REGISTERED NUMBER: 05107546 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 March 2025

for

Gladman Retirement Living Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

J M S Shepherd

D J Gladman

S D J Gladman

K J Gladman

J E Gladman

E J A Gladman

J K Chadwick

SECRETARY:

J M S Shepherd

REGISTERED OFFICE:

Adlington House

Alexandria Way

Congleton

Cheshire

CW12 1LB

REGISTERED NUMBER:

05107546 (England and Wales)

AUDITORS:

Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

The principal activity of the group during the year was that of designing, constructing and selling retirement apartments. Our vision is to empower our older generation to live a long, happy and healthy life, and we create quality homes for individuals who want to remain independent. There is a recognised housing shortage in the retirement living sector and many organisations in the sector do not offer personal care. This, together with the creation of active communities, offers a key selling point to many prospective buyers, as this is a needs-based purchase.

The underlying volume of sales in the year improved marginally on prior years however the sales rate was still significantly slower than expected and that allied to reductions sales price, increased holding costs and impairment reviews of the stock resulted in a significant loss for the company.

Sales performance continued to be frustrated by several wider economic and market issues. Interest rates remained higher for longer, cost of living inflationary pressures and political uncertainty gave rise to a challenging housing market, and whilst our target market was perhaps less impacted by the economic conditions, there is a level of inertia within the market which is proving difficult to overcome, resulting in a slower sales trajectory at our retirement schemes.

The Newcastle under Lyme scheme was completed in summer 2024 and work continued on-site at Exeter and Knaresborough, which will provide a strong pipeline as the business focus is on improving sales velocity and selling out existing schemes in the new financial year.

The business is managed not only by the senior leadership team but also the directors, who are also the principal shareholders of the group. The business has a stable team of long-term partner businesses who provide the company with services, expertise, consultancy, materials and the construction function, to complement the management and decision-making skills of Gladman Retirement Living Limited's team of employees.

One of the most significant partners in this process is Gladman Homes LLP, a partnership whose principal partners are also directors of Gladman Retirement Living Limited. Gladman Homes LLP manages the construction of the retirement apartments on a cost-plus profit margin basis for the group. Gladman Homes LLP is seen as the default principal contractor (in turn employing sub-contractors, procuring building materials, and completely project managing the construction process including on-site management).

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are constantly mindful of various risks which could significantly impact on the financial performance of the business and comment upon these issues as follows:

a) Inflationary Pressures / Price risk

Whilst the rise in the cost of living and lowering interest rates may have less of an impact on our target customer base, it will have an impact on the wider housing market and sales chain, posing the risk of a slower sales trajectory at our retirement schemes. The Directors remain confident that through structured and targeting marketing along with some of our innovative sales incentives and structures we will deliver the remaining apartment sales during the next financial year.

The business itself is not immune to inflationary pressure on costs principally build cost inflation. Gladman Homes LLP, our main contractor, has a long track record in delivering best value and managing large and complicated build programs. Gladman Homes LLP work with long established subcontractors who have the relevant expertise, delivery capacity and economies of scale required.

In addition, the Directors along with the senior management team carry out robust appraisals of every scheme before the site is acquired and development commences. The business has access to range of in-house experts with a breadth of technical knowledge across all aspects of construction, development, sales and financing.

b) Borrowing facilities are reduced/terminated and cashflow risk

The directors remain extremely confident that their track record will ensure that adequate banking facilities will continue to be available to them for the foreseeable future. Our new banking facility is secured until November 2028, funding relationships remain strong, and our funding partners are supportive of the growth strategy.

c) Major accident

The contractual structure of the group results in the development contractor, Gladman Homes LLP, or other external main contractors, being legally responsible for the construction process including health and safety issues and legislation.

Gladman Homes LLP are an associated business with close links, and the directors are fully satisfied that Gladman Homes LLP gives sufficient priority, resources and emphasis to health & safety and does not allow finance, deadlines or any other expediency to reduce its high standards in this regard.

d) Liquidity risk

The directors regularly review the liquidity of the Group and responds as needed. Given the size and nature of the risk this is considered to be effective.

e) Credit risk

Credit risk is deemed to be minimal as a buyer cannot move into a property until they have paid.

FUTURE DEVELOPMENTS

The aim of the directors of the group for the coming year is to focus on improving sales velocity and selling out existing schemes in the new financial year.

KEY PERFORMANCE INDICATORS

Profit ratios

Total turnover: Group £29,080,786 (2024: £26,451,930).

Solvency ratios

Current ratio

Current assets/ Current liabilities (%) Group 8.9 (2024: 13.7).

Capital ratios

Current creditors / Shareholders funds (%) Group 24.1% (2024: 13.0%).

Total liabilities / Shareholders funds (%) Group 137% (2024: 93.7%).

ON BEHALF OF THE BOARD:

J M S Shepherd - Director

28 November 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of development of retirement homes and apartments for sale.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

There was £99 non equity dividend paid during the year. (2024: £99).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

J M S Shepherd

D J Gladman

S D J Gladman

K J Gladman

J E Gladman

E J A Gladman

J K Chadwick

DISCLOSURE IN THE STRATEGIC REPORT

The "Review of Business, Future Developments, Key Performance Indicators and Principal Risks and Uncertainties" sections required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 have been included in the separate Strategic Report in accordance with section 414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are 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 directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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 directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Bennett Brooks & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M S Shepherd - Director

28 November 2025

Opinion

We have audited the financial statements of Gladman Retirement Living Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 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 March 2025 and of the group's 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.

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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Directors 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 Directors 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 Directors.

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 directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the group or the parent company or to cease operations, or have 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:

Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and regulations which govern the preparation of financial statements and we considered the extent to which non-compliance might have a material effect on the financial statements.

We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated managements incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inappropriate journals entries to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business.

Audit procedures performed included

- Enquiry of management around actual and potential litigation and claims and instances of non-compliance with laws and regulations;

- Auditing the risk of management override of controls, through testing journals entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business and;

- Reviewing financial statement disclosures and agreeing to supporting documentation to assess compliance with applicable laws and regulations.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may be deliberate concealment by for example, forgery or intentional misrepresentation, or through collisions.

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.

Jason Leach FCA (Senior Statutory Auditor)

for and on behalf of Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

28 November 2025

TURNOVER

3

29,080,786

26,451,930

Cost of sales

(37,541,270

)

(26,595,360

)

GROSS LOSS

(8,460,484

)

(143,430

)

Administrative expenses

(4,139,562

)

(4,372,775

)

(12,600,046

)

(4,516,205

)

Other operating income

4

490,174

441,020

OPERATING LOSS

6

(12,109,872

)

(4,075,185

)

Interest receivable and similar income

40,151

45,052

(12,069,721

)

(4,030,133

)

Amounts written off investments

7

-

(100

)

Gain/loss on revaluation of investment property

2,251,241

-

(9,818,480

)

(4,030,233

)

Interest payable and similar expenses

8

(752,657

)

(585,350

)

LOSS BEFORE TAXATION

(10,571,137

)

(4,615,583

)

Tax on loss

9

(667,794

)

-

LOSS FOR THE FINANCIAL YEAR

(11,238,931

)

(4,615,583

)

Loss attributable to:

Owners of the parent

(11,238,931

)

(4,615,583

)

LOSS FOR THE YEAR

(11,238,931

)

(4,615,583

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(11,238,931

)

(4,615,583

)

Total comprehensive loss attributable to:

Owners of the parent

(11,238,931

)

(4,615,583

)

FIXED ASSETS

Tangible assets

12

3,063,909

3,115,850

Investments

13

-

-

Investment property

14

7,673,000

5,001,000

10,736,909

8,116,850

CURRENT ASSETS

Stocks

15

112,041,992

112,505,271

Debtors: amounts falling due within one year

16

2,631,851

2,730,855

Debtors: amounts falling due after more than one year

16

2,675,050

2,284,287

Cash at bank

5,022,848

4,615,380

122,371,741

122,135,793

CREDITORS

Amounts falling due within one year

17

(13,509,040

)

(8,733,550

)

NET CURRENT ASSETS

108,862,701

113,402,243

TOTAL ASSETS LESS CURRENT LIABILITIES

119,599,610

121,519,093

CREDITORS

Amounts falling due after more than one year

18

(63,199,531

)

(54,273,048

)

PROVISIONS FOR LIABILITIES

22

(392,965

)

-

NET ASSETS

56,007,114

67,246,045

CAPITAL AND RESERVES

Called up share capital

23

61,282,465

61,282,465

Share premium

9,199,000

9,199,000

Capital redemption reserve

34

34

Retained earnings

(14,474,385

)

(3,235,454

)

SHAREHOLDERS' FUNDS

56,007,114

67,246,045

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

J M S Shepherd - Director

FIXED ASSETS

Tangible assets

12

3,063,681

3,115,423

Investments

13

101

101

Investment property

14

7,673,000

5,001,000

10,736,782

8,116,524

CURRENT ASSETS

Stocks

15

112,041,992

111,545,771

Debtors: amounts falling due within one year

16

2,819,271

3,777,502

Debtors: amounts falling due after more than one year

16

2,675,049

2,284,287

Cash at bank

4,976,567

4,551,201

122,512,879

122,158,761

CREDITORS

Amounts falling due within one year

17

(13,428,951

)

(8,690,337

)

NET CURRENT ASSETS

109,083,928

113,468,424

TOTAL ASSETS LESS CURRENT LIABILITIES

119,820,710

121,584,948

CREDITORS

Amounts falling due after more than one year

18

(63,199,531

)

(54,273,048

)

PROVISIONS FOR LIABILITIES

22

(392,965

)

-

NET ASSETS

56,228,214

67,311,900

CAPITAL AND RESERVES

Called up share capital

23

61,282,465

61,282,465

Share premium

9,199,000

9,199,000

Capital redemption reserve

34

34

Retained earnings

(14,253,285

)

(3,169,599

)

SHAREHOLDERS' FUNDS

56,228,214

67,311,900

Company's loss for the financial year

(11,083,686

)

(4,558,892

)

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

J M S Shepherd - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

61,282,465

1,380,129

9,199,000

34

71,861,628

Changes in equity

Total comprehensive loss

-

(4,615,583

)

-

-

(4,615,583

)

Balance at 31 March 2024

61,282,465

(3,235,454

)

9,199,000

34

67,246,045

Changes in equity

Total comprehensive loss

-

(11,238,931

)

-

-

(11,238,931

)

Balance at 31 March 2025

61,282,465

(14,474,385

)

9,199,000

34

56,007,114

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

61,282,465

1,389,293

9,199,000

34

71,870,792

Changes in equity

Total comprehensive loss

-

(4,558,892

)

-

-

(4,558,892

)

Balance at 31 March 2024

61,282,465

(3,169,599

)

9,199,000

34

67,311,900

Changes in equity

Total comprehensive loss

-

(11,083,686

)

-

-

(11,083,686

)

Balance at 31 March 2025

61,282,465

(14,253,285

)

9,199,000

34

56,228,214

Cash flows from operating activities

Cash generated from operations

1

(7,896,939

)

(20,124,429

)

Interest paid

(585,250

)

-

Finance costs paid

(99

)

(99

)

Net cash from operating activities

(8,482,288

)

(20,124,528

)

Cash flows from investing activities

Purchase of tangible fixed assets

(76,878

)

(52,304

)

Interest received

40,151

45,052

Net cash from investing activities

(36,727

)

(7,252

)

Cash flows from financing activities

New loans in year

24,640,428

63,553,008

Loan repayments in year

(15,713,945

)

(40,056,813

)

Net cash from financing activities

8,926,483

23,496,195

Increase in cash and cash equivalents

407,468

3,364,415

Cash and cash equivalents at beginning of year

2

4,615,380

1,250,965

Cash and cash equivalents at end of year

2

5,022,848

4,615,380

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

2025

2024

as restated

£

£

Loss before taxation

(10,571,137

)

(4,615,583

)

Depreciation charges

128,819

114,243

Gain on revaluation of fixed assets

(2,251,241

)

-

Finance costs

752,657

585,350

Finance income

(40,151

)

(45,052

)

(11,981,053

)

(3,961,042

)

Decrease/(increase) in stocks

463,279

(17,687,964

)

Increase in trade and other debtors

(1,817,859

)

(810,868

)

Increase in trade and other creditors

5,438,694

2,335,445

Cash generated from operations

(7,896,939

)

(20,124,429

)

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:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

5,022,848

4,615,380

Year ended 31 March 2024

31.3.24

1.4.23

as restated

£

£

Cash and cash equivalents

4,615,380

1,250,965

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

4,615,380

407,468

5,022,848

4,615,380

407,468

5,022,848

Debt

Debts falling due after 1 year

(54,273,048

)

(8,926,483

)

(63,199,531

)

(54,273,048

)

(8,926,483

)

(63,199,531

)

Total

(49,657,668

)

(8,519,015

)

(58,176,683

)

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling(£).

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.

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 accounts have been consistently prepared in line with prior years with a prior year adjustment being recognised due to a change in accounting policy. This is explained further in note 11 and in the following accounting policies.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for retirement apartments and ancillaries sold by the company.

Turnover is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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. In respect of retirement apartments sold, this is at the point that contracts have been unconditionally legally exchanged.

In respect of retirement apartments sold, deferred management fees are payable to the company at the rate of between 1.75% to 4% of the market value of the apartment at the date of the subsequent disposal, for each year, up to a maximum of 5-10 years, the the apartment is owned by the purchaser.

For schemes where there are still properties to be sold included in work in progress at the year end, the value of the amount recoverable at the year end is estimated. In order to estimate the value, it is necessary to estimate the future selling proceeds of the apartments. The amount recoverable is re-assessed each year and the adjustments reflected in the Income Statement.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

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

Freehold land and buildings - 2% on cost

Fixtures and fittings - 25% on cost

Computer equipment - 25% on cost

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 the Income Statement.

Investment property

Following the change in accounting policy detailed in note 11, investment Property includes the Group's contractual rights to future Deferred Management Fees arising from sites where all apartments have been sold. The Investment Property for each site is measured at fair value, with changes in fair value recognised in the Income Statement. The fair value of the investment property is determined using a discounted cash flow approach which estimates the present value of expected future Deferred Management Fees based on forecast resident tenure and market discount rates.