Fair review of the Business

The group’s principal trading activity during the year continued to be that of dealing in residential properties under the Webuyanyhome brand, online estate agency under the SOLD brand and stamp duty consultancy under the StampDuty.com brand, together with managing a portfolio of properties which are let to tenants on commercial rents. The group also engages in short term property-related lending and investments.

Management continued to remain focused on the core elements of the business comprising acquiring suitable below market value (BMV) properties and providing this valuable service to its customers who are in need of disposing of their properties quickly. The group also diversified its portfolio and offered its services to a wider range of customers and acquired a wider range of properties, maintaining the rigor and professionalism of its property acquisition process.

The company continues to clear down its historic liability in relation to the VAT liability on digital marketing expenditure.

No fair value gains arose on the investment properties in the year. The group reported a Profit before Tax of £1,949,285 (2023: £2,505,711 Loss).

The trading stock at year end reflects the level of trading for the year as well as the typical purchase price of properties acquired. The number of properties held at period end was in line with expectations. Trading stock is held at the lower of cost or net realisable value.

The business has shown growth in revenue and has been profitable in a rather tough property market. The group managed to increase it’s gross margins by sourcing higher margin deals. The business remains dedicated to providing quick sale services to its customers and ended the year strong with a few initiatives being worked on to be delivered in 2025.

The group faces a number of business risks and uncertainties which the Director considers with the management team on a regular basis whilst assessing the trading performance of the business. The table below sets out the key risks that have been identified together with the group’s approach to mitigating those risks.

The Director recognises his responsibility to maintain high standards of business conduct and to consider the impact on all stakeholders when making business decisions including the long-term impact of these decisions. The management team meets monthly, to consider key business decisions.

The analysis of how it has exercised its duty to promote the long-term success of the company is set out below.

Consequences of decision in the long term

• When making key business decisions, the management team consider the longer-term impact of these decisions on all stakeholders

• Key investment decisions normally include a financial model extending to 5 years to ensure the long-term financial impacts are considered.

• Consideration of longer-term risks are set out in Principal Risks and Uncertainties.

Interests of the group’s employees

• The Director has implemented a full suite of employment policies including an equality of opportunity policy to safeguard the interests of all employees. The Director has implemented a suite of training programmes to ensure all employees have the skills required to perform their duties and develop their careers.

Business relationships with suppliers, customers and others

• The Director has implemented a customer feedback framework. This includes surveys and responding to positive and negative feedback. The Director ensures that actions are developed to address feedback from customers.

• The Director has facilitated a fortnightly payment run process to maximise the number of supplier invoices that are paid on time.

Impact on the community and the environment

• When considering projects, the Director includes an assessment of the impact on the environment and how this could be reduced.

Maintaining a reputation for high standards of business conduct

• The Director sponsors a culture of compliance and ensures there are policies, procures and training in all key areas of compliance.

Acting fairly between members of the group

• The Director ensures consistent communication on all matters of the Group to all members.

On behalf of the board

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

The principal activity of the company and group continued to be that of residential property trading, residential property investment and related services.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £1,717,634. 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 Company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in Sterling. The Company does not enter into any formally designated hedging arrangements.

The nature of the Company’s activities mean it does not commit a material level of resources to research and development.

The Director believes that the market for trading in residential properties will continue to offer a plentiful supply of opportunities whilst remaining competitive. The business model has had a challenge to operate and be profitable in a downward market. The business responded by adjusting the discounts it offers to maintain the profit levels. There was also an adjustment made to the criteria set for purchases as certain opportunities were traded rather than bought. The Director believes that the Company has developed a leading position in the market and is in a good financial position such that, by professionally managing the risks identified, the business will and has continued to perform profitably. With a continuous focus on introducing new commercial initiatives, recruiting and training quality employees, trialling new marketing opportunities and ensuring sound financial management, the Director is confident in the Group’s ability to maintain and build on its performance.

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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 group and company, 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

We have audited the financial statements of Castle Property Holding Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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 group and parent 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 group's and 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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

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 group and the parent company and their 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 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 directors' 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 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 parent 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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the group and parent company through discussions with directors and other management, and from our commercial knowledge and experience of the property sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and parent company including, but not limited to, the Companies Act 2006 and taxation legislation.

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• understanding the business model as part of the control and business environment;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations and;

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities 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;

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

• reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our report

This report is made solely to the group and parent 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 an auditor's report 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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £623,985 (2023 - £1,460,421 loss).

Castle Property Holding Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2 Leman Street, London, United Kingdom, E1W 9US.

The group consists of Castle Property Holding Group Limited and all of its subsidiaries.

Webuyanyhome Limited, Asus Investments Limited, Ferrybridge Capital Limited, Proffered Limited, Sold (Residential) Limited, RC Trafford Rd Ltd, ECX Stamp Savings Ltd, ECX Leasingham Ltd, ECX Acacia Limited and LC Capital Limited are exempt from the requirement of the Companies Act 2006 relating to the audit of individual accounts by virtue of section 479A on the basis that they are subsidiary undertakings and their parent undertaking is established under the law of an EEA State.

Furthermore all members of the parent undertaking Castle Property Holding Group Limited have agreed to the exemption in respect of the financial year ended 31 December 2024 and Castle Property Holding Group Limited has agreed to give a guarantee under section 479A in respect of that year.

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 at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Castle Property Holding Group Limited together with all entities controlled by the parent company (its subsidiaries). On 10 January 2022, Castle Property Holding Group Limited acquired the entire share capital of Webuyanyhome Limited, registered office 2 Leman Street, London, E1W 9US by way of a share for share exchange. The consolidated accounts reflect the consolidated position as if the company had been in existence throughout the previous period in order to give a true and fair view of the group affairs.

The introduction of a new holding company constitutes a Group reconstruction and has been accounted for using the merger accounting principles in accordance with paragraphs 19.27 to 19.32 of FRS 102 "the Financial Reporting Standard applicable in the UK and Republic of Ireland".

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

At the time of approving the financial statements, the director has a reasonable expectation that the group 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 is recognised at the fair value of the consideration received or receivable for residential properties sold in the normal course of business. The fair value of consideration takes into account discounts for sale.

Revenue from the sale of properties is recognised when the significant risks and rewards of ownership of the properties have passed to the buyer (usually when completion takes place and title has passed), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rental income is recognised on a straight line basis over the term of the lease and also included within other income. Amounts invoiced in advance are deferred accordingly and recognised in the period to which they relate.

Revenue from the sale commissions are recognised when the properties have completed.

Other income represents non refundable deposits which are received from potential buyers in order to reserve a property they wish to buy. These deposits are recognised as income at the point that the buyer decides not to proceed.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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 recognised in the profit and loss account.

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Investment property is carried at fair value determined annually by external values or by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Stocks of properties are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises purchase price and acquisition costs.

At each balance sheet date, stocks are assessed for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss. Reversals of impairment are also recognised in the profit and loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

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

Financial assets and liabilities are offset and 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.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

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 group’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 if, and only if, there is 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.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

Investment Income

Facility fees, interest and related fees from loan investments are recognised on a uniform basis over the period the loan is made available to the borrower.

In the application of the group’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.

Investment properties are measured at fair value with any movement in valuation at the year-end being taken to profit or loss. The Directors have made key assumptions with the benefit of external data in the determination of the value of an investment property, by considering the property market specific to its location and market evidence of transaction prices of similar properties in its location, together with a review of property rental yields.

The short term loan debtors impairment provision is derived from the opinion of the director. The Director impairs the debtors based on the solvency of the corresponding investment, the security held and their assessment of recoverability as provided by the group's external advisors.

The Director annually reviews the provisions and change them as necessary to reflect the recoverability of the loan balances included in other debtors as at the balance sheet date.

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

Their aggregate remuneration comprised:

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:

On 1 April 2023, the main rate of tax has increased from 19% to 25%. The deferred tax liabilities reflect this rate.

More information on impairment movements in the year is given in note .

The 2024 valuations were made by the director, on an open market value based on existing use.

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

Stock is stated after provisions for impairment of £Nil (2023: £108,318).

Included within amounts due from group undertakings are loan balances that are unsecured, interest free, have no fixed date of repayment and repayable on demand.

Included within other debtors are loan balances totalling £2,573,155 (2023: £1,157,069) that are unsecured, interest free, have no fixed date of repayment and repayable on demand.

Included within other debtors is a loan balance of £Nil (2023: £477,234). During the year, the company accrued facility fees, processing fees and interest totalling £650,700 (2023: £533,336) for providing this loan facility. No interest is charged on this loan facility.

Included within other debtors is a loan balance of £3,469,655 (2023: £3,123,055). During the year, the company accrued facility fees at a fixed margin totalling £Nil (2023: £70,000) for providing this loan facility and interest of £414,000 at a rate of 1.8% up to 31 March 2023 and an amended rate of 1.5% thereafter.

Other debtors includes an impairment of £1,469,236 (2023: £4,741,226).

Included within amounts due to group undertakings are loan balances that are unsecured, interest free and repayable on demand.

Included within other creditors are loan balances totaling £4,535,222 (2023: £3,951,782) that are unsecured, interest free and repayable on demand.

Together Commercial Finance Ltd

The company's wholly owned subsidiaries Asus Investments Limited, Proffered Limited, RC Trafford Rd Limited and Ferrybridge Capital Limited have loans of £20,619,852 from Together Commercial Finance Limited, which have been secured on the assets of the company. Webuyanyhome Limited, Asus Investments Limited's immediate parent company acts as a cross guarantor of the loan and the director has a personal guarantee against these loans.

The loans from Together Commercial Finance Limited are repayable at a variable monthly interest rate.

Money & Co

The company's subsidiary Kazai Capital Limited has two loan facilities totalling £186,734. Interest rates range between 7% and 8%.

Together Commercial Finance Ltd term loans

The company's wholly owned subsidiary Ferrybridge Capital Limited have loans of £168,700 from Together Commercial Finance Ltd. The loan is 4.49% per annum. All of the facilities are repaid at the end of the Term and repayment dates up to November 2026.

Charles Street Commercial Investments Ltd

The company's subsidiary RC Trafford Rd Limited has a loan totalling £848,000. The loan accrues interest at a monthly variable interest rate of 0.95%. The loan is due to be repaid in June 2025.

Aldermore

The company's wholly owned subsidiary Ferrybridge Capital Limited has a loan totalling £543,750. The loan from Aldermore is repayable at an interest rate of 3.88% for the first 5 years and a variable rate of SONIA plus 2.68% thereafter. The loan is due to be repaid in June 2025.

The Mortgage Lender

The company's wholly owned subsidiary Ferrybridge Capital Limited has loans totalling £462,203. The loans from The Mortgage Lender are repayable at an interest rate ranging between 3.65% and 3.75% for the first 5 years and a variable rate of SONIA plus 4.96% thereafter. The loans are due to be repaid in May 2036 and June 2036.

Foundation Home Loans

The company's wholly owned subsidiary Ferrybridge Capital Limited has loans totalling £186,760. The loans from The Mortgage Lender are repayable at an interest rate of 4.99% for the first 5 years and a variable rate of 5.69% thereafter. The loans are due to be repaid in October 2047.

Kent Reliance

The company's wholly owned subsidiary Ferrybridge Capital Limited has a loan totalling £125,606. The loan from Kent Reliance is repayable at an interest rate of 3.65% for the first 5 years and a variable rate of SONIA plus 6.08% thereafter. The loan is due to be repaid in August 2036.

In the previous year, management identified some matters in relation to procedures relating to the use of digital marketing services within the group. As a result management commissioned a specialist third party firm to assess the VAT liability relating to the purchase of digital marketing services and its practice of recharging costs across the group to ensure that any liability arising is appropriately reflected. The provision represents the best estimate of the VAT liability.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Up to 21 March 2023, there was a single class of Ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.

On 21 March 2023, the company redesignated 50,000 Ordinary shares as 50,000 Ordinary A shares of £1, 12,500 Ordinary B shares of £1 and 12,500 Ordinary C shares of £1. There are no restrictions on the distribution of dividends and repayment of capital.

Other reserves

Other reserves relate to non-distributable reserves arising from revaluation of investment property less deferred tax.

Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.

The group is a guarantor for the PTP Group Ltd lease at St Mary Axe.

Castle Property Holding Group Limited has agreed to guarantee all outstanding liabilities of its subsidiary undertakings Webuyanyhome Limited, Asus Investments Limited, Ferrybridge Capital Limited, Proffered Limited, Sold (Residential) Limited, RC Trafford Rd Ltd, ECX Stamp Savings Ltd, ECX Leasingham Ltd, ECX Acacia Limited and LC Capital Limited under section 479c of the Companies Act 2006 in respect of the year ended 31 December 2024, as part of the conditions to claim exemption from audit.

The group owns 13 residential investments properties for rental purposes (2023: 13). The operating leases represent leases to third parties. The leases are negotiated over terms ranging from 6 months to 3 years and rentals are fixed for these periods.

The group owns 1 commercial property for rental purposes. The operating leases represent leases to third parties and the lease expires in 2046 and has a break clause in 2027.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

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

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

During the period, the group paid dividends to associates totalling £1,717,634 (2023: £560,395).

The company has taken advantage of the exemption available in FRS 102 "Related party disclosures" whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.