REGISTERED NUMBER: 02194078 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SARUM PROPERTIES LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

S A Church FCA

SECRETARIES:

S A Church FCA

Ms P Wright

Moore & Cache Limited

REGISTERED OFFICE:

14 Wilton Road

Salisbury

SP2 7EE

REGISTERED NUMBER:

02194078 (England and Wales)

ACCOUNTANTS:

Fawcetts LLP

Chartered Accountants

Windover House

St. Ann Street

Salisbury

SP1 2DR

FIXED ASSETS

Tangible assets

4

68,410

62,786

Investments

5

106,000

106,000

Investment property

6

10,827,896

10,377,822

11,002,306

10,546,608

CURRENT ASSETS

Debtors

7

1,445,409

1,236,733

Cash at bank and in hand

1,003,479

1,234,865

2,448,888

2,471,598

CREDITORS

Amounts falling due within one year

8

1,577,506

1,913,432

NET CURRENT ASSETS

871,382

558,166

TOTAL ASSETS LESS CURRENT LIABILITIES

11,873,688

11,104,774

CREDITORS

Amounts falling due after more than one year

9

(1,811,058

)

(1,711,955

)

PROVISIONS FOR LIABILITIES

(1,472,111

)

(1,485,728

)

NET ASSETS

8,590,519

7,907,091

CAPITAL AND RESERVES

Called up share capital

11

100,000

100,000

Non-distributable reserve

12

1,442,986

1,558,964

Retained earnings

12

7,047,533

6,248,127

SHAREHOLDERS' FUNDS

8,590,519

7,907,091

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 26 September 2025 and were signed by:

S A Church FCA - Director

1.	STATUTORY INFORMATION

Sarum Properties 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 Company 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are prepared on a going concern basis and are presented in Sterling (£) which is the functional currency of the company.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for turnover and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

Valuation of investment property:

The company carries its investment property at fair value. The company engaged a firm of professionally qualified Chartered Surveyors to determine fair value at 30 June 2020 and in the opinion of the director this remains unchanged at 31 December 2024, taking into account the company's acquisitions, disposals, and general market conditions. The method and significant assumptions used to determine the fair value of investment property are further explained in the notes to the financial statements.

Deferred taxation:

Deferred tax liabilities are assessed on the basis of assumptions regarding the future, the likelihood that assets will be realised and liabilities will be settled, and estimates as to the timing of those future events and as to the future tax rates that will be applicable.

Turnover

Turnover represents the amounts derived from ground rents, property management and other fees from freehold reversionary interests, stated net of Value Added Tax, all of which is attributable to continuing operations generated in the United Kingdom. Rental income is recognised on the accruals basis. All other income is recognised at the transaction date.

Tangible fixed assets

Expenditure on fixed assets is capitalised except for expenditure incurred on the replacement of assets of low value with a short life. Repair, renovation and replacement expenditure is written off as expenditure in the Income Statement. The cost of fixed assets is their purchase cost or valuation, together with any incidental costs of acquisition.

Depreciation is calculated to write off the cost of tangible fixed assets, less their estimated residual values, over the expected useful lives of the assets concerned. The principal annual rates used for this purpose are:

Improvements to property - 15% on reducing balance

Fixtures and fittings - 33% on cost and 15% on reducing balance

Investment property

Investment property represents the company's portfolio of freehold ground rents. It is initially recognised at cost, which includes purchase cost and any directly attributable expenditure.

Investment property is measured at fair value at each reporting date. Any fair value gains arising are not realised profits and therefore are transferred to a separately designated non-distributable reserve. Any loss arising from revaluation is also recognised in the non-distributable reserve unless it represents a loss below original cost, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the Income Statement for the year.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company contributes to the individual defined contribution pension schemes of employees. Contributions are charged to profit or loss in the period to which they relate.

Debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivable are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

Creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

The company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, and loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at the present value of future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade creditors and debtors, are measured initially and subsequently, at the undiscounted amount of the cash, or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, such as the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or, in the case of an outright short-term loan, not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Fixed asset investments

Investments held as fixed assets are stated at cost less provision for any impairment.

Other investments represent payments on account and are in respect of option agreements to purchase freehold reversionary interests in residential developments as they are built.

Exceptional items

The company classifies one-off charges or credits that have a material impact on the company's financial results, either by virtue of their size or nature, as 'exceptional items'. These are disclosed separately to provide further understanding of the financial performance of the company.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2023 - 7 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2024

111,063

Additions

17,696

At 31 December 2024

128,759

DEPRECIATION

At 1 January 2024

48,277

Charge for year

12,072

At 31 December 2024

60,349

NET BOOK VALUE

At 31 December 2024

68,410

At 31 December 2023

62,786

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 January 2024

and 31 December 2024

106,000

NET BOOK VALUE

At 31 December 2024

106,000

At 31 December 2023

106,000

Other investments represent payments on account and are in respect of option agreements to purchase the freehold ground rents in residential developments as they are built.

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2024

10,377,822

Additions

656,734

Disposals

(206,660

)

At 31 December 2024

10,827,896

NET BOOK VALUE

At 31 December 2024

10,827,896

At 31 December 2023

10,377,822

Fair value at 31 December 2024 is represented by:

£

Valuation in 2024

2,588,124

Cost

8,239,772

10,827,896

Investment property (representing the company's portfolio of freehold ground rents) was valued at fair value (open market basis) on 30 June 2020 by Bureau Property Consultants and in the opinion of the director this remains unchanged at 31 December 2024, taking into account the company's acquisitions, disposals, and general market conditions.

Investment property was valued at a multiple of ground rents discounted for the quality of the investment portfolio together with an allowance for future lease extensions.

The valuation assumes that all properties have been maintained in good order and that the freeholder is not in breach of any landlord obligations under the respective leases; all properties were built in compliance with the then planning agreements, applicable building regulations and all s106 obligations were complied with; there are no defects in title which will materially affect the value of one or more of the properties; there is no unresolved dispute as to the amount of ground rent payable; no property is more than 18m high with ACM cladding; and no property has been served with an enforcement notice which could affect its value.

Bureau Property Consultants are a firm of Chartered Surveyors regulated by RICS. They specialise in providing residential valuation advice to freeholders and hold relevant experience in the location and class of investment property being valued.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

543,036

499,947

Amounts owed by group undertakings

285,538

219,468

Other debtors

616,835

517,318

1,445,409

1,236,733

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

62,988

62,988

Trade creditors

275,835

340,759

Taxation and social security

172,989

373,565

Other creditors

1,065,694

1,136,120

1,577,506

1,913,432

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans

744,526

853,802

Amounts owed to group undertakings

1,066,532

858,153

1,811,058

1,711,955

10.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Bank loans

807,514

916,790

The bank loan is secured by way of a first legal charge over certain assets of the company.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

100,000

Ordinary

£1

100,000

100,000

12.

RESERVES

Retained

Non-distributable

earnings

reserve

Totals

£

£

£

At 1 January 2024

6,248,127

1,558,964

7,807,091

Profit for the year

983,428

-

983,428

Dividends

(300,000

)

-

(300,000

)

Transfer of realised surplus on sale of properties

132,607

(132,607

)

-

Transfer of movement in deferred tax on fair value changes

(16,629

)

16,629

-

At 31 December 2024

7,047,533

1,442,986

8,490,519

Retained earnings:

Includes all current and prior period retained profits and losses.

Non-distributable reserve:

This reserve is used to record gains in the fair value of investment properties and losses to the extent that such a loss relates to a previous gain on the same asset. It is also used to record the corresponding deferred tax (charge)/credit on fair value changes in investment property.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

14.	ULTIMATE PARENT COMPANY AND CONTROLLING PARTY

The immediate parent company is Elmbirch Properties Limited and the ultimate parent company is Sarum Lands Limited. Both companies are incorporated in England. In the opinion of the director, no one individual has control of the ultimate parent company Sarum Lands Limited.