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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Solent Industrial Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Caird Avenue, New Milton, Hampshire, United Kingdom, BH25 5PX.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

The company is an indirect subsidiary of Drew Group Holdings Limited and has entered into guarantees in relation to certain group borrowings and liabilities. It also trades with and has balances due to and from group undertakings. true

In assessing whether the financial statements should be prepared on a going concern basis, the directors have considered the outlook of the group and company and in so doing have given consideration to the current and future operating results and cashflow requirements of the business. The directors continue to assess the group’s cashflow requirements and expect its current and future banking and asset finance facilities to be sufficient to provide the group with the resources necessary.

Trading conditions continue to be challenging, and the directors have put in place a number of cost saving and business improvement measures that they expect to lead to improved trading conditions moving forward. In addition, there has been a considerable investment in new plant since the year end which will improve capacity capabilities and margins in key areas.

The directors are confident that that the value of the land and building portfolio is significantly in excess of the borrowings of the group and that they will be able to further strengthen the short term cashflow position of the group by identifying cash generation opportunities from non operating assets as required.

Capital expenditure continues to be managed carefully and asset finance obtained as far as possible for essential capital expenditure.

The group has continued to clear down loan liabilities in line with the banking agreements and several loans were cleared in the year or in early 2025. The directors are working with its existing and new lenders to agree new funding for the group and working closely with them to agree on the most appropriate future funding model for the business. Through disposal of excess property and other assets that are not used in the day to day operations the directors expect to significantly reduce its borrowings towards the end of 2025 and throughout 2026. In addition shareholders have also recently introduced new funds to the business.

Therefore, the directors believe that based on budgeted future trading, the continued support of its lenders, support from its shareholders and known commitments, the group has adequate resources to meet its liabilities as they fall due and the ability to operate as a going concern for a period of at least 12 months from the date of approval of these financial statements.

The directors therefore consider it appropriate to continue to adopt the going concern basis in the preparation of these financial statements.

Turnover is recognised at the fair value of the rentals due during the year in the normal course of business, and is shown net of VAT and other sales related taxes.

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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

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.

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 company 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Equity instruments issued by the company 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 company.

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 company’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 average monthly number of persons (excluding directors) employed by the company during year was nil (2023 - nil). The wages expense recognised in the financial statements is recharged costs from other group companies; the company has no direct employees.

See note 6 for further details of security in respect of bank loans.

There are 3 bank loans:

Two loans carry an interest rate of 2.25% above the Bank of England base rate. Both are repayable in 179 equal monthly instalments.

The third loan carries an interest rate of 2.4% above the Bank of England base rate. The bank loan is repayable in 180 equal monthly instalments.

There are fixed charges over freehold and leasehold properties and floating charges over all assets of the company.

Deferred tax arises on a 1994 revaluation deemed to be cost for the purposes of FRS102. The liability is calculated at 25% (2023: 25%).

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss 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.

The company is a member of a VAT group and has a joint and several liability for the creditor held in another group company at the balance sheet date, of £274,443 (2023: £334,197).

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

The immediate parent company is New Milton Sand and Ballast Limited, incorporated in England and Wales. The registered office is Caird Avenue, New Milton, Hampshire, Caird Avenue, New Milton, BH25 5PX.

The ultimate parent company for which consolidated financial statements are prepared is Drew Group Holdings Limited, incorporated in England and Wales. The registered office is Caird Avenue, New Milton, Hampshire, Caird Avenue, New Milton, BH25 5PX.