Registration number:
Prepared for the registrar
for the
Year Ended 31 December 2024
Cinnabar Health Group Limited
Contents
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Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Cinnabar Health Group Limited
Company Information
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Directors |
S Rocks A Whelan |
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Registered office |
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Bankers |
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Auditors |
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Cinnabar Health Group Limited
(Registration number: 09523365)
Balance Sheet as at 31 December 2024
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Note |
2024 |
(As restated) |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Deferred tax liabilities |
(748,784) |
(100,265) |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Revaluation reserve |
3,225,241 |
- |
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Profit and loss account |
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Shareholders' funds |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
Director
Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Group accounts not prepared
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Prior period errors
It was identified that goodwill acquired as part of a trade and asset purchase in 2016 had been previously included within fixed assets, and depreciated over 20 years. An adjustment has been recognised to reclassify the goodwill to intangible assets and amortise over 10 years.
Relating to the current period disclosed in these financial statements | Relating to the prior period disclosed in these financial statements | Relating to periods before the prior period disclosed in these financial statements | |
Intangible assets | - | 43,562 | 63,562 |
Fixed assets | - | (139,973) | (149,973) |
Retained earnings | - | 86,411 | 76,411 |
Depreciation charge for the year | - | (10,000) | (10,000) |
Amortisation charge for the year | - | 20,000 | 20,000 |
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements and estimation uncertainty, apart from the revaluation of property. The valuation was made on an open market value basis by reference to market evidence of transaction prices of similar prices. For more information, refer to the investment property note. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of discounts. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost or revalued amount, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Freehold buildings |
2% straight line |
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Plant and equipment |
5% straight line |
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Fixtures and fittings |
20% straight line |
Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Freehold land is not depreciated.
Following the change in the ownership in note 14, the directors have elected to adopt a revaluation policy for freehold property, aligning with the approach taken by the company's fellow group undertaking. The impact of the valuation completed has been explained in note 6.
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
Straight line over 10 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Financial instruments
Classification
Recognition and measurement
Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Financial instruments (continued)
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was as follows:
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2024 |
2023 |
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Average number of employees |
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Intangible assets |
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Goodwill |
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Cost |
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At 1 January 2024 and at 31 December 2024 |
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Amortisation |
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At 1 January 2024 |
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Amortisation charge |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
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Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Tangible assets |
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Freehold land and buildings |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 January 2024 |
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Revaluations |
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- |
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Additions |
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- |
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Transfers between asset classes |
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( |
- |
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Transferred to subsidiary |
- |
( |
( |
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At 31 December 2024 |
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- |
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Depreciation |
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At 1 January 2024 |
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Charge for the year |
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Transfers between asset classes |
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( |
- |
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Transferred to subsidiary |
- |
( |
( |
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At 31 December 2024 |
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- |
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Carrying amount |
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At 31 December 2024 |
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- |
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At 31 December 2023 |
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Freehold land is not depreciated.
Revaluation
The fair value of the company's Freehold property was revalued on
Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Investments |
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2024 |
2023 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
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Cost and carrying amount |
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At 1 January 2024 and at 31 December 2024 |
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Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
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Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2024 |
2023 |
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Subsidiary undertakings |
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England and Wales |
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Subsidiary undertakings |
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Cinnabar Support And Living Ltd The principal activity of Cinnabar Support And Living Ltd is |
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Debtors |
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2024 |
2023 |
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Amounts owed by group undertakings |
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Other debtors |
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Prepayments |
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- |
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Creditors |
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Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Accruals |
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Corporation tax liability |
7,984 |
- |
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Due after one year |
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Loans and borrowings |
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Cinnabar Health Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Reserves |
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
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Revaluation reserve |
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Surplus/deficit on property revaluation |
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Loans and borrowings |
Current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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Non-current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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The bank loans are secured by way of first legal charges over all care home properties and their associated assets and debentures with both Cinnabar Health Group Limited and Cinnabar Support and Living Ltd.
The bank loans are repayable in monthly instalments, with the final balance due in December 2035. The interest rate is 2.45% p.a. over bank base rate.
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
Cinnabar Health Group Limited has contractual income totalling £
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Parent and ultimate parent undertaking |
Since 24 March 2025, the company's immediate parent undertaking is
Up to 24 March 2025, there was considered to be no single ultimate controlling party. Since 24 March 2025, the ultimate controlling party is
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Audit report |