Ikeja Hotel PlcNSENG: IKEJAHOTEL

Quarter 1 - financial statement for 2026

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IKEJA HOTEL PLC (RC 10845)

Unaudited Group Financial Statements



For The First Quarter Ended 31 March 2026

‌Contents Page

Certification 2-3

Statement of Financial Position 4

Satement of Comprehensive Income 5

Statement of Changes in Equity 6

Statement of Cash Flows 7

Notes to Financial Statements 8-27

Operating Summary 28

‌CERTIFICATION PURSUANT TO SECTION 88(2) OF THE INVESTMENTS AND SECURITIES ACT NO. 19 2025-QUARTERLY REPORT I, Theophilus Eniola Netufo (Managing Director/CEO) of Ikeja Hotel Plc, certify that:

  1. I have reviewed the Unaudited Financial Statements for the 1st Quarter ended 31st March 2026

  2. Based on my knowledge, the report does not contain:

    1. Any untrue statement of a material fact, or

    2. Omit to state a material fact, which may make the statement, misleading in the light of the circumstances under which such statement was made;

  3. Based on my knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operations of the company as of, and for the period presented in the report;

  4. The Company's other certifying officer and I:

    1. are responsible for establishing and maintaining internal controls,

ii) have established such internal controls to ensure that material information relating to the Company and its Consolidated Subsidiaries is made known to such officers by others within those entities particularly during the period in which the periodic reports are being prepared,

  1. have evaluated the effectiveness of the company's internal controls as of date within 90 days prior to the report, and

  2. have presented in the report their conclusions about the effectiveness of their internal controls based on their evaluation as of that date;

  1. Although these reports have not been audited, I have taken care to review:

    1. All significant deficiencies in the design or operation of internal controls which may adversely affect the company's ability to record, process, summarise and report financial data

    2. Any fraud, whether or not material, that involves management or other employees who have significant role in the company's internal controls; and

      (f ) I have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



      Mr. Theophilus E. Netufo-FCA Managing Director/CEO FRC/2013/PRO/DIR/003/00000004775

      23rd April 2026

      ‌CERTIFICATION PURSUANT TO SECTION 88(2) OF THE INVESTMENTS AND SECURITIES ACT NO. 19 2025-QUARTERLY REPORT I, Zacchaeus Adeyemo (Chief Finance Officer) of Ikeja Hotel Plc, certify that:

      1. I have reviewed the Unaudited Financial Statements for the 1st Quarter ended 31st March 2026

      2. Based on my knowledge, the report does not contain:

        1. Any untrue statement of a material fact, or

        2. Omit to state a material fact, which may make the statement, misleading in the light of the circumstances under which such statement was made;

      3. Based on my knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operations of the company as of, and for the period presented in the report;

      4. The Company's other certifying officer and I:

        1. are responsible for establishing and maintaining internal controls,

ii) have established such internal controls to ensure that material information relating to the Company and its Consolidated Subsidiaries is made known to such officers by others within those entities particularly during the period in which the periodic reports are being prepared,

  1. have evaluated the effectiveness of the company's internal controls as of date within 90 days prior to the report, and

  2. have presented in the report their conclusions about the effectiveness of their internal controls based on their evaluation as of that date;

  1. Although these reports have not been audited, I have taken care to review:

    1. All significant deficiencies in the design or operation of internal controls which may adversely affect the company's ability to record, process, summarise and report financial data

    2. Any fraud, whether or not material, that involves management or other employees who have significant role in the company's internal controls; and

(f ) I have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



Zacchaeus O. Adeyemo

Financial Controller FRC/2018/PRO/ICAN/001/00000017858

23rd April 2026

‌IKEJA HOTEL PLC

Consolidated Statement of Financial As at 31 March 2026

Position

The Group

The Company

Notes

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

N'000

N'000

N'000

N'000

Non-Current Assets

Property, Plant and Equipment

7

22,884,771

23,003,809

22,884,771

23,003,809

Capital Work in Progress

9

742,007

721,060

742,007

721,060

Intangible Asset

10

11,874

12,434

11,874

12,434

Investment in Subsidiaries

33

-

-

4,444,518

4,444,518

Investment Accounted for Using the

Equity Method

34

-

-

798,722

798,722

Total Non Current Assets

23,638,650

23,737,303

28,881,891

28,980,543

Current Assets

Inventories

20

201,655

214,865

201,655

214,865

Trade Receivables

18

1,781,056

1,970,713

1,778,502

1,968,494

Other Receivables and Prepayment

19

2,659,568

1,636,481

2,653,632

1,636,481

Loan to Related Party

21

16,723,246

16,723,246

16,723,246

16,723,246

Amount Due from Related Parties

22

-

-

389,782

389,435

Cash and Cash Equivalents

23

34,715,725

33,155,583

27,776,004

26,266,891

Total Current Assets

56,081,251

53,700,888

49,522,821

47,199,412

Total Assets

79,719,902

77,438,191

78,404,712

76,179,955

Equity and Liabilities

Share Capital

29

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

29,844,879

27,773,017

29,266,092

27,312,423

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

46,184,575

44,112,712

45,603,955

43,650,286

Non-Controlling Interest

32

166,049

126,651

-

-

46,350,623

44,239,363

45,603,955

43,650,286

Liabilities

Non-Current Liabilities

Amount Due to Related Parties

26

2,744,184

2,800,767

3,515,923

3,572,506

Retirement Benefits Obligation

28

264,734

253,147

264,099

253,147

Deferred Tax

27.2

369,952

369,952

369,950

369,952

Total Non- Current Liabilities

3,378,869

3,423,866

4,149,973

4,195,605

Current Liabilities

Trade and Other Payables

25

4,683,128

5,412,749

4,171,381

4,928,039

Deferred Income

24

20,384,813

20,528,005

20,204,922

20,137,976

Current Tax Payable

27.1

4,922,465

3,834,208

4,274,484

3,268,049

Total Current Liabilities

29,990,406

29,774,962

28,650,787

28,334,064

Total Liabilities

33,369,274

33,198,828

32,800,759

32,529,669

Total Equity and Liabilities

79,719,902

77,438,191

78,404,712

76,179,955

The Securities and Exchange Commission in July 2025, issued a directive to the Company that all Board Statutory meetings should be put on hold until further notice.To comply with the statutory obligation of filing Interim Financial Statements quarterly, the Management prepared the first quarter 2026 Financial Statements as expected for filing with regulatory authorities. Management carefully and diligently reviewed the financial statements to ensure full compliance with regulatory requirements. The Managing Director/CEO and Chief Financial Officer have certified the Financial Statements in line with section 88(2) of the Investments and Securities Act No. 19 2025 and therefore seek the approval of the Exchange.Management therefore seeks for the approval of the Exchange to release the first quarter 2026 Financial Statements to the investing public.



Mr. Theophilus E. Netufo-FCA Mr. Zacchaeus O. Adeyemo

Managing Director/CEO Financial Controller

FRC/2013/PRO/DIR/003/00000004775 FRC/2018/PRO/ICAN/001/00000017858

23rd April, 2026 23rd April, 2026

‌Consolidated Statement of Comprehensive Income As at 31 March 2026

The Group The Company

3 Months Ended 3 Months Ended

Note

31-Mar-26

N'000

31-Mar-25

N'000

31-Mar-26

N'000

31-Mar-25

N'000

Revenue

11

6,669,471

6,111,085

6,669,471

6,111,085

Cost of Sales

12

(3,319,845)

(3,009,441)

(3,319,845)

(3,009,441)

Gross Profit

3,349,626

3,101,644

3,349,626

3,101,644

Other Income

13

47,326

63,925

45,762

62,405

Sales and Marketing Expenses

16

(259,405)

(210,565)

(259,405)

(210,565)

Administrative Expenses

15

(600,842)

(519,287)

(569,796)

(486,646)

Operating Profit

2,536,705

2,435,717

2,566,186

2,466,838

Finance Income

14

663,404

417,633

393,917

189,731

Finance Costs

17

-

(367,038)

-

(367,038)

Profit Before Taxation

3,200,108

2,486,312

2,960,104

2,289,530

Income Tax Expense

27.3

(1,088,848)

(830,556)

(1,006,435)

(755,545)

Profit for the period from continuing operations

2,111,260

1,655,756

1,953,668

1,533,985

Profit Attributable to:

Equity Holders of the Parent

2,071,862

1,613,136

1,953,668

1,533,985

Non-Controlling Interest

39,398

42,620

-

-

Profit for the period

2,111,260

1,655,756

1,953,668

1,533,985

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 2,111,260 1,655,756 1,953,668 1,533,985

Total Comprehensive Income for the period Attributable to:

Equity Holders of the Parent

2,071,862

1,613,136

1,953,668

1,533,985

Non-Controlling Interest

39,398

42,620

-

-

2,111,260

1,655,756

1,953,668

1,533,985

Basic Earnings Per Share (kobo)

98

77

90

71

‌Statement of Changes in Equity as at 31 March 2026

The Group

Ordinary share

Share

Retained

Capital

Revaluation

Non-controlling

Total

Attributable to the Equity Holders of the Company

Capital

Premium

Earnings

Reserve

Reserve

interest

Equity

=N='000

=N='000

=N='000

=N='000

=N='000

=N='000

=N='000

Balance as at 1 January 2026

1,081,184

1,432,886

27,773,017

1,832

13,823,793

126,651

44,239,362

Profit for the Period

2,071,862

39,398

2,111,260

Interim Dividend

-

-

Total Comprehensive Income for the Period

-

-

2,071,862

-

-

39,398

2,111,260

At 31 March 2026

1,081,184

1,432,886

29,844,879

1,832

13,823,793

166,049

46,350,623

Balance as at 1 January 2025

1,081,184

1,432,886

14,252,475

1,832

13,823,793

(37,141)

30,555,029

Profit for the period

Re-measurement gain on defined benefit plans

1,613,135

42,620

1,655,755

-

-

Transaction with owners

Interim Dividend

-

-

Final Dividend

-

-

-

1,613,135

-

-

42,620

-

Total Comprehensive Income for the period

1,655,755

At 31 March 2025

1,081,184

1,432,886

15,865,610

1,832

13,823,793

5,478

32,210,786

The Company

Ordinary share

Share

Retained

Revaluation

Total

Attributable to the Equity Holders of the Company

Capital

Premium

Earnings

Reserve

Equity

=N='000

=N='000

=N='000

=N='000

=N='000

Balance as at 1 January 2026

1,081,184

1,432,886

27,312,422

13,823,793

43,650,285

Profit for the Period

-

-

1,953,668

1,953,668

Interim Dividend

-

-

Total Comprehensive Income for the Period

-

-

1,953,668

1,953,668

Reclassifications/derecognition

-

-

At 31 March 2026

1,081,184

1,432,886

29,266,090

13,823,793

45,603,953

Balance as at 1 January 2025

1,081,184

1,432,886

13,998,575

13,823,793

30,336,438

Profit for the period

Re-measurement gain on defined benefit plans

1,533,985

1,533,985

-

-

-

Final Dividend

-

-

Total Comprehensive Income for the period

-

-

1,533,985

-

1,533,985

At 31 March 2025

1,081,184

1,432,886

15,532,560

13,823,793

31,870,423

‌IKEJA HOTEL PLC

Consolidated Statement of Cash Flows As at 31 March 2026

The Group The Company

Profit/(Loss) before tax

Notes

31-Mar-26

N'000 3,200,108

31-Mar-25

N'000 2,486,311

31-Mar-26

N'000 2,960,104

31-Mar-25

N'000 2,289,530

Adjustment for:

Depreciation of PPE

7

167,447

138,049

167,447

138,049

Amortisation of Intangible Asset

10.1

561

782

561

782

Finance Costs

17

-

367,038

-

367,038

Post Employment Benefit Expense

11,587

28,313

10,952

28,313

Interest on Placement with Banks

14

(663,404)

(417,633)

(393,917)

(189,731)

Deferred Income

(143,191)

-

66,946

-

2,573,108

2,602,860

2,812,091

2,633,981

Changes in:

Inventories

20

13,210

15,405

13,210

15,405

Trade Receivables

18

189,657

91,573

189,992

93,172

Other Receivables and Prepayments

19

(1,023,088)

148,747

(1,017,152)

146,443

Loans and Receivables

21

1

-

1

-

Due from Related Parties

-

10,892

(347)

10,892

Trade and Other Payables

25

(730,209)

(328,868)

(756,661)

(359,033)

Deferred Income

24

(174,202)

(174,202)

Due to Related Parties

(56,583)

367,038

(56,583)

367,038

Cash Generated from Operating Activities

966,096

2,733,447

1,184,553

2,733,696

Income Tax Paid

29.1

-

-

-

-

Post Employment Benefits paid

-

-

-

-

Net Cash from Operating Activities

966,096

2,733,447

1,184,553

2,733,696

Cash Flows from Investing Activities

Additions to Property Plant and Equipment

7

(48,411)

(253,331)

(48,411)

(253,331)

Additions to/Utilization of Capital Work in Progress

9

(20,947)

(62,831)

(20,947)

(62,831)

Acquisition of Investment in Subsidiary

(0)

Interest on Placement with Banks Dividend Received

663,404

-

417,633

-

393,917

-

189,731

-

Net Cash Flows used in Investing Activities

594,046

101,471

324,559

(126,431)

Cash Flows from Financing Activities

Finance Costs

-

(367,038)

-

(367,038)

Interest Paid

-

-

-

-

Net Cash Flows used in Financing Activities

-

(367,038)

-

(367,038)

Net Increase in Cash and Cash Equivalent

1,560,142

2,467,879

1,509,112

2,240,226

Cash and Cash Equivalents at the Beginning of the Year

33,155,583

22,738,629

26,266,891

16,844,660

Cash and Cash Equivalent at the End of the Period

34,715,725

25,206,508

27,776,004

19,084,886

    1. The reporting entity

      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.

    2. 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.

    3. Corporate office

      The registered office of the company is 84, Opebi Road, Ikeja, Lagos, Nigeria.

    4. 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.

    1. 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.

    2. 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.

    3. Basis of consolidation

      The interim consolidated financial statements comprise the financial statements of the company and its subsidiaries as at 31 March, 2026. 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 transactions within the Group are eliminated on consolidation. Unrealised losses resulting from inter-group transactions are eliminated, but only to the extent that A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

  3. 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.

  4. 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:

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

    2. 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.

    3. 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 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.

      Tourist Company of Nigeria (TCN) Plc is indebted to Ikeja Hotel Plc to the tune of N36 Billion as related party loan. Recently, TCN challenged the existence of the debt in the Law Court.

      Management believes it has relevant facts to win the case. Hence, management believes that with the facts it has, the matter will be resolved in favour of Ikeja Hotel Plc.

    4. Impiarment 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.

    5. 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.

    6. 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.

    7. 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.

      1. 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:

        1. 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.

        2. 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 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.

        3. 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.

        4. "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.

        1. 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.

        2. 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).

        3. 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.

        4. Amendments to "IAS 34 Interim Financial Reporting"

          The Amendment discusses clarification of the meaning of disclosure of information 'elsewhere in the interim financial report.

        5. 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.

        6. 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.

        7. Amendments to "IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities

        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 non-investment 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:

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

      1. Amendments to IFRS 12 Disclosure of Interests in Other Entities

        This amendment clarifies the scope of the standard by specifying that the disclosure requirements in the standard, except for those in paragraphs B10-B16, apply to an entity's interests listed in paragraph 5 that are classified 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

      2. 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, however, these changes were never finalized); and

        • The main recognition and measurement requirements for exploration and evaluation assets have been aligned with IFRS 6 Exploration for and Evaluation of Mineral Resources to ensure that the IFRS for SMEs provides the same

      3. Amendments to IAS 7 Statement of Cash Flows

        This amendment to IAS7 clarify that entities shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities.

      4. Amendments to IAS 12 Income Taxes

        Amends to recognition of deferred tax assets for unrealized losses, IAS 12 Income Taxes clarify the following aspects:

        • Unrealized losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument's holder expects to recover the carrying amount of the debt instrument by sale or by use.

        • The carrying amount of an asset does not limit the estimation of probable future taxable profits.

        • Estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences.

        • An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilization of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type.

    The following standards have been issued or amended by IASB and become effective for annual periods beginning on Standard

    IFRS 3 Business Combination 1-Jan-20

    IAS 1 & IAS 8 Definition of Material 1-Jan-20

    IFRS 17 Insurance Contracts 1-Jan-21

    1. Amendments to IFRS 3 (Business Combination)

      IFRS 3 (Business Combinations) outlines the accounting when an acquirer obtains control of a business (e.g.) An acquisition or merger). In October 2018, after the post implementation review of IFRS 3, the IASB issued an amendment to IFRS 3 which centers majorly on the definition of a Business.

      They include:

      • That to be considered a business, an acquired set of activities and assets must include, at minimum, an input and a substantive process that together significantly contribute to the ability to create outputs:

      • Narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs.

      • Add guidance and illustrative examples to help entities assess whether a substantive process has been acquired.

      • Remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs: and

      • Add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business.

        The effective date is on or after 1st January 2020. This amendment does not have any impact on the company.

    2. Amendment to IAS 1 and IAS 8

    In October 2018, the IASB issued the definition of 'material'. The amendments are intended to clarify, modify and ensure that the definition of 'material' is consistent across all IFRS. in IAS 1 (Presentation of Financial Statements) and IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors), the revised definition of 'material' is quoted below:

    1. Amendment to IAS 1 and IAS 8 (continued)

      "An information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make based on those financial statements, which provide financial information about a specific reporting entity".

      The amendments laid emphasis on five (5) ways material information can be obscured. These include:

      • If the language regarding a material item, transaction or other event is vague or unclear;

      • If information regarding a material item, transaction or other event is scattered in different places in the financial

      • If dissimilar items, transactions or other events are inappropriately aggregated;

      • If similar items, transactions or other events are inappropriately disaggregated; and

      • If material information is hidden by immaterial information to the extent that it becomes unclear what information is The amendments are effective for annual reporting periods beginning on or after 1st January 2020. The company has taken into consideration the new definition in the preparation of its annual account.

    2. IFRS 17 - Insurance Contracts

    IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after 1 January 2021. The new IFRS 17 standard establishes the principles for the recognition, measurement, presentation and disclosure of Insurance contracts within the scope of the Standard. The objective of IFRS 17 is to ensure an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity's financial position, financial performance and cash flows. This standard does not impact the company/group in anyway as the company/group and its subsidiary companies do not engage in insurance business.

  6. Summary of significant accounting policies

    The principal accounting policies applied in the preparation of these consolidated financial statemnts are set out below. These policies have been applied consistently for all the years presented, unless otherwise stated.

    1. Investments in subsidiaries

      The consolidated financial statements incorporates the financial statements of the company and all its subsidiaries Control is usually present when an entity has:

      • power over more than one-half of the voting rights of the other entity;

      • power to govern the financial and operating policies of the other entity;

      • power to appoint or remove the majority of the members of the board of directors or equivalent governing body; or

      • power to cast the majority of votes at meetings of the board of directors or equivalent governing body of the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date that control ceases. Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions (transactions with owners).

      In its separate accounts, the Company accounts for its investment in subsidiaries at cost.

      Inter-company transactions, balances and unrealised gains on transactions between companies within the Group are eliminated on consolidation. Unrealised losses are eliminated in the same manner as unrealised gains, but only to the extent that there is no evidence of impairment. Consistent accounting policies are used throughout the Group for consolidation.

    2. Investments in associates

      An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The investment in an associate is initially recognized at cost in the separate financial statements, however in its consolidated financial statements; it is recognized at cost and adjusted for in the Group's share of changes in the net assets of the investee after the date of acquisition, and for any impairment in value. If the Group's share of losses of an associate exceeds its interest in the associate, the group discontinues recognizing its share of further losses.

    3. Investments in joint ventures

      A joint venture is an entity over which the Group has joint control. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control. The investment in a joint venture is initially recognized at cost and adjusted for in the Group's share of the changes in the net assets of the joint venture after the date of acquisition, and for any impairment in value. If the Group's share of losses of a joint venture exceeds its

    4. Investments in special purpose entities (SPEs)

      SPEs are entities that are created to accomplish a narrow and well-defined objective. The financial statements of the SPE is included in the consolidated financial statements where on the substance of the relationship with the Group and the SPE's risk and reward, the Group concludes that it controls the SPE.

    5. Business combinations

      Business combinations are accounted for using the acquisition method. The consideration for acquisition is measured at the fair values of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in order to obtain control of the acquiree (at the date of exchange). Costs incurred in connection with the acquisition are recognised in profit or loss as incurred. Where a business combination is achieved in stages, previously held interests in the acquiree are re-measured to fair value at the acquisition date (date the Group obtains control) and the resulting gain or loss, is recognised in profit or loss. Adjustments are made to fair values to bring the accounting policies of acquired businesses into alignment with those of the Group. The costs of integrating and reorganising acquired businesses are charged to the post acquisition profit or loss. If the initial accounting is incomplete at the reporting date, provisional amounts are recorded. These amounts are subsequently adjusted during the measurement period, or additional assets or liabilities are recognised when new information about its existence is obtained during this period. Non-measurement period adjustments to contingent consideration(s) classified as equity are not remeasured. Non-measurement period adjustments to other contingent considerations are remeasured at fair value with changes in fair value recognised in profit or loss. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the group's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

    6. Property, Plant and Equipment

      Property, plant and equipment is stated at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Such cost includes the cost of replacing component parts of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company derecognises the replaced part, and recognises the new part with its own associated useful life and depreciation. Likewise, when a major inspection

      When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.

      1. Subsequent costs

        Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

      2. Derecognition of Property, Plant and Equipment

        An item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income statement in the year the asset is derecognised.

      3. Depreciation of Property, Plant and Equipment

        Depreciation of property, plant and equipment is calculated over the depreciable amount which is the cost of an asset or other amount substituted for cost, less its residual value. Depreciation is recognised in profit or loss on a straight line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.

        The estimated useful lives are as follows:

        Class of assets %

        Freehold land NIL

        Building 5

        Hotel equipment 20

        Office equipment, furniture and 10

        Computer equipment 331/3

        Motor vehicles 331/3

        Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if Land and assets under construction (work in progress) are not depreciated.

    7. Intangible assets

      These comprise computer software and goodwill. Intangible assets excluding goodwill is stated at cost, less accumulated amortisation and impairment losses, if any. Subsequent costs are included in the asset's carrying amount the intangible asset or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

      1. Amortisation of intangible assets

        Intangible assets excluding goodwill is amortised on a straight-line basis over the estimated useful lives of the intangible asset. Amortisation charge is included in administrative expense in the profit or loss account. Intangible assets with an indefinite useful life are tested for impairment annually. Intangible assets are amortised from the date they are available for use. The useful lives is as follows:

        • Computer Software - 10 years

          The amortisation methods, useful lives and residual values of intangible assets are reviewed annually and adjusted if appropriate.

      2. Intangible assets acquired separately

        Intangible assets acquired separately are shown at historical cost less accumulated amortisation and impairment losses.

      3. De-recognition of Intangible Assets

        Intangible assets are derecognised at disposal date or at the date when it is permanently withdrawn from use without the ability to be disposed of. The difference between the carrying amount at the date of derecognition and any disposal proceed as applicable, is recognised in profit or loss.

      4. Intangible assets generated internally

        Expenditures on research or on the research phase of an internal project are recognised as an expense when incurred. The intangible assets arising from the development phase of an internal project are recognised if, and only if, the it is technically feasible to complete the asset for use by the Group

        • the Group has the intention of completing the asset for either use or resale

        • the Group has the ability to either use or sell the asset

        • it is possible to estimate how the asset will generate income

        • the Group has adequate financial, technical and other resources to develop and use the asset; and

        • the expenditure incurred to develop the asset is measurable.

          If no intangible asset can be recognised based on the above, then development costs are recognised in profit and loss in the period in which they are incurred.

      5. Goodwill

        Goodwill on acquisitions comprises the excess of the aggregate of the fair value of the consideration transferred, the fair value of any previously held interests, and the recognised value of the non-controlling interest in the acquiree over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Goodwill is carried at cost less accumulated impairment losses. Goodwill is tested for impairment annually. Impairment loss is recgnized in the profit or loss account.

    8. Impairment of non financial assets

      The Group assesses annually whether there is any indication that any of its assets have been impaired. If such indication exists, the asset's recoverable amount is estimated and compared to its carrying value. Where it is impossible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the smallest cash-generating unit to which the asset is allocated. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount an impairment loss is recognized immediately in profit or loss, unless the asset is carried at a revalued amount, in which case the impairment loss is recognized as revaluation decrease. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

    9. Non current assets held for sale

      items of property, plant and equipment (PPE) are classified as non current current assets held for sale when it is highly probable that the item of PPE is avalaible for immediate sale in its present condition, management has committed to the sale and the sale is expected to be completed within one year from the date of classification. Non current assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell.

      Items of PPE and intangible assets classified as held for sale are not depreciated or amortised. Impairment losses are recognised for any initial or subsequent write down of the asset to fair value less cost to sell. Gains are recognised on any subsequent increase in fair value less cost to sell, up to the cummulative impairment loss that has been recognised.

      1. Reclassifications

        When the use of a property changes from owner-occupier to investment property, the property is re-measured to fair value and reclassified as investment property. Any gain arising on re-measurement is recognized in income statement to the extent that it reverses a previous impairment loss on the specific property, with any remaining recognized in other comprehensive income and presented in the revaluation reserve in equity. Any loss is recognized immediately in income statement.

    10. Financial instruments

      A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity of another entity.

      1. Financial assets

        The Group adopts IFRS 9, Financial intsruments in the classification of its financial assets. In accordance with IFRS 9, the classification of financial assets is based on the Group's business model for managing the financial assets and Amortised cost: Financial assets are measured at amortised cost where:

        • The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows.

        • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

        Fair value through other comprehensive income: financial assets are classified and measured at fair value through other comprehensive income where the Group's business model is both to collect contractual cash flows and selling the financial assets when opportunities arise. The contractual cash flows are represented by principal and interest repayments on the financial assets.

        Fair value through profit or loss : any financial assets that are not held in one of the two business models mentioned are measured at fair value through profit or loss.

        Appropriate reclassifications are made to financial assets when the group changes its business model for managing a Financial assets presently held by the Group are trade receivables which are held at amortised costs.

      2. Recognition and measurement

        Regular-way purchases and sales of financial assets are recognized on trade-date - the date on which the Group Financial assets are initially recognized at fair value plus, in the case of all financial assets not carried at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Financial assets carried at fair value through profit or losses are initially recognized at fair value, and transaction costs are expensed in the income Financial assets are derecognized when the rights to receive cash flows from them have expired or where they have been transferred and the Group has also transferred substantially all risks and rewards of ownership.

        Financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables are carried at amortised cost using the effective interest method.

        Gains and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the income statement in the period in which they arise. Dividend income from financial assets at fair value through profit or loss is recognised in the income statement as part of other income when the Group's right to receive payments is established. Changes in the fair value of monetary and non-monetary securities classified

        For financial instruments traded in active markets, the determination of fair values of financial assets and financial liabilities is based on quoted market prices or dealer price quotations. This includes listed equity securities and quoted The classification is determined by management at initial recognition and depends on the purpose for which the investments were acquired.

      3. Reclassifications

        Financial assets other than loans and receivables are permitted to be reclassified out of the held-for-trading category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near-term. In addition, the Group may choose to reclassify financial assets that would meet the definition of loans and receivables out of the held-for-trading or available-for-sale categories if the Group has the intention and ability to hold these

        Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and held-to-maturity categories are determined at the reclassification date. Further increases in estimates of cash flows adjust effective interest rates prospectively.

      4. 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, the Group considers reasonable and supportable information about past events, current conditions and reasonable and supportable forecasts of future economic conditions when measuring expected credit losses. The expected credit loss is the weighted average of credit losses with the respective risks of a default occurring as the weightings. The Group considers the risk or probability that a credit loss occurs by

        Under IFRS 9, there are two approaches to the measurement of ECL as follows:

        1. General approach

        2. Simplied approach

        1. Impairment of financial assets (continued)

          Under the general approach considerations are given to whether there has been a significant increase in credit risks on the financial assets since initial recognition in which case an impairment loss for lifetime ECL is recognised. Otherwise, if at the reporting date management assesses that the credit risk on the financial asset has not increased significantly since initial recognition, impairment loss for 12 month ECL is recognised. Significamt increase in credit

          The simplied approach under the ECL model is based on a provision matrix and involves the following steps:

          • Creating groups for trade receivables based on similar credit risks characteristics.

          • Collection of historical loss rates data and determining the period of applicability of the data.

          • Determination of the expected loss rates for each of the groups of trade receivables created based on established periods for whch receivables are past due.

          • Carry out necessary adjustments on the expected loss rates to reflect the effect of forward looking macro economic

          • Determination of the expected credit losses

          The Group applies the simplified approach in the calculation of impairment loss on trade receivables.

        2. Financial liabilities

          The Group's financial liabilities at statement of financial position date include 'Borrowings' and payables (excluding VAT and employee related payables). These financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities are included in current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.

        3. Interest bearing borrowings

          Borrowings, inclusive of transaction costs, are recognised initially at fair value. Borrowings are subsequently stated at amortised costs using the effective interest rate method; any difference between proceeds and the redemption value is recognised in the income statement over the period of the borrowing using the effective interest rate method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.

        4. Offsetting financial instruments

          Financial assets and liabilities are offset and the net amount reported in the statement of financial position only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.

        5. Cash and cash equivalents

          Cash equivalents comprise short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. An investment with a maturity of three months or less is normally classified as being short-term.

          Bank overdrafts are shown within borrowing in current liabilities.

        6. Non-derivative financial liabilities

        The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expires. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the The Group has the following non-derivative financial liabilities: loans and borrowings, bank overdrafts, and trade and other payables. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest method.

        1. Equity instruments

        Equity instruments issued by the Group are recorded at the value of proceeds received, net of costs directly attributable to the issue of the instruments. Shares are classified as equity when there is no obligation to transfer cash or other assets. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a Where the Group purchases it's equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Group's equity holders. Where such shares are subsequently sold, reissued or otherwise disposed of, any consideration received is included in equity attributable to the Group's equity holders, net of any directly attributable incremental transaction costs and the related income tax effects.

    11. Inventories

      Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the weighted average principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

    12. Borrowing costs

      Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset. Other borrowing costs are expensed in the period in which they are incurred.

    13. Trade payables

      Trade payables are initially measured at fair value, and are subsequently measured at amortised cost using the effective interest rate method.

    14. Bank overdrafts and interest-bearing borrowings

      Bank overdrafts and interest-bearing borrowings are recognised initially at fair value, net of transaction costs incurred, and are subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability.

    15. Employee benefits

      1. Defined contribution plans

        In accordance with the provisions of the amended Pension Reform Act, 2014 the Company has instituted a Contributory Pension Scheme for its employees, where both the employees and the company contribute 8% and 10% of the employee total emoluments. The company's contribution under the scheme is charged to the profit and loss Obligations for contributions to the defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. Contributions to a defined contribution plan that is due more than twelve months after the end of the period in which the employees render the service are discounted to their present value. Payments to defined contribution plans are recognised as an expense as they fall due. Any contributions outstanding at the year end are included as an accrual in the statement of financial position.

      2. Defined benefit plan

        The terms of the defined benefit pension plan define the amount that employees will receive on retirement. These amounts are dependent on factors such as age, years of service and compensation, and are determined independently of the contributions payable or the investments of the scheme. The defined benefit liability recognised on the statement of financial position is the difference between the present value of the defined benefit obligations and the fair value of plan assets.

        Past service cost is recognised immediately to the extent that the benefits are already vested, or is amortised on a straight-line basis over the average period until the benefits become vested. When a curtailment (reducing future obligations as a result of a material reduction in the scheme membership or a reduction in future entitlement) occurs, the obligation and related plan assets are re-measured using current actuarial assumptions and the resultant gain or loss is recognised in the income statement during the period in which the curtailment occurs.

        1. Defined benefit plan (continued)

          The surplus or deficit on the entity's defined benefit plan is recognised in full in the statement of financial position. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme.

        2. Termination benefits

          Termination benefits are recognised as an expense when the Company is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Company has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their present value.

        3. Short-term employee benefits

        Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

    16. Provisions, contingent liabilities and contingent assets

      Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the The Group discloses a contingent liability when there is a possible obligation depending on whether some uncertain

      future event occurs or when there is a present obligation, but payment is not probable and the amount can not be estimated reliably.

      The Group discloses a contingent asset where it is possible that an asset can arise from past events and the existence will be confirmed by the ocurrence or non ocurrence of one or more future events not wholly within the control of the entity.

    17. Restructuring

      A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating losses are not provided for.

    18. Revenue from contract with customers

      The Group applies the 5 step model in recognising revenue from contract with customers in accordance with IFRS 15, Revenue from contract with customers which involves:

      1. Identifying the contract with a customers

      2. Identifying the performance obligation in the contract

      3. Determining the transaction price

      4. Allocating the transaction price to the performance obligation in the contract

      5. Recognising revenue when a performance obligation is satisfied by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service)

      Revenue from a valid contract with a customer is recognised when the following conditions are met:

      1. The contract has been approved by the parties to the contract.

      2. The rights and obligations of the parties to the contract in relation to the goods and services to be transferred are

      3. The payment terms for the goods and services to be transferred are identifiable.

      4. The contract has commercial substance.

      5. it is probable that the consideration to which the group is entitled to in exchange for the goods or services will be The Group's revenue comprises lodging services, food and beverages sales and other services incidental to lodging to third parties.

    19. Leases

      A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group assesses whether a contract is or contains a lease at the inception of the contract.

      A contract is assessed to contain a lease if the following conditions are established:

      • There is an identifiable asset in the contract.

      • The customer has the right to control the use of the asset throughout the period of the lease in exchange for a

      • The customer has the right to obtain substantially all the economic benefits from the use of the asset throughout the

      • The supplier does not have a sunstantive right to substitute the use of the asset throughout the period of use of the Where the Group is a lessee in the lease contract, the Group recognises a right of use asset and a lease liablity at the inception of the contract. The right of use asset is measured using the cost model provided it:

      • is not an investment property and the lessee fair values its investment properties.

      • does not relate to a class of propety, plant and equipment to which the lessee applies revaluation model, in which case all right-of-use assets relating to that class of property, plant and equipment can be revalued.

      Under the cost model a right-of-use asset is measured at cost less accumulated depreciation and accumulated

      Where the lease is for a term of 12 months or less and containing no purchase options or the underlying asset has a low value when new such as personal computers or small items of office furniture, the Group accounts for lease payments as an expenses on a straight line basis over the term of the lease except another systematic basis is more The right of use asset and the lease liability are initially measured at the present value of the lease payments payable over the lease term by discounting with the implicit rate of the lease. Where the implicit rate can not be readility determined, the Group shall apply its incremental borrowing rate.

      Management has opted to exempt rental payments for its office as they are of a short term nature and not considered material. Also the Group has not entered into any lease contract where it is the lessor.

    20. Investment return

      Investment return comprises of dividend, interest and rent receivable, movement in amortized cost on debt securities and other loan and receivables, realized gains and losses, and unrealized gains and losses on fair value assets. Dividends on ordinary shares are appropriated from revenue reserve in the period they are approved by the Group's Shareholders.

    21. Dividend distributions

      Final dividend distributions to the company's shareholders are only recognised as a liability in the subsequent reporting period following when it has been approved by the shareholders at the Annual General Meeting.

    22. Unclaimed dividend

      Unclaimed dividends are amounts payable to shareholders in respect of dividend previously declared by the Group, which have remained unclaimed by the shareholders. In compliance with Section 385 of the Companies and Allied Matters Act, CAP C20 Laws of the Federation of Nigeria, unclaimed dividends after twelve years are transferred to retained earnings.

    23. Related parties

The Group designates an entity or a person a related party where it has identified that:

  • The entity and the Group are members of the same group. Holding company and subsidiary relationship.

  • The entity is a joint venture or associate of the Group or the entity is a joint venture or associate of another member of the Group.

  1. Related parties (continued)

    • The Group is controlled by the entity or person.

    • The entity or the person has significant influence over the Group.

    • The person is a key management personnel of the Group.

    • The entity is a post-employment defined benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also

      The Group discloses transactions with related parties which includes the:

    • The name of the related party.

    • Nature of transaction with the related party.

    • Amount of the transaction with the related party nature of transaction with the related party.

    • Balance due from and to the related party at the end of the reporting period

      The Group discloses the following information regarding key management personnel

    • Short term employee benefits

    • Post employment benefit

  2. Taxation

    Income tax for the period is based on the taxable income for the year. Taxable income differs from profit as reported in the statement of comprehensive income for the period as there are some items which may never be taxable or deductible for tax and other items which may be deductible or taxable in other periods. Income tax for the period is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

  3. Deferred tax

    Deferred tax is the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities shown on the statement of financial position. Deferred tax assets and liabilities are not recognised if they arise in the following situations: the initial recognition of goodwill; or the initial recognition of assets and liabilities that affect neither accounting nor taxable profit. The amount of deferred tax provided is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the statement of financial position date.

    The Group does not recognise deferred tax liabilities, or deferred tax assets, on temporary differences associated with investments in subsidiaries, joint ventures and associates where the parent company is able to control of the timing of the reversal of the temporary differences and it is not considered probable that the temporary differences will reverse in the foreseeable future. It is the Group's policy to reinvest undistributed profits arising in group companies.

    A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. The carrying amount of the deferred tax assets are reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered.

    Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same tax authority. Current tax assets and liabilities are

  4. Earnings per share

    The Group presents basic earnings per share for its ordinary shares. Basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders of the Group by the number of shares outstanding during the year. Adjusted earnings per share is determined by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shareholders adjusted for the bonus shares issued.

  5. Share capital

    Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects and costs directly attributable to the issue of the instruments.

  6. Segment Reporting

    Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Board of Directors is the chief operating decision makers and is responsible for assessing the financial performance and position of the group, and make strategic decisions. The Group identifies and segregates reportable segments based on their geographical location. These are components of the Group operating within a particular operating environment that are subject to risks and returns that are different from components operating in another economic environment.

  7. Finance income and finance costs

    1. Finance income

      Finance income comprises interest income on funds invested, dividend income, gains on the disposal of available-for-sale financial assets, changes in the fair value of financial assets at fair value through profit or loss, and gains on hedging instruments that are recognized in profit or loss. Interest income is recognized as it accrues in consolidated income statement using the effective interest method.

    2. Finance costs

      Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, dividends on preference shares classified as liabilities, changes in the fair value of financial assets at fair value through profit or loss, impairment losses recognized on financial assets, and losses on hedging instruments that are recognized in profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method.

  8. Dealing in Issuers' Shares Policy

policy which regulates securities transactions by its Directors, Employees and other insiders on terms which are no less exacting than the required standard set out in the Nigerian Stock Exchange Rules. The Policy is to be

A code of conduct regarding the securities transactions by all Directors was adopted by the Company. A specific enquiry of all Directors has been made during the reporting period and there is no incidence of non-compliance with the listing rules of the Nigerian Stock Exchange, and Ikeja Hotel Plc's code of conduct regarding securities transactions by Directors

‌IKEJA HOTEL PLC

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

Land

Buildings

Hotel Equipment

Office

Equipment furniture and fittings

Computer Equipment

Motor Vehicles

Total

N'000

N'000

N'000

N'000

N'000

N'000

N'000

18,444,120

5,354,571

3,485,806

282,395

808,908

134,752

28,510,552

-

(0)

-

(0)

9,300

39,110

48,410

-

-

-

-

-

-

-

-

-

-

-

-

-

(10,060)

(10,060)

18,444,120

5,354,571

3,485,806

282,395

818,208

163,802

28,548,902

18,444,120

5,250,170

2,662,000

265,204

696,341

101,753

27,419,588

-

24,844

827,000

18,085

112,567

32,999

1,015,494

-

79,558

-

-

-

-

79,558

-

-

-

-

-

-

-

-

-

(3,193)

(894)

-

-

(4,087)

18,444,120

5,354,571

3,485,806

282,395

808,908

134,752

28,510,554

-

2,086,712

2,498,729

230,192

582,429

108,682

5,506,744

58,724

64,020

2,597

37,184

4,923

167,447

-

-

-

-

-

-

-

-

-

-

(10,059)

(10,059)

2,145,436

2,562,748

232,789

619,613

103,546

5,664,132

-

1,830,292

2,336,075

221,961

446,390

82,366

4,917,084

-

256,420

162,654

10,600

136,934

26,316

592,924

-

-

-

(2,369)

(894)

-

(3,263)

-

-

-

-

-

-

-

2,086,712

2,498,729

230,192

582,429

108,682

5,506,745

18,444,120

3,209,136

923,058

49,605

198,595

60,256

22,884,771

18,444,120

3,267,860

987,077

52,202

226,479

26,070

23,003,809

Land

Buildings

Hotel Equipment

Equipment furniture and fittings

Computer Equipment

Motor Vehicles

Total

18,444,120

5,353,839

3,483,310

276,864

806,362

125,617

28,490,112

-

(0)

-

(0)

9,300

39,110

48,411

-

(10,060)

(10,060)

-

-

-

-

-

-

-

18,444,120

5,353,839

3,483,310

276,864

815,662

154,667

28,528,462

18,444,120

5,249,437

2,656,310

261,972

694,689

92,618

27,399,146

-

24,844

827,000

18,085

112,567

32,999

1,015,494

-

79,558

-

-

-

79,558

-

-

-

-

-

-

-

(894)

-

(894)

-

-

-

(3,193)

-

-

(3,193)

18,444,120

5,353,839

3,483,310

276,864

806,362

125,617

28,490,112

-

2,085,979

2,493,039

226,960

580,778

99,547

5,486,304

-

58,724

64,020

2,597

37,184

4,923

167,447

-

-

-

-

-

-

-

-

-

-

(10,059)

(10,059)

-

2,144,702

2,557,059

229,557

617,962

94,411

5,643,691

-

1,829,559

2,330,385

218,729

444,738

73,231

4,896,641

-

256,420

162,654

10,600

136,934

26,316

592,924

-

-

-

-

-

-

-

-

-

(2,369)

(894)

-

(3,263)

-

2,085,979

2,493,039

226,960

580,778

99,547

5,486,303

18,444,120

3,209,137

926,251

47,307

197,700

60,256

22,884,771

18,444,120

3,267,860

990,271

49,903

225,583

26,070

23,003,809

As at 31 March 2026 The Group

  1. Cost/Valuation

    At 1 January 2026 Additions Reclassifications Adjustments Disposal

    At 31 March 2026

    At 1 January 2025 Additions during the period Reclassifications Adjustments****

    Disposal

    At 31 December 2025

    Depreciation and impairment At 1 January 2026

    Depreciation charge during the period

    Adjustments Elimination on disposal At 31 March 2026

    At 1 January 2025

    Depreciation charge during the period

    Elimination on disposal Adjustments

    At 31 December 2025

    Carrying Amount At 31 March 2026

    At 31 December 2025

    1. The Company

      Cost/Valuation

      At 1 January 2026

      Addition Disposal Adjustments

      At 31 March 2026

      At 1 January 2025 Additions during the period Reclassifications Revaluation surplus*** Adjustments****

      Disposal

      At 31 December 2025

      Depreciation and impairment At 1 January 2026

      Depreciation charge during the period

      Adjustments Elimination on disposal At 31 March 2026

      At 1 January 2025

      Depreciation charge during the period

      Adjustments Elimination on disposal At 31 December 2025

      Carrying Amount At 31 March 2026

      At 31 December 2025

      ‌Notes to the Interim Financial Statements As at 31 March 2026

      Note

      3 Months Ended

      3 Months Ended

      The Group The Company

      31-Mar-26 31-Dec-25 31-Mar-26 31-Dec-25

  2. Investment Property N'000 N'000 N'000 N'000 Charles Hampton Limited - 4,630,087

Impairment of Investment in

Charles Hampton Limited - (4,630,087)

-

-

-

-

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

9 Capital Work in Progress

N'000

N'000

N'000

N'000

At 1 January

721,060

478,122

721,060

478,122

Additions during the period

20,947

322,496

20,947

322,496

Reclassification to Property plants & equipments

-

(79,558)

-

(79,558)

Total

742,007

721,060

742,007

721,060

This represents on going

renovation works at the hotel

10 Intangible Asset

10.1 Computer Software

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

Cost/Valuation

N'000

N'000

N'000

N'000

At 1 January

42,657

42,657

42,657

42,657

Additions for the period

-

-

-

-

Total

42,657

42,657

42,657

42,657

Amortization

At 1 January

30,223

27,981

30,223

27,981

Charge for the period

561

2,242

561

2,242

Total

30,784

30,223

30,784

30,223

11,874

12,434

11,874

12,434

10.2 Carrying Value

11,874

12,434

11,874

12,434

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

11 Revenue

N'000

N'000

N'000

N'000

Rooms

4,726,047

4,247,877

4,726,047

4,247,877

Food & Beverage

1,542,844

1,441,475

1,542,844

1,441,475

Minor Operating Departments

33,444

25,836

33,444

25,836

Miscellaneous Income

367,136

395,897

367,136

395,897

Total

6,669,471

6,111,085

6,669,471

6,111,085

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

12 Cost of Sales

N'000

N'000

N'000

N'000

Rooms

486,878

443,285

486,878

443,285

Food & Beverage

962,668

899,844

962,668

899,844

Minor Operating Departments

21,667

22,748

21,667

22,748

Administrative & General

751,220

656,871

751,220

656,871

Info & Telecom System

110,388

95,789

110,388

95,789

Property Operations & Maintenance

348,254

293,366

348,254

293,366

Utilities

638,769

597,538

638,769

597,538

Total

3,319,845

3,009,441

3,319,845

3,009,441

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

13 Other Income

N'000

N'000

N'000

N'000

Rental income

1,564

1,520

-

-

Sales of Scrap

1,850

-

1,850

-

Receipt for Insurance Claim

41,412

55,989

41,412

55,989

Profit on disposal of property, plant and equipment

2,500

-

2,500

-

Management fee

-

6,416

-

6,416

Total

47,326

63,925

45,762

62,405

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

14

Finance Income

N'000

N'000

N'000

N'000

Interest Earned on Demand Deposit

663,404

417,633

393,917

189,731

Total

663,404

417,633

393,917

189,731

The Group The Company

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

15

Administrative Expenses

N'000

N'000

N'000

N'000

Directors Remuneration (Note:15.1a)

4,350

3,368

4,350

3,253

Employee Costs & Benefits

84,921

49,818

83,390

48,455

Depreciation of PPE

103,427

138,049

103,427

138,049

Amortisation

561

782

561

782

Management Fee

129,018

141,016

129,018

118,226

Operations Incentive Fees

120,159

85,494

93,210

85,494

Legal Expenses

27,200

5,000

27,200

5,000

Professional Fees

25,601

37,358

25,601

29,747

Insurance

2,928

1,598

2,928

1,598

Medical Expenses

9,442

2,338

9,442

2,338

Transport and Travelling

3,938

5,021

3,938

5,021

Repairs & Maintenance

10,037

11,787

10,014

11,787

Bank charges and Commission

8,340

753

6,328

459

Audit Fee

5,321

4,426

4,838

4,031

Rent and Rate

2,380

2,384

2,380

2,384

Advertising and Promotions

3,895

622

3,895

622

Staff Meal

22,611

-

22,611

-

Printing and Stationary

689

410

689

410

Pension contribution

6,636

4,141

6,636

4,141

Recruitment & Training

5,312

4,362

5,312

4,362

Energy Cost

1,626

3,498

1,578

3,426

Office expenses

3,844

5,639

3,844

5,639

Communication

3,832

2,557

3,832

2,557

Donation

200

200

-

Subscription

14,577

8,869

14,577

8,869

Total

600,842

519,287

569,796

486,646

15.1

Administrative Expenses-Disclosures

a

Directors Remuneration

N'000

N'000

N'000

N'000

Directors expenses

4,350

3,368

4,350

3,253

Directors fees

-

-

-

-

Total

4,350

3,368

4,350

3,253

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

N'000

N'000

N'000

N'000

16

Sales & Marketing Expenses

259,405

210,565

259,405

210,565

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

17 Finance Cost

N'000

N'000

N'000

N'000

Interest Expense

-

367,038

-

367,038

Total

-

367,038

-

367,038

Interest expense represents charges paid and/or payable on loans.

18 Trade Receivables

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

N'000

N'000

N'000

N'000

Trade Receivables

2,161,250

2,361,685

2,158,696

2,359,466

Allowances for Impairment Losses

(380,194)

(390,972)

(380,194)

(390,972)

Total

1,781,056

1,970,713

1,778,502

1,968,494

19 Other Receivables and Prepayment

Prepayments (Note: 19.1)

31-Mar-26

N'000

508,673

31-Dec-25

N'000 266,260

31-Mar-26

N'000

508,673

31-Dec-25

N'000 266,260

Withholding tax receivables

577,800

472,386

571,865

472,386

Advances to Suppliers

1,573,095

897,835

1,573,094

897,835

Total

2,659,568

1,636,481

2,653,632

1,636,481

The Group The Company

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

19.1

Analysis of Prepayments

N'000

N'000

N'000

N'000

Prepaid Rent

2,877

3,333

2,877

3,333

Prepaid Maintenance

35,060

25,774

35,060

25,774

Prepaid Dues and Subscription

38,637

2,758

38,637

2,758

Prepaid Insurance

159,553

195,826

159,553

195,826

Staff benefits

130,077

13,684

130,077

13,684

Prepaid - Others

142,470

24,885

142,470

24,885

Total

508,673

266,260

508,673

266,260

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

20 Inventories

N'000

N'000

N'000

N'000

Food and Beverage

201,655

214,866

201,655

214,866

Operating supplies

-

-

-

-

Total

201,655

214,866

201,655

214,866

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

21 Loan to related party

N'000

N'000

N'000

N'000

At 1 January

16,723,246

34,182,220

16,723,246

34,182,220

Addition

-

-

-

-

Repayment

-

(117,000)

-

(117,000)

40% SEC-Approved Discount on Loan

-

(17,341,974)

-

(17,341,974)

Total

16,723,246

16,723,246

16,723,246

16,723,246

Loans and receivable relate to

Loan to the Tourist Company of

Nig. Plc

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

22 Amount Due from Related Parties

N'000

N'000

N'000

N'000

Hans-Gremlin (Nigera) Ltd.

-

-

116,693

116,596

AVI

31,122

31,122

-

-

GMI & Co

113,188

113,188

-

-

Felfan

59,074

59,074

-

-

Charles Hampton

-

-

273,089

272,839

203,384

203,384

389,782

389,435

Impairment allowance

(203,384)

(203,384)

-

-

Total

0

0

389,782

389,435

Impairment allowance represent

balances without movement for

22.1 the past three years

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

23 Cash & Cash Equivalents

N'000

N'000

N'000

N'000

Cash in Hand

3,450

6,715

3,450

4,474

Cash at Bank

25,341,423

23,730,286

25,288,350

23,710,804

25,344,873

23,737,001

25,291,800

23,715,279

Time Deposits

9,370,852

9,418,582

2,484,203

2,551,613

Total

34,715,725

33,155,583

27,776,004

26,266,891

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

N'000

N'000

N'000

N'000

24 Deferred Income

20,384,813

20,528,004

20,204,922

20,137,976

At 1 January

20,528,004

32,903,157

20,137,976

32,760,902

Interest and Exchange difference capitalised

(602,797)

-

(355,024)

-

SEC approved 40% discount on loan related income

(12,622,926)

-

(12,622,926)

Advance receipt of rental income

459,605

247,773

421,969

-

At 31 March

20,384,813

20,528,004

20,204,922

20,137,976

24.1 Deferred income comprise

Ikeja Hotel Plc

20,242,557

20,137,976

20,204,922

20,137,976

Hans Gremlin Limited

-

247,773

-

-

Charles Hampton & Company Limited

142,255

142,255

-

-

20,384,813

20,528,004

20,204,922

20,137,976

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

25 Trade and Other Payables

N'000

N'000

N'000

N'000

Trade Payables

877,967

959,450

576,990

784,743

Accrued Expenses

2,772,927

2,921,884

2,586,089

2,753,153

Advance Deposit

611,560

629,475

587,627

512,236

Staff bonuses

79,023

187,225

79,023

187,225

Service Charge Distribution

136,453

189,972

136,453

189,972

Customer credit balance

-

160,938

-

160,938

Withholding tax Payables

-

1,112

-

1,112

VAT Payables

131,807

266,634

131,807

266,634

Unclaimed Dividend

73,392

95,423

73,392

72,026

Total

4,683,128

5,412,114

4,171,381

4,928,039

The Group The Company

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

26 Amount Due to Related Parties

N'000

N'000

N'000

N'000

IHL Services limited

-

-

771,739

771,739

Alurum investment Ltd/Omamo Trust Limited

0

-

0

-

Minabo Limited

2,145,978

2,145,978

2,145,978

2,145,978

AVI Services/G. M. Ibru

598,205

654,789

598,205

654,789

Total

2,744,184

2,800,767

3,515,923

3,572,506

Taxation

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

27.1 Current Tax Payable

N'000

N'000

N'000

N'000

At 1 January

3,834,208

1,209,348

3,268,049

950,429

Payment in the year

-

(690,906)

(670,826)

Charge for the year (Note 27.3)

1,088,848

3,315,766

1,006,435

2,988,446

Total

4,922,465

3,834,208

4,274,484

3,268,049

The charge for taxation has been

computed in accordance with the

provisions of the companies

income tax Act C21, LFN 2004

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

27.2 Deferred Taxation

N'000

N'000

N'000

N'000

At January

369,952

3,038,598

369,952

3,038,598

Deferred tax charge recognised in profit or loss

-

(2,679,802)

-

(2,679,802)

other comprehensive income

11,156

-

11,156

Total

369,952

369,952

369,950

369,952

31-Mar-26

31-Mar-25

31-Mar-26

31-Mar-25

27.3 Income Tax Expense

N'000

N'000

N'000

N'000

Income Tax

970,444

761,870

888,031

686,859

Education Tax

118,404

68,686

118,404

68,686

1,088,848

830,556

1,006,435

755,545

Deferred Taxation

-

-

-

-

Income Statement

1,088,848

830,556

1,006,435

755,545

Tax Payable/Deffered Tax

The Company has adopted the

IFRS 12 - Income Taxes, Deferred

Taxation which is computed using

the liability method

Deferred tax charge recognised in

28 Retirement benefit obligation The Company complies with the provisions of the Pension Reform Act 2014 whereby both employer and employees contributed 10% and 8% each of employee gross emolument on monthly basis. Both employer and employee contributions are remitted monthly to the employees' chosen Pension Fund Administrators (PFA).

Under the defined benefit's scheme member's past service benefits have been assessed using the Projected Unit Credit Method (PUCM). This method calculates the actuarial liability (staff gratuity benefits and long service grants) as the discounted value of the benefits that have accrued over the past period of membership of the

ii beneficiaries. In determining this

31-Mar-26 N'000

31-Dec-25 N'000

31-Mar-26 31-Dec-25

N'000 N'000

Defined contribution plan (Note 30.1)

-

-

-

-

Defined benefit plan (Note 28.2)

264,734

253,147

264,099

253,147

264,734

253,147

264,099

253,147

The Group The Company

31-Mar-26 31-Dec-25 31-Mar-26 31-Dec-25

28.1

Defined contribution plan

At 1 January

N'000

-

N'000

-

N'000

-

N'000

-

Contribution in the period

-

102,934

-

102,934

Remittance during the period

-

-

(102,934)

-

-

-

(102,934)

-

The defined benefit plan is

28.2 further analysed into:

Active plan

253,782

253,147

264,099

253,147

Terminated plan

-

-

-

-

264,734

253,147

264,099

253,147

28.3 Active Plan

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

N'000

N'000

N'000

N'000

At 1, January

253,147

318,831

253,147

318,831

Current Service Cost & Interest

-

25,913

-

25,913

Interest Cost

-

45,786

-

45,786

Payment in the period

11,587

(128,713)

10,953

(128,713)

Re-measurement gain/loss on defined benefit plan

-

(8,670)

-

(8,670)

264,734

253,147

264,099

253,147

Present value of defined benefit obligation Fair value of plan assets

264,734

-

253,147

-

264,099

-

253,147

-

The terminated obligations is in

respect of the gratuity scheme

which have been discontinued

based on agreements with the

Group's workers union.

Settlements of the outstanding

balances at termination are made

29 Share Capital

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

Issued and fully paid

N'000

N'000

N'000

N'000

At 1 January

1,081,184

1,081,184

1,081,184

1,081,184

1,081,184

1,081,184

1,081,184

1,081,184

Number: 2,162,367,827 ordinary

shares of 50 kobo each

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

30 Share Premium

N'000

N'000

N'000

N'000

At 1 January

1,432,886

1,432,886

1,432,886

1,432,886

1,432,886

1,432,886

1,432,886

1,432,886

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

31 Retained Earnings

N'000

N'000

N'000

N'000

At 1 January

27,773,017

14,252,475

27,312,423

13,998,575

Transfer from profit & loss account

2,071,862

13,777,405

1,953,668

13,501,771

Dividend paid

-

(254,377)

-

(185,437)

Re-measurement gain/(loss) on defined benefit plan

-

(2,486)

-

(2,486)

At 31 March

29,844,879

27,773,017

29,266,092

27,312,423

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

32 Non-controlling interest

N'000

N'000

N'000

N'000

At 1 January

126,651

(37,140)

-

-

Share of profit/(Loss)

39,398

163,791

-

-

At 31 March

166,049

126,651

-

-

33 Investment in Subsidiary

31-Mar-26

N'000

31-Dec-25

N'000

31-Mar-26

N'000

31-Dec-25

N'000

Charles Hampton Limited

-

-

3,499

3,499

IHLS Limited

-

-

100

100

Hans Gremin Nigeria Limited

-

-

4,440,919

4,440,919

-

-

4,444,518

4,444,518

The Company holds 75% of the

issued share capital of Hans Gremlin Nigeria Limited, a special purpose vehicle used in acquring 51% of the issued share capital of Capital Hotels Plc. Therefore, Ikeja Hotel Plc's indirect interest in the net assets of Capital Hotels Plc was 38.25% while the remaining 61.75% was attributable to non controlling interest (NCI).

Hans Gremlin Limited disposed total controlling interest in Capital Hotels Plc to 22 Hospitality Limited with effect from February 2023. Consequently, Capital Hotels Plc ceased to be a subsidiary of Hans Gremlin Limited and sub-subsidiary of Ikeja Hotel Plc with effect from the date of disposal.

The Group The Company

31-Mar-26 31-Dec-25 31-Mar-26 31-Dec-25

34 Investment Accounted for Using Equity Method N'000 N'000 N'000 N'000 At 1 January - 798,722 798,722 798,722

Accumulated share of loss in associate company - (798,722) - -

-

-

798,722

798,722

Investment relates to 273,529,085

units of stock in the Tourist

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

35 Capital reserve

At 1 January

N'000

1,832

N'000

1,832

N'000

-

N'000

-

At 31 March

1,832

1,832

-

-

31-Mar-26

31-Dec-25

31-Mar-26

31-Dec-25

36 Revaluation reserve

N'000

N'000

N'000

N'000

Analysis of revaluation reserve:

At 1 January

13,823,793

13,823,793

13,823,793

13,823,793

At 31 March

13,823,793

13,823,793

13,823,793

13,823,793

The revaluation surplus arose from

the valuation of land in Ikeja

Hotels Plc (Note 7.1)

‌UNAUDITED RESULT FOR THE PERIOD ENDED 31 MARCH 2026

3/31/2026

=N='000

3/31/2025

=N='000

%

Change

TURNOVER

6,669,471

6,111,085

9.14

OPERATING PROFIT

2,536,705

2,435,717

4.15

FINANCE CHARGES

-

(367,038)

(100.00)

PROFIT/(LOSS) BEFORE TAX

3,200,108

2,486,312

28.71

TAXATION

(1,088,848)

(830,556)

31.10

PROFIT/(LOSS) AFTER TAX

2,111,260

1,655,756

27.51

Earlier from Ikeja Hotel

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