Pennco Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 11

Pennco Limited

Balance Sheet

31 January 2026

	Note	31 January 2026 £	31 January 2025 £
Fixed assets
Tangible assets	4	4,859,492	3,607,593
Current assets
Stocks	5	15,906	16,925
Debtors	6	133,228	23,041
Cash at bank and in hand		20,476	171,545
		169,610	211,511
Creditors: Amounts falling due within one year	7	(4,341,503)	(4,005,993)
Net current liabilities		(4,171,893)	(3,794,482)
Total assets less current liabilities		687,599	(186,889)
Creditors: Amounts falling due after more than one year	7	(571,283)	-
Provisions for liabilities		(219,402)	(134,049)
Net liabilities		(103,086)	(320,938)
Capital and reserves
Called up share capital	9	2	2
Share premium reserve		105,408	-
Capital redemption reserve		3	3
Profit and loss account		(208,499)	(320,943)
Shareholders' deficit		(103,086)	(320,938)

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 28 October 2026 and signed on its behalf by:
 

......................................... J J Nel Director

Company Registration Number: 04910357

Pennco Limited

Notes to the Financial Statements

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:
The Crown Hotel
Wetheral
Carlisle
Cumbria
CA4 8ES

The principal place of business is:
Borrowdale Gates Hotel
Grange
Keswick
CA12 5UQ
England

These financial statements were authorised for issue by the Board on 28 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 have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in pounds sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Disclosure of long or short period

The company prepared its comparative financial statements for the short period to January 2025, following its acquisition by Kronen Hotels Limited.

The current financial statements reflect the 12 months to January 2026, and by consequence the two periods are not directly comparable.

Pennco Limited

Notes to the Financial Statements

Year Ended 31 January 2026

Adoption of new and revised Financial Reporting Standards (FRS102)

The Financial Reporting Council (FRC) has introduced significant amendments to FRS 102, effective for accounting periods beginning on or after 1 January 2026, with early adoption permitted. These changes, stemming from the 2024 periodic review, aim to align UK and Ireland Generally Accepted Accounting Practice (GAAP) more closely with international standards.

After due consideration the Directors have not chosen to early adopt the requirements of FRS102. The areas that have been reviewed as a potential change to the financial statements are as follows:

Revised revenue accounting requirements in FRS 102 and FRS 105, based on the IFRS 15 five-step model for revenue recognition, with appropriate simplifications;
Revised lease accounting requirements in FRS 102 based on the IFRS 16 'on-balance sheet' model, again with appropriate simplifications.

The Directors are assessing the impact of the amendment to the accounting standard, which will be reflected in the financial statements to 31 January 2027, however do not anticipate that this will be material.

Going concern

At the balance sheet date the company had net current liabilities of £4,171,893 (2025 - £3,794,482) and net liabilities of £103,086 (2025 - £320,938). Included in current liabilities is £4,090,501 (2025 - £3,584,683) due to group undertakings, under the common control of Kronen Hotels Ltd. Kronen Hotels Ltd have confirmed that they do not require repayment of this balance within the next 12 months from the balance sheet date.

The company is party to a composite guarantee provided to NatWest Bank in relation to the agreement entered into between Kronen Hotels Limited and NatWest Bank, with the total outstanding balance of £14,405,732 at the year end. This guarantee agreement is in conjunction with the other group companies.

The group's ability to continue as a going concern is dependent upon both the ongoing support of its bankers and its shareholders. However, in the event that this is not forthcoming then a material uncertainty would exist with regards to the appropriateness of the going conern assertion.

After due consideration the Directors assess the Company as a going concern and continue to apply the going concern basis to the preparation of the financial statements.

Revenue recognition

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Accommodation revenue is recognised at the point of the customer staying in the room. Deposits received in advance of customer stays are treated as payments on account and recognised within creditors due within one year.

Food, beverage and other income is recognised at the point of sale.

Pennco Limited

Notes to the Financial Statements

Year Ended 31 January 2026

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 corporation 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.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred 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 are 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 balance sheet at cost, 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.

Depreciation

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

Asset class	Depreciation method and rate
Leasehold Property	10% reducing balance
Office Equipment	20% reducing balance
Fixtures & Fittings	20% reducing balance

No depreciation has been provided for on freehold property as it is the company's policy to maintain its property in good condition to prolong its useful life. Maintenance is regularly undertaken and systematically charged to the profit and loss account. In the opinion of the directors, any depreciation would not be material.

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.

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.

Pennco Limited

Notes to the Financial Statements

Year Ended 31 January 2026

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.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Financial instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

Pennco Limited

Notes to the Financial Statements

Year Ended 31 January 2026

Critical judgements and estimation uncertainty

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 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.

In the opinion of the Directors there are no areas of the financial statements where there exists estimation uncertainty.

The key judgement made by the Directors relates to the appropriateness of the going concern assertion represent material uncertainties.

The board has concluded that there are no material uncertainties relating to events or conditions that individually or collectively may cast doubt on the company's ability to continue as a going concern for a period at least 12 months from the date the financial statements are authorised for issue.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 24 (2025 - 26).

Pennco Limited

Notes to the Financial Statements

Year Ended 31 January 2026

4	Tangible assets

	Land and buildings £	Fixtures and fittings £	Plant and machinery £	Total £
Cost or valuation
At 1 February 2025	3,493,260	1,616,809	75,333	5,185,402
Additions	941,148	214,595	408,047	1,563,790
At 31 January 2026	4,434,408	1,831,404	483,380	6,749,192
Depreciation
At 1 February 2025	727,322	803,780	46,707	1,577,809
Charge for the period	21,719	202,802	87,370	311,891
At 31 January 2026	749,041	1,006,582	134,077	1,889,700
Carrying amount
At 31 January 2026	3,685,367	824,822	349,303	4,859,492
At 31 January 2025	2,765,938	813,029	28,626	3,607,593