REGISTERED NUMBER: 10246071 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements

for the Period 1 July 2023 to 31 December 2024

for

X1 Property Management Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTOR:

Mrs L Smith

REGISTERED OFFICE:

116 Duke Street

Liverpool

Merseyside

L1 5JW

REGISTERED NUMBER:

10246071 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

116 Duke Street

Liverpool

Merseyside

L1 5JW

The director presents her strategic report of the company and the group for the period 1 July 2023 to 31 December 2024.

The X1 Property Management Limited is a trading company that holds two trading subsidiaries, X1 Manchester Waters Limited and X1 The Campus Limited. X1 Property Management Limited is a residential lettings and block management business. X1 The Campus Limited and X1 Manchester Waters Limited are property development companies that acquire land to develop into high specification apartments that are mainly sold to overseas investors. The wider X1 Group has established an outstanding track record for high end buy to let property.

REVIEW OF BUSINESS

The results for the period show a turnover of £87m compared to £10m in the previous period. The significant increase is due to the completion of two developments, Manchester Waters Tower C and Cheltenham Place Phase 1. The two developments combined consist of a total of 543 units. In the period to 31 December 2024 sales have completed on 484 of the units, with the remaining 59 units completing in 2025.

Whist there is a significant increase in revenue for the period, net profit before tax has not increased in turn. This is due to losses reported in the subsidiary X1 Manchester Waters Limited of £3.4m the losses are as a result of significant fees of over £6m that have been incurred in securing future sales and investment into residential units that are not yet developed, This subsidiary is expected to generate significant revenue and profits for the group in the next 2-3 years once the two projects have completed.

The first quarter of 2025 has generated profits in excess of £3m as the remaining units have completed at Cheltenham Place Phase 1 and the consistent revenue and profits generated from the property lettings and management business continues to increase shareholders funds.

The group now manages over 4,465 units in respect of residential lettings and 3913 units across 22 sites in respect of block management. With the ongoing developments in the group, the director expects the number of residential units under management in increase to over 6000 once the ongoing developments are completed.

The Group has added a further two subsidiaries after the year end that strengthen its position and will generate significant profit in the last quarter of 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks that are faced by the Group are the availability and cost of finance and the continued interest from investors.

With the rising interest rates in 2023 that remained high throughout 2024 the cost of funding a large scale development has been high. As interest rates are falling in 2025 the Group will seek new sources of finance to continue with its projects that are currently in the preliminary stages.

The Group ensures that the pricing applied to off plan sales is sufficient to cover any potential price increases that may occur on contract variations. The business model of off plan sales and staged deposits reduces cash flow risk and reduces the amount of funding required,

Financial risk is minimised by ensuring a high demand for our developments and investor satisfaction and establishing good relationships with our sales agents.

ON BEHALF OF THE BOARD:

Mrs L Smith - Director

18 September 2025

The director presents her report with the financial statements of the company and the group for the period 1 July 2023 to 31 December 2024.

DIVIDENDS

Interim dividends per share were paid as follows:

500

- 31 March 2024

500

- 31 December 2024

1000

The director recommends that no final dividend be paid.

The total distribution of dividends for the period ended 31 December 2024 will be £ 100,000 .

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTOR

Mrs L Smith held office during the whole of the period from 1 July 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director 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 she is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs L Smith - Director

18 September 2025

Opinion

We have audited the financial statements of X1 Property Management Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the period 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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.

Emphasis of matter

The prior period financial statements have not been audited. Sufficient appropriate audit evidence regarding opening balances has been obtained.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected farad identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

Obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks.

inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including and known actual, suspected or alleged instances of fraud.

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements and FRS 102 and the Companies Act 2006. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures.

The audit engagement team identified the risk of management override of controls, revenue recognition and the valuation of investments in the parent company balance sheet as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgements and estimates applied in revenue recognition and the valuation of intangible fixed assets.

A further description of our responsibilities for the audit of financial statements is located on the Financial Reporting Council's website and http://www.frc.org.uk/auditors responsibilities.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Harrison BSc ACA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

116 Duke Street

Liverpool

Merseyside

L1 5JW

18 September 2025

TURNOVER

3

87,623,704

10,623,022

Cost of sales

76,758,486

1,003,489

GROSS PROFIT

10,865,218

9,619,533

Administrative expenses

6,702,770

5,646,427

OPERATING PROFIT

5

4,162,448

3,973,106

Interest receivable and similar income

681

-

4,163,129

3,973,106

Interest payable and similar expenses

7

2,134,192

2,147,242

PROFIT BEFORE TAXATION

2,028,937

1,825,864

Tax on profit

8

394,313

125,612

PROFIT FOR THE FINANCIAL PERIOD

1,634,624

1,700,252

Profit attributable to:

Owners of the parent

1,634,624

1,700,252

PROFIT FOR THE PERIOD

1,634,624

1,700,252

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,634,624

1,700,252

Total comprehensive income attributable to:

Owners of the parent

1,634,624

1,700,252

FIXED ASSETS

Tangible assets

11

10,723

25,327

Investments

12

-

-

10,723

25,327

CURRENT ASSETS

Stocks

13

9,270,897

55,904,792

Debtors

14

30,713,736

28,989,326

Cash at bank and in hand

5,654,407

1,092,891

45,639,040

85,987,009

CREDITORS

Amounts falling due within one year

15

40,384,458

80,386,643

NET CURRENT ASSETS

5,254,582

5,600,366

TOTAL ASSETS LESS CURRENT LIABILITIES

5,265,305

5,625,693

CREDITORS

Amounts falling due after more than one year

16

(101,551

)

(534,238

)

PROVISIONS FOR LIABILITIES

20

(582,786

)

(2,045,111

)

NET ASSETS

4,580,968

3,046,344

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

4,580,868

3,046,244

SHAREHOLDERS' FUNDS

4,580,968

3,046,344

The financial statements were approved by the director and authorised for issue on 18 September 2025 and were signed by:

Mrs L Smith - Director

FIXED ASSETS

Tangible assets

11

10,723

25,327

Investments

12

11,323,239

-

11,333,962

25,327

CURRENT ASSETS

Debtors

14

9,048,000

5,111,544

Cash at bank and in hand

211,192

218,183

9,259,192

5,329,727

CREDITORS

Amounts falling due within one year

15

1,368,663

1,055,990

NET CURRENT ASSETS

7,890,529

4,273,737

TOTAL ASSETS LESS CURRENT LIABILITIES

19,224,491

4,299,064

CREDITORS

Amounts falling due after more than one year

16

(101,551

)

(485,171

)

PROVISIONS FOR LIABILITIES

20

-

(1,925,000

)

NET ASSETS

19,122,940

1,888,893

CAPITAL AND RESERVES

Called up share capital

21

100

100

Fair value reserve

22

11,323,039

-

Retained earnings

22

7,799,801

1,888,793

SHAREHOLDERS' FUNDS

19,122,940

1,888,893

Company's profit for the financial year

17,334,047

918,933

The financial statements were approved by the director and authorised for issue on 18 September 2025 and were signed by:

Mrs L Smith - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2022

100

1,395,992

1,396,092

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

1,700,252

1,700,252

Balance at 30 June 2023

100

3,046,244

3,046,344

Changes in equity

Dividends

-

(100,000

)

(100,000

)

Total comprehensive income

-

1,634,624

1,634,624

Balance at 31 December 2024

100

4,580,868

4,580,968

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 July 2022

100

1,019,860

-

1,019,960

Changes in equity

Dividends

-

(50,000

)

-

(50,000

)

Total comprehensive income

-

918,933

-

918,933

Balance at 30 June 2023

100

1,888,793

-

1,888,893

Changes in equity

Dividends

-

(100,000

)

-

(100,000

)

Total comprehensive income

-

6,011,008

11,323,039

17,334,047

Balance at 31 December 2024

100

7,799,801

11,323,039

19,122,940

Cash flows from operating activities

Cash generated from operations

1

27,450,233

5,978,126

Interest paid

(2,134,192

)

(2,090,242

)

Finance costs paid

-

(57,000

)

Tax paid

(393,691

)

-

Net cash from operating activities

24,922,350

3,830,884

Cash flows from investing activities

Purchase of tangible fixed assets

(12,781

)

(20,022

)

Interest received

681

-

Cash advanced to related undertakings

(4,026,103

)

(22,579,399

)

Net cash from investing activities

(4,038,203

)

(22,599,421

)

Cash flows from financing activities

Deep discounted bond repayments

(16,160,320

)

-

Amount withdrawn by directors

(62,311

)

21,916

Payment on account received

-

18,426,245

Equity dividends paid

(100,000

)

(50,000

)

Net cash from financing activities

(16,322,631

)

18,398,161

Increase/(decrease) in cash and cash equivalents

4,561,516

(370,376

)

Cash and cash equivalents at beginning of period

2

1,092,891

1,463,267

Cash and cash equivalents at end of period

2

5,654,407

1,092,891

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.7.23

to

Year Ended

31.12.24

30.6.23

£

£

Profit before taxation

2,028,937

1,825,864

Depreciation charges

27,385

12,935

Movement in provisions

(1,462,325

)

(173,168

)

Finance costs

2,134,192

2,147,242

Finance income

(681

)

-

2,727,508

3,812,873

Decrease/(increase) in stocks

46,633,895

(19,499,845

)

Decrease in trade and other debtors

3,295,319

23,990,716

Decrease in trade and other creditors

(25,206,489

)

(2,325,618

)

Cash generated from operations

27,450,233

5,978,126

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 December 2024

31.12.24

1.7.23

£

£

Cash and cash equivalents

5,654,407

1,092,891

Year ended 30 June 2023

30.6.23

1.7.22

£

£

Cash and cash equivalents

1,092,891

1,463,267

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.7.23

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,092,891

4,561,516

5,654,407

1,092,891

4,561,516

5,654,407

Debt

Debts falling due within 1 year

(20,162,586

)

18,215,612

(1,946,974

)

Debts falling due after 1 year

(534,238

)

432,687

(101,551

)

(20,696,824

)

18,648,299

(2,048,525

)

Total

(19,603,933

)

23,209,815

3,605,882

1.	STATUTORY INFORMATION

X1 Property Management Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The parent company financial statements are prepared under the historical cost convention other than the revaluation of investments in subsidiaries.

The current period is a period of 18 months, the prior period is a period of 12 months.

The Director has prepared the financial statements on a going concern basis, there are no factors that affect the Group's ability to continue as a going concern.

Basis of consolidation

These consolidated financial statements have been prepared under the merger accounting basis as permitted by FRS 102 section 19.27 which states that company law must not prohibit the use of merger accounting, the ultimate equity holders must remain the same with the rights of each equity holder being unchanged and that no non-controlling interest in the net assets of the group is altered.

The combining entities are X1 Property Management Limited (the parent), X1 Manchester Waters Limited and X1 The Campus Limited.

As per FRS 102 19.29 merger accounting allows the carrying value of the assets and liabilities of the combining entities to be used, although appropriate adjustments have been made to achieve uniformity of accounting policies and to remove any transactions and balances that have been conducted between the combining entities.

FRS 102 19.30 allows the results and cash flows of all combining entities to be brought into the financial statements of the combined entity from the beginning of the financial year in which the combination occurred and for the comparative information to be restated by including the total comprehensive for all combining entities for the previous reporting period and their statement of financial position for the previous reporting date.

As described in FRS 102 19.31 the difference between the value of the shares and the fair value of the consideration is shown as a movement on other reserves in these consolidated financial statements and shown in the statement of changes in equity.

The consideration for X1 The Campus Limited and X1 Manchester Waters Limited, given by X1 Property Management Limited was £1 per share for each acquisition consisting of 100 shares in each transaction.

Critical accounting judgements and key sources of estimation uncertainty

Judgement and key sources of estimated uncertainty

In the application of the Group's accounting policies, the directors are 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 relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Revisions to accounting estimates are recognised in the period in which the estimates 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..

Key sources of estimated uncertainty

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.

Work in Progress

Work in progress is calculated based on the lower of cost and recoverable amount., recoverable amount being sales price less costs to sell. Work in progress consistent of land acquisition, planning fees and construction fees and any other costs incurred (excluding interest) to enhance the asset and bring the asset to a saleable value. In prior years the work in progress has also included up front sales fees charged by suppliers to secure a sale on a unit.

In 2024 a change in estimation technique has resulted in a reduction in work in progress of £6,632,544 of which £1,270,688 is in relation to the current year and £5,361,855 relating to prior periods. The value of work in progress at 31 December 2024 is £9,270,897.

Provisions

Upon the sale of property to an investor the Group guarantees a return of a specified amount for a specified period of time. The rental income received on the property may not always meet the liability due to running costs and vacant periods so a provision is made against this cost. The provision is reviewed and updated annually. The provision included at 31 December 2024 is £582,786.

As described in Note 6 a provision was made in 2020 for £1,925,000 in accordance with the compliance obligations of the business, a risk was identified in relation to GDPR and a report was undertaken in that year to asses the potential financial impact of that risk to the business. As no claims have been made since the provision was made the director and management have agreed that an outflow is unlikely and therefore the provision has been released.

Fixed Asset Investment Valuation

In the parent company only, fixed asset investments are held at valuation. The valuation uses appraisals and analysis from professionals and discount factors based on future events.The valuation of investments in relation to subsidiaries recorded in the parent company balance sheet at 31 December 2024 are £11,323,239.

Recoverability of loans made to associated companies

The Group uses its profits to fund developments in other companies that are related to the Director. The Director believes that these loans will be recoverable when the associated company completes the development and the company generates profits. The amounts owing to the Group from associated companies is £28,945,180.

Useful economic lives of intangible and tangible assets.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended where necessary to reflect current carrying value, based on technological advancement, future investments, economic utilisation, and the physical condition of the assets.

Turnover

The Group's turnover, derived from ordinary activities and excluding VAT where applicable, represents property income from the sale of developed properties and management fee income for services provided.

Income from property sales is recognised when the sale completes and the risks and rewards are transferred to the buyer.

Income from property management is recognised as the service is provided.

Cost of sales

Cost of sales represent the cost to construct and market each development, excluding borrowing costs. Cost includes all purchases and planning fees incurred in bringing stock to its present location and condition.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work in progress is recorded at the lower of cost and net realisable value. Work in progress consists of land and the construction of buildings in respect of residential developments. The Group does not adopt a policy of capitalising borrowing costs.

Sale completion occurs as soon as the construction is complete. Any deposits that are held on exchange of the units is recorded in the current liabilities.