Latona Leisure Limited - Period Ending 2026-01-31

Registration number: 02777532

Latona Leisure Limited

Annual Report and Financial Statements

for the Year Ended 31 January 2026

Latona Leisure Limited

Contents

Company Information	1
Strategic Report	2
Directors' Report	3 to 4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 8
Profit and Loss Account	9
Statement of Comprehensive Income	10
Balance Sheet	11
Statement of Changes in Equity	12
Statement of Cash Flows	13
Notes to the Financial Statements	14 to 27

Latona Leisure Limited

Company Information

Directors

T R Styles

N A Gray

Registered office

Limpley Stoke Hotel
Woods Hill
Lower Limpley Stoke
Bath
Avon
BA2 7FZ

Auditors

ML Audit LLP
Statutory AuditorsFreshford House
Redcliffe Way
Bristol
BS1 6NL

Latona Leisure Limited

Strategic Report for the Year Ended 31 January 2026

The directors present their strategic report for the year ended 31 January 2026.

Principal activity

The principal activity of the company is the running of four hotels.

Fair review of the business

Despite the challenging economic conditions, the directors believe the hotels are well positioned to continue trading positively, and they are satisfied with the trading performance of the company.

The results are summarised on page 9, and the directors consider them satisfactory.

The company's key financial and other performance indicators during the year were as follows:

	Unit	2026	2025
Hotel revenues growth/(decline)	%	(3)	2
Hotel gross profit margin	%	80	80
Hotel net profit (before tax) margin	%	10	9

Principal risks and uncertainties

Competition
The company is exposed to the inherent risks of new hotel openings close to its existing units and to any general downturn in the hotel and leisure industry. The directors are not aware of any planned openings in the near future and consider that their units are as well placed as any to withstand any potential economic downturn in the hotel and leisure industry.

Employees and skills
The recruitment and retention of employees with the requisite skills is a crucial factor in the achievement of the company's business plan. The company is committed to providing the necessary level of training and operational support for all its staff.

Financial management
By the very nature of its trade, the company is reliant on bank borrowings, and has secured the majority of its required finance by way of long term bank loans.

Business interruption
Like all hotel operations, the company is subject to risks of severe disruption from fire, flooding etc at its operating units and the catastrophic failure of its Information Technology systems and processes. The former risk is covered by comprehensive insurance cover and the latter by way of offsite back up systems.

Approved by the Board on 26 October 2026 and signed on its behalf by:

N A Gray
Director

Latona Leisure Limited

Directors' Report for the Year Ended 31 January 2026

The directors present their report and the financial statements for the year ended 31 January 2026.

Directors of the company

The directors who held office during the year were as follows:

T R Styles

N A Gray

Dividends

The directors recommend a final dividend payment of £Nil be made in respect of the financial year ended 31 January 2026 (2025 - £Nil).

Financial instruments

The company has procedures to identify risk and manage the risks that may hinder its financial performance objectives. The objective is to limit counterparty exposure, ensure sufficient weekly capital and to mitigate the risks identified. The company does not consider it necessary to employ derivatives to manage risk based on the current activities of the company.

Objectives and policies

The company's objective is to operate hotel and property development enterprises in a profitable manner.

The directors are responsible for monitoring financial risk. Appropriate policies have been developed and implemented to identify, evaluate and manage the key risks.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk – The company is exposed to price risk as a result of its operations. However, given the size of the company’s operations, the costs of managing exposure to price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

Credit risk – The company’s credit risk is primarily attributable to its trade debtors. Credit risk is managed by requesting deposits upon booking and by monitoring receipts against payment terms.

Liquidity risk – The company monitors cash flow as part of its normal activities. The directors consider cash flow projections on a monthly basis and ensure that facilities are available to be drawn as necessary.

Interest rate cash flow risk – The company has interest bearing liabilities and is therefore exposed to increases in interest rates.

Future developments

The company intends to continue consolidating its position within the market place whilst maintaining the quality of the hotels through the ongoing maintenance and refurbishment program, and should opportunities allow further reduce the bank debt.

Latona Leisure Limited

Directors' Report for the Year Ended 31 January 2026

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors ML Audit LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 26 October 2026 and signed on its behalf by:

N A Gray
Director

Latona Leisure Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

•	make judgements and accounting estimates that are reasonable and prudent;

•	state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•	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 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.

Latona Leisure Limited

Independent Auditor's Report to the Members of Latona Leisure Limited

Opinion

We have audited the financial statements of Latona Leisure Limited (the 'company') for the year ended 31 January 2026, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 January 2026 and of its profit 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 auditor 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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 conatined 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.

Latona Leisure Limited

Independent Auditor's Report to the Members of Latona Leisure Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•	the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Strategic Report and 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 our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 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:

•	obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

Latona Leisure Limited

Independent Auditor's Report to the Members of Latona Leisure Limited

•	inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

•	discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;

•	undertaken a review of manual journals processed in the accounting system, applying professional scepticism to ensure they are in line with our expectation that they are not unusual in the normal course of business;

•	Reviewed the basis and assumptions made in calculating key estimates made by management;

•	Reviewed the company’s control process over cash transactions generated as part of the revenue from sale of goods.

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 is available on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mrs S Jenkins (Senior Statutory Auditor)
For and on behalf of ML Audit LLP, Statutory Auditor
Freshford House
Redcliffe Way
Bristol
BS1 6NL

27 October 2026

Latona Leisure Limited

Profit and Loss Account for the Year Ended 31 January 2026

	Note	2026 £	2025 £
Turnover	3	7,663,932	7,884,092
Cost of sales		(1,498,608)	(1,590,545)
Gross profit		6,165,324	6,293,547
Administrative expenses		(5,338,470)	(5,421,821)
Operating profit	4	826,854	871,726
Other interest receivable and similar income	5	9,747	17,030
Interest payable and similar expenses	6	(104,538)	(157,416)
		(94,791)	(140,386)
Profit before tax		732,063	731,340
Tax on profit	10	(177,161)	(182,242)
Profit for the financial year		554,902	549,098

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Latona Leisure Limited

Statement of Comprehensive Income for the Year Ended 31 January 2026

	2026 £	2025 £
Profit for the year	554,902	549,098
Surplus on property, plant and equipment revaluation	-	1,233,940
Total comprehensive income for the year	554,902	1,783,038

Latona Leisure Limited

(Registration number: 02777532)
Balance Sheet as at 31 January 2026

	Note	2026 £	2025 £
Fixed assets
Tangible assets	11	14,714,820	14,742,777
Current assets
Stocks	12	61,192	53,056
Debtors	13	238,025	248,677
Cash at bank and in hand	14	1,021,612	809,327
		1,320,829	1,111,060
Creditors: Amounts falling due within one year	15	(1,379,255)	(1,552,345)
Net current liabilities		(58,426)	(441,285)
Total assets less current liabilities		14,656,394	14,301,492
Creditors: Amounts falling due after more than one year	15	(1,200,000)	(1,400,000)
Provisions for liabilities	16	(565,693)	(565,693)
Net assets		12,890,701	12,335,799
Capital and reserves
Called up share capital	18	2,812,629	2,812,629
Revaluation reserve	19	4,143,247	4,143,247
Profit and loss account	19	5,934,825	5,379,923
Total equity		12,890,701	12,335,799

Approved and authorised by the Board on 26 October 2026 and signed on its behalf by:

N A Gray
Director

Latona Leisure Limited

Statement of Changes in Equity for the Year Ended 31 January 2026

	Share capital £	Revaluation reserve £	Retained earnings £	Total £
At 1 February 2024	2,812,629	2,909,307	4,875,825	10,597,761
Profit for the year	-	-	549,098	549,098
Other comprehensive income	-	1,233,940	-	1,233,940
Total comprehensive income	-	1,233,940	549,098	1,783,038
Dividends	-	-	(45,000)	(45,000)
At 31 January 2025	2,812,629	4,143,247	5,379,923	12,335,799

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 February 2025

2,812,629

4,143,247

5,379,923

12,335,799

Profit for the year

-

-

554,902

554,902

At 31 January 2026

2,812,629

4,143,247

5,934,825

12,890,701

Latona Leisure Limited

Statement of Cash Flows for the Year Ended 31 January 2026

	Note	2026 £	2025 £
Cash flows from operating activities
Profit for the year		554,902	549,098
Adjustments to cash flows from non-cash items
Depreciation and amortisation	4	70,364	87,251
Finance income	5	(9,747)	(17,030)
Finance costs	6	104,538	157,416
Income tax expense	10	177,161	182,242
		897,218	958,977
Working capital adjustments
(Increase)/decrease in stocks	12	(8,136)	687
Decrease in trade debtors	13	10,652	84,800
(Decrease)/increase in trade creditors	15	(167,971)	42,994
Cash generated from operations		731,763	1,087,458
Income taxes paid	10	(182,280)	(93,650)
Net cash flow from operating activities		549,483	993,808
Cash flows from investing activities
Interest received	5	9,747	17,030
Acquisitions of tangible assets		(64,407)	(54,432)
Proceeds from sale of tangible assets		22,000	-
Net cash flows from investing activities		(32,660)	(37,402)
Cash flows from financing activities
Interest paid		(104,538)	(157,416)
Repayment of bank borrowing		(200,000)	(450,000)
Repayment of other borrowing		-	(157,129)
Dividends paid	22	-	(45,000)
Net cash flows from financing activities		(304,538)	(809,545)
Net increase in cash and cash equivalents		212,285	146,861
Cash and cash equivalents at 1 February		809,327	662,466
Cash and cash equivalents at 31 January		1,021,612	809,327

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Limpley Stoke Hotel
Woods Hill
Lower Limpley Stoke
Bath
Avon
BA2 7FZ

These financial statements were authorised for issue by the Board on 26 October 2026.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention modified to include the revaluation of certain fixed assets and, as disclosed in the accounting policies, certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Going concern

The company once again had a highly profitable year and despite having net current liabilities on the balance sheet, the directors are confident that the business will continue as a going concern as a result of significant bank reserves and continued trading activity. Accordingly, the financial statements are prepared on a going concern basis.

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

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 in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities arise in respect of the valuation of the freehold land and building, inclusive of furniture, fittings and equipment, for which management are of the opinion requires no impairment. The carrying amount is £14,655,713 (2025 - £14,700,000).

Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and for the provision of services in the ordinary course of the company’s activities. Revenue is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue for the sale of goods when all the following conditions are satisfied:
a) the significant risks and rewards of ownership have been transferred to the buyer;
b) the group retains no continuing involvement or control over the goods;
c) the amount of revenue can be reliably measured;
d) it is probable that future economic benefits will flow to the company; and
e) specific criteria have been met for each of the groups activities.

The company recognises revenue from the provision of services in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
a) the amount of revenue can be reliably measured;
b) it is probable that future economic benefit will flow to the company;
c) the stage of completion of the contract at the end of the reporting period can be reliably measured; and
d) the costs incurred and the costs to complete the contract can be reliably measured.

Finance income and costs policy

Interest income and expenses are recognised using the effective interest rate method.

Tax

Tax is recognised in profit or loss, 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.

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

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets is reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost or valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Tangible assets held at valuation are revalued with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the balance sheet date.

Any revaluation increase arising on the revaluation is credited to the revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is credited to the income statement to the extent of the decrease previously expensed. A decrease in carrying amount arising on the revaluation is charged as an expense to the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset.

On the subsequent sale or scrappage of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings.

Depreciation

Depreciation is charged so as to write off the cost of assets down to their residual value, other than land and properties under construction, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold land and buildings	Nil
Furniture, fittings and equipment	25% straight line
Motor vehicles	25% straight line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. 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.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

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.

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Turnover

The analysis of the company's Turnover for the year from continuing operations in the UK is as follows:

	2026 £	2025 £
Hotel revenues	7,663,932	7,884,092

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

4	Operating profit

Arrived at after charging/(crediting):

	2026 £	2025 £
Depreciation expense	70,364	87,251
Operating lease expense - plant and machinery	64,800	58,703

5	Other interest receivable and similar income

	2026 £	2025 £
Interest income on bank deposits	9,591	17,030
Other finance income	156	-
	9,747	17,030

6	Interest payable and similar expenses

	2026 £	2025 £
Interest on bank overdrafts and borrowings	104,526	144,310
Interest expense on other finance liabilities	12	13,106
	104,538	157,416

7	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2026 £	2025 £
Wages and salaries	2,883,518	2,950,532
Social security costs	290,658	208,604
Pension costs, defined contribution scheme	58,004	59,321
	3,232,180	3,218,457

The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:

	2026 No.	2025 No.
Administration and support	18	20
Other departments	114	121
	132	141

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

8	Directors' remuneration

The directors' remuneration for the year was as follows:

	2026 £	2025 £
Remuneration	42,033	47,744
Contributions paid to money purchase schemes	928	1,163
	42,961	48,907

9	Auditors' remuneration

	2026 £	2025 £
Audit of the financial statements	15,175	14,450

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

Taxation

Tax charged/(credited) in the income statement:

	2026 £	2025 £
Current taxation
UK corporation tax	177,161	182,242

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2025 - lower than the standard rate of corporation tax in the UK) of 25% (2025 - 25%).

The differences are reconciled below:

	2026 £	2025 £
Profit before tax	732,063	731,340
Corporation tax at standard rate	183,016	182,835
Tax decrease from other short-term timing differences	(2,388)	-
Effect of expense not deductible in determining taxable profit (tax loss)	91	91
Deferred tax credit not recognised	(3,558)	-
Deferred tax credit relating to changes in tax rates or laws	-	(684)
Total tax charge	177,161	182,242

Deferred tax

Deferred tax assets and liabilities

2026	Asset £	Liability £
Revaluation of freehold land and building	-	565,693
	-	565,693

2025	Asset £	Liability £
Revaluation of freehold land and building	-	565,693
	-	565,693

The amount of net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period, based on the position at 31 January 2026 is not considered to be significant.

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

11	Tangible assets

Freehold land and buildings
£

Furniture, fittings and equipment
£

Motor vehicles
£

Total
£

Cost or valuation

At 1 February 2025

14,604,866

1,162,073

122,227

15,889,166

Additions

-

8,456

55,951

64,407

Disposals

-

-

(53,190)

(53,190)

At 31 January 2026

14,604,866

1,170,529

124,988

15,900,383

Depreciation

At 1 February 2025

-

1,066,939

79,450

1,146,389

Charge for the year

-

52,743

17,621

70,364

Eliminated on disposal

-

-

(31,190)

(31,190)

At 31 January 2026

-

1,119,682

65,881

1,185,563

Carrying amount

At 31 January 2026

14,604,866

50,847

59,107

14,714,820

At 31 January 2025

14,604,866

95,134

42,777

14,742,777

Revaluation

The fair value of the company's freehold land and buildings and furniture, fittings and equipment was revalued on 28 October 2025 by an independent valuer, Knight Frank LLP, a RICS regulated property consultant. The valuation was prepared in accordance with the RICS Valuation – Global Standards (Red Book) and reflects market value. The aggregate value of the assets in these categories is £14,668,266 (2025: £14,700,000).

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £8,586,567 (2025 - £8,630,854).

Restriction on title and pledged as security

Land and buildings with a carrying amount of £14,604,866 (2025 - £14,604,866) has been pledged as security for the company's bank loans.

Furniture, fittings and equipment with a carrying amount of £50,847 (2025 - £95,134) has been pledged as security for the company's bank loans.

Motor vehicles with a carrying amount of £59,107 (2025 - £42,777) has been pledged as security for the company's bank loans.

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

Stocks

	2026 £	2025 £
Stocks	61,192	53,056

The carrying amount of stocks pledged as security for liabilities amounted to £61,192 (2025 - £53,056).

Debtors

Current	2026 £	2025 £
Trade debtors	22,906	41,773
Other debtors	158,408	160,648
Prepayments	56,711	46,256
	238,025	248,677

14	Cash and cash equivalents

	2026 £	2025 £
Cash on hand	12,635	11,528
Cash at bank	1,008,977	797,799
	1,021,612	809,327

Creditors

	Note	2026 £	2025 £
Due within one year
Loans and borrowings	20	200,000	200,000
Trade creditors		240,011	227,321
Social security and other taxes		255,864	279,047
Outstanding defined contribution pension costs		11,099	11,068
Other creditors		383,276	538,679
Accruals		111,882	113,988
Corporation tax liability	10	177,123	182,242
		1,379,255	1,552,345
Due after one year
Loans and borrowings	20	1,200,000	1,400,000

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

16	Provisions for liabilities

	Deferred tax £	Total £
At 1 February 2025	565,693	565,693
At 31 January 2026	565,693	565,693

17	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £58,004 (2025 - £59,321).

Contributions totalling £11,099 (2025 - £11,068) were payable to the scheme at the end of the year and are included in creditors.

18	Share capital

Allotted, called up and fully paid shares

	2026		2025
	No.	£	No.	£
Ordinary A shares of £1 each	18,000	18,000	18,000	18,000
Ordinary B shares of £1 each	162,000	162,000	162,000	162,000
Preference shares of £1 each	2,632,629	2,632,629	2,632,629	2,632,629
	2,812,629	2,812,629	2,812,629	2,812,629

Rights, preferences and restrictions

Ordinary A shares have the following rights, preferences and restrictions:
The ordinary A shares have full voting rights and rights to dividends at the discretion of the directors.

Ordinary B shares have the following rights, preferences and restrictions:
The ordinary B shares have full voting rights and rights to dividends at the discretion of the directors.

Preference shares have the following rights, preferences and restrictions:
The preference shares are non redeemable and non voting shares but have full rights to dividends at the discretion of the directors.

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

Reserves

Profit and loss account

This reserve represents accumulated profits net of any distributions made to shareholders.

Revaluation reserve

This has arisen from previous revaluations as permitted under previous accounting standards.

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

	Revaluation reserve £	Total £
Surplus/deficit on property, plant and equipment revaluation	1,233,940	1,233,940

20	Loans and borrowings

Current loans and borrowings

	2026 £	2025 £

Bank borrowings	200,000	200,000

Non-current loans and borrowings

	2026 £	2025 £

Bank borrowings	1,200,000	1,400,000

Bank borrowings

Bank loans is denominated in GBP with a nominal interest rate of 6.78% upon one loan and 2.83% over the base rate upon another loan, and the final instalment is due on 31 January 2028. The carrying amount at year end is £1,400,000 (2025 - £1,600,000).

The bank has a first priority legal charge over each of the existing properties that the company holds and a fixed and floating charge over the present and future assets of the company.

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

21	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2026 £	2025 £
Not later than one year	53,585	59,743
Later than one year and not later than five years	115,213	170,905
Later than five years	-	920
	168,798	231,568

The amount of non-cancellable operating lease payments recognised as an expense during the year was £64,800 (2025 - £58,703).

Dividends

Interim dividends paid

	2026 £	2025 £
Interim dividend of £Nil (2025 - £2.50) per each Ordinary A shares	-	45,000

23	Analysis of changes in net debt

	At 1 February 2025 £	Financing cash flows £	At 31 January 2026 £
Cash and cash equivalents
Cash	809,327	212,285	1,021,612
Borrowings
Long term borrowings	(1,400,000)	200,000	(1,200,000)
Short term borrowings	(200,000)	-	(200,000)
	(1,600,000)	200,000	(1,400,000)
	(790,673)	412,285	(378,388)

24	Related party transactions

Key management compensation

	2026 £	2025 £
Salaries and other short term employee benefits	753,391	743,463

Latona Leisure Limited

Notes to the Financial Statements for the Year Ended 31 January 2026

Summary of transactions with other related parties

A pension scheme of which the directors of the company are also trustees .

Expenditure with and payables to related parties

2025	Key management £
Dividends	45,000

Loans to related parties

2026	Key management £	Total £
At start of period	104,314	104,314
At end of period	104,314	104,314

2025	Key management £	Total £
At start of period	104,314	104,314
At end of period	104,314	104,314

Terms of loans to related parties

The loans from key management personnel are interest free and repayable on demand.

Loans from related parties

2026	Other related parties £	Total £
At start of period	175,412	175,412
Repaid	(172,804)	(172,804)
At end of period	2,608	2,608

2025	Other related parties £	Total £
At start of period	332,541	332,541
Repaid	(170,235)	(170,235)
Interest transactions	13,106	13,106
At end of period	175,412	175,412

Terms of loans from related parties

During the year, the company pension scheme provided the company with two loans. Interest at a rate of 3% above base was charged upon these loans.

	Share capital £	Revaluation reserve £	Profit and loss account £	Total £
At 1 February 2025	2,812,629	4,143,247	5,379,923	12,335,799
Profit for the year	-	-	554,902	554,902
At 31 January 2026	2,812,629	4,143,247	5,934,825	12,890,701

	Freehold land and buildings £	Furniture, fittings and equipment £	Motor vehicles £	Total £
Cost or valuation
At 1 February 2025	14,604,866	1,162,073	122,227	15,889,166
Additions	-	8,456	55,951	64,407
Disposals	-	-	(53,190)	(53,190)
At 31 January 2026	14,604,866	1,170,529	124,988	15,900,383
Depreciation
At 1 February 2025	-	1,066,939	79,450	1,146,389
Charge for the year	-	52,743	17,621	70,364
Eliminated on disposal	-	-	(31,190)	(31,190)
At 31 January 2026	-	1,119,682	65,881	1,185,563
Carrying amount
At 31 January 2026	14,604,866	50,847	59,107	14,714,820
At 31 January 2025	14,604,866	95,134	42,777	14,742,777