ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: 03163638

LONDON BRIDGE HOTELS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

LONDON BRIDGE HOTELS LIMITED

COMPANY INFORMATION

Directors	Simon Murad Elias
	Yehonatan Ella


Company secretary	Alfredo De Leon (appointed 23rd December 2024)


Registered number	03163638


Registered office	8-18 London Bridge Street
	London
	SE1 9SG


Accountants & registered auditors	Harris & Trotter LLP
	Chartered Accountants and Statutory Auditors
	101 New Cavendish Street
	1st Floor South
	London
	W1W 6XH

LONDON BRIDGE HOTELS LIMITED

CONTENTS

	Page
Strategic Report	1
Directors' Report	2 - 3
Independent Auditors' Report	4 - 7
Statement of Comprehensive Income	8
Statement of Financial Position	9
Statement of Changes in Equity	10
Statement of Cash Flows	11
Analysis of Net Debt	12
Notes to the Financial Statements	13 - 26

LONDON BRIDGE HOTELS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The directors present their Strategic Report together with the audited financial statements for the year ended 31 December 2024.

Business review

Being surrounded by big hotel groups in Southwark, we continue to strive at being competitive through a multi-faceted approach by targeting more direct bookings, analysing travel patterns, controlling occupancy, and strategically applying and changing the right rates at the right time. The footfall in the London Bridge area and the added offerings in the numerous eateries popping up has made this area very popular.

Principal risks and uncertainties

The directors believe that risk assessment is a vital part of running the business. However, due to the nature of the hospitality industry there is always exposure to financial risk. We have in place working capital forecasts for purpose of cash requirements to manage liquidity risk. We also aim to manage capital in order to provide returns to shareholders and optimisecapital structure to reduce cost to capital. Market risks are managed by having a broad customer base and credit risk ismanaged by quarterly and annual credit checks and reviewing credits offered to accounts that are not in regular use.

Financial key performance indicators

The directors believe the financial key performance indicators of the business as follows:

- Revenue Generation Index
- Average Rate Index
- Market Penetration Index

They continue to price strategically based on current trends in order to maintain, if not beat competitors.

This report was approved by the board and signed on its behalf.

Simon Murad Elias

Director

Date: 12 November 2025

Page 1

LONDON BRIDGE HOTELS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors

The directors who served during the year were:

Simon Murad Elias

Yehonatan Ella

Directors' responsibilities statement

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.

Results and dividends

The profit for the year, after taxation, amounted to £2,929,515 (2023 - £182,468).

We believe we can now safely say that 2024 is the year that hospitality is back at pre-pandemic levels. In London, especially in the boutique hotel sector where a significant rebound and robust demand was felt and we have largely capitalised on this trend. A combination of higher occupancy and strategic price modelling has given us an Average Daily Rate (ADR) of 39% higher compared to 5 years ago and a 5% uplift YOY. Overall total sales also increased by 14% as the level of corporate client demand increased and our weekend leisure business predominantly driven by staycations, have also delivered. After the soft refurbishment of 2022-23, we have turned our focus on enhancing guest experience alongside the consistency of good service and anticipation of guest needs, which is what we believe contributes to our achievement as an independent boutique hotel.

Future developments

Our 2025 forecast is an increase in occupancy with a light increase in ADR aiming for a 5%-7% increase in room yield. By committing to this strategy in 2025, our independent hotel will remain competitive with our competitor set and achieve a sustainable increase in RevPAR and overall profitability.

Page 2

LONDON BRIDGE HOTELS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

Subsequent to the year end, the business underwent a restructure, incorporating a holding company and fellow subsidiary, for further details please refer to note 20.

Auditors

The auditors, Harris & Trotter LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Simon Murad Elias

Director

Date: 12 November 2025

Page 3

LONDON BRIDGE HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON BRIDGE HOTELS LIMITED

Opinion

We have audited the financial statements of London Bridge Hotels Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity 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).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Page 4

LONDON BRIDGE HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON BRIDGE HOTELS LIMITED (CONTINUED)

Other information

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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic Report and 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.

Matters on which we are required to report by exception

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.

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

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 5

LONDON BRIDGE HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON BRIDGE HOTELS LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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:

- Holding discussions with Management to consider any known or suspected instances of non-compliance with laws and regulations or fraud identified by them;

- Gaining an understanding of the legal and regulatory framework applicable to the Group and the industry in which it operates, through discussion with Management and the audit committee and our knowledge of the industry;

- Considering the significant laws and regulations of the countries in which the Group operates to be those relating to the industry, financial reporting framework, tax legislation and the listing rules.

- Assessing the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur;

- Testing the appropriateness of journal entries made through the year by applying specific criteria to detect possible irregularities and fraud.
- Performing a detailed review of the Group’s year-end adjusting entries and consolidation elimination journals, investigating any that appear unusual as to nature or amount and agreeing to supporting documentation;

- For significant and unusual transactions, particularly those occurring at or near year-end, obtaining evidence for the rationale of these transactions and the sources of financial resources supporting the transactions;

- Assessed whether the judgements made in accounting estimates were indicative of a potential bias (refer to key audit matters above);

- Extending inquiries to individuals outside of Management and the accounting department to corroborate Management’s ability and intent to carry out plans that are relevant to developing the estimate set out in the key audit matters section above;

- Reviewing minutes from board meetings of those charged with governance to identify any instances of non- compliance with laws and regulations; and

- Directing the auditors of the significant components to ensure an assessment is performed on the extent of the components compliance with the relevant local and regulatory framework.

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.

Page 6

LONDON BRIDGE HOTELS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON BRIDGE HOTELS LIMITED (CONTINUED)

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.

Leigh Genis (Senior Statutory Auditor)

for and on behalf of

Harris & Trotter LLP

Chartered Accountants and Statutory Auditors

101 New Cavendish Street

1st Floor South

London

W1W 6XH

12 November 2025

Page 7

LONDON BRIDGE HOTELS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	3	8,326,281	7,311,708
Cost of sales		(1,927,508)	(1,645,727)
Gross profit		6,398,773	5,665,981
Administrative expenses		(5,233,265)	(4,472,331)
Other operating income	4	829,678	1,150,556
Fair value movements	10,11	4,276,623	(541,351)
Operating profit		6,271,809	1,802,855
Interest payable and similar expenses	8	(2,083,299)	(1,536,707)
Profit before tax		4,188,510	266,148
Tax on profit	9	(1,258,995)	(83,680)
Profit for the financial year		2,929,515	182,468

Other comprehensive income for the year
Total comprehensive income for the year		2,929,515	182,468

The notes on pages 13 to 26 form part of these financial statements.

Page 8

LONDON BRIDGE HOTELS LIMITED

REGISTERED NUMBER: 03163638

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	10		67,885,106		66,200,302
Investment property	11		13,075,466		10,195,000
			80,960,572		76,395,302
Current assets
Stocks	12	56,727		50,235
Debtors: amounts falling due within one year	13	1,105,255		684,013
Cash at bank and in hand	14	343,404		259,367
		1,505,386		993,615
Creditors: amounts falling due within one year	15	(30,527,720)		(29,639,189)
Net current liabilities			(29,022,334)		(28,645,574)
Total assets less current liabilities			51,938,238		47,749,728
Provisions for liabilities
Deferred tax	17	(14,199,545)		(12,940,550)
			(14,199,545)		(12,940,550)
Net assets			37,738,693		34,809,178

Capital and reserves
Called up share capital		1,200	1,200
Share premium account	18	499,500	499,500
Revaluation reserve	18	46,441,126	42,164,503
Profit and loss account	18	(9,203,133)	(7,856,025)
		37,738,693	34,809,178

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 November 2025.

Simon Murad Elias

Director

The notes on pages 13 to 26 form part of these financial statements.

Page 9


		LONDON BRIDGE HOTELS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2023	1,200	499,500	42,164,503	(8,038,493)	34,626,710

Profit for the year	-	-	-	182,468	182,468

At 1 January 2024	1,200	499,500	42,164,503	(7,856,025)	34,809,178

Profit for the year	-	-	-	2,929,515	2,929,515
Transfer to/from profit and loss account	-	-	4,276,623	(4,276,623)	-
At 31 December 2024	1,200	499,500	46,441,126	(9,203,133)	37,738,693

The notes on pages 13 to 26 form part of these financial statements.

Page 10

LONDON BRIDGE HOTELS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit for the financial year	2,929,515	182,468
Adjustments for:
Depreciation of tangible assets	339,591	306,861
Interest paid	-	(4,074)
Taxation charge	-	(45,993)
(Increase)/decrease in stocks	(6,492)	3,702
(Increase) in debtors	(421,243)	(39,536)
Increase in creditors	888,531	492,533
Net fair value (gains)/losses recognised in P&L	(4,276,623)	541,351
Net cash generated from operating activities	(546,721)	1,437,312

Cash flows from investing activities
Purchase of tangible fixed assets	(350,897)	(1,095,027)
Net cash from investing activities	(350,897)	(1,095,027)
Cash flows from financing activities
Repayment of loans	(413,808)	(977,778)
Loans received from directors	1,395,463	-
Net cash used in financing activities	981,655	(977,778)
Net increase/(decrease) in cash and cash equivalents	84,037	(635,493)
Cash and cash equivalents at beginning of year	259,367	894,860
Cash and cash equivalents at the end of year	343,404	259,367

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	343,404	259,367
	343,404	259,367

The notes on pages 13 to 26 form part of these financial statements.

Page 11

LONDON BRIDGE HOTELS LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	At 31 December 2024
£	£	£

Cash at bank and in hand	259,367	84,037	343,404
Debt due within 1 year	(27,718,814)	(870,232)	(28,589,046)
	(27,459,447)	(786,195)	(28,245,642)

The notes on pages 13 to 26 form part of these financial statements.

Page 12

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

London Bridge Hotel Limited is a private company limited by shares, incorporated in England & Wales (registered number: 03163638).

The principal activity of the company continued to be that of Hotel and similar accommodation.

The company's registered office address is 8-18 London Bridge Street, London, SE1 9SG.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 13

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.4

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 14

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Freehold property	-		Freehold land is not depreciated. Freehold buildings will be depreciated to their estimated residual values (if lower than carrying value) over periods up to fifty years.
Plant and machinery	-	13%	Straight line
Fixtures and fittings	-	13%	Straight line

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.

2.8

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.9

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Page 15

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.11

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.

2.12

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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.13

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.

2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Page 16

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Financial instruments (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.

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 Company'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.

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are

Page 17

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Financial instruments (continued)

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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 18

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Hotel income	8,326,281	7,311,708
	8,326,281	7,311,708

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	8,326,281	7,311,708
	8,326,281	7,311,708

4.	Other operating income
		2024	2023
		£	£

Rental income	829,678	1,150,556
	829,678	1,150,556

Audit Fees

36,000

33,500

Page 19

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Wages and salaries	2,195,853	1,881,705
Social security costs	207,473	175,446
Pension costs	57,790	46,981
	2,461,116	2,104,132

The average monthly number of employees, including the directors, during the year was as follows:

	2024	2023
	No.	No.

Front of House	19	17
Food and Beverage	41	39
Administration	6	6
Maintenance	4	4
Sales and Marketing	3	3

	73	69

7.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	4,000	4,000
	4,000	4,000

8.	Interest payable and similar expenses
		2024	2023
		£	£

	Bank interest payable	2,083,299	1,536,707
		2,083,299	1,536,707

Page 20

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Corporation tax
Current tax on profits for the year	-	(85,561)
	-	(85,561)

Total current tax	-	(85,561)

Deferred tax
Origination and reversal of timing differences	1,258,995	169,241
Total deferred tax	1,258,995	169,241


		1,258,995	83,680

Page 21

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.Taxation (continued)

Profit on ordinary activities before tax

4,188,510

266,148

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)	1,045,002	62,545
Effects of:
Non-taxable revaluation of properties	(1,069,156)	-
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	611	71,149
Capital allowances for year in excess of depreciation	21,413	(133,695)
Losses carried back	-	(85,561)
Deferred tax movement	1,258,995	169,242
Unrelieved tax losses carried forward	2,130	-
Total tax charge for the year	1,258,995	83,680

Factors that may affect future tax charges

There are no known factors which may affect future tax charges.

Page 22

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	Tangible fixed assets

	Freehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 January 2024	64,928,147	4,084,699	6,823,765	75,836,611
Additions	125,177	-	503,059	628,236
Revaluations	1,396,157	-	-	1,396,157
At 31 December 2024	66,449,481	4,084,699	7,326,824	77,861,004
Depreciation
At 1 January 2024	-	4,084,699	5,551,609	9,636,308
Charge for the year on owned assets	-	-	339,590	339,590
At 31 December 2024	-	4,084,699	5,891,199	9,975,898
Net book value
At 31 December 2024	66,449,481	-	1,435,625	67,885,106
At 31 December 2023	64,928,147	-	1,272,155	66,200,302

11.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 January 2024	10,195,000
	Surplus on revaluation	2,880,466
	At 31 December 2024	13,075,466

The 2024 valuations were made by Cushman & Wakefield on the 3rd March 2025, on an open market value for existing use basis.

Page 23

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	Stocks
		2024	2023
		£	£

Stocks	56,727	50,235
	56,727	50,235

13.

Debtors

					2024	2023
					£	£


Trade debtors	384,138	388,738
Other debtors	458,036	17,053
Prepayments and accrued income	263,081	278,222
	1,105,255	684,013

14.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	343,404	259,367
	343,404	259,367

15.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank loans	25,987,686	26,512,686
Trade creditors	766,945	615,889
Corporation tax	(77,980)	147,412
Other taxation and social security	329,159	232,708
Other creditors	2,665,392	1,221,848
Accruals and deferred income	856,518	908,646
	30,527,720	29,639,189

Page 24

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Amounts falling due within one year
Bank loans	25,987,686	26,512,686
Payable within one year	25,987,686	26,512,686



	25,987,686	26,512,686

At year end, the company held a loan facility which was made available to the company in December 2019. The loan was repaid by quaterly instalments and subject to interest at 2.65% + Bank of Scotland PLC base rate.

The loan is secured by way of a fixed and floating legal charge and debenture over certain of the company's property and assets, present and future. The security is in favour of Bank of Scotland PLC.

Subsequent to the year end, the repayment deadline was extended to September 2027. As this extension was agreed post year end, the loan remains classified as payable within one year as at 31 December 2024.

17.	Deferred taxation

		2024
		£

	At beginning of year	(12,940,550)
	Charged to profit or loss	(1,258,995)
	At end of year	(14,199,545)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

	Deferred tax	(14,199,545)	(12,940,550)
		(14,199,545)	(12,940,550)

Page 25

LONDON BRIDGE HOTELS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

18.

Reserves

Share premium account

Share premium is the amount subscribed for share capital in excess of nominal value.

Revaluation reserve

Revaluation reserve relates to the gains on revaluation on property, plant and equipment less deferred tax.

19.	Related party transactions
	The remuneration of key management personnel is as follows.

		2024	2023
		£	£

	Aggregate compensation	117,125	114,183
		117,125	114,183

20.	Post balance sheet events

Subsequent to the reporting period, in September 2025, the group undertook a legal reorganisation. This involved the formation of a new holding company to which all shares of the reporting entity were transferred. Concurrently, a new fellow subsidiary was incorporated, and the investment property previously held by the reporting entity was transferred to this new subsidiary.

21.	Controlling party

The ultimate controlling party are the Trustees of the Elias UK 2017 Trust by virtue of its majority ownership of the company's issued share capital.

Page 26