Ikeja Hotel PlcNSENG: IKEJAHOTEL

Q4 unaudited financial statement for the period ended 31 dec 2024

Jan 27, 2025 at 3:04 PM UTC · Issued by Ikeja Hotel Plc

IKEJA HOTEL PLC (RC 10845)

Unaudited Group Financial Statements

For The Fourth Quarter Ended 31 December, 2024

IKEJA HOTEL PLC

Contents	Page
Certification	2
Statement of Financial Position	3
Satement of Comprehensive Income	4
Statement of Changes in Equity	5
Statement of Cash Flows	6
Notes to Financial Statement	7-25
Operating Summary	26
Free Float Status	27

IKEJA HOTEL PLC

Certification of Financial Statements

In compliance with Section 60(2) of the Investment and Securities Act, 2007, we have reviewed the unaudited Interim Financial Statements of the Group for the fourth quarter ended 31 December 2024.

The Financial Statements, based on our knowledge, does not contain any untrue statement of any material fact or contain any misleading information in any respect.

The Financial Statements, and other financial information included therein, present fairly in all material respects the consolidated statement of financial position, consolidated statement of financial performance and consolidated statement of cash flows of the Group for the fourth quarter ended 31 December 2024.

We are responsible for designing the internal controls and procedures surrounding the financial reporting process and assessing these controls in accordance with Section 60(2) of the Investment and Securities Act, 2007 and have designed such internal controls and procedures, or caused such internal controls and procedures to be designed under our supervision, to ensure that material information relating to the Company is made known to us by others within the entity. The controls, which are properly prepared, have been operating effectively during the year under reference.

Based on the foregoing, we, the undersigned, hereby certify that to the best of our knowledge and belief, the information contained in the unaudited interim Financial Statements of Ikeja Hotel Plc for the fourth quarter ended 31 December 2024 are complete, accurate and free from any material misstatement.

Theophilus E. Netufo	Zacchaeus O. Adeyemo
Managing Director/CEO	Financial Controller
FRC/2013/ICAN/00000004775	FRC/2018/ICAN/00000017858
24 January 2025	24 January 2025

IKEJA HOTEL PLC

Consolidated Statement of Financial Position
As at 31 December 2024		The Group				The Company

	Notes	31-Dec-24		31-Dec-23		31-Dec-24		31-Dec-23
Non-Current Assets		N'000		N'000		N'000		N'000
7	22,416,962			22,416,962
Property, Plant and Equipment	22,370,571	22,370,571
Capital Work in Progress	9	478,122	291,521	478,122	291,521
Intangible Asset	10	15,231	17,458	15,231	17,458
Investment in Subsidiaries	33	-	-	4,444,518	4,444,518
Investment Accounted for Using the
Equity Method	34	-	-	798,722	798,722
		22,910,315		22,679,550		28,153,556		27,922,790
Current Assets	20	252,681			252,681
Inventories	251,446	251,446
Trade Receivables	18	2,180,466	1,026,781	2,178,102	1,024,602
Other Receivables and Prepayment	19	1,388,710	1,033,211	1,388,710	1,033,211
Loan to Related Party	21	20,243,475	20,126,474	20,243,475	20,126,474
Amount Due from Related Parties	22	-	-	361,321	269,832
Cash and Cash Equivalents	23	22,532,528	14,642,893	16,829,062	9,239,774
Total Current Assets		46,597,859		37,080,805		41,253,349		31,945,339
Total Assets
	69,508,174		59,760,355		69,406,905		59,868,129
Equity and Liabilities	29.2	1,081,184			1,081,184
Share Capital	1,081,184	1,081,184
Share Premium	30	1,432,886	1,432,886	1,432,886	1,432,886
Retained Earnings	31	10,402,796	7,366,734	10,424,534	7,306,070
Capital reserve	35	1,832	1,832	-	-
Revaluation Reserve	36	13,823,793	13,823,793	13,823,793	13,823,793
Equity Attributable to Equity Holders
of Parent		26,742,491	23,706,429	26,762,397	23,643,933
Non-Controlling Interest	32	(59,095)	(119,709)	-	-
		26,683,397		23,586,720		26,762,397		23,643,933
Liabilities
Non-Current Liabilities	26	12,404,541			13,176,821
Amount Due to Related Parties	11,075,483	11,848,051
Retirement Benefits Obligation	28	410,301	472,407	409,667	472,407
Deferred Tax	27.2	2,725,387	2,734,904	2,725,388	2,725,388
Total Non- Current Liabilities		15,540,229		14,282,794		16,311,876		15,045,846
Current Liabilities
Trade and Other Payables	25	3,314,922	2,440,554	2,764,039	1,917,970
Deferred Income	24	21,951,298	18,912,449	21,809,043	18,770,194
Current Tax Payable	27.1	2,018,330	537,838	1,759,549	490,186
Total Current Liabilities		27,284,550		21,890,841		26,332,632		21,178,350
Total Liabilities
	42,824,779		36,173,635		42,644,508		36,224,196
Total Equity and Liabilities
	69,508,174		59,760,355		69,406,905		59,868,129

These consolidated financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf on 24 January, 2025.

Chief Anthony Idigbe, PHD, SAN	Alh Abatcha Bulama	Mr. Theophilus E. Netufo	Mr. Zacchaeus O. Adeyemo
Chairman	Director	Managing Director/CEO	Financial Controller
FRC/2014/NBA/00000010414	FRC/2014/ICAN/000006535	FRC/2013/ICAN/00000004775	FRC/2018/ICAN/00000017858

The accompanying notes form an integral part of these consolidated financial statements.

IKEJA HOTEL PLC

Consolidated Statement of Comprehensive Income
For The Fourth Quarter Ended 31 December 2024		The Group		The Company

		Year to date		Year to date
	Note	31-Dec-24	31-Dec-23		31-Dec-24	31-Dec-23
		N'000	N'000		N'000	N'000
Revenue	11	18,753,849	11,113,217	18,753,849	11,113,217
Cost of Sales	12	(11,214,164)	(6,983,557)	(11,214,164)	(6,983,557)
Gross Profit		7,539,686	4,129,660	7,539,686	4,129,660
Other Income	13	195,634	2,232,258	325,376	2,226,078
Sales and Distribution Expenses	16	(712,694)	(402,612)	(712,694)	(402,612)
Administrative and General Expenses	15	(1,890,068)	(1,499,107)	(1,776,148)	(1,355,637)
Operating Profit		5,132,558	4,460,199	5,376,220	4,597,488
Finance Income	14	1,486,728	521,152	849,319	78,447
Finance Costs	17	(1,329,058)	(1,188,050)	(1,329,058)	(1,188,050)
Profit Before Taxation		5,290,228	3,793,301	4,896,480	3,487,885
Income Tax Expense	27.3	(1,836,402)	(1,719,254)	(1,615,839)	(1,690,210)
Profit for the Year from continuing operations
	3,453,826	2,074,046	3,280,642	1,797,675
Profit Attributable to:
Equity Holders of the Parent		3,393,212	2,002,852	3,280,642	1,797,675
Non-Controlling Interest		60,614	71,194	-	-
Profit for the Year		3,453,826	2,074,046	3,280,642	1,797,675
Other Comprehensive Income for the Year:
Items that will not be reclassified subsequently to profit:
Re-measurement gain/(loss) on defined benefit Plan net of tax		-	(22,205)			(22,205)
Revaluation surplus net of tax		-	13,823,793			13,823,793
Other Comprehensive Income for the Year		-	13,801,588	-	13,801,588
Total Comprehensive Income for the Year
	3,453,826	15,875,634	3,280,642	15,599,263
Total Comprehensive Income for the Period Attributable to:
Equity Holders of the Parent		3,393,212	15,804,440	3,280,642	15,599,263
Non-Controlling Interest		60,614	71,194	-	-
		3,453,826	15,875,634	3,280,642	15,599,263
Basic Earnings Per Share (kobo)		160	96	152	83

IKEJA HOTEL PLC

Consolidated Statement of Comprehensive Income
For The Three Months (Fourth Quarter) Ended 31 December 2024	Three Months Ended				Twelve Months Ended

		The Group		The Company		The Group	The Company
		Year to date		Year to date		Year to date	Year to date
	Note	31-Dec-24	31-Dec-23		31-Dec-24 31-Dec-23		31-Dec-24 31-Dec-23	31-Dec-24 31-Dec-23
		N'000	N'000		N'000	N'000		N'000	N'000	N'000	N'000
Revenue	11	6,155,145	3,420,897	6,155,145	3,420,897		18,753,849	11,113,217	18,753,849	11,113,217
Cost of Sales	12	(3,383,329)	(2,146,521)	(3,383,329)	(2,146,521)		(11,214,164)	(6,983,557)	(11,214,164)	(6,983,557)
Gross Profit		2,771,816	1,274,376	2,771,816	1,274,376		7,539,686	4,129,660	7,539,686	4,129,660
Other Income	13	7,784	59,298	83,071	57,928		195,634	2,232,258	325,376	2,226,078
Sales and Distribution Expenses	16	(229,163)	(80,340)	(229,163)	(80,340)		(712,694)	(402,612)	(712,694)	(402,612)
Administrative and General Expenses	15	(623,395)	(615,498)	(575,188)	(569,713)		(1,890,068)	(1,499,107)	(1,776,148)	(1,355,637)
Operating Profit		1,927,041	637,837	2,050,534	682,253		5,132,558	4,460,199	5,376,220	4,597,488

Finance Income	14	607,896	180,809	348,657	64,714		1,486,728	521,152	849,319	78,447
Finance Costs	17	(334,080)	(299,103)	(334,080)	(299,103)		(1,329,058)	(1,188,050)	(1,329,058)	(1,188,050)
Profit Before Taxation		2,200,858	519,543	2,065,111	447,864		5,290,228	3,793,301	4,896,480	3,487,885

Income Tax Expense	27.3	(751,646)	(307,588)	(681,487)	(281,935)		(1,836,402)	(1,719,254)	(1,615,839)	(1,690,210)
Profit for the Year from continuing

operations		1,449,212	211,956	1,383,624	165,929		3,453,826	2,074,046	3,280,642	1,797,675
Profit Attributable to:

Equity Holders of the Parent		1,426,256	195,846	1,383,624	165,929		3,393,212	2,002,852	3,280,642	1,797,675
Non-Controlling Interest		22,956	16,110	-	-		60,614	71,194	-	-
Profit for the Year		1,449,212	211,956	1,383,624	165,929		3,453,826	2,074,046	3,280,642	1,797,675
Total Comprehensive Income for the Year
	1,449,212	211,956		1,383,624	165,929		3,453,826	15,875,634	3,280,642	15,599,263
Basic Earnings Per Share (kobo)		67	10	64	8		160	96	152	83

IKEJA HOTEL PLC

Statement of Changes in Equity as at 31 December 2024

				The Group					The Company
	Ordinary							Ordinary
	share	Share	Retained	Capital	Revaluation	Non-controlling	Total	share	Share	Retained	Revaluation	Total
Attributable to the Equity Holders of the Parent	Capital	Premium	Earnings	Reserve	Reserve	interest	Equity	Capital	Premium	Earnings	Reserve	Equity
	=N='000	=N='000	=N='000	=N='000	=N='000	=N='000	=N='000	=N='000	=N='000	=N='000	=N='000	=N='000
Balance as at 1 January 2024	1,081,184	1,432,886	7,366,734	1,832	13,823,793	(119,708)	23,586,720	1,081,184	1,432,886	7,306,070	13,823,793	23,643,933

Changes in Equity for the Year
Profit for the Year			3,393,212			60,614	3,453,826	-	-	3,280,642		3,280,642
Interim Dividend			(116,983)				(116,983)			-		-
Final Dividend			(240,167)				(240,167)			(162,178)		(162,178)

Total Comprehensive Income for the Year	-	-	3,036,062		-	60,614	3,096,676	-	-	3,118,464		3,118,464

Reclassifications/derecognition

At 31 December, 2024	1,081,184	1,432,886	10,402,796	1,832	13,823,793	(59,094)	26,683,398	1,081,184	1,432,886	10,424,534	13,823,793	26,762,397

Balance as at 1 January 2023	1,039,398	1,381,072	5,551,514	1,832	-	(190,903)	7,782,912	1,039,398	1,381,072	5,686,510	-	8,106,980

Changes in Equity for the Year
Profit for the Year			2,002,852			71,194	2,074,046	-	-	1,797,675		1,797,675
Re-measurement gain on defined benefit			(31,722)			-	(31,722)			(22,205)		(22,205)
Revaluation surplus net of tax	-	-	-	-	13,823,793	-	13,823,793				13,823,793	13,823,793
												-
Dividend paid			(155,910)				(155,910)			(155,910)		(155,910)

Total comprehensive income	-	-	7,366,734	-	13,823,793	71,194	23,493,119	-	-	1,619,560	13,823,793	23,550,333

Transactions with owners
Share issue allotment	41,786	51,814	-	-	-	-	93,600	41,786	51,814	-		93,600

At 31 December, 2023	1,081,184	1,432,886	7,366,734	1,832	13,823,793	(119,709)	23,586,720	1,081,184	1,432,886	7,306,070	13,823,793	23,643,933

IKEJA HOTEL PLC

Consolidated Statement of Cash Flows
For The Fourth Quarter Ended 31 December 2024	The Group
	Notes
	31-Dec-24	31-Dec-23
		N'000	N'000
Profit/(Loss) before tax		5,290,228	3,793,301
Adjustment for:
Depreciation of PPE	7	514,349	441,669
Amortisation of Intangible Asset	9	2,528	2,486
Finance Costs	17	1,329,058	1,188,050
Post Employment Benefit Expense		-	103,160
Interest on Placement with Banks	14	(1,486,728)	(521,152)
Profit on disposal of PPE		(1,273)	(650)
Assets write offs			59,994
Loss on disposal of investment		112	59,629
Impairment allowance written back		-	(30,869)
Deferred Income		(4,510)	(4,510)
Changes in:		5,643,765	5,091,108

Inventories	20	(1,235)	(27,841)
Trade and Other Receivables	18	(1,153,685)	(132,308)
Other Assets	19	(355,771)	(161,134)
Post Employment Benefits expense	21	-	(196,202)
Loans and Receivables	(117,000)	-
Due from Related Parties		-	-
Trade and Other Payables	25	865,373	(66,010)
Deferred Income	24	3,038,849	-
Due to Related Parties		1,329,058	-
Cash Generated from Operating Activities		9,249,355	4,507,613
Income Tax Paid	29.1	(355,911)	(281,132)
Net Cash from Operating Activities
	8,893,444	4,226,481
Cash Flows from Investing Activities
Additions to Property Plant and Equipment	7	(618,700)	(584,856)
Additions to Intangible Assets		(301)	(1,615)
Additions to/Utilization of Capital Work in Progress	9	(186,601)	(223,679)
Proceed on disposal of property, Plant and equipment	1,273	650
Proceeds of disposal of investments			2,273,027
Interest on Placement with Banks		1,486,728	521,152
Net Cash Flows used in Investing Activities		682,398	1,984,679
Cash Flows from Financing Activities
Finance Costs		(1,329,058)	-
Dividend Paid		(357,150)	(155,910)
Payment to Related Party		-	-
Withholding tax on dividend		-	(16,691)
Interest Paid		-	(1,391)
Net Cash Flows used in Financing Activities		(1,686,208)	(173,992)
Net Increase in Cash and Cash Equivalent		7,889,635	6,037,168
Cash and Cash Equivalents at the Beginning of the
Year		14,642,893	8,605,724
Cash and Cash Equivalent at the End of the
Period		22,532,528	14,642,893

The Company

31-Dec-24 31-Dec-23

N'000 N'000

4,896,480 3,487,885

514,349 441,669

2,528 2,486

1,329,058 1,188,050

103,160

(718,162) (78,447)

(1,273) (650)

59,994
-

(30,869)

(4,510) (4,510)

6,018,471 5,168,768

(1,235) (27,841)

(1,153,500) (130,130)

(355,771) (163,422)

(196,202)
(117,000)-

(91,489)	373,905
846,069	(86,732)
3,038,849	-
1,328,770	-
9,513,166	4,938,347
(346,475)	(281,132)

9,166,691	4,657,215

(618,700) (584,856)

(1,615)
(186,601) (223,679)

1,273	650
	-
718,162	78,447
(86,168)	(731,053)

(1,329,058)-

(162,178) (155,910)

(7,149)
(16,691)
(1,391)
(1,491,236) (181,141)

7,589,288 3,745,021

9,239,774 5,494,754

16,829,062 9,239,774

IKEJA HOTEL PLC

Notes to the Unaudited Financial Statements

For the Year Ended 31 December 2024

1. The Group

1.1 The reporting entity

1.1.1 The Group

The group comprise Ikeja Hotel Plc. and its subsidiary - Hans Gremlin Limited (75%),Charles Hampton (90%) and IHL Services Limited with 100% shareholdings.

The Company
Ikeja Hotel Plc., formerly Properties Development Limited, was incorporated on 18 November, 1972. It owns the Sheraton Lagos Hotel, and is a core investor in Hans Gremlin Nigeria Limited. It also has significant shareholding in the Tourist Company of Nigeria Plc. (Owners of Federal Palace Hotel & Casino, Lagos).
The Hotel was managed and operated by Starwood Eame License and Services Company BVBA up to June 2017 under an agreement dated 31 October 1980 and renewed 1 April 2008. Subsequently Marriot International took over the management of the Sheraton brand from June 2017 due to acquisition of Starwood Eame License and Services Company BVBA.
Corporate office
The registered office of the company is 84, Opebi Road, Ikeja, Lagos, Nigeria.
Principal activities

The principal activities of the group are operation of hotels and restaurants, apartment letting, recreational facilities, night clubs and business centre services, advisory and consultancy services.

2. Basis of preparation

These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and in the manner required by the Companies and Allied Matters Act Cap C.20, Laws of the Federation of Nigeria, 2004, the Financial Reporting Council of Nigeria Act, 2011.

Functional and presentation currency
The consolidated financial statements are presented in naira, which is the group's functional and presentational currency. The consolidated financial statements are presented in the currency of the primary economic environment in which the group operates (its functional currency). For the purpose of the consolidated financial statements, the consolidated results and financial position are expressed in naira, which is the functional currency of the group and the presentational currency for the financial statements.
Going concern status
The consolidated financial statements have been prepared on a going concern basis, which assumes that the entity will be able to meet its financial obligations as at when they fall due. There are no significant financial obligations that will impact on the entity's resources which will affect the going concern of the entity. Management is satisfied that the entity has adequate resources to continue in operational existence for the foreseable future. For this reason, the going concern basis has been adopted in preparing the consolidated financial statements.
Basis of consolidation
The interim consolidated financial statements comprise the financial statements of the company and its subsidiaries as at 31 December, 2024. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the group obtains control, and continues to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared
for the same reporting period as the parent company, using the same accounting policies.
All inter-group balances, transactions, dividends, unrealised gains on tranasctions within the Group are eliminated on consolidation. Unrealised losses resulting from inter-group transactions are eliminated, but only to the extent that there is no evidence of impairment.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

Basis of measurement
The financial statements have been prepared under the historical cost basis except for the following:
- Investment properties measured at fair value.
- Financial assets classified as amortised cost measured at amortised cost.
  Financial assets designated at fair value through other comprehensive income measured at fair value through other comprehensive
- income.
- Financial asets designated at fair value through profit or loss measured at fair value through profit or loss.
- Financial liablities including borrowings measured at fair value.
- defined benefit obligations measure at the discounted future value of all expected future obligations plus past service costs and actuarial loss less actuarial gains.
- Inventory measured at lower of cost and net realisable value.
Critical accounting estimates and judgement
The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

4.1 Asset useful lives and residual values:

Property, plant and equipment are depreciated over their useful lives, taking into account residual values where appropriate. The actual useful lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re- assessing asset useful lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into

IKEJA HOTEL PLC

Notes to the Unaudited Financial Statements

For the Year Ended 31 December 2024

account. Residual value assessments consider issues such as future market conditions, the remaining life of the assets and projected disposal values.

Taxes
1. Uncertainties exist with respect to the amount and timing of future taxable income. Given the complexities of existing contractual agreement, differences arising between the actual results and the assumptions made could necessitate future adjustment to tax income and expenses already recorded. The Company establishes provisions based on reasonable estimates.
2. Deferred taxes are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
Provisions/contingencies
Provisions are liabilities of uncertain timing and are recognised when the entity has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount that can be
reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one
item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
Impairment of financial assets
Impairment of financial assets is based on the application of the expected credit loss model (ECL) in accordance with IFRS 9, Financial Instruments. The measurement of expected credit loss by the Group under IFRS 9 reflects an unbiased and probability- weighted amount that is determined by evaluating the range of possible outcomes as well as incorporating the time value of money. Also, management considers reasonable and supportable information about past events, current conditions and reasonable and supportable forecasts of future economic conditions when measuring expected credit losses. Management considers the risk or probability that a credit loss occurs by considering the possibility that a credit loss occurs and the possibility that no credit loss occurs, even if the probability of a credit loss occurring is low. The application of variables under this model involves estimates which require significant judgemet by management.
Retirement benefit obligation
The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using various assumptions that may differ from actual developments in future. The assumptions used include the discount rate, future salary increases, mortality rates and future pension increases. Changes in these assumptions will impact the carrying amount of the pension obligation. The Group determines the appropriate discount rate at each reporting date. In determining the appropriate discount rate, management considers the interest rates of corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the expected term of the related pension obligation.
Investment property
Investment properties are initially recognsed at cost and subsequently carried at fair value, determined annually by independent professional valuers on the highest and best use basis. Changes in fair values are recognised in profit or loss. Investment properties are subject to renovations or improvements at regular intervals. The cost of major renovations and improvements is capitalised and the carrying amounts of the replacement components are recognised in profit or loss. The cost of maintenance, repairs and minor improvements is recognised in profit or loss when incurred. On disposal of an investment property, the difference between the disposal proceeds and the carrying amount is recognised in profit or loss.
Impairment of inventory
The inventory provision is based on average loss rates of inventory in recent months. The provision makes use of inventory counts performed which is considered to be representative of all inventory items held.

3. Summary of Standards and Interpretations effective for the first time

The following represent amendments and revisions to the International Financial Reporting Standards and interpretations which are effective for annual periods beginning on or after 1 January 2017. These amendments and interpretations have been adopted where applicable in preparing the financial statements. The nature and the impact of each newly effective standard and amendments are described below:
Amendments to "IFRS 5 Non-current Assets Held for Sale and Discontinued Operations"
The amendment clarifies cases in which an entity reclassifies an asset from held for sale to held for distribution or vice versa and cases in which held-for-distribution accounting is discontinued.
Amendments to "IFRS 7 Financial Instruments: Disclosures"
The amendment adds additional guidance to clarify whether a servicing contract is continuing involvement in a transferred asset for

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