The director acknowledges his responsibilities for complying with the requirments of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The financial statements were approved and authorised for issue by the Board of Directors on 8 September 2025.

Culachy Footprint Management Limited is a private company limited by shares, registered in Scotland. The address of the registered office and registration number are as below:

Culachy House

Culachy Estate

Fort Augustus

Inverness-shire

PH32 4BY

These financial statements have been prepared in accordance with FRS 102 the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland as adapted by Section 1A of FRS 102 and the Companies Act 2006.

The financial statements have been prepared on a going concern basis. The directors have assessed the company's ability to continue as a going concern for the foreseeable future and acknowledge the net liabilities of the company at the balance sheet date of £2,563,943.

The directors have taken steps to assess the current value of Culachy Footprint Management Limited (see note 8) and have embarked on a large peatland restoration project to generate significant PIU carbon credits and increase the value of the Land. Phase 1 was completed in 2022. Phase 2 will be executed in summer 2026. Phases 3 and 4 to follow. Fully granted native woodland planting potential has been scoped with significant potential. In addition, a 67 MGW Windfarm Application on Culachy Footprint Management Limited has been submitted to the Scottish Government with the formal hearing confirmed for October 6th 2025 in Edinburgh followed by an ECU site visit on October 27th 2025. Culachy Footprint Management Limited's land lease to Fred Olsen Renewables has the potential to generate a multi decade revenue stream for the company in summary the directors are actively executing a significant carbon-based strategy which has the potential to increase the value of the company well beyond the recent core land valuation. The directors note rising land values and increasing investor demand for entities such as Culachy Footprint Management Limited. Taking these factors into consideration, the directors acknowledge both the current net liabilities and regard them in the context of an entity with much larger current and future intrinsic value.

The director, Colin Grassie has given his assurance to the company of the continued financial support by way of a director's loan and personal guarantees. Thus, the directors continue to adopt the going concern basis of accounting in preparing these financial statements.

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Depreciation is not provided on freehold land and buildings as a large proportion in value of the freehold properties consists of land and depreciation on buildings is not considered material. The buildings are subjected to an annual impairment review and the directors are of the opinion that the market value of buildings is in excess of their book value and that no impairment requires to be recognised.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial assets, which include trade receivables, other debtors and cash at bank, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Basic financial liabilities, which include trade payables, other creditors and taxes due, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

There is an unrecognised deferred tax asset of £526,473 (2024: £437,392). This arises as a result of losses carried forward. Losses can only be offset against future profits, which cannot be determined with certainty.

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

The directors instructed an RICS approved third party to undertake a valuation of the land included in freehold property. The open market value of the land with vacant possession on 8 November 2023 was £12,400,000.

Included in other creditors is an amount due to one of the directors, of £1,802,016 (2024 - £2,895,454). This balance is interest free with no fixed terms of repayment

The bank holds security over the land held within freehold property.