IKEJA HOTEL : QUARTER 5 - FINANCIAL STATEMENT FOR 2022

IKEJA HOTEL PLC

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

IKEJA HOTEL PLC
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Contents	Page
Corporate information	2
Certification of the financial statements	3
Report of the Directors	4
Statement of Directors' responsibilities in relation to the consolidated financial statements	9
Statement of corporate responsibility for the consolidated and separate financial statements	10
Report of the Statutory Audit Committee	11
Independent Auditors' report	12
Consolidated and separate statement of financial position	15
Consolidated and separate statement of profit or loss and other comprehensive income	16
Consolidated and separate statement of changes in equity	17
Consolidated and separate statement of cash flows	18
Notes to the consolidated and separate financial statements	19
Other national disclosures:
Statement of value added	56
Financial summary - Group	57
Financial summary - Company	58

1

Corporate Information

Country of Incorporation and Domicile:

Nigeria RC 10845

Directors:

Registered OfficeCompany Secretaries:Bankers:Joint Auditors:

Registrars:

Chief Anthony Idigbe, SAN (Chairman)

Mr Theophilus Eniola Netufo, FCA (Managing Director) Mr. Toke Alex Ibru

Mr. Ufuoma Ibru

Ms. Ngozi Edozien - wef 1 September 2022 Mr. Kunle Aluko

Alhaji Abatcha Bulama, FCA Mrs. Fadeke Olugbemi, FCA

Dr. Alexander Thomopulos - up to 1 September 2022

84, Opebi Road

Ikeja

Lagos

Tel: [phone] Website:www.ikejahotelplc.comEmail:[e-mail]

Punuka Nominees Limited 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

Messrs Ugochukwu, Ike & Co (Chartered Accountants)

1, Obalodu Street Ilupeju - Lagos.

Ahmed Zakari & Co (Chartered Accountants) 22B, Oladipo Diya Crescent 2nd Avenue Estate Ikoyi-Lagos

Greenwich Registrars and Data Solutions Limited 274, Murtala Muhammed Way

Yaba

Lagos

Email:[e-mail]

2

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 2022.

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 2022.

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 2022 are complete, accurate and free from any material misstatement.

Theophilus E. Netufo	Zacchaeus O. Adeyemo
Managing Director	Controller of Finance/CFO
FRC/2013/ICAN/00000004775	FRC/2018/ICAN/00000017858
14 March 2023	14 March 2023

3

IKEJA HOTEL PLC

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022.

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 Hans Gremlin Limited and the financial statements of Hans Gremlin has been consolidated with the Company's Group 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

4.

2021	2021
N'000	N'000
Turnover	12,896,968	9,868,545	8,717,001	6,169,855
Profit/(loss) before taxation	(3,357,449)	200,934	849,529	206,650
Tax charge	(581,346)	(381,548)	(581,346)	(63,691)
Profit/(loss) after taxation	(3,938,795)	(180,614)	268,183	142,959
Additions to property, plant and equipment

The Group	The Company
2022	2022
N'000	N'000

Additions to property, plant and equipment during the year ended 31 December 2022 for the Group and Company amounted to N157 million and N157 million respectively (31 December 2021: N201.266 million and N80.996 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.

5. Bonus and rights issues

The Company at its Annual General Meeting held on 28 July 2022 authorised the Board of Directors to consider options such as bonus issue, rights issue, cancellation of unissued shares and debt to equity conversion in procurring the Company's compliance with the Corporate Affairs Commission's directive on unissued shares by the deadline date of 31 December 2022. Accordingly, the Board approved as follows:

5.1

Rights issue of 1,133,888,945 (One Billion, One Hundred and Thirty-Three Million, Eight Hundred and Eighty-Eight Thousand, Nine Hundred and Forty-Five) units of 50k ordinary shares at the rate of N1 per share on the basis of 6 new ordinary shares for every 11 units of ordinary shares held in the Company to members whose names appear in the register of members at the qualification date.

5.2

Bonus issue of 1 share for every 3 shares held in the company amounting to 692,932,133 units of ordinary shares and a nominal value of N346,466,066.50 at the nominal rate of 50kobo per share and to be set off from the Company's retained earnings. The bonus shares are to be alloted to shareholders whose names appear in the register of members as at the qualification date.

6. Dividend

The Board of Directors propose a dividend of 71/2 kobo per 50kobo ordinary share amounting to N155,909,730 on the existing issued ordinary shares of 2,078,796,399 units for the year ended 31 December 2022, 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.

4