Quarter 5 financial statement for 2024

IKEJA HOTEL PLC

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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Corporate Information Country of Incorporation and Domicile:

Nigeria RC 10845

Directors:

Chief Anthony Idigbe, SAN

Mr Theophilus Eniola Netufo, FCA Mr. Toke Alex Ibru

Mr. Ufuoma Ibru Ms. Ngozi Edozien Mr. Kunle Aluko

Alhaji Abatcha Bulama, FCA Mrs. Kemi Adeoye, FCA Independent Non-Executive Director - Chairman FCA (Managing Director)

Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Independent Non-Executive Director Non-Executive Director

Registered Office Company Secretaries: Bankers: Joint Auditors:

84, Opebi Road Ikeja

Lagos

Tel: 02-2701060, 01-4480887 Website:www.ikejahotelplc.comEmail:info@ikejahotelplc.com

Punuka Nominees Ltd

Plot 45 Oyibo Adjarho Street Off Ayinde Akinmade Street Off Admiralty Way

Lekki Penisula Phase 1, Lagos.

Access Bank Plc

Zenith Bank Plc Union Bank Plc Sterling Bank Plc Guaranty Trust Bank Plc First Bank of Nigeria Plc Ahmed Zakari & Co (Chartered Accountants) 22B, Oladipo Diya Crescent 2nd Avenue Estate Ikoyi-Lagos

Messrs Ugochukwu, Ike & Co (Chartered Accountants)

1, Obalodu Street Ilupeju - Lagos.

Registrars:

Greenwich Registrars and Data Solutions Limited 274, Murtala Muhammed Way

Yaba

Lagos

Email:info@gtlregistrars.com

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IKEJA HOTEL PLC

Certification of Financial Statements

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

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

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

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

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

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The Directors are pleased to submit to the members of Ikeja Hotel Plc (the "Company"), its report together with the audited financial statements for the year ended 31 December 2024.

1. Legal Status and principal activities

The Company was incorporated as Properties Development Limited on November 18,1972 with a view to providing world class hotel and catering services to meet the needs of an ever-increasing number of local and international business and leisure travelers visiting the city of Lagos. The Company's name was later changed to Ikeja Hotel Limited in 1980 and though it became a public Company in 1983, it assumed its present name in February 5, 1991.

The Company's principal activity remains the development of hotel leisure facilities, operations of hotels and provision of catering services. The Company also owns majority shareholding in the following subsidiaries: Hans Gremlin Limited, Charles Hampton and Company Limited and IHL Services Limited The financial statements of these subsidiaries has been consolidated with the Company's financial statements.

2. State of Affairs

The Directors have assessed the Company's ability to continue as a going concern and have no reason to believe that the Company will not remain a going concern in the years ahead.

Resulting from the above, the Directors have reasonable expectation that the Company possesses adequate resources to continue operations for the foreseeable future. Thus, the Directors have continued with the adoption of the going concern basis of accounting in preparing the annual financial statements.

3. Operating Result

Additions to property, plant and equipment during the year ended 31 December 2024 for the Group and Company amounted to N607.4 million and N607.4 million respectively (31 December 2023: N584.86 million and N584.86 million respectively). Details of movements in property, plant and equipment for the Group and Company are shown on Notes 7.1 and 7.2 respectively of the financial statements.

6. Dividend

The Board of Directors propose a dividend of 15 kobo per 50 kobo ordinary share amounting to N324,355,174.05 on the existing issued ordinary shares of 2,162,367,827 units for the year ended 31 December 2024, which shall be presented to the shareholders for ratification at the next Annual General Meeting. Withholding tax at the applicable rate will be deducted at the time of payment.

7. Directors and their interest

The Directors who held office for the year ended December 31, 2024, together with their direct and indirect interests in the issued share capital of the Company as recorded in the Register of Director's shareholding and/or as notified by the Directors for the purposes of sections 301 and 302 of the Companies and Allied Matters Act 2020 and the listing requirement of the Nigerian Stock Exchange are noted below:

2024

2023

No. of shares held No. of shares held

Indirect -

8. Substantial Shareholdings

As at 31 December 2024, no shareholder held more than 5% of the issued capital of the Company, except as stated below:

No. of 50k

9.

The Directors accept responsibility for the preparation of the financial statements that gives a true and fair view in accordance with requirements of the International Financial Reporting Standards.

The Directors further accept responsibility for maintaining adequate accounting records as required by the Companies and Allied Matters Act and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.

10. Corporate Governance

The Directors are responsible for the corporate governance of the Company. The Financial Reporting Council of Nigeria released the Ngerian Code of Corporate Governance (NCCG) 2018 and required compliance by public interest entities. The Board has taken necessary steps to ensure yearly compliance by the Company with the requirements of the NCCG Code.

As at the day of this report, the Board consist of eight Directors. The Board meets regularly to decide on policy matters and direct the affairs of the Company. During these meetings, the Directors also review the Company's performance, operations and finances and set standards for the ethical conduct of the business.

The Directors who served during the year under review are;

The Board met seven times during the financial year (January 22 2024, March 14 2024, March 22 2024, April 19 2024, July 23 2024, October 23 2024 and November 19 2024) In accordance with Section 284(2) of the Companies and Allied Matters Act 2020, the record of directors' attendance at board meetings held during the financial year under review is set below:

The Company has a Board-approved Remuneration Policy, which is reviewed periodically.

• 12. Risk management framework

  The Board Finance, Risk and General-Purpose Committee oversees the effectiveness of the Company's risk management and internal controls and make recommendations to the Board.

• 13. Communication Policy

  The Board has approved the Communication Policy and same is available on the Company's website. The policy establishes rules of communication, use of the Company's communication facilities, representation of the Company in the media and other third parties, and confidentiality of company information and procedures.

• 14. Human Resources Policy

  (a.) Recruitment

  The Company conformed with all regulatory requirements in the employment of staff, whilst also ensuring that only fit and proper persons are approved for appointment to the Board or top management positions. All prescribed pre-employment screening for prospective employees and other requirements for regulatory confirmation of top management appointment were duly implemented.

  (b.) Diversity and inclusion

  The Company treats all employees, prospective employees and customers fairly and equally, regardless of their gender, sexual orientation, family status, race, color, nationality, ethnic or national origin, religious belief, age, physical or mental disability, or any such factor.

  (c.) Employment of physically challenged persons

  The Company operates a non-discriminatory policy in the consideration of applications for employment, including those received from physically challenged persons.

  In the event that an employee becoming physically challenged in the course of employment, where possible, the Company is in a position to arrange appropriate training to ensure the continuous employment of such person without subjecting him/her to any disadvantage in his/her career development.

  (d.) Employees' involvement and training

  Employees are regularly provided with information on matters concerning the Company and their welfare. Management holds regular formal and informal meetings with Staff Unions resulting in cordial industrial relations throughout the year. Employees are given regular training on the job or in other hotels in the Sheraton group to equip them with the skills and knowledge required for the efficient performance of their duties.

• 15. Dealing in issuers' shares policy (continued) and insider information disclosure policy

  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 year ended December 31, 2024, the Directors of Ikeja Hotel Plc hereby confirm that: A code of conduct regarding securities transactions by all Directors was adopted by the Company. The Board also reviewed and updated the Policy.

  A specific enquiry of all Directors has been made during the reporting period and there is no incidence of noncompliance with the listing rules of the Nigerian Stock Exchange, and Ikeja Hotel Plc's code of conduct, regarding securities transactions by Directors. The Board also adopted an Insider Information Disclosure Policy to outline rules with respect to the proper use and disclosure of price sensitive information pertaining to the Company's securities.

• 16. Board Committees

  The Board for the year under review had three committees, Finance, Risk and General-Purpose Committee, Nominations Establishment Governance Committee, and Stautory Audit Committee.

  Finance, Risk and General Purpose Committee

  The Finance, Risk and General-Purpose Committee Board met five times during the financial year (January 16 2024, March 13 2024, April 17 2024, July 18, 2024 and October 18, 2024. The record of directors' attendance at this committee meetings held during the financial year under review is set below:

The Nominations Establishment Governance Committee Board met four times during the financial year (January 16 2024, April 17 2024, July 19 2024 and October 18 2024). The record of directors' attendance at this committee meetings held during the financial year under review is set below:

In accordance with Section 404(3) of the Companies and Allied Matters Act 2020, the Company has an Audit Committee comprising two non-executive directors and three representatives of the shareholders carrying out its function as set out in Section 404(7) of the Companies and Allied Matters Act 2020. The Audit Committee met five times (January 16 2024, March 12 2024, April 15 2024, July 18 2024 and October 18 2024). Those who served on the Audit Committee during the year under review and their attendance at the meetings are:

Alhaji Bulama Abatcha, FCA- (Chairman)

No. attended 5

Alhaji Wahab A. Ajani 5

Mr. Adelakun Lukmon Adesola 5

Mr. Peter Eyanuku 5

Mr Toke Ibru 5

18. Company Distributors

The Company has no distributors.

2024 N'000

2023 N'000

19. Donations

Donations made by Company during the year was as follows:

Child Care Centre for Disability

Bethesda Home for the blind

Cedem for Skill Acquisition program

- 750 500 1250

In compliance with the relevant provisions of the Companies and Allied Matters Act, 2020, the Company did not make any donation or gift to any political party, political association or for any political purpose during the 2024 financial year. (2023: Nil)

20. Contractual arrangements

Details of a signficant contractual arrangement entered into during the year are on note 48 of the financial statements.

21. Compliance with regulatory requirement

All regulatory requirements were complied with during the year under review. There was no contravention.

22. Auditors

Ahmed Zakari & Co and Ugochukwu, Ike & Co being Joint Auditors have indicated their willingness to continue in offices as the Company's Auditors in accordance with Section 401(2) of the Companies and Allied Matters Act, 2020

BY ORDER OF THE BOARD Olubunmi Tadema FRC/2022/PRO/NBA/002/910787

Punuka Nominees Ltd, FRC/2022/COY/160581 Secretary

20 March 2025

IKEJA HOTEL PLC

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RELATION TO THE

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

In accordance with the provisions of the Companies and Allied Matters Act, 2020, the Directors are responsible for the preparation of consolidated and separate financial statements which give a true and fair view of the state of affairs of the Group at 31 December 2024 and of its profit or loss and other comprehensive income for the year then ended.

The responsibilities include ensuring that: i. The Group keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Group and comply with the requirements of the Companies and Allied Matters Act.

• ii Appropriate and adequate internal controls are established to safeguard its assets and to prevent and detect fraud and other irregularities.

• iii The Group prepares its consolidated and separate financial statements using suitable accounting policies supported by reasonable and prudent judgments and estimates that are consistently applied.

• iv It is appropriate for the consolidated financial statements to be prepared on a going concern basis.

The Directors accept responsibility for the consolidated and separate financial statements which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates in accordance with the International Financial Reporting Standards; in compliance with Financial Reporting Council of Nigeria (Amendment) Act, 2023 and in the manner required by the Companies and Allied Matters Act, 2020.

The Directors are of the opinion that the consolidated and separate financial statements give a true and fair view of the state of the financial affairs of the Group and of its profit for the year ended 31 December 2024.

The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of consolidated financial statements, as well as adequate systems of internal financial control.

Nothing has come to the attention of the Directors to indicate that the Group will not remain a going concern for at least twelve months from the date of this statement.

Signed on behalf of the Board of Directors by:

Director FRC/2014/PRO/DIR/003/00000010414

_______________________________ Alhaji. Abatcha Bulama, FCA

Director FRC/2014/PRO/DIR/003/00000006535

20 March 2025

20 March 2025

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