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Registered number:
and subsidiary undertakings
FOR THE YEAR ENDED 30 MARCH 2025
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GROSS-HILL PROPERTIES LIMITED
COMPANY INFORMATION
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GROSS-HILL PROPERTIES LIMITED
CONTENTS
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GROSS-HILL PROPERTIES LIMITED
CHIEF EXECUTIVE'S REPORT
FOR THE YEAR ENDED 30 MARCH 2025
The Chief Executive presents his report for the period.
Summary
The Group’s results have been impacted by challenging investment property conditions, coupled with continuing geo-political and macro-economic uncertainty. Whilst uncertainties remain elevated, inflation has fallen sharply, and interest rates are on a, albeit modest, downward trend. If sustained, this provides a positive backdrop for a continued recovery of investment market sentiment, and a positive future outlook. The Group suffered from some downward revaluations of its property portfolio, something that has been commonly experienced throughout the commercial property investment market. However, the Group’s specific investment strategy, which includes a significant proportion of its properties on indexed linked leases, allowed for some resilience against downward valuations when compared to the overall market. These indexed linked leases provide future rental growth to strengthen the income stream of the Group. The value of the Group property portfolio is £41.0 million (2024: £47.3 million). The Group’s ongoing strategy continues to be that of selectively investing in real estate assets in defensive situations that provide long term rental income with inflation protection. This will deliver secure growing income streams and provide a strong foundation for capital growth while continuing to deliver attractive risk-adjusted returns for shareholders over the long term. The Group is financed with leverage considered by the Board to be appropriate to asset specific and wider market risks but is also actively seeking to reduce its debt exposure, and continues to aggressively amortise its secured bank debt. The Group continues to generate strong net cash inflows from its core property investment activities, which allows for this strategy to be pursued. As a result, the Group performs exceptionally well against its bank covenants, and the Group capitalised on this to negotiate a reduction in the margin it pays on the majority of its bank debt, which will produce significant ongoing interest savings. At a time when many similar investors are struggling to satisfy bank covenants and refinance debt in the face of challenging market conditions, this margin reduction reflects the high level of confidence that its key external banking partner has in the future outlook and prospects of the Group. The Consolidated Statement of Comprehensive Income is showing a loss after tax of £8.3 million (2024: profit of £0.7 million), with impairments recognised of £4.4 million (2024: £0.7 million) to its property lending activities being a significant contributing factor. The commercial lending business reported a loss after tax of £2.4 million (2024: profit of £0.5 million), and on 30 March 2025 it had a gross loan book of £9.5 million (2024: £9.0 million). The net assets of the Group are £6.5 million (2024: £9.2 million). The Group paid dividends to its parent totalling £5.0 million (2024: £8.5 million) during the year.
Group Balance Sheet
Shareholder funds have decreased by £2.7 million. During the year, the parent company of the Group issued share capital at par totalling £10.5 million to its parent, Boughton Holdings Limited. The Group continues to be liquid with cash balances totalling £2.1 million (2024: £5.2 million). Significant Events
∙In April 2024, the Group capitalised on its strong performance against its bank covenants to negotiate a 0.35% reduction in the margin it pays on the majority of its bank debt, representing debt of £16.6 million at the reporting date. This will produce significant ongoing interest savings.
∙In July 2024, the Group refinanced its facility with Santander on its Pitmedden ground rent portfolio, agreeing a new 3-year term on the same terms as the previous facility. The net facility is £1.7 million after the Group repaid Santander £0.6 million as part of the refinancing, in line with its policy to maintain a low gearing in the uncertain market and economy.
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GROSS-HILL PROPERTIES LIMITED
CHIEF EXECUTIVE'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2025
∙In October 2024, the Group’s commercial lending business was rebranded to Fast & Flexible International Lending.
∙After the reporting date, in July 2025, the Group completed on the sale of its property in North Street, Glasgow for a consideration of £3.1 million. This delivered a profit on disposal of £0.3 million.
Management and staff
Throughout another demanding year our team have performed very well, and I again extend my thanks for all their efforts. Richard Anning, who has acted as Non-Executive Chairman of the Group since 2021, retired on 22 July 2024. We thank Richard for his sound advice and wise counsel in this role. Richard will continue as a Non-Executive director. Andrew Armstrong, who joined the Board as a Non-Executive Director in May 2021 after 43 years with HSBC, became Non-Executive Chairman of the Group on 22 July 2024. We look forward to continuing to benefit from Andy’s huge depth of experience and wise counsel. Livi Jordan, who joined the Group in 2014, and progressed from Financial Controller to Finance Director of the Sydney & London Properties Group, resigned on 14 August 2024. We thank Livi for her many years of hard work and support. Katharine Collyer, who joined the Group in 2005 and progressed to become a Director and Company Secretary of the Group, resigned on 27 August 2024. We thank Kate for her many years of diligent and conscientious service. Alix Mortimer became Company Secretary of the Group on 2 September 2024. Alix has been with the Group in accounting roles for 16 years. Future Outlook Throughout several property cycles the Group has pursued a long-term successful strategy focused on high quality well located and tenanted properties throughout the UK. The board continues to consider various possible funding options and strategies and has concluded that its existing financing method and strategy remain appropriate. In the near term, the board intends to continue its selective disposal programme recycling sales proceed into developing and refurbishing existing properties and further reducing leverage within the Group.
NameS. J. Childs
Chief Executive
Date26 September 2025
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GROSS-HILL PROPERTIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 MARCH 2025
The directors present their report and the audited financial statements for the year ended 30 March 2025.
The directors are responsible for preparing the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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.
The directors who served during the year were:
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GROSS-HILL PROPERTIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2025
The auditors, Wilder Coe Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
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GROSS-HILL PROPERTIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROSS-HILL PROPERTIES LIMITED
We have audited the financial statements of Gross-Hill Properties Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 March 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 or 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.
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GROSS-HILL PROPERTIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROSS-HILL PROPERTIES LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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GROSS-HILL PROPERTIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROSS-HILL PROPERTIES LIMITED (CONTINUED)
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 Auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:
∙Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law, tax legislation and distributable profits legislation; and
∙Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements, include health and safety legislation, employment law, and laws and regulations around planning and lettings.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 Auditors' Report.
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GROSS-HILL PROPERTIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROSS-HILL PROPERTIES LIMITED (CONTINUED)
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 an Auditors' 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.
for and on behalf of
Chartered Accountants and Statutory Auditors
1st Floor Sackville House
143-149 Fenchurch Street
EC3M 6BL
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GROSS-HILL PROPERTIES LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 MARCH 2025
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GROSS-HILL PROPERTIES LIMITED
REGISTERED NUMBER: 01762000
CONSOLIDATED BALANCE SHEET
AS AT 30 MARCH 2025
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GROSS-HILL PROPERTIES LIMITED
REGISTERED NUMBER: 01762000
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 MARCH 2025
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 33 form part of these financial statements.
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GROSS-HILL PROPERTIES LIMITED
REGISTERED NUMBER: 01762000
COMPANY BALANCE SHEET
AS AT 30 MARCH 2025
The Company's loss for the financial year was £13,320 (2024: profit of £365,581).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 33 form part of these financial statements.
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GROSS-HILL PROPERTIES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 MARCH 2025
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GROSS-HILL PROPERTIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 MARCH 2025
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Gross-Hill Properties Limited (the 'Company') registered at 1st Floor, Sackville House, 143-149 Fenchurch Street, EC3M 6BN, is a private company limited by shares and incorporated and domiciled in the UK. The principal place of business is Third Floor, Park House, Greyfriars Road, Cardiff, CF10 3AF.
2.Accounting policies
The consolidated financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
The consolidated financial statements incorporate the results of the Company and its subsidiary undertakings made up to 30 March 2025. A subsidiary is an entity that is controlled by the parent. The results of subsidiary undertakings are included in the Consolidated Statement of Comprehensive Income from the date that control commences until the date that control ceases. Control is established when the Company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable.
A joint venture is a contractual arrangement undertaking in which the Group exercises joint control over the operating and financial policies of the entity. Where the joint venture is carried out through an entity, it is treated as a jointly controlled entity. The Group’s share of the profits less losses of jointly controlled entities is included in the Consolidated Statement of Comprehensive Income and its interest in their net assets is recorded on the Balance Sheet using the equity accounting method. In the parent financial statements, investments in subsidiaries are carried at cost less impairment.
Functional and presentation currency
Transactions and balances
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
2.Accounting policies (continued)
The Company has taken advantage of the exemption in Section 1A.7 of Financial Reporting Standard 102 from the requirement to produce a Consolidated Statement of Cash Flows on the grounds that it is a small company.
As at 30 March 2025, the Group had net current liabilities of £14,501,046 (2024: £17,769,239), including cash of £2,054,503 (2024: £5,188,619). The Group had net assets of £6,462,904 (2024: £9,243,787) and reported a loss for the year then ended of £8,330,883 (2024: profit of £723,440). The directors have prepared the financial statements on a going concern basis which they consider to be appropriate for the following reasons:
The Directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides on the operations and its financial resources, the Group and Company will have sufficient funds to meet its liabilities as they fall due for that period. The Directors have also considered amounts currently due to related undertakings, which at 30 March 2025 amounted to £38.1 million (2024: £43.5 million) and are repayable either on demand or on 6 months’ notice. All undertakings to which these balances relate have confirmed that they are prepared to provide support to the Group if necessary and not call in the outstanding loans in at least the next 12 months. Consequently, the Directors are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Turnover, which is stated net of VAT, consists of rental income earned from properties held for investment purposes. Rental income is recognised in the Consolidated Statement of Comprehensive Income on a straight-line basis over the expected term of the lease. Lease incentives are recognised in the Consolidated Statement of Comprehensive Income over the non-cancellable period of the lease.
Proceeds from the sale of investment properties are not included in turnover, and the related profit or loss is calculated with reference to the carrying amount in the Balance Sheet. Purchases and sales of investment properties are accounted for when exchanged contracts become unconditional.
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.
Trade and other debtors / creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. Interest-bearing borrowings classified as basic financial instruments Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
2.Accounting policies (continued)
Independent professional valuations for investment properties are obtained by the Directors annually, unless the Directors consider it appropriate to value the investment properties internally. Other fixed asset investments are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value through profit or loss. Subsequent to initial recognition, investments that can be measured reliably are measured at fair value with changes recognised in the Consolidated Statement of Comprehensive Income. Income from fixed asset investments is included in the Consolidated Statement of Comprehensive Income for the financial year in which it is receivable.
Investments in equity instruments are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value through profit or loss. Subsequent to initial recognition, investments that can be measured reliably are measured at fair value with changes recognised in the Consolidated Statement of Comprehensive Income.
Other investments are measured at cost less impairment in the Consolidated Statement of Comprehensive Income. Income from current asset investments is included in the Consolidated Statement of Comprehensive Income for the financial year in which it is receivable.
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
2.Accounting policies (continued)
All relevant assets that are not considered for a specific provision are assessed collectively. Collective provisions will be determined by the Directors based on their best estimates taking into consideration relevant factors until such time when sufficient evidence exists to benchmark the performance against historical performance of the loan book. If the reasons for provisions or impairment losses have ceased to apply or decreased, the entity shall reverse the provisions and/or impairment losses in the subsequent period, partially or in their entirety.
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the Balance Sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the Balance Sheet date. For investment property that is measured at fair value, deferred tax is provided at the rates and allowances applicable to the sale of the property. Deferred tax balances are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Page 19
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
2.Accounting policies (continued)
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
Page 20
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 21
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
The Group has taxable trading losses of £18,235,623 (2024: £16,654,322 as restated), non-trade loan relationship losses of £2,230,229 (2024: £1,736,229 as restated) and capital losses of £1,847,258 (2024: £1,847,258) available to carry forward which may affect future tax charges.
Page 22
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
The fair value of the investment properties at 30 March 2025 is based on a valuation by an external, independent valuer, Avison Young. The report has been prepared in accordance with RICS Valuation – Global Standards 2025 – VPGA1 - Valuations for inclusion in the financial statements which adopts the definition of Fair Value adopted by the International Accounting Standards Board (IASB) in IFRS 13.
Page 23
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 24
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 25
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 26
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Subsidiary undertakings (continued)
Page 27
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 28
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 29
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 30
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Page 31
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Non distributable profit reserve
Profit and loss account
Non-distributable consolidation reserve
Included in creditors due in less than one year are loans totalling £21,034,434 (2024: £21,206,371) due to Dorsham Investments Limited. This company is under the ultimate control of Michael Gross and Danielle Beissah Katri (see note 22). The loans are non-interest bearing.
Included in creditors due in more than one year are loans totalling £10,608,825 (2024: £10,608,825) due to Dorsham Investments Limited. The loans are non-interest bearing. Included in other debtors and prepayments is a balance of £170,848 (2024: £Nil) which represents amounts due from a property venture located in Israel. The group has a 16% investment in this property venture. During the year, purchases of £187,320 (2024: £246,776) were made from key management personnel of the Group in relation to consultancy services rendered. The Group has taken advantage of the exemption in Financial Reporting Standard 102, Section 33.1A not to disclose transactions with group entities which are wholly owned by a member of a group.
Page 32
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GROSS-HILL PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2025
Non-distributable profit reserve
During the year, the Directors identified that the profit and loss account as at 30 March 2023 and 30 March 2024 included an amount relating to historic revaluation losses on intra-group sales of investment property. The losses had previously been transferred from the non-distributable profit reserve to the profit and loss account. This treatment is not appropriate given that the losses remain unrealised within the Group. As a result, an adjustment has been made to reclassify this amount within equity from the profit and loss account to the non-distributable profit reserve. The reclassification has no impact on total equity or previously reported profit or loss, but it has resulted in an increase in the balance of the profit and loss account as at 30 March 2023 and 30 March 2024 of £3,244,349, with a corresponding decrease in the non-distributable profit reserve at these dates. On 22 July 2025, subsequent to the Balance Sheet date, Balfe Limited completed the sale of its freehold property located at 123-145 North Street, Glasgow, G3 7DA to an unconnected company, for a total consideration of £3,100,000. The carrying value of the property as at 30 March 2025 was £2,710,000, and the sale resulted in a gain, net of selling costs, of approximately £334,000, which will be recognised in the financial statements for the year ending 30 March 2026. This event is considered a non-adjusting post Balance Sheet event under FRS 102 Section 32, as the conditions leading to the sale did not exist at the Balance Sheet date. Accordingly, no adjustment has been made to the carrying amount of the property in these financial statements. However, disclosure is considered necessary to ensure that the financial statements are not misleading. Repayment of loan provided for during the year On 8 May 2025, subsequent to the Balance Sheet date, Northwood Birmingham Ltd repaid in full a loan for which a provision for impairment of £327,057 had been recognised within the Group accounts for the year ended 30 March 2025. As at 30 March 2025, the carrying value of the loan receivable was £1,264,729, with a provision of £327,057 recognised in the financial statements. The full repayment will be recognised in the financial statements for the year ending 30 March 2026. This event is considered a non-adjusting post Balance Sheet event under FRS 102 Section 32, as the repayment occurred after the Balance Sheet date and the conditions leading to the repayment did not exist at said date. No adjustment has been made to the carrying value of the loan in these financial statements, but disclosure is provided to ensure the accounts remain clear and not misleading.
The immediate and ultimate parent undertaking of the Company is Boughton Holdings Limited, a company incorporated in Gibraltar. Boughton Holdings Limited is under the control of Michael Gross, the sole shareholder.
The Company heads the largest group of undertakings for which group financial statements are drawn up, and of which the Company is a member. These consolidated financial statements are available to the public and may be obtained from Park House, Greyfriars Road, Cardiff, CF10 3AF.
Page 33
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