REGISTERED NUMBER: 15430603 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1 FEBRUARY 2025 TO 30 JANUARY 2026

FOR

CAPILON PROPS WT LTD

Page

Statement of Financial Position

1

Notes to the Financial Statements

3

FIXED ASSETS

Tangible assets

4

22,554,107

17,590,731

CURRENT ASSETS

Debtors

5

553,610

269,170

Cash at bank

1,171,770

984,984

1,725,380

1,254,154

CREDITORS

Amounts falling due within one year

6

390,949

105,535

NET CURRENT ASSETS

1,334,431

1,148,619

TOTAL ASSETS LESS CURRENT LIABILITIES

23,888,538

18,739,350

CREDITORS

Amounts falling due after more than one year

7

23,642,441

18,634,418

NET ASSETS

246,097

104,932

CAPITAL AND RESERVES

Called up share capital

9

100

100

Retained earnings

245,997

104,832

SHAREHOLDERS' FUNDS

246,097

104,932

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 January 2026.

The members have not required the company to obtain an audit of its financial statements for the period ended 30 January 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2026 and were signed on its behalf by:

Mr M A Breen - Director

Mr B N Hall - Director

1.	STATUTORY INFORMATION

Capilon Props WT Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

15430603

Registered office:

Unit 2.02 High Weald House

Glovers End

Bexhill

East Sussex

TN39 5ES

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

In preparing the financial statements, management were not required to make any estimates or judgments which materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities.

DEBTORS

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

CREDITORS

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

TANGIBLE FIXED ASSETS

Depreciation is provided on tangible fixed assets on a systematic basis over their estimated useful economic lives. Assets under development are not depreciated until they are complete and available for use. Accordingly, no depreciation has been charged on assets under development during the year.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payment discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Accounts payable greater than one year are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

TAXATION

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

GOING CONCERN

The financial statements have been prepared on the going concern basis on the assumption that the LLP's support and the bank facility continue to support the Company by providing adequate facilities to enable the company to meet it financial obligations as they fall due for a period of at least twelve months from the date on which these financial statements are signed.

BORROWING COSTS

Loan borrowing costs are deducted from the initial carrying amount of the related loan and amortised on a straight line method over three years.The unamortised balance is presented as a deduction from the carrying amount of the loan.

The amortisation of loan borrowing cost is capitalised as part of the property improvements cost where the relevant recognition criteria under FRS 102 are met. The capitalised amount is subsequently depreciated over the useful economic life of the asset, in accordance with the Company’s accounting policy for tangible fixed assets.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL (2025 - NIL).

4.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

property

property

Totals

£

£

£

COST

At 1 February 2025

16,328,843

1,261,888

17,590,731

Additions

-

4,963,376

4,963,376

At 30 January 2026

16,328,843

6,225,264

22,554,107

NET BOOK VALUE

At 30 January 2026

16,328,843

6,225,264

22,554,107

At 31 January 2025

16,328,843

1,261,888

17,590,731

5.

DEBTORS

2026

2025

£

£

Amounts falling due within one year:

Amounts owed by group undertakings

94

-

Other debtors

85,083

84,013

85,177

84,013

Amounts falling due after more than one year:

Other debtors

468,433

185,157

Aggregate amounts

553,610

269,170

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade creditors

390,949

87,598

Other creditors

-

17,937

390,949

105,535

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Bank loans (see note 8)

14,072,204

9,211,577

Amounts owed to group undertakings

9,570,237

9,422,841

23,642,441

18,634,418

8.

LOANS

An analysis of the maturity of loans is given below:

2026

2025

£

£

Amounts falling due within one year or on demand:

Other loans

-

17,937

Amounts falling due between one and two years:

Bank loans - 1-2 years

14,072,204

9,211,577

As part of the lending arrangements, the Company is required to maintain a reserve account with OakNorth Bank. The balance of £800,000 held in this account at the year-end represents restricted cash and is therefore not available for the Company's general use.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2026

2025

value:

£

£

100

Ordinary

£1

100

100

10.	RELATED PARTY DISCLOSURES

The company operates a loan with its parent entity. The balance of the loan at the year end was £9,570,237 (2025: £9,422,841) due to the parent. This loan is interest free.

11.	ULTIMATE CONTROLLING PARTY

The Company is controlled by Capilon Investment WT LLP by virtue of its 100% shareholding.

12.	PRIOR YEAR ADJUSTMENT

During the year, the directors identified errors in the accounting treatment of depreciation on property under development and loan arrangement fees relating to the OakNorth loan. These errors have been corrected retrospectively in accordance with Section 10 of FRS 102, and the comparative figures for the year ended 31 January 2025 have been restated accordingly.

Depreciation on property under development

In the prior year, depreciation was incorrectly charged on additions to property under development that were not yet available for use. In accordance with the Company’s accounting policy, depreciation should only commence when an asset is available for use.

The correction reduced the depreciation charge for the year ended 31 January 2025 by £378,450 and increased the carrying amount of property under development by the same amount. Consequently, the loss for the year ended 31 January 2025 decreased from £458,775 to £80,325. Accumulated retained losses as at 31 January 2025 also decreased from £458,775 to £80,325.

The correction had no effect on the corporation tax or deferred tax charge for the year. The error did not affect any period before the year ended 31 January 2025.

Loan arrangement fees

During the year, the directors also identified an error in the accounting treatment of loan arrangement fees relating to the OakNorth loan. The fees had previously been included in the cost of land and buildings rather than deducted from the carrying amount of the loan, with the subsequent accounting treatment applied in accordance with the requirements of FRS 102.

The correction reduced the carrying amount of land and buildings and the carrying amount of the OakNorth loan by £277,068 each at 31 January 2025. At 31 January 2026, the corresponding reduction in each balance was £138,534.

The correction had no effect on the profit or loss or net assets of the Company, as the adjustments to the carrying amounts of land and buildings and the OakNorth loan were equal and opposite. The subsequent amortisation of the loan arrangement fees has been reflected in the relevant asset and loan balances.

Loan relationship deficits and deferred tax

During the year, the directors also identified that loan relationship deficits had been omitted from the corporation tax computation in the prior year. This omission has now been corrected, and loan relationship deficits of £740,629 have been included in the revised tax computation.

As a result of this correction, a deferred tax asset of £185,157 has been recognised in respect of the loan relationship deficits relating to the prior year.

13.	CAPITALISED BORROWING COSTS

During the year, interest costs of £1,153,162 (2025: £620,927) directly attributable to the development and construction of the hotel were capitalised and included within property under development.