Constance Hotels Services Limited | Annual Report 2025

189 ANNUAL REPORT 2025

Notes to the Financial Statements Year ended December 31, 2025

Notes to the Financial Statements Year ended December 31, 2025

7. INTANGIBLE ASSETS

7. INTANGIBLE ASSETS (CONT’D)

(a) THE GROUP

(b) THE COMPANY

Computer software MUR’000

Computer software 2025 2024

Goodwill MUR’000

Total

MUR’000

MUR’000

MUR’000

COST At January 1, 2025

COST At January 1, and December 31,

17,019

17,019

78,000

95,296

173,296

- - - -

2,305 (449) (417) (634)

2,305 (449) (417) (634)

Additions Disposal Write off

AMORTISATION At January 1, Charge for the year At December 31,

17,019

17,007

-

12

Exchange differences

17,019

17,019

At December 31, 2025

78,000

96,101

174,101

NET BOOK VALUES At December 31,

At January 1, 2024

78,000

89,998

167,998

-

-

Additions

- -

3,084 2,214

3,084 2,214

Exchange differences

At December 31, 2024

78,000

95,296

173,296

(c) Total amortisation charge for both the Group and the Company have been included in operating expenses.

(d) Goodwill of MUR 78 million arise on the acquisition of Mourouk Ebony Management Limited. The Group performed its annual impairment test at 31 December 2025. The Group considers a deterioration in the performance of the Company to be an indicator of impairment for goodwill. The recoverable amount of the CGU is also determined based on a value in use calculation using cash flow projections from financial budgets approved by senior management covering a five-year period. The pre-tax discount rate applied to the cash flow projections is 10%, a growth of 3% has been used which aligns to the growth rate of the hospitality sector. As at reporting date, no impairment adjustment was made in the financial statements. The recoverable amount exceeds the carrying amount by MUR 72 million. Management has determined the key assumptions as of 31 December 2025. The Occupancy rates used is an average of 60% and is based on the most recent forecasts that have been used for the financial year December 2025.The discount factor and occupancy rate are consistent with external sources of information. For the recoverable amount to be lower than the carrying amount, the occupancy rate should decrease by 10% and the discount rate should increase by 3%.

Computer software MUR’000

Goodwill MUR’000

Total

MUR’000

AMORTISATION At January 1, 2025 Charge for the year Disposal adjustment Exchange differences

- - - - - - - - -

88,225

88,225

2,416 (449) (610)

2,416 (449) (610)

At December 31, 2025

89,582

89,582

Key assumptions used in value in use calculations and sensitivity to changes in assumptions.

At January 1, 2024 Charge for the year Exchange differences

83,219

83,219

2,816 2,190

2,816 2,190

The calculation of value in use is most sensitive to the following assumptions:

At December 31, 2024

88,225

88,225

• Discount rates • Occupancy rates

NET BOOK VALUES At December 31, 2025

Discount rates − Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. A discount factor of 10% has been used. With an increase in discount factor by 1%, the impairment recognised will be Nil.

78,000

6,519

84,519

At December 31, 2024

78,000

7,071

85,071

Occupancy rates- Occupancy rate is the key performance indicator for assessing the performance of the Hotel. An occupancy rate of 60% has been used, a fall in occupancy rate by 5%, will lead to an impairment of NIL.