Quarter 2 - financial statement for 2025

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 Statement 8-26

Operating Summary 27

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 2nd Quarter ended 30th June 2025

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

      Managing Director/CEO FRC/2013/PRO/DIR/003/00000004775

      22 July 2025

      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 2nd Quarter ended 30th June 2025

      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

22 July 2025

Consolidated Statement of Financial Position As at 30 June 2025

The Group The Company

These consolidated financial statements were approved and recommended by the Board Statutory Audit Committee on 22 July, 2025 for publication.Due to statutory intervention of Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC), the Board meeting scheduled for 28th July 2025 to give the approval on the financial statements was canceled. Management, therefore, based on the approval of the Board Committee above, wish to release the second quarter financial statements to the public.

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

Managing Director/CEO Financial Controller

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

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

4

Consolidated Statement of Comprehensive Income For The Period Ended 30 June 2025

The Group The Company

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

Total Comprehensive Income for the period 1,453,326 919,211 3,109,081 1,342,294 1,282,956 968,653 2,816,941 1,277,573

Statement of Changes in Equity as at 30 June 2025

The Group

The Company

Consolidated Statement of Cash Flows For The Period Ended 30 June 2025

The Group The Company

1. The Group

   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 30 June, 2025. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the group obtains control, and continues to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the

      same reporting period as the parent company, using the same accounting policies.

      All inter-group balances, transactions, dividends, unrealised gains on tranasctions within the Group are eliminated on consolidation. Unrealised losses resulting from inter-group transactions are eliminated, but only to the extent that there is no evidence of impairment.

      A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

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 reassessing 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 outflow with respect to any one

      item included in the same class of obligations may be small.

      Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

   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, 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 and IAS 28

         The following issues have arisen in the context of applying the consolidation exception for investment entities:

         • The exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment entity, even if the investment entity measures all of its subsidiaries at fair value.

         • A subsidiary that provides services related to the parent's investment activities should not be consolidated if the subsidiary itself is an investment entity.

         • When applying the equity method to an associate or a joint venture, a noninvestment entity investor in an investment entity may retain the fair value measurement applied by the associate or joint venture to its interests in subsidiaries.

         • An investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12.

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

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

   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 dis-clo-sure re-quire-ments in the standard, except for those in para-graphs B10-B16, apply to an entity's interests listed in paragraph 5 that are clas-si-fied as held for sale, as held for

         distribution or as discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

      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 relief as full IFRSs for these activities.

      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 recog-ni-tion 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 or after 1 January 2020

   Standard

   IFRS 3 Business Combination 01-Jan-20

   IAS 1 & IAS 8 Definition of Material 01-Jan-20

   IFRS 17 Insurance Contracts 01-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 statements;

      • 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 material.

        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 where it is determined that there is a capacity to control. Control means the power to govern, directly or indirectly, the financial and operating policies of an entity so as to obtain benefits from its activities. All the facts of a particular situation are considered when determining whether control exists.

      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 interest in the joint venture, the company discontinues recognizing its share of further losses.

   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 is performed, its costs is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied.

      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 fitti 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 appropriate. 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

           Amortisation periods and methods are reviewed annually and adjusted if appropriate.

           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 following conditions apply:

         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 the contractual cash flows characteristics of the asset as follows:

          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 asset. 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 commits to purchase 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 statement.

          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 as available for sale are recognised in other comprehensive income.

          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 debt instruments on major exchanges.

          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 financial assets for the foreseeable future or until maturity at the date of reclassification.

          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 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.

          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 risk is measured using the lifetime probability of default.

             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 conditions

             • expected to exist at the reporting date.

             • 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 on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

             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 asset and settle the liability simultaneously.

             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.

          7. 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 deduction from the proceeds, net of tax.

          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 while employee contributions are funded through payroll deductions.

          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.

          The defined benefit obligation is calculated by independent actuaries using the projected unit credit method. Actuarial gains and losses are recognised in full in the year in which they occur in other comprehensive income

          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 remeasured 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 obligation.

       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.

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

       b.

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

       2. The contract has commercial substance.

          it is probable that the consideration to which the group is entitled to in exchange for the goods or services will be collected.

       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 consideration to the supplier.

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

       • The supplier does not have a sunstantive right to substitute the use of the asset throughout the period of use of the asset.

         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 impairment.

       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 reflective of the economic benefits obtainable from utilisation of the leased asset.

       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.

In accordance with the Post-listing Rules of the Nigerian Stock Exchange, Ikeja Hotel Plc has in place a share dealing 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 communicated periodically to derive compliance. In respect of the period ended 31 March, 2025, the Directors of Ikeja Hotel Plc hereby confirm that:

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