The director presents the strategic report for the company's financial statements for year ended 31 August 2024.

The company continued to undertake activities of residential and nursing care throughout the period under review. It also holds investment properties that it rented during the year. The overseas trading subsidiary was disposed of in the comparative period and therefore, as this investment is no longer held, the company no longer has a requirement to prepare group consolidated financial statements.

The overseas trading subsidiary was disposed of with an effected date of 31 August 2023 and due to this the director decided to shorten the company's comparative yearend to 31 August 2023, from 31 March 2024, to align with this disposal due to the issues the company has faced in being able to prepare consolidated accounts. Therefore the comparatives are not entirely comparable as represent a five month trading period.

The director was satisfied with the trading results for the year.

The company's turnover for the year is reported as £9,334,038 compared to £8,791,013 in 2023 on a 12/5th's prorate basis. This represents a 6.18% (2023: 8.44%) increase, the company continues to show steady turnover. The operating profit for the year is reported at £1,982,689 (2023: £767,110 period) which represents on operating profit percent of 21.24% (2023: 20.94%), remaining consistent.

The company is back to reporting a profit before tax, which this year is reported at £1,398,228 (2023: £566,211 loss). The losses in prior periods are after fixed asset investment impairment provisions and disposal losses of £1,099,999, mainly relating to the company's oversea subsidiary company which has now been disposed of and without the impairment provisions the company's net trading profit before tax for 2023 was £533,788. Based on these adjusted results, to exclude the impairment provisions, a net trading profit before tax percent of 14.98% (2023: 14.57%) is reported, which again remain consistent.

On a simple 12/5th prorate basis, in comparison to the comparative period, there has been an overall increase in administration expenditure of £296,326 (2023: £371,157), a 4.15% increase, and this relates to increase in staffing costs which, including all associated staff costs, increased by 3.41% (2023: 15.06%), although average employee numbers remained in line with the prior period at 209. 2023 saw an increase of 21 compared to the prior period. (Aug 2023: 210; Mar 2023: 189). The national living wage increase in April 2024 by 9.8% (April 2023 9.7%) has a direct impact on the staffing costs. Additionally, light and heat saw larger than annual inflation increases, almost doubling, and bad debts saw a significant reduction due to larger debts being written off last year.

The company continued with its replacement repairs and renewals project replacing various items which are anticipated to be required to be replaced again in an average of 7.5 years. These costs have therefore been deferred and prepaid accordingly to reflect the period over which they are anticipated to wear and tear, and the total costs this period remained comparable on a prorate basis to the prior year.

The company remains mindful of the risks an outbreak of any infection or virus could have on its business, and occupancy rates thereon, and continues to actively manage infection control procedures including continued staff training in this area. This, naturally, brings with it additional costs in relation to cleaning and staffing.

The director continues to respond to recruitment challenges in the labour market which can impact business activity. The company remains exposed to policy changes both in terms of the care home industry and the labour market. The director is not aware of any other fundamental risks and uncertainties and there are systems in place to ensure the risks identified are mitigated against.

The director hopes to continue to maintain the trading trend in coming years by maintain resident numbers to near full occupancy and continue with the use of own employed staff levels to avoid the use of agency staff in order to sustain the business.

The company's key performance indicators is turnover, which is driven by occupancy numbers, and operating profit which has been outlined above. For bank loan covenants in force at the reporting date, earnings before interest, tax, amortisation and after dividends paid is also a key performance indicator and the company's target for this is not less than £1,500,000. For the 2024 financial year end this was £2,072,287 (2023: £1,913,857 simple 12/5th basis).

Financial instruments

Liquidity risk - The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows.

Customer (residents) credit exposure - The company can offer credit terms to its residents allowing payment of the debt after delivery of the services. The company is at risk to the extent that a resident may be unable to pay the debt on the specified due date. The risk is mitigated by strong credit control, client acceptance procedures and close management of on-going customer relationships.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 August 2024.

Financial Risk Management polices and Future Developments have been set out in the Strategic Report.

The principal activity of the company continued to be that of provision of residential and nursing care.

The UK subsidiary was dormant throughout the year and this was impaired to £nil value in the prior year due to an after date application to strike the company off the register being made on 31 December 2024.

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,000. The director does not recommend payment of a further dividend.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

The Auditors, Sears Morgan Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Wilton House Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•     give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;

•     have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•     have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

•     adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•     the financial statements are not in agreement with the accounting records and returns; or

•     certain disclosures of remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In response to the risk of irregularities, including fraud, and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• identifying and assessing the design effectiveness of key controls that management has in place to prevent and detect fraud

• enquiring of management as to actual and potential litigation and claims;

• reviewing correspondence with HMRC,

• reviewing legal and regulatory costs;

• considering audit evidence obtained in other testing areas to see if give rise to any indicators of non-compliance with relevant laws and regulations

• making enquiries with directors and management of any known or alleged instances of fraud or non-compliance of specific laws and regulations, including industry laws; and

• auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

• reviewing estimates including the methodology used to derive them and performed a detailed review of supporting calculations and inputs.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

Wilton House Limited is a private company limited by shares incorporated in England and Wales. The registered office is 171 Adeyfield Road, Hemel Hempstead, Hertfordshire, United Kingdom, HP2 5JU.

In the prior period, the company shortened its financial year to 31 August 2023, for commercial financial statement reporting reasons, in order to align the reporting date with the effective date that the overseas subsidiary investment was disposed of. The comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The financial statements present information about the company as an individual entity and not about its group.

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents fees from the provision of nursing and care services which is exempt from VAT. Fees are generated monthly at the commencement of each month based on the period of occupancy of the resident and agreed contractual daily rate.

Revenue is recognised to the extent it is probable that the economic benefit will flow to the company and the revenue can be reliably measured as the fair value of the consideration received or receivable.

Tangible fixed assets are initially measured at cost net of depreciation and any impairment losses. No depreciation is provided on freehold land. Freehold buildings are not depreciated as in the opinion of the directors such depreciation is not material after consideration of their residual value.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

The fair value of investment property is determined by the director on an open market value. Other properties within the near location are taken into consideration reflecting recent sales, property value estimates and category of the property being valued. The director reviews the fair value at each reporting date. Where an investment property has been professionally valued by a RICS qualified surveyor the director will consider the valuation techniques used and if deemed appropriate adopt the recommended valuation for that property. Professional valuations are obtained on an ad hoc basis and based on a market rental yield basis.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The investment properties are valued based on the directors opinion of the open market value as at the reporting date. This involves an estimation and subjective opinion based on general property prices in the area of the property and property indices. For the largest valued investment property a 2021 valuation report together with general market data for the area of the property was used to assist in determining the value at the reporting date. Investment properties have been valued on an assessed open market value of £3,905,000 (2023: £3,905,000) as at the reporting date of 31 August 2024.

An analysis of the company's turnover which is generated wholly within the United Kingdom is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

Freehold land and buildings with a carrying historic cost value of £7,537,729 (2023 - £7,537,729) are subject to first mortgages and a registered debenture that forms security for bank borrowings of the company.

The investment properties were revalued by the director at 31 March 2024 on an open market value basis

On a historical cost basis these would have been included at an original cost of £1,951,227 (2023: £1,951,227) and aggregate depreciation of £nil (2023: £nil).

Investment properties with a carrying value of £2,180,000 are subject to a first mortgage and forms security for bank borrowings. The property was last formally valued on 18 November 2021 by Knight Frank LLP, a RICS registered surveyor and commercial property consultancy firm who determined the market value of this property to be £2,150,000, as at that date, based on the aggregate market rent and capitalisation rate methodology.

The subsidiary listed below was fully impaired during the period ended 31 August 2023. Subsequent to the balance sheet date it was dissolved on 18 March 2025.

Details of the company's subsidiaries at 31 August 2024 are as follows:

Bank borrowings are secured by first legal mortgages over those company's freehold properties and investment properties they relate to and a debenture over the company's assets. Interest on bank borrowings with maturity dates between 4 and 11.5 years are being charged interest at variable rates between 3.8% and 6.1% per annum.

Other loans are repayable by instalments, unsecured and have a maturity date of between 3 to 5 years from drawdown. Fixed interest is being charged between 10.5% and 20.9% per annum.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The majority of the accelerated capital allowances deferred tax liability set out above is not expected to reverse until the company sells its land and buildings, as it relates to accelerated capital allowances on building fixtures that are not depreciated. The tax amortisation of asset of loan write off asset is expected to reverse out evenly over the next 5.6 years in accordance with taxation laws whereby the loan written off was allowable for taxation on a 10 year straight line basis.

The company has unused capital losses totalling £16,961,216 from the disposal of its overseas subsidiary of which £1,953,773 is currently estimated as being available for utilising against the market uplift of the investment properties based on their values as at 31 August 2024. The utilisation of the remaining balance is currently assessed as being remote, as only available for offset against future capital gains, and therefore a computed net deferred tax asset totalling £3,926,534 has not been provided for in relation to these capital losses.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £11,472 (2023: £25,531) were payable to the scheme at the year end and are included within other creditors.

The non-distributable profits reserve represents the cumulative fair value adjustment to investment properties after consideration of any indexation allowance adjustments and net of deferred tax thereon.

All directors and certain senior employees who have the authority and responsibility for planning, directing and controlling activities of the company are considered to be the key management personnel. Total remuneration in respect of these individuals in the year was:

During the year the company entered into the following transactions with related parties:

During the year a net amount of £183,053 (2023: £18,428 advanced by) was advanced to N A Reekhaye, the sole shareholder of the company. At the balance sheet date other debtors included £151,097 owed by N A Reekhaye (2023: £31,956 other creditors, owed to N A Reekhaye). There is no set repayment date and interest is charged at HMRC's beneficial loan interest rate.

Other debtors include £245,000 (2023: £245,000) owed by a company under the same control. The amount is repayable on demand, unsecured and interest free.

The ultimate controlling party is N A Reekhaye by virtue of his ownership of 100% of the issued ordinary share capital in the company.