Ikeja Hotel PlcNSENG: IKEJAHOTEL

Quarter 1 financial statement for 2025

Apr 24, 2025 at 3:00 PM UTC · Issued by Ikeja Hotel Plc

IKEJA HOTEL PLC (RC 10845)

Unaudited Group Financial Statements

For The First Quarter Ended 31 March, 2025

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

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 first quarter ended 31 March 2025.

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 first quarter ended 31 March 2025.

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 review.

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 first quarter ended 31 March 2025 are complete, accurate and free from any material misstatement.

Theophilus E. Netufo	Zacchaeus O. Adeyemo
Managing Director/CEO	Financial Controller
FRC/2013/PRO/DIR/003/00000004775	FRC/2018/PRO/ICAN/001/00000017858
24 April 2025	24 April 2025

IKEJA HOTEL PLC

Consolidated Statement of Financial Position
As at 31 March 2025
		The Group				The Company
	Notes	31-Mar-25		31-Dec-24		31-Mar-25		31-Dec-24
		N'000		N'000		N'000		N'000
Non-Current Assets
Property, Plant and Equipment	7	22,617,786	22,502,503		22,617,786		22,502,505
Capital Work in Progress	9	540,953	478,122		540,953		478,122
Intangible Asset	10	13,895	14,676		13,895		14,676
Investment in Subsidiaries	33	-	-		4,444,518		4,444,518
Investment Accounted for Using the Equity
Method	34	-	-		798,722		798,722

		23,172,634	22,995,301		28,415,875		28,238,543
Current Assets
Current Assets
Inventories	20	237,276	252,681		237,276		252,681
Trade Receivables	18	1,724,247	1,825,231		1,722,058		1,825,231
Other Receivables and Prepayment	19	1,516,794	1,665,540		1,516,794		1,663,236
Loan to Related Party	21	34,182,221	34,182,220		34,182,221		34,182,220
Amount Due from Related Parties	22	111	11,002		349,850		360,742
Cash and Cash Equivalents	23	25,206,508		22,738,629		19,084,885		16,844,660
Total Current Assets		62,867,155		60,675,303		57,093,083		55,128,770

Total Assets		86,039,790	83,670,604		85,508,956		83,367,313
Equity and Liabilities
Equity and Liabilities
Share Capital	29.2	1,081,184	1,081,184		1,081,184		1,081,184
Share Premium	30	1,432,886	1,432,886		1,432,886		1,432,886
Retained Earnings	31	15,865,610	14,252,475		15,532,560		13,998,575
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		32,205,305	30,592,170		31,870,423		30,336,438
Non-Controlling Interest	32	5,479		(37,140)		-		-
		32,210,784	30,555,030		31,870,423		30,336,438
Liabilities
Liabilities
Non-Current Liabilities
Amount Due to Related Parties	26	12,771,580	12,404,541		13,543,860		13,176,821
Retirement Benefits Obligation	28	347,778	328,831		347,144		328,831
Deferred Tax	27.2	3,038,596		3,038,598		3,038,596		3,038,598
Total Non- Current Liabilities		16,157,954	15,771,970		16,929,598		16,544,250
Current Liabilities
Trade and Other Payables	25	2,902,231	3,231,099		2,416,261		2,775,294
Deferred Income	24	32,728,956	32,903,157		32,586,700		32,760,902
Current Tax Payable	27.1	2,039,865		1,209,348		1,705,974		950,429
Total Current Liabilities		37,671,052		37,343,603		36,708,935		36,486,624

Total Liabilities		53,829,006		53,115,574		53,638,533		53,030,875

Total Equity and Liabilities		86,039,790	83,670,604		85,508,956		83,367,313

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

IKEJA HOTEL PLC

Consolidated Statement of Comprehensive Income
For The First Quarter Ended 31 March 2025
		The Group			The Company
		Year to date			Year to date
	Note	31-Mar-25	31-Mar-24		31-Mar-25	31-Mar-24
		N'000	N'000		N'000	N'000
Revenue	11	6,111,085	3,892,756	6,111,085		3,892,756
Cost of Sales	12	(3,009,441)	(2,216,531)	(3,009,441)		(2,216,531)
Gross Profit		3,101,644	1,676,224	3,101,644		1,676,224
Other Income	13	63,925	1,455	62,405		-
Sales and Distribution Expenses	16	(210,565)	(153,022)	(210,565)		(153,022)
Administrative and General Expenses	15	(519,287)	(556,350)	(486,647)		(533,177)
Operating Profit		2,435,717	968,307	2,466,837		990,025
Finance Income	14	417,633	207,622	189,731		71,700
Finance Costs	17	(367,038)	(330,449)	(367,038)		(330,449)
Profit Before Taxation		2,486,311	845,480	2,289,530		731,276
Income Tax Expense	27.3	(830,556)	(241,361)	(755,545)		(241,321)
Profit for the period from continuing operations
Profit for the period from continuing operations		1,655,755	604,119	1,533,985		489,955
Profit Attributable to:
Equity Holders of the Parent		1,613,135	564,161	1,533,985		489,955
Non-Controlling Interest		42,620	39,957	-		-
Profit for the period		1,655,755	604,119	1,533,985		489,955
Other Comprehensive Income for the period:
Items that will not be reclassified subsequently to profit:
Re-measurement gain/(loss) on defined benefit Plan net of tax		-	-			-
Revaluation surplus net of tax		-	-			-
Other Comprehensive Income for the period		-	-	-		-
Total Comprehensive Income for the period
Total Comprehensive Income for the period		1,655,755	604,119	1,533,985		489,955
Total Comprehensive Income for the period Attributable to:
Total Comprehensive Income for the period Attributable to:
Equity Holders of the Parent		1,613,135	564,191	1,533,985		489,955
Non-Controlling Interest		42,620	39,957	-		-
		1,655,755	604,148	1,533,985		489,955
Basic Earnings Per Share (kobo)		77	28	71		23

IKEJA HOTEL PLC

Statement of Changes in Equity as at 31 March 2025

				The Group							The Company
	Ordinary
	share	Share	Retained	Capital	Revaluation	Non-controlling	Total		Ordinary 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 2025	1,081,184	1,432,886	14,252,475	1,832	13,823,793	(37,141)	30,555,028	1,081,184		1,432,886	13,998,575		13,823,793	30,336,438

Changes in Equity for the Period
Profit for the Period			1,613,135			42,620	1,655,755	-		-	1,533,985			1,533,985

Total Comprehensive Income for the Period	-	-	1,613,135	-	-	42,620	1,655,755		-	-	1,533,985			1,533,985


At 31 March, 2025	1,081,184	1,432,886	15,865,610	1,832	13,823,793	5,479	32,210,784	1,081,184		1,432,886	15,532,560		13,823,793	31,870,423
						-
Balance as at 1 January 2024	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

Changes in equity for the year 2024
Profit for the Year			7,087,580			82,569	7,170,149				6,884,164			6,884,164
Total profit for the year											-			-
Re-measurement gain on defined benefit plans			(19,964)	-	-	-	(19,964)				(29,481)		-	(29,481)
			-								-			-
Transaction with owners
Final Dividend			(181,875)				(181,875)				(162,178)			(162,178)
Total Comprehensive Income for the year	-	-	6,885,741	-	-	82,569	6,968,310	-		-	6,692,505		-	30,336,438

At 31 December, 2024

1,081,184

1,432,886

14,252,475

1,832

13,823,793

(37,141)

30,555,030

1,081,184

1,432,886 13,998,575

13,823,793

30,336,438

IKEJA HOTEL PLC

Consolidated Statement of Cash Flows
For The First Quarter Ended 31 March 2025
		The Group			The Company
	Notes	31-Mar-25	31-Mar-24		31-Mar-25	31-Mar-24
		N'000	N'000		N'000	N'000
Profit/(Loss) before tax		2,486,311	845,479.89	2,289,530		731,275.90
Adjustment for:
Depreciation of PPE	7	138,049	115,956	138,049		115,956
Amortisation of Intangible Asset	9	782	768	782		768
Finance Costs	17	367,038	330,449	367,038		330,449
Post Employment Benefit Expense		28,313	-	28,313		-
Interest on Placement with Banks	14	(417,633)	(207,622)	(189,731)		(71,700)

		2,602,860	1,085,032	2,633,981		1,106,750
Changes in:
Inventories	20	15,405	(51,760)	15,405		(51,759)
Trade and Other Receivables	18	91,573	(278,185)	93,172		(191,423)
Other Assets	19	148,747	(204,814)	146,443		(77,356)
Post Employment Benefits expense		-	64,174	-		64,174
Due from Related Parties		10,892	-	10,892		(2)
Trade and Other Payables	25	(328,868)	83,725	(359,033)		62,625
Deferred Income	24	(174,202)	2,052,303	(174,202)		1,910,048
Due to Related Parties		367,038	330,449		367,038	330,449
Cash Generated from Operating Activities		2,733,447	3,080,923	2,733,695		3,153,506

Net Cash from Operating Activities		2,733,447	3,080,923	2,733,695		3,153,506
Cash Flows from Investing Activities
Additions to Property Plant and Equipment	7	(253,331)	(239,716)	(253,331)		(239,715)
Additions to Intangible Assets		-	-	-		-
Additions to/Utilization of Capital Work in Progress	9	(62,831)	224,808	(62,831)		152,151
Interest on Placement with Banks		417,633	207,622	189,731		71,700
Net Cash Flows used in Investing Activities		101,471	192,714	(126,432)		(15,863)
Cash Flows from Financing Activities
Finance Costs		(367,038)	(330,449)	(367,038)		(330,449)

Net Cash Flows used in Financing Activities		(367,038)	(330,449)	(367,038)		(330,449)
Net Increase in Cash and Cash Equivalent		2,467,879	2,943,188	2,240,225		2,807,194
Cash and Cash Equivalents at the Beginning of the
Year		22,738,629	14,642,893	16,844,660		9,239,774
Cash and Cash Equivalent at the End of the
Cash and Cash Equivalent at the End of the
Period		25,206,509	17,586,081		19,084,885	12,046,968

IKEJA HOTEL PLC

Notes to the Unaudited Financial Statements

For the Year Ended 31 March 2025

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 March, 2025. 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 March 2025

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

IKEJA HOTEL PLC

Notes to the Unaudited Financial Statements

For the Year Ended 31 March 2025

the purpose of determining the disclosures required. It also clarifies the applicability of previous amendments to IFRS 7 issued in

December 2011 with regards to offsetting financial assets and financial liabilities.

Amendments to IFRS 11 "Joint Arrangements" Accounting for Acquisitions of Interests in Joint Operations
Amendment adds new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business which specify the appropriate accounting treatment for such acquisitions.
"IFRS 14 Regulatory Deferral Accounts"
The Standard permits first-time adopters to continue to recognise amounts related to its rate regulated activities in accordance with their previous GAAP requirements when they adopt IFRS. However, to enhance comparability with entities that apply IFRS and do not recognise such amounts, the Standard requires that the effect of rate regulation must be presented separately from other items. An

entity that already presents IFRS financial statements is not eligible to apply the Standard.

Amendments to "IAS 16 Property, Plant and Equipment"
The amendment clarifies that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate. This is because such methods reflects a pattern of generation of economic benefits that arise from the operation of the business of which an asset is part, rather than the pattern of consumption of an asset's expected future economic benefits.
Amendments to "IAS 19 Employee Benefits"
The amendment clarifies the requirements of determining the discount rate in a regional market sharing the same currency (for example, the Eurozone).
Amendments to "IAS 27 Consolidated and Separate Financial Statements"
Amendments to IAS 27 will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements.
Amendments to "IAS 34 Interim Financial Reporting"
The Amendment discusses clarification of the meaning of disclosure of information 'elsewhere in the interim financial report.
Amendments to "IAS 38 Intangible Assets"
Amendments to IAS 16 and IAS 38 to clarify the basis for the calculation of depreciation and amortisation, as being the expected pattern of consumption of the future economic benefits of an asset.
Amendment to both IAS 16 and IAS 38 establishing the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset. Clarifying that revenue is generally presumed to be an inappropriate basis for measuring the consumption of economic benefits in such assets.
Amendments to "IAS 41 Agriculture: Bearer Plants"
Amendments to IAS 16 and IAS 41 which defines bearer plants and includes bearer plants in the scope of IAS 16 Property, Plant and Equipment, rather than IAS 41 allowing such assets to be accounted for after initial recognition in accordance with IAS 16.
Amendments to "IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 The following issues have arisen in the context of applying the consolidation exception for investment entities:

The exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment entity, even if the investment entity measures all of its subsidiaries at fair value.
A subsidiary that provides services related to the parent's investment activities should not be consolidated if the subsidiary itself is an investment entity.
When applying the equity method to an associate or a joint venture, a noninvestment entity investor in an investment entity may retain the fair value measurement applied by the associate or joint venture to its interests in subsidiaries.
An investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12.

5. Standards and interpretations issued/amended but not yet effective.

At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements, were in issue but not yet effective for the year presented:

3.1 Amendments effective from annual periods beginning on or after 1 January 2017

Amendments to IFRS 12 Disclosure of Interests in Other Entities
This amendment clarifies the scope of the standard by specifying that the dis-clo-sure re-quire-ments in the standard, except for those in para-graphs B10-B16, apply to an entity's interests listed in paragraph 5 that are clas-si-fied as held for sale, as held for distribution or as discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
Amendments to IFRS for SMEs
.

- The standard now allows an option to use the revaluation model for property, plant and equipment as not allowing this option has

been identified as the single biggest impediment to adoption of the IFRS for SMEs in some jurisdictions in which SMEs commonly

revalue their property, plant and equipment and/or are required by law to revalue property, plant and equipment;

- The main recognition and measurement requirements for deferred income tax have been aligned with current requirements in IAS 12

Income Taxes (in developing the IFRS for SMEs, the IASB had already anticipated finalization of its proposed changes to IAS 12,

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