REGISTERED NUMBER: 09352102 (England and Wales)

INREACH (BIRMINGHAM) LIMITED

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Report of the Director

2

Report of the Independent Auditors

3

Profit and Loss Account

7

Balance Sheet

8

Notes to the Financial Statements

9

DIRECTOR:

C S J McCann

REGISTERED OFFICE:

The Council House C/O Legal Services

1 Victoria Square

Birmingham

West Midlands

B1 1BB

REGISTERED NUMBER:

09352102 (England and Wales)

AUDITORS:

UHY Hacker Young (Birmingham) LLP

Statutory Auditor

9-11 Vittoria Street

Birmingham

B1 3ND

The director presents her report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a property rental business.

DIRECTORS

C S J McCann has held office during the whole of the period from 1 April 2024 to the date of this report.

Other changes in directors holding office are as follows:

G A Olivant ceased to be a director after 31 March 2025 but prior to the date of this report.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Report of the Director 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 she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company 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;

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

The director is 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 enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, UHY Hacker Young (Birmingham) LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

C S J McCann - Director

19 November 2025

Opinion

We have audited the financial statements of InReach (Birmingham) Limited (the 'company') for the year ended 31 March 2025 which comprise the Profit and Loss Account, Balance Sheet and 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 company's affairs as at 31 March 2025 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Emphasis of matter relating to going concern

We draw your attention to note 2 in the financial statements which indicates that whilst the Directors have concluded that the company has sufficient cashflows to ensure that its debts can be paid as they fall due, there does exist a material uncertainty regarding the company's ability to continue trading as a going concern as a result of the s114 notice issued by the parent entity, Birmingham City Council and its requirement to dispose of property assets in order to fund a budgetary shortfall.

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 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 director is responsible for the other information. The other information comprises the information in the Report of the Director, 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Director has 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Director.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page two, 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 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 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 company or to cease operations, or has 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:

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 company through discussions with directors and

- other management, and from our commercial knowledge and experience of the sector; and

- 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 company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation.

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

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

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

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; 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;

- reading the minutes of meetings of those charged with governance; and

- enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in the audit procedures described above; any instance of non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error. Fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through an act of collusion that would mitigate internal controls.

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation and testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Jack Wilkinson (Senior Statutory Auditor)

for and on behalf of UHY Hacker Young (Birmingham) LLP

Statutory Auditor

9-11 Vittoria Street

Birmingham

B1 3ND

20 November 2025

TURNOVER

1,285,176

1,236,668

Cost of sales

(385,305

)

(466,489

)

GROSS PROFIT

899,871

770,179

Administrative expenses

(119,867

)

(121,345

)

780,004

648,834

Other operating income

1,326,250

17,745

Loss on revaluation of

investment property

-

(2,190,000

)

OPERATING PROFIT/(LOSS)

2,106,254

(1,523,421

)

Interest receivable and similar income

14,821

8,619

2,121,075

(1,514,802

)

Interest payable and similar expenses

4

(808,398

)

(797,626

)

PROFIT/(LOSS) BEFORE TAXATION

1,312,677

(2,312,428

)

Tax on profit/(loss)

(330,000

)

547,500

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

982,677

(1,764,928

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

982,677

(1,764,928

)

FIXED ASSETS

Tangible assets

5

-

-

Investment property

6

17,730,000

16,410,000

17,730,000

16,410,000

CURRENT ASSETS

Debtors

7

194,142

205,845

Cash at bank

58,354

39,527

252,496

245,372

CREDITORS

Amounts falling due within one year

8

(91,617

)

(85,568

)

NET CURRENT ASSETS

160,879

159,804

TOTAL ASSETS LESS CURRENT LIABILITIES

17,890,879

16,569,804

CREDITORS

Amounts falling due after more than one year

9

(14,661,998

)

(14,653,600

)

PROVISIONS FOR LIABILITIES

10

(742,901

)

(412,901

)

NET ASSETS

2,485,980

1,503,303

CAPITAL AND RESERVES

Called up share capital

2,000,100

2,000,100

Retained earnings

485,880

(496,797

)

2,485,980

1,503,303

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

The financial statements were approved by the director and authorised for issue on 19 November 2025 and were signed by:

C S J McCann - Director

1.	STATUTORY INFORMATION

InReach (Birmingham) Limited is a private company, limited by shares and registered in England and Wales. The company's registered address is The Council House C/O Legal Services, 1 Victoria Square, Birmingham, England, B1 1BB and its registered number is 09352102.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102") and the Companies Act 2006.

The presentational and functional currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1.

Material uncertainty related to Going Concern

At 31 March 2025, the company had net current assets of £160,879 (2024 - £159,804) and net assets of £2,485,980 (2024 - £1,503,303). The directors have assessed future cash flow forecasts and consider the company to have sufficient resources to meet its liabilities as they fall due for at least twelve months from the signing of these financial statements and have therefore prepared the financial statements on a going concern basis. This is on the basis that Birmingham City Council (the ultimate controlling party) will not seek repayment of liabilities if this would cause the company to be unable to settle its other liabilities as they fall due.

The company's principal shareholder, Birmingham City Council, has issued a S114 notice, indicating that it needs to reassess and rebalance its financial position. This does not mean that the Council is insolvent however, it will review all its group and asset holdings as part of its Improvement and Recovery Plan, and a recommendation may be made to Members and Commissioners to sell the Council's interest in InReach (Birmingham) Limited (as shareholder). As a result, whilst the accounts have been prepared on a going concern basis, a material uncertainty exists in relation to going concern.

Sources of estimation uncertainty

As described in note 6, land and buildings are stated at fair value based on the valuation performed by an independent professional valuer, Avison Young with experience in the location and category of property value. The valuer used a traditional investment method of valuation, adjusted as necessary for any difference in the future, location or condition of the specific asset. However, the Russia-Ukraine war and the Covid-19 pandemic have caused significant disruption and uncertainty in the UK property market which has increased the degree of judgement involved in the property valuation at 31 March 2025.

Turnover

Revenue is recognised to the extent that it is probable economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from a contract to provide services is recognised in the period in which the services are provided.

Rental income is exempt from VAT, VAT incurred on expenditure is irrecoverable.

Interest receivable and payable

Interest receivable and interest payable are recognised in profit or loss as they accrue, using the effective interest method.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged to profit or loss over the estimated useful economic lives, as follows -

- Fixtures and fittings - 4 years on a straight line 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.

Repairs and maintenance costs are charged to profit or loss during the period in which they are incurred.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. Any impairment loss is recognised immediately as an expense within the profit or loss.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit arising on revaluation is recognised in profit or loss. An external agent is employed, whereby the asset is treated as operational freehold property and valued using a traditional method of valuation.

Basic financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Current and deferred taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or direct in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowance have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2024 - 2 ) .

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest on loan from parent

undertaking

808,398

797,626

808,398

797,626

5.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2024

and 31 March 2025

162,993

DEPRECIATION

At 1 April 2024

and 31 March 2025

162,993

NET BOOK VALUE

At 31 March 2025

-

At 31 March 2024

-

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2024

16,410,000

Revaluation

1,320,000

At 31 March 2025

17,730,000

NET BOOK VALUE

At 31 March 2025

17,730,000

At 31 March 2024

16,410,000

The 2025 valuation of Investment Property was made by Avison Young (UK) Limited on a fair value basis.

Fair value at 31 March 2025 is represented by:

£

Valuation in 2019

14,758,397

Valuation in 2020

9,544,877

Valuation in 2021

(268,274

)

Valuation in 2022

(5,435,000

)

Valuation in 2024

(2,190,000

)

Valuation in 2025

1,320,000

17,730,000

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

84,351

88,150

Prepayments

66,237

77,752

Accrued Income

43,554

39,943

194,142

205,845

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

37,417

28,567

Accrued Expenses

32,959

38,689

Deferred Income

21,241

18,312

91,617

85,568

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Loan due to parent undertaking

14,661,998

14,653,600

The loan due to parent undertaking of £14,661,998 (2024 : £14,653,600) is secured by way of first legal charge on the freehold property held by Inreach (Birmingham) Limited. Interest is payable on this loan at a rate of 5.5%, with the capital repayments due to begin from 31 March 2054.

10.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

742,901

412,901

Deferred

tax

£

Balance at 1 April 2024

412,901

Change in Valuation

330,000

Balance at 31 March 2025

742,901

11.	RELATED PARTY TRANSACTIONS

As at 31 March 2025, the company owed £14,661,998 (2024: £14,653,600) to Birmingham City Council, the sole shareholder. Interest of £808,398 (2024: £797,626) has been charged for the year.

The company also purchased services of £36,903 (2024: £50,256) from Birmingham City Council during the year.

The company is wholly owned by Birmingham City Council whose registered office is The Council House, Victoria Square, Birmingham, West Midlands, B1 1BB. Birmingham City Council draws up consolidated accounts, of which Inreach (Birmingham) Limited are included.