FOR THE YEAR ENDED 31 OCTOBER 2025
TORQUAY LEISURE HOTELS LIMITED
COMPANY INFORMATION
TORQUAY LEISURE HOTELS LIMITED
CONTENTS
TORQUAY LEISURE HOTELS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors present their strategic report for the 12 months ended 31 October 2025. The comparative period covers the 18 months ended 31 October 2024 and therefore the comparative results are not directly comparable to the current 12-month period.
The principal activity of the Company during the year was the operation of the Derwent, Victoria, Toorak and Carlton hotels in Torquay.
The Company's key performance indicator showed a loss of £22,814 before tax, for the year ended 31 October 2025 (2024 - Profit before tax: £638,180).
Despite challenging economic conditions, the business demonstrated resilience by maintaining strong occupancy levels and leveraging its unique entertainment and facilities that set it apart from competitors. These strengths have been instrumental in supporting Group volumes, particularly during the winter months when demand typically wanes. The Company's long-standing reputation and loyal customer base remain key drivers of ongoing success and stability
The Company's key performance indicator showed a loss of £22,814 before tax, for the year ended 31 October 2025 (2024 - Profit before tax: £638,180).
Despite challenging economic conditions, the business demonstrated resilience by maintaining strong occupancy levels and leveraging its unique entertainment and facilities that set it apart from competitors. These strengths have been instrumental in supporting Group volumes, particularly during the winter months when demand typically wanes. The Company's long-standing reputation and loyal customer base remain key drivers of ongoing success and stability
The tourist industry sector continues to evolve amidst rising competition and economic pressures, the Company remains confident in its strategic initiatives. We are proactively enhancing the quality and diversity of our differentiating facilities to appeal to a broad spectrum of markets. Continuing operational restructuring and a focus on maximising hotel efficiency will further strengthen our resilience, enabling us to respond flexibly to external challenges. Our management team's agility and commitment to innovation position us well to seize opportunities and mitigate risks effectively. The directors have managed the changing scenarios with flexibility to maintain the Company’s financial stability.
The biggest risk Torquay Leisure Hotel Limited (TLH) will face will be if the summer season struggles to reach budgeted levels. The current energy crisis, increasing wage costs and cost of living inflation is expected to continue to exert huge pressure on costs in the next year, to which TLH will continue to react.
Cashflow for the next financial year is expected to be tight, and the bank has illustrated its commitment to the Company providing an overdraft facility outside the summer months. The Company's financial base, supported by ongoing bank facilities and extended investor commitments until July 2027, provides a reliable platform for continued stability. The directors are optimistic about the Company's prospects, believing that with diligent management and strategic adaptability, we will not only navigate current economic headwinds but emerge stronger. We are committed to maintaining our leadership in the local tourism market, capitalising on our distinctive offerings, and fostering long-term value for stakeholders over the coming years.
The biggest risk Torquay Leisure Hotel Limited (TLH) will face will be if the summer season struggles to reach budgeted levels. The current energy crisis, increasing wage costs and cost of living inflation is expected to continue to exert huge pressure on costs in the next year, to which TLH will continue to react.
Cashflow for the next financial year is expected to be tight, and the bank has illustrated its commitment to the Company providing an overdraft facility outside the summer months. The Company's financial base, supported by ongoing bank facilities and extended investor commitments until July 2027, provides a reliable platform for continued stability. The directors are optimistic about the Company's prospects, believing that with diligent management and strategic adaptability, we will not only navigate current economic headwinds but emerge stronger. We are committed to maintaining our leadership in the local tourism market, capitalising on our distinctive offerings, and fostering long-term value for stakeholders over the coming years.
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TORQUAY LEISURE HOTELS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
The Company is part of the Group owned by Torquay Leisure Hotels Holdings Limited and is managed on a unified basis with the other group Companies
Despite challenging economic conditions, the business demonstrated resilience by maintaining strong occupancy levels and leveraging its unique entertainment and facilities that set it apart from competitors. These strengths have been instrumental in supporting group volumes, particularly during the winter months when demand typically wanes. The Company's long-standing reputation and loyal customer base remain key drivers of ongoing success and stability.
In the prior period, the Group was in breach of certain banking covenants. These breaches were subsequently waived by the Group’s bankers and the covenants were reset. During the current year, the Group has again breached certain covenant requirements, and the directors are actively engaging with the Group’s bankers to seek appropriate waivers or amendments.
The tourist industry sector continues to evolve amidst rising competition and economic pressures, the Company remains confident in its strategic initiatives. We are proactively enhancing the quality and diversity of our differentiating facilities to appeal to a broad spectrum of markets. Continuing operational restructuring and a focus on maximising hotel efficiency will further strengthen our resilience, enabling us to respond flexibly to external challenges. Our management team's agility and commitment to innovation position us well to seize opportunities and mitigate risks effectively. The directors have managed the changing scenarios with flexibility to maintain the Company’s financial stability.
The biggest risk TLH will face will be if the summer season struggles to reach budgeted levels. The uncertainty surrounding energy and food costs, increasing wage costs and cost of living inflation is expected to continue to exert huge pressure on costs in the next year, to which TLH will continue to react. With the Company’s business stable, the private and family market is key over the next 12 months.
The Group's bankers continue to be supportive providing cashflow assistance throughout the year, with regular review meetings being held discussing detailed cashflow projections providing credibility that the Company is expected to be able to continue to trade within existing facilities for the coming 12 months. Our investors are also supportive and have agreed that repayment of their loans will not commence until July 2027.
The directors acknowledge that in an uncertain world future projections risk not being reached and this coupled with the Group's high gearing do mean that there is a material uncertainty that may cast doubt over the ability of the Company to continue as a going concern in the future.
The directors are optimistic about the Company's prospects, believing that with diligent management and strategic adaptability, we will not only navigate current economic headwinds but emerge stronger. We are committed to maintaining our leadership in the local tourism market, capitalising on our distinctive offerings, and fostering long-term value for stakeholders over the coming years.
Despite challenging economic conditions, the business demonstrated resilience by maintaining strong occupancy levels and leveraging its unique entertainment and facilities that set it apart from competitors. These strengths have been instrumental in supporting group volumes, particularly during the winter months when demand typically wanes. The Company's long-standing reputation and loyal customer base remain key drivers of ongoing success and stability.
In the prior period, the Group was in breach of certain banking covenants. These breaches were subsequently waived by the Group’s bankers and the covenants were reset. During the current year, the Group has again breached certain covenant requirements, and the directors are actively engaging with the Group’s bankers to seek appropriate waivers or amendments.
The tourist industry sector continues to evolve amidst rising competition and economic pressures, the Company remains confident in its strategic initiatives. We are proactively enhancing the quality and diversity of our differentiating facilities to appeal to a broad spectrum of markets. Continuing operational restructuring and a focus on maximising hotel efficiency will further strengthen our resilience, enabling us to respond flexibly to external challenges. Our management team's agility and commitment to innovation position us well to seize opportunities and mitigate risks effectively. The directors have managed the changing scenarios with flexibility to maintain the Company’s financial stability.
The biggest risk TLH will face will be if the summer season struggles to reach budgeted levels. The uncertainty surrounding energy and food costs, increasing wage costs and cost of living inflation is expected to continue to exert huge pressure on costs in the next year, to which TLH will continue to react. With the Company’s business stable, the private and family market is key over the next 12 months.
The Group's bankers continue to be supportive providing cashflow assistance throughout the year, with regular review meetings being held discussing detailed cashflow projections providing credibility that the Company is expected to be able to continue to trade within existing facilities for the coming 12 months. Our investors are also supportive and have agreed that repayment of their loans will not commence until July 2027.
The directors acknowledge that in an uncertain world future projections risk not being reached and this coupled with the Group's high gearing do mean that there is a material uncertainty that may cast doubt over the ability of the Company to continue as a going concern in the future.
The directors are optimistic about the Company's prospects, believing that with diligent management and strategic adaptability, we will not only navigate current economic headwinds but emerge stronger. We are committed to maintaining our leadership in the local tourism market, capitalising on our distinctive offerings, and fostering long-term value for stakeholders over the coming years.
This report was approved by the board on 30 October 2026 and signed on its behalf.
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TORQUAY LEISURE HOTELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors present their report and the financial statements for the year ended 31 October 2025.
The Loss for the year, after taxation, amounted to £53,978 (2024: Profit: £478,635).
The directors who served during the year were:
The Company gives full consideration to applications for employment from disabled people where the requirements of the job can be adequately fulfilled by a disabled person. If an employee becomes disabled during employment, every effort is made to retain that employee's services.
Training and career development are available to all employees on the basis of individual ability and aptitude. Special training may be made available to disabled employees if there is an individual need.
Training and career development are available to all employees on the basis of individual ability and aptitude. Special training may be made available to disabled employees if there is an individual need.
Under section 487(2) of the Companies Act 2006, Bishop Fleming Audit Limited will be deemed to have been reappointed as auditors 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 on 30 October 2026 and signed on its behalf.
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TORQUAY LEISURE HOTELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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TORQUAY LEISURE HOTELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS LIMITED
We have audited the financial statements of Torquay Leisure Hotels Limited (the 'Company') for the year ended 31 October 2025, which comprise the Statement of income and retained earnings, the Statement of Financial Position 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 draw attention to Note 2.3 in the financial statements, which indicates that the company incurred a loss before tax of £22,814 for the year ended 31 October 2025 and had net assets of £8,324,993 at that date.
As described in Note 2.3, the Company is dependent on the continued support of its bankers and investors to maintain adequate liquidity. Whilst the directors have prepared cash flow forecasts covering a period of at least 12 months from the date of approval of the financial statements and continue to receive support from the Group's bankers and investors, including investor loan repayments not commencing until July 2027, the Company remains reliant on continued external funding.
These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
As described in Note 2.3, the Company is dependent on the continued support of its bankers and investors to maintain adequate liquidity. Whilst the directors have prepared cash flow forecasts covering a period of at least 12 months from the date of approval of the financial statements and continue to receive support from the Group's bankers and investors, including investor loan repayments not commencing until July 2027, the Company remains reliant on continued external funding.
These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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.
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 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.
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TORQUAY LEISURE HOTELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS LIMITED (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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TORQUAY LEISURE HOTELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS LIMITED (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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the sector, control environment and the Company's performance;
• Results of our enquiries of management and the Directors, about their own identification and assessment of the risks of irregularities;
• Any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, and these were identified as the greatest potential area for fraud.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included, FRS102, UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included, data protection regulations, occupational health and safety regulations, and employment legislation.
Our procedures to respond to risks identified included the following:
• Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
• Enquiring of Directors and management concerning actual and potential litigation and claims;
• Performing procedures to confirm material compliance with the requirements of the above regulations;
• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• Reading minutes of director meetings;
• In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;
• Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
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TORQUAY LEISURE HOTELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS LIMITED (CONTINUED)
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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.
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.
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Brook House
Winslade Park
Manor Drive
Exeter
EX5 1GD
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TORQUAY LEISURE HOTELS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS LIMITED
REGISTERED NUMBER:00430051
STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 October 2026 .
The notes on pages 11 to 25 form part of these financial statements.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The Company is a private Company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
Derwent Hotel
Belgrave Road
Torquay
Devon
TQ2 5HS
The address of its registered office is:
Derwent Hotel
Belgrave Road
Torquay
Devon
TQ2 5HS
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Torquay Leisure Hotel Holdings Limited as at 31 October 2025 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
For the year ended 31 October 2025, the Company incurred a loss before tax of £22,814 (2024: profit of £638,180). At the balance sheet date, the Company had net current liabilities of £6,700,334 (2024: £6,921,939) and net assets of £8,324,993 (2024: £8,378,971).
The Company is part of a wider Group and is dependent on the continued financial support of its parent undertaking and fellow Group companies. At the balance sheet date, the Company had amounts owed to Group undertakings totalling £6,085,329 (2024: £5,569,813) and amounts owed from Group undertakings of £1,432,184 (2024: £385,559).
A refinance was completed in July 2023 for the wider Group, with the additional bank facility being used to reduce borrowings from the Group's investors.
In the prior period, the Group was in breach of certain banking covenants. These breaches were subsequently waived by the Group’s bankers and the covenants were reset. During the current year, the Group has again breached certain covenant requirements, and the directors are actively engaging with the Group’s bankers to seek appropriate waivers or amendments.
The Group's bankers continue to be supportive, providing cash flow assistance throughout the year, with regular review meetings being held to discuss detailed cash flow projections. These provide support for the directors' expectation that the Group will be able to continue trading within its existing facilities for at least the next 12 months. The Group's investors have also confirmed their continued support and have agreed that repayment of their loans will not commence until July 2027.
The directors have prepared cash flow forecasts for the Company covering a period of at least 12 months from the date of approval of these financial statements. These forecasts take into account expected trading performance, working capital requirements and the availability of Group funding.
The directors have received confirmation from the parent undertaking of its intention to continue to provide financial support to the Company for the foreseeable future and for at least twelve months from the date of approval of these financial statements. However, the Company's ability to continue as a going concern remains dependent upon the continued availability of Group funding and the achievement of forecast trading and cash flow performance.
Having considered the forecasts, available facilities and the support available from the wider Group, the directors have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future and have therefore adopted the going concern basis in preparing these financial statements.
Nevertheless, the Company's reliance on continued Group support, together with the inherent uncertainty in forecasting future trading performance and cash flows, constitutes a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.
The financial statements do not include any adjustments that would result if the Company were unable to continue as a going concern.
The Company is part of a wider Group and is dependent on the continued financial support of its parent undertaking and fellow Group companies. At the balance sheet date, the Company had amounts owed to Group undertakings totalling £6,085,329 (2024: £5,569,813) and amounts owed from Group undertakings of £1,432,184 (2024: £385,559).
A refinance was completed in July 2023 for the wider Group, with the additional bank facility being used to reduce borrowings from the Group's investors.
In the prior period, the Group was in breach of certain banking covenants. These breaches were subsequently waived by the Group’s bankers and the covenants were reset. During the current year, the Group has again breached certain covenant requirements, and the directors are actively engaging with the Group’s bankers to seek appropriate waivers or amendments.
The Group's bankers continue to be supportive, providing cash flow assistance throughout the year, with regular review meetings being held to discuss detailed cash flow projections. These provide support for the directors' expectation that the Group will be able to continue trading within its existing facilities for at least the next 12 months. The Group's investors have also confirmed their continued support and have agreed that repayment of their loans will not commence until July 2027.
The directors have prepared cash flow forecasts for the Company covering a period of at least 12 months from the date of approval of these financial statements. These forecasts take into account expected trading performance, working capital requirements and the availability of Group funding.
The directors have received confirmation from the parent undertaking of its intention to continue to provide financial support to the Company for the foreseeable future and for at least twelve months from the date of approval of these financial statements. However, the Company's ability to continue as a going concern remains dependent upon the continued availability of Group funding and the achievement of forecast trading and cash flow performance.
Having considered the forecasts, available facilities and the support available from the wider Group, the directors have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future and have therefore adopted the going concern basis in preparing these financial statements.
Nevertheless, the Company's reliance on continued Group support, together with the inherent uncertainty in forecasting future trading performance and cash flows, constitutes a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.
The financial statements do not include any adjustments that would result if the Company were unable to continue as a going concern.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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:
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
Freehold property is not depreciated as its residual value is considered to be equal to or greater than the carrying amount. and therefore any depreciation charge would be immaterial. This assessment is supported by an external valuation performed in 2025. The residual value is reviewed annually to ensure that it remains appropriate.
obsolete and slow moving items.
The Company 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 Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Impairment of financial assets
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The following are the critical judgements and estimates that the directors have made in the process of applying the Companies accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Useful economic lives and residual values of tangible fixed assets
No depreciation is provided on land and buildings, as the directors consider that the useful economic life of the Company's properties is such that depreciation would be immaterial. The Company has a policy and practice of regular maintenance and repair (charges for which are recognised in the profit and loss account and shown in note 4 to the financial statements) such that these assets are kept to their previously assessed standard of performance, and the properties are unlikely to suffer from economic or technological obsolescence. The properties are reviewed for impairment each year.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The turnover and profit before tax are attributable to the provision of services in relation to the one principal activity of the Company and arose wholly within the UK.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
There were no factors that may affect future tax charges.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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The share premium account represents the proceeds received in respect of ordinary shares issued by the Company, net of directly attributable transaction costs, in excess of the nominal value of the Company's shares issued.
The profit and loss account represents cumulative profit or losses, net of dividends paid and other adjustments.
The profit and loss account represents cumulative profit or losses, net of dividends paid and other adjustments.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £100,877 (2024: £140,376) . Contributions totalling £20,023 (2024: £18,572) were payable to the fund at the balance sheet date and are included in creditors.
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TORQUAY LEISURE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The Company's immediate parent is TLH Bidco Limited, incorporated in England and Wales.
The ultimate parent is Torquay Leisure Hotels Holdings Limited, incorporated in England and Wales. Torquay Leisure Hotels Holdings Limited is the parent undertaking of the smallest and largest Group of undertakings for which Group financial statements are prepared.
These Companies share the registered office of Torquay Leisure Hotels Holdings Limited, as shown in note 1.
The ultimate parent is Torquay Leisure Hotels Holdings Limited, incorporated in England and Wales. Torquay Leisure Hotels Holdings Limited is the parent undertaking of the smallest and largest Group of undertakings for which Group financial statements are prepared.
These Companies share the registered office of Torquay Leisure Hotels Holdings Limited, as shown in note 1.
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