		261,836
Corporation tax	7,340		16,370
Other taxation and social security	114,340		143,614
Other creditors	8,428		31,158
	469,660		499,829

Included within accruals and deferred income is £163,036 (2025 £166,218) relating to payments received from customers in advance of services provided.

6. Creditors: amounts falling due after more than one year

	2026		2025
	£		£
Amounts owed to Group undertakings	1,683,559		2,326,330
Other creditors	3,646		4,290
	1,687,205		2,330,620

7. Provision for liabilities

	2026		2025
	£		£
Deferred tax	166,872		132,099

8. Changes in equity

	Revaluation reserve
	£
At 01 May 2025	1,528,304
Transfer of depreciation on revaluation to Profit and Loss account	( 36,721)
Transfer of deferred tax on fair value adjustment	( 5,077)
Total comprehensive loss	( 41,798)
At 30 April 2026	1,486,506
At 01 May 2024	1,565,025
Transfer of depreciation on revaluation from Profit and Loss account	( 36,721)
Total comprehensive loss	( 36,721)
At 30 April 2025	1,528,304

9. Related party transactions

Transactions with owners holding a participating interest in the entity

The company has taken advantage of the exemptions provided from disclosing transactions with its parent company, on the grounds that it is a wholly owned subsidiary.

10. Ultimate controlling party

The company's immediate parent is Warm Welcome Management Limited, incorporated in England and Wales. Its registered office address is:

9 Lady Park Road
Livermead
Torquay
Devon
TQ2 6UA

These financial statements are available upon request from Companies House, Cardiff.

The company's Ultimate parent is Warm Welcome 2022 Limited, incorporated in England and Wales. Its registered office address is:

9 Lady Park Road
Livermead
Torquay
Devon
TQ2 6UA

These financial statements are available upon request from Companies House, Cardiff.