REGISTERED NUMBER: 02072876 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

SEP PROPERTIES LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Palminder Singh

Engrez Singh

Dharminder Singh Sanghera

Verinda Singh Sanghera

SECRETARY:

Palminder Singh

REGISTERED OFFICE:

Dudley House1st Floor

Dudley House

Stone Street

DUDLEY

West Midlands

DY1 1NS

REGISTERED NUMBER:

02072876 (England and Wales)

AUDITORS:

E R Grove & Co Limited

Chartered Accountants and Statutory Auditors

Grove House

Coombs Wood Court

Steel Park Road

Halesowen

West Midlands

B62 8BF

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

The group ia a privately owned property investor and developer with a portfolio throughout the UK.

REVIEW OF BUSINESS

The directors have continued their strategy of carefully managing the portfolio and have delivered excellent results. The income statement shows rental income up from £11.5m to just over £12m.

The group continues to have a good relationship with and support from lenders and the directors have reviewed projected best estimates of rental income and forecast interest costs so that any weakness in debt servicing cover can be eliminated before becoming a concern.

Total equity attributable to shareholders was £90m (2024: £87m), an increase of 3.4% as a result of profits generated in the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's primary asset consists of direct investment in a mix of UK commercial and residential property and its principal risks are therefore a reduction in the value of properties, the collection of rent and costs associated with any vacant units.

- Availability and cost of debt finance

The directors acknowledge there is a refinancing risk and make provision for cash equity injections on refinances by holding reserves of cash and unencumbered properties. By keeping gearing at a cautious level, it is proposed that the group will remain an attractive proposition to lenders.

- Economic climate

The directors recognise that economic conditions are outside of the group's control. The potential effects of these are wide ranging making them difficult to predict and plan for.

However, the well-diversified mix of retail, office and residential tenants with a strong balance sheet leads the board to conclude that the group is well buffered against future economic challenges.

- Environmental

The energy performance rating of properties is becoming increasingly important to both tenants and investors.

The directors evaluate each property within the portfolio to highlight any that present an opportunity to make improvements to their environmental impact. The group have already commenced an ongoing programme of improvements. even though the government have now relaxed their provisions, the group remain committed to their programme.

- Tenant default

The opportunity for this risk to have a material impact on the group is mitigated by having a diversified portfolio and a wide tenant base where no single tenant represents a substantial part of the business. All prospective tenants are credit assessed.

KEY PERFORMANCE INDICATORS

We consider that our key performance indicators are those that communicate the financial performance and strength of the company, these are rental income, gearing and profitability.

2025

2024

Rental income

£12,103,327

£11,516,771

Residential occupancy rate

97%

97%

Profit before tax

£3,454,209

£4,568,553

The portfolio has performed well and demonstrates that the mix together with excellent asset management is key to excellent property returns.

ON BEHALF OF THE BOARD:

Palminder Singh - Director

22 December 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 123,370 .

DIRECTORS

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

Palminder Singh

Engrez Singh

Dharminder Singh Sanghera

Verinda Singh Sanghera

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Palminder Singh - Director

22 December 2025

Opinion

We have audited the financial statements of SEP Properties Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of 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 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 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 four, 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:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006, the principles of United Kingdom Generally Accepted Accounting Practice and tax legislation.

We designed audit procedures to respond to the risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion.

We focused on laws and regulations that could give rise to a material misstatement in the Company financial statements. Our tests included, but were not limited to:

- agreement of the financial statement disclosures to underlying supporting documentation;

- enquiries of management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- review of minutes of Directors' board meetings throughout the year; and

- obtaining an understanding of the control environment in monitoring compliance with laws and regulations.

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. We also addressed the risk of management override of internal controls, including testing journals, assessing and challenging the accounting estimates made and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

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.

Steven Lomas (Senior Statutory Auditor)

for and on behalf of E R Grove & Co Limited

Chartered Accountants and Statutory Auditors

Grove House

Coombs Wood Court

Steel Park Road

Halesowen

West Midlands

B62 8BF

22 December 2025

TURNOVER

3

12,103,327

11,516,771

Cost of sales

404,841

215,992

GROSS PROFIT

11,698,486

11,300,779

Administrative expenses

2,432,362

2,231,201

9,266,124

9,069,578

Other operating income (including value adjustments)

4

1,007,087

2,129,356

OPERATING PROFIT

6

10,273,211

11,198,934

Income from fixed asset investments

1,919

1,467

Interest receivable and similar income

7,294

2,631

9,213

4,098

10,282,424

11,203,032

Interest payable and similar expenses

7

6,828,215

6,634,479

PROFIT BEFORE TAXATION

3,454,209

4,568,553

Tax on profit

8

917,995

632,410

PROFIT FOR THE FINANCIAL YEAR

2,536,214

3,936,143

OTHER COMPREHENSIVE INCOME

Gains / loss on revaluation of fixed

asset investments

18,500

6,459

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

18,500

6,459

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,554,714

3,942,602

Profit attributable to:

Owners of the parent

2,536,214

3,936,143

Total comprehensive income attributable to:

Owners of the parent

2,554,714

3,942,602

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

208

258

Investments

13

68,222

49,722

Investment property

14

196,065,412

191,621,025

196,133,842

191,671,005

CURRENT ASSETS

Debtors

15

6,306,769

5,916,144

Cash at bank

259,314

394,495

6,566,083

6,310,639

CREDITORS

Amounts falling due within one year

16

74,815,301

8,294,511

NET CURRENT LIABILITIES

(68,249,218

)

(1,983,872

)

TOTAL ASSETS LESS CURRENT LIABILITIES

127,884,624

189,687,133

CREDITORS

Amounts falling due after more than one year

17

(30,438,441

)

(94,442,100

)

PROVISIONS FOR LIABILITIES

20

(8,184,881

)

(8,415,075

)

NET ASSETS

89,261,302

86,829,958

CAPITAL AND RESERVES

Called up share capital

21

82

82

Share premium

22

48,518

48,518

Retained earnings

22

89,212,702

86,781,358

SHAREHOLDERS' FUNDS

89,261,302

86,829,958

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

Palminder Singh - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

208

258

Investments

13

672,586

672,586

Investment property

14

196,014,172

191,569,784

196,686,966

192,242,628

CURRENT ASSETS

Debtors

15

6,369,205

5,978,580

Cash at bank

234,545

371,778

6,603,750

6,350,358

CREDITORS

Amounts falling due within one year

16

74,826,170

8,305,519

NET CURRENT LIABILITIES

(68,222,420

)

(1,955,161

)

TOTAL ASSETS LESS CURRENT LIABILITIES

128,464,546

190,287,467

CREDITORS

Amounts falling due after more than one year

17

(30,898,367

)

(94,902,879

)

PROVISIONS FOR LIABILITIES

20

(8,184,881

)

(8,415,075

)

NET ASSETS

89,381,298

86,969,513

CAPITAL AND RESERVES

Called up share capital

21

82

82

Share premium

22

98

98

Retained earnings

22

89,381,118

86,969,333

SHAREHOLDERS' FUNDS

89,381,298

86,969,513

Company's profit for the financial year

2,535,155

3,935,576

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

Palminder Singh - Director

Called up

Fair

share

Retained

Share

value

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

82

82,962,126

48,518

-

83,010,726

Changes in equity

Profit for the year

-

3,936,143

-

-

3,936,143

Other comprehensive income

-

6,459

-

-

6,459

Total comprehensive income

-

3,942,602

-

-

3,942,602

Dividends

-

(123,370

)

-

-

(123,370

)

Balance at 31 March 2024

82

86,781,358

48,518

-

86,829,958

Changes in equity

Profit for the year

-

2,536,214

-

-

2,536,214

Other comprehensive income

-

18,500

-

-

18,500

Total comprehensive income

-

2,554,714

-

-

2,554,714

Dividends

-

(123,370

)

-

-

(123,370

)

Balance at 31 March 2025

82

89,212,702

48,518

-

89,261,302

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2023

82

83,157,127

98

83,157,307

Changes in equity

Dividends

-

(123,370

)

-

(123,370

)

Total comprehensive income

-

3,935,576

-

3,935,576

Balance at 31 March 2024

82

86,969,333

98

86,969,513

Changes in equity

Dividends

-

(123,370

)

-

(123,370

)

Total comprehensive income

-

2,535,155

-

2,535,155

Balance at 31 March 2025

82

89,381,118

98

89,381,298

Cash flows from operating activities

Cash generated from operations

1

8,641,819

8,602,508

Interest paid

(6,828,215

)

(6,634,479

)

Tax paid

(1,110,703

)

(643,390

)

Net cash from operating activities

702,901

1,324,639

Cash flows from investing activities

Purchase of investment property

(9,227,868

)

(4,069,020

)

Sale of tangible fixed assets

-

1,350

Sale of investment property

5,928,041

917,371

Interest received

7,294

2,631

Dividends received

1,919

1,467

Net cash from investing activities

(3,290,614

)

(3,146,201

)

Cash flows from financing activities

New loans in year

3,164,825

2,287,535

Amounts owed by group undertaking

123,370

123,370

Amount introduced by directors

67,565

61,131

Amount withdrawn by directors

(709,605

)

(718,204

)

Equity dividends paid

(123,370

)

(123,370

)

Net cash from financing activities

2,522,785

1,630,462

Decrease in cash and cash equivalents

(64,928

)

(191,100

)

Cash and cash equivalents at beginning of year

2

(355,754

)

(164,654

)

Cash and cash equivalents at end of year

2

(420,682

)

(355,754

)

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

2025

2024

£

£

Profit before taxation

3,454,209

4,568,553

Depreciation charges

50

391

Profit on disposal of fixed assets

(385,232

)

(419,494

)

Gain on revaluation of fixed assets

(1,007,087

)

(2,129,356

)

Finance costs

6,828,215

6,634,479

Finance income

(9,213

)

(4,098

)

8,880,942

8,650,475

Increase in trade and other debtors

(390,625

)

(614,035

)

Increase in trade and other creditors

151,502

566,068

Cash generated from operations

8,641,819

8,602,508

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

259,314

394,495

Bank overdrafts

(679,996

)

(750,249

)

(420,682

)

(355,754

)

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

394,495

594,020

Bank overdrafts

(750,249

)

(758,674

)

(355,754

)

(164,654

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

394,495

(135,181

)

259,314

Bank overdrafts

(750,249

)

70,253

(679,996

)

(355,754

)

(64,928

)

(420,682

)

Debt

Debts falling due within 1 year

(1,314,311

)

(66,764,564

)

(68,078,875

)

Debts falling due after 1 year

(86,465,506

)

63,599,739

(22,865,767

)

(87,779,817

)

(3,164,825

)

(90,944,642

)

Total

(88,135,571

)

(3,229,753

)

(91,365,324

)