FOR THE YEAR ENDED 31 OCTOBER 2025
TORQUAY LEISURE HOTELS HOLDINGS LIMITED
COMPANY INFORMATION
TORQUAY LEISURE HOTELS HOLDINGS LIMITED
CONTENTS
TORQUAY LEISURE HOTELS HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors present their strategic report for the period from 1 November 2024 to 31 October 2025. The comparative period covers the 18 months ended 31 October 2024 and accordingly amounts are not directly comparable.
The Group "Group" comprises Torquay Leisure Hotels Holdings Limited and its subsidiaries TLH Bidco Limited and Torquay Leisure Hotels Limited.
The principal activity of the Group during the period was the operation of the Derwent, Victoria, Toorak, and Carlton hotels in Torquay.
The principal activity of the Group during the period was the operation of the Derwent, Victoria, Toorak, and Carlton hotels in Torquay.
The Group's key performance indicator showed a loss of £1,000,769 before tax, for the year ended 31 October 2025 (2024 - £1,099,706).
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
A re-finance was actioned and completed in July 2023.
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
A re-finance was actioned and completed in July 2023.
The tourist industry sector continues to evolve amidst rising competition and economic pressures, the Group 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 Group's financial stability
The biggest risk Torquay Leisure Hotels Holdings (TLHH) 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 are expected to continue to exert huge pressure on costs in the next year, to which TLHH will continue to react.
Cashflow for the next financial year is expected to be tight, and the bank has illustrated its commitment to the Group 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 Group'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 Hotels Holdings (TLHH) 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 are expected to continue to exert huge pressure on costs in the next year, to which TLHH will continue to react.
Cashflow for the next financial year is expected to be tight, and the bank has illustrated its commitment to the Group 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 Group'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 HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
The Group is owned by Torquay Leisure Hotel Holdings Limited, and the Company is managed on a unified basis with the other Group Companies.
Despite challenging economic conditions, the Group 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 Group’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, and the Group 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 Group’s financial stability.
The biggest risk the Group 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 the Group will continue to react. With the Group’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 Group 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, does mean that there is a material uncertainty that may cast doubt over the ability of the Group to continue as a going concern in the future.
The directors are optimistic about the Group’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 Group 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 Group’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, and the Group 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 Group’s financial stability.
The biggest risk the Group 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 the Group will continue to react. With the Group’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 Group 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, does mean that there is a material uncertainty that may cast doubt over the ability of the Group to continue as a going concern in the future.
The directors are optimistic about the Group’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 HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
The Board takes its Companies Act Section 172 duty to promote the success of the company very seriously and considers the Group's various stakeholders when making decisions.
The Board both individually and collectively, consider that they have acted in the way they consider would be the most likely to promote the success of the Group as a whole. The Board of Directors has overall responsibility for determining the Group's purpose, values and strategy and for ensuring high standards of governance. The primary aim of the Board is to promote the long term sustainable success of the Group, generating value for shareholders and contributing to the wider society. Our key stakeholders include employees, shareholders, debt providers, suppliers, customers and creditors.
This year has been particularly challenging, however good communication with our stakeholders has maintained the strong and healthy relationships.
In particular :
The Board both individually and collectively, consider that they have acted in the way they consider would be the most likely to promote the success of the Group as a whole. The Board of Directors has overall responsibility for determining the Group's purpose, values and strategy and for ensuring high standards of governance. The primary aim of the Board is to promote the long term sustainable success of the Group, generating value for shareholders and contributing to the wider society. Our key stakeholders include employees, shareholders, debt providers, suppliers, customers and creditors.
This year has been particularly challenging, however good communication with our stakeholders has maintained the strong and healthy relationships.
In particular :
∙The Board engages with shareholders and debt providers on a regular basis regularly discussing the longer term projection of TLH. The intention of the board is to behave responsibly towards our shareholders and debt providers treating them fairly and equally so that they all benefit from a sustainable successful company.
∙To ensure the Board takes account of the likely consequences of decisions in the long term, the Board works to a five year plan (currently up to April 2030). Progress against this plan is reviewed at board meetings and is updated as and when necessary.
∙Our employees are fundamental to the delivery of our plan. The Group has implemented a range of initiatives and activities aimed at enhancing the interest of our employees. We recognise that organisations are most successful when management and staff share a common purpose, work in partnership and communicate openly. To this end regular meetings, staff feedback surveys and training have been carried out. During the enforced shutdowns regular communiques were issued to our employees to keep them fully informed.
∙Customers/Clients are also fundamental to our business, and as a prominent retail business, it is essential we maintain our reputation for high standards of business conduct. We engage with our customers within our establishments and via loyalty promotions, social media and our website. We meet with key customers to discuss feedback and client needs to ensure satisfaction is provided.
∙Regular meetings are held with our key suppliers to ensure support for our plans and objectives and to resolve any issues at an early stage.
The Board recognises its responsibilities under section 172 as outlined above and has acted at all times in a way consistent with promoting the success of the company with regard to all stakeholders.
This report was approved by the board on 30 October 2026 and signed on its behalf.
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TORQUAY LEISURE HOTELS HOLDINGS 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 directors who served during the year were:
The Group's long term finance is provided chiefly by bank loans. Day-to-day working capital requirements are met by an overdraft facility.
The Group's bank facilities are due for renewal in July 2043.
The Group's bank facilities are due for renewal in July 2043.
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 HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS HOLDINGS LIMITED
We have audited the financial statements of Torquay Leisure Hotels Holdings Limited(the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2025, which comprise the Consolidated statement of income and retained earnings, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows 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 states that the Group incurred a loss before tax of £1,000,769 for the year ended 31 October 2025 and had net liabilities of £1,851,610 at that date.
As described in Note 2.3, the Group 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 Group remains reliant on continued external funding.
These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Group'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 Group 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 Group remains reliant on continued external funding.
These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Group'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.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS HOLDINGS LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS HOLDINGS 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 Group 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 Group'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 Group’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 Group 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 Group’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.
• The nature of the sector, control environment and the Group'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 Group’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 Group 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 Group’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 HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORQUAY LEISURE HOTELS HOLDINGS 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 HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
REGISTERED NUMBER:11455843
CONSOLIDATED 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 14 to 30 form part of these financial statements.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
REGISTERED NUMBER:11455843
COMPANY 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 14 to 30 form part of these financial statements.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The Group 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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
The financial statements have been prepared on a going concern basis.
For the year ended 31 October 2025, the Group recorded a loss before tax of £1,000,769 (2024: £1,099,706 loss). Operating profit for the year was £252,801 (2024: £917,555). At 31 October 2025, the Group had net liabilities of £1,851,610 (2024: net liabilities of £758,708).
The Group is dependent on the continued support of its banking partners and investors to maintain adequate liquidity and meet its obligations as they fall due. At the balance sheet date, the Group had net liabilities to external lenders and investors of £14,827,352 (2024: £14,509,599), with amounts previously owed between group entities eliminated on consolidation.
A refinance was actioned and completed in July 2023 for the wider Group with the additional bank facility being used to reduce borrowing 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 discussing detailed cashflow projections providing credibility that the Group is expected to be able to continue to trade within existing facilities for the coming 12 months. The Group's investors are also supportive and have agreed that repayment of their loans will not commence until July 2027.
The directors have prepared consolidated cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts incorporate expected trading performance across the Group, anticipated working capital requirements, and the availability of committed financing facilities.
Having considered the forecasts, available facilities and the availability of external funding, the directors have a reasonable expectation that the Group 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 Group's reliance on continued external funding, which whilst intended is not guaranteed, together with the inherent uncertainty in forecasting future trading performance and cash flows constitutes a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.
The consolidated financial statements do not include any adjustments that would arise if the Group were unable to continue as a going concern.
For the year ended 31 October 2025, the Group recorded a loss before tax of £1,000,769 (2024: £1,099,706 loss). Operating profit for the year was £252,801 (2024: £917,555). At 31 October 2025, the Group had net liabilities of £1,851,610 (2024: net liabilities of £758,708).
The Group is dependent on the continued support of its banking partners and investors to maintain adequate liquidity and meet its obligations as they fall due. At the balance sheet date, the Group had net liabilities to external lenders and investors of £14,827,352 (2024: £14,509,599), with amounts previously owed between group entities eliminated on consolidation.
A refinance was actioned and completed in July 2023 for the wider Group with the additional bank facility being used to reduce borrowing 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 discussing detailed cashflow projections providing credibility that the Group is expected to be able to continue to trade within existing facilities for the coming 12 months. The Group's investors are also supportive and have agreed that repayment of their loans will not commence until July 2027.
The directors have prepared consolidated cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts incorporate expected trading performance across the Group, anticipated working capital requirements, and the availability of committed financing facilities.
Having considered the forecasts, available facilities and the availability of external funding, the directors have a reasonable expectation that the Group 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 Group's reliance on continued external funding, which whilst intended is not guaranteed, together with the inherent uncertainty in forecasting future trading performance and cash flows constitutes a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.
The consolidated financial statements do not include any adjustments that would arise if the Group were unable to continue as a going concern.
Page 15
TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
GOODWILL
OTHER INTANGIBLE ASSETS
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 HOLDINGS 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.
No depreciation is provided on freehold property. See "Judgements in applying accounting policies and key sources of estimation uncertainty" below for further details.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
The Group 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 Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.
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.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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.
Impairment of investments in subsidiaries
The Company holds investments in subsidiary undertakings which are stated at cost less impairment. Management exercises judgement in assessing whether there are indicators that an investment may be impaired. This includes consideration of both external and internal sources of information, such as the financial performance and position of the subsidiary, market conditions, and any significant changes in the business environment in which the subsidiary operates.
Where such indicators exist, management determines the recoverable amount of the investment, which requires judgement in selecting the appropriate valuation basis, typically value in use or fair value less costs to sell.
Amortisation of goodwill and intangible assets
Goodwill arising on business combinations is capitalised and amortised over its estimated useful economic life of 10 years.
In determining the appropriate useful economic life of goodwill, management exercises judgement, taking into consideration the nature of the acquired business, expected future performance, and the stability of the industry in which the business operates. Where a reliable estimate of the useful life cannot be made, a default period of 10 years is applied in accordance with applicable accounting standards.
Management also considers whether there are any indicators that the carrying value of goodwill and other intangible assets may not be recoverable. This involves judgement in assessing both internal and external factors, including financial performance, changes in market conditions, and strategic developments within the business.
Classification of preference shares
Judgment was required in determining whether the Company's redeemable preference shares should be classified as equity or a financial liability under FRS 102. Management considered the redeemable nature of the shares, their fixed preferential dividend rights and the holders' priority entitlement on repayment. As the shares contain contractual obligations to transfer economic benefits to the holders and do not provide a residual interest in the net assets of the Company, they have been classified as financial liabilities rather than equity.
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
Page 23
TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
9.TAXATION (CONTINUED)
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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Included within creditors are 900,000 A redeemable preference shares and 900,000 B redeemable preference shares with a par value of £0.90 in total per class of share.
These preference shares were issued for a total consideration of £1,803,604 and are redeemable at the same amount.
These preference shares were issued for a total consideration of £1,803,604 and are redeemable at the same amount.
Page 29
TORQUAY LEISURE HOTELS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
Page 30