ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 03536563

A E L PROPERTIES (SOUTHERN) LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

A E L PROPERTIES (SOUTHERN) LIMITED

COMPANY INFORMATION

Director	J E Tuttiett


Registered number	03536563


Registered office	Prospect Place,
	Moorside Road
	Winchester
	Hampshire
	SO23 7RX


Independent auditors	Harris & Trotter LLP
	Chartered Accountants & Registered Auditors
	101 New Cavendish Street
	1st Floor South
	London
	United Kingdom
	W1W 6XH

A E L PROPERTIES (SOUTHERN) LIMITED

CONTENTS

	Page
Group Strategic Report	1
Director's Report	2 - 3
Independent Auditors' Report	4 - 7
Consolidated Statement of Comprehensive Income	8
Consolidated Balance Sheet	9 - 10
Company Balance Sheet	11 - 12
Consolidated Statement of Changes in Equity	13
Company Statement of Changes in Equity	14
Consolidated Statement of Cash Flows	15 - 16
Consolidated Analysis of Net Debt	17
Notes to the Financial Statements	18 - 37

A E L PROPERTIES (SOUTHERN) LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Introduction

The Director presents his strategic report together with the audited financial statements for the year ended 31 March 2025.

Business review

The Company is an asset management company and the principal activity of its subsidiary undertakings are asset management and that of underwriting general insurance business.

Principal risks and uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to management approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a high priority for the Group and remains management's priority and the Group finance department take on an important oversight role in this regard.

The principal risks to the Group arise from the possibility of losing the right to income from an asset in place of a one-off statutory premium and inadequate collection of rents to the detriment of cash flow.

In addition, the Group is exposed to financial risks of claims resulting from the underwriting general insurance business.

Financial key performance indicators

A summary of the main financial highlights for the year are listed below:

This report was approved by the board and signed on its behalf.

J E Tuttiett

Director

Date: 23 December 2025

Page 1

A E L PROPERTIES (SOUTHERN) LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The director presents his report and the financial statements for the year ended 31 March 2025.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is 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;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £613,735 (2024 - £1,657,427).

The Director recommended the payment of dividends totalling £nil (2024 - £15,970,000)

Director

The director who served during the year was:

J E Tuttiett

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant post balance sheet events.

Page 2

A E L PROPERTIES (SOUTHERN) LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Auditors

The auditors, Harris & Trotter LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

J E Tuttiett

Director

Date: 23 December 2025

Page 3

A E L PROPERTIES (SOUTHERN) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A E L PROPERTIES (SOUTHERN) LIMITED

Opinion

We have audited the financial statements of A E L Properties (Southern) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, 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).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's 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 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Page 4

A E L PROPERTIES (SOUTHERN) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A E L PROPERTIES (SOUTHERN) LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is 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.

Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Director's Report 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 Director's Report.

We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or

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

Page 5

A E L PROPERTIES (SOUTHERN) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A E L PROPERTIES (SOUTHERN) LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Director's Responsibilities Statement set out on page 2, 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 is 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 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 director either intends 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 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

• We obtained an understanding of the legal and regulatory frameworks applicable to the Group and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102 and the Companies Act 2006.

• We obtained an understanding of how the Group is complying with those legal and regulatory frameworks by making enquiries of management.

• We challenged assumptions and judgments made by management in its significant accounting estimates;

We did not identify any key audit matters relating to irregularities, including 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 Auditors' Report.

Page 6

A E L PROPERTIES (SOUTHERN) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A E L PROPERTIES (SOUTHERN) LIMITED (CONTINUED)

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 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.

Neville Newman (Senior Statutory Auditor)

for and on behalf of

Harris & Trotter LLP

Chartered Accountants

Registered Auditors

101 New Cavendish Street

1st Floor South

London

United Kingdom

W1W 6XH

23 December 2025

Page 7

A E L PROPERTIES (SOUTHERN) LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024
Note	£	£


Turnover	4	4,720,362	6,716,164
Cost of sales		(2,596,577)	(4,685,594)
Gross profit		2,123,785	2,030,570
Administrative expenses		(2,362,354)	(687,183)
Fair value movements		852,954	302,046
Operating profit		614,385	1,645,433
Income from participating interests		(16,164)	100,133
Income from fixed assets investments		117,559	231,859
Profit/loss on disposal of investments		-	(77,541)
Interest receivable and similar income	7	1,748,393	549,243
Interest payable and similar expenses	8	(1,112,501)	(344,507)
Profit before taxation		1,351,672	2,104,620
Tax on profit	9	(133,367)	31,864
Profit for the financial year		1,218,305	2,136,484

Profit for the year attributable to:
Non-controlling interests	604,570	479,057
Owners of the parent Company	613,735	1,657,427
	1,218,305	2,136,484

Total comprehensive income for the year attributable to:
Non-controlling interest	604,570	479,057
Owners of the parent Company	613,735	1,657,427
	1,218,305	2,136,484

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 18 to 37 form part of these financial statements.

Page 8

A E L PROPERTIES (SOUTHERN) LIMITED

REGISTERED NUMBER: 03536563

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Investments	11		15,116		3,121,665
Investment property	12		9,024,040		8,254,323
			9,039,156		11,375,988
Current assets
Debtors: amounts falling due after more than one year	13	8,330,000		14,000,000
Debtors: amounts falling due within one year	13	3,455,265		11,481,053
Current asset investments		-		4,881,027
Cash at bank and in hand	15	268,023		4,704,105
		12,053,288		35,066,185
Creditors: amounts falling due within one year	16	(8,902,389)		(35,319,180)
Net current assets/(liabilities)			3,150,899		(252,995)
Total assets less current liabilities			12,190,055		11,122,993
Provisions for liabilities
Deferred taxation	18	-		(151,243)
			-		(151,243)
Net assets excluding pension asset			12,190,055		10,971,750
Net assets			12,190,055		10,971,750

Capital and reserves
Called up share capital	19	54	54
Other reserves	20	-	104,539
Profit and loss account	20	8,685,009	7,966,735
Equity attributable to owners of the parent Company		8,685,063	8,071,328
Non-controlling interests		3,504,992	2,900,422
		12,190,055	10,971,750

Page 9

A E L PROPERTIES (SOUTHERN) LIMITED

REGISTERED NUMBER: 03536563

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

J E Tuttiett

Director

Date: 23 December 2025

The notes on pages 18 to 37 form part of these financial statements.

Page 10

A E L PROPERTIES (SOUTHERN) LIMITED

REGISTERED NUMBER: 03536563

COMPANY BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Investments	11		324,129		3,391,076
Investment Property	12		5,152,612		5,582,341
			5,476,741		8,973,417
Current assets
Debtors: amounts falling due after more than one year	13	5,250,000		5,250,000
Debtors: amounts falling due within one year	13	3,231,425		3,999,693
Cash at bank and in hand	15	177,158		3,365,732
		8,658,583		12,615,425
Creditors: amounts falling due within one year	16	(14,429,611)		(21,330,976)
Net current liabilities			(5,771,028)		(8,715,551)
Total assets less current liabilities			(294,287)		257,866

Provisions for liabilities
Deferred taxation	18	-		(151,243)
			-		(151,243)
Net assets excluding pension asset			(294,287)		106,623
Net (liabilities)/assets			(294,287)		106,623

Capital and reserves
Called up share capital	19	54	54
Other reserves	20	-	104,539
Profit and loss account	20	(294,341)	2,030
		(294,287)	106,623

Page 11

A E L PROPERTIES (SOUTHERN) LIMITED

REGISTERED NUMBER: 03536563

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

J E Tuttiett

Director

Date: 23 December 2025

The notes on pages 18 to 37 form part of these financial statements.

Page 12


		A E L PROPERTIES (SOUTHERN) LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Other reserves	Profit and loss account	Equity attributable to owners of parent Company	Non-controlling interests	Total equity
	£	£	£	£	£	£
At 1 April 2023	54	941,158	21,442,689	22,383,901	2,421,365	24,805,266

Profit for the year	-	-	1,657,427	1,657,427	479,057	2,136,484
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(15,970,000)	(15,970,000)	-	(15,970,000)
Transfer to/from profit and loss account	-	(836,619)	836,619	-	-	-
Total transactions with owners	-	(836,619)	(15,133,381)	(15,970,000)	-	(15,970,000)

At 1 April 2024	54	104,539	7,966,735	8,071,328	2,900,422	10,971,750

Profit for the year	-	-	613,735	613,735	604,570	1,218,305
Transfer to/from profit and loss account	-	(104,539)	104,539	-	-	-
At 31 March 2025	54	-	8,685,009	8,685,063	3,504,992	12,190,055

The notes on pages 18 to 37 form part of these financial statements.

Page 13

A E L PROPERTIES (SOUTHERN) LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£	£	£	£
At 1 April 2023	54	941,158	14,655,684	15,596,896

Profit for the year	-	-	479,727	479,727
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(15,970,000)	(15,970,000)
Transfer to/from profit and loss account	-	(836,619)	836,619	-

At 1 April 2024	54	104,539	2,030	106,623

Loss for the year	-	-	(400,910)	(400,910)
Transfer to/from profit and loss account	-	(104,539)	104,539	-
At 31 March 2025	54	-	(294,341)	(294,287)

The notes on pages 18 to 37 form part of these financial statements.

Page 14

A E L PROPERTIES (SOUTHERN) LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	1,218,305	2,136,484
Adjustments for:
Loss on disposal of tangible assets	1,953,474	(77,541)
Interest paid	1,112,501	344,507
Interest received	(1,849,788)	(881,235)
Taxation charge	133,367	(31,864)
Decrease/(increase) in debtors	3,804,651	(9,530,441)
Decrease/(increase) in amounts owed by groups	16,583	(16,583)
(Increase)/decrease in amounts owed by associates	(6,967)	750
(Decrease)/increase in creditors	(13,260,867)	15,208,687
(Decrease)/increase in amounts owed to parent	475,707	(228,638)
Net fair value (gains) recognised in P&L	(852,954)	(302,046)
Corporation tax (paid)	(98,005)	(387,370)
Net cash generated from operating activities	(7,353,993)	6,234,710

Cash flows from investing activities
Sale of intangible assets	(1,953,474)	-
Sale of listed investments	3,150,187	(5,452)
Purchase of unlisted and other investments	-	(483,036)
Sale of unlisted and other investments	-	4,271,187
Purchase of short-term unlisted investments	-	(2,608,875)
Purchase of fixed asset investments	(496,647)	-
Sale of fixed asset investments	496,647	-
Interest received	1,748,393	549,243
Income from investments	117,559	750,079
Dividends received	-	739
Income from investments in related companies	(16,164)	100,133
Proceeds from disposal of subsidiary, net of cash and cash equivalents disposed	983,911	-
Net cash from investing activities	4,030,412	2,574,018
Cash flows from financing activities
Dividends paid	-	(15,970,000)
Interest paid	(1,112,501)	(344,507)
Net cash used in financing activities	(1,112,501)	(16,314,507)
Net (decrease) in cash and cash equivalents	(4,436,082)	(7,505,779)

Page 15

A E L PROPERTIES (SOUTHERN) LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

		2025	2024
		£	£


Cash and cash equivalents at beginning of year	4,704,105	12,209,884
Cash and cash equivalents at the end of year	268,023	4,704,105

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	268,023	4,704,105
	268,023	4,704,105

The notes on pages 18 to 37 form part of these financial statements.

Page 16

A E L PROPERTIES (SOUTHERN) LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MARCH 2025


At 1 April 2024	Cash flows	Acquisition and disposal of subsidiaries	At 31 March 2025
£	£	£	£

Cash at bank and in hand	4,704,105	(5,419,993)	983,911	268,023
	4,704,105	(5,419,993)	983,911	268,023

The notes on pages 18 to 37 form part of these financial statements.

Page 17

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

A E L Properties (Southern) Limited is a private company limited by shares, incorporated in England & Wales (registered number 03536563). Its registered office and principal place of business is Prospect Place, Moorside Road, Winchester, Hampshire, SO23 7RX. The financial statements are presented in Sterling, which is the functional currency of the Company.

2.Accounting policies

2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 April 2014.

2.3

Going concern

At the date of this report the Group is in a net current asset position of £3,150,899 (2024: net liabiilties position of £252,995), the Director is confident the Group will continue to operate for at least another 12 months following approval of these financial statements. Accordingly, the Director has continued to prepare the financial statements on the going concern basis.

Page 18

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 19

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

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 probable 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 allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated 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 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:

Fixtures and fittings

33%

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 profit or loss.

Page 20

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.10

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.12

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.

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.

2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 21

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 22

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.17

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Page 23

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.17

Financial instruments (continued)

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 24

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and the liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revisions affect only that period, or in the period of the revisions and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Valuation of investment properties

As described in the notes to the financial statements, investment properties are stated at fair value based on the valuation by the director. The valuer used observable market prices adjusted as necessary for any difference in the nature, location or condition of the specific asset.

Unexpired risk provisions

The unexpired risk provisions includes an element of uncertainty and requires management to make judgements to provide provisions for claims arising from incidents occurring prior to the recording date whether reported or not. The estimation of unexpired risk reserves is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified by the Company.

Unexpired risk reserves

The unexpired risk reserves bring the value of claims incurred up to the level of net earned premium. Due to the uncertainty in establishing claims provisions, it is likely that the final outcome will prove to be different from the original liability established.

Page 25

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Asset management	650,180	620,800
Insurance	4,070,182	6,095,364
	4,720,362	6,716,164

					2025	2024
					£	£

United Kingdom	4,720,362	6,716,164
	4,720,362	6,716,164

All turnover arose within the United Kingdom.

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements

17,965

30,513

Page 26

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

6.	Employees
	Staff costs, including director's remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Wages and salaries	336,632	324,956	334,465	318,451
Social security costs	14,363	34,473	14,363	34,473
Cost of defined contribution scheme	17,485	27,902	17,485	27,902
	368,480	387,331	366,313	380,826

The average monthly number of employees, including the director, during the year was as follows:

	2025	2024
	No.	No.

Average number of employees	8	7

7.	Interest receivable
		2025	2024
		£	£

Interest receivable from connected companies	648,099	69,367
Other interest receivable	1,100,294	479,876
	1,748,393	549,243

8.	Interest payable and similar expenses
		2025	2024
		£	£

Other loan interest payable	1,112,393	344,507
Other interest payable	108	-
	1,112,501	344,507

Page 27

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Corporation tax
Current tax on profits for the year	284,610	130,612
	284,610	130,612

Total current tax	284,610	130,612

Deferred tax
Deferred tax - current year	(151,243)	(162,476)
Total deferred tax	(151,243)	(162,476)


	Tax on profit	133,367	(31,864)

Profit on ordinary activities before tax

1,351,672

2,104,620

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	337,918	526,155
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	619	109,060
Short-term timing difference leading to an increase (decrease) in taxation	(151,243)	(162,476)
Non-taxable income	(81,455)	(542,376)
Non-taxable fair value movements	(213,238)	(75,511)
Capital gains	240,766	113,284
Total tax charge for the year	133,367	(31,864)

Factors that may affect future tax charges

Page 28

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

9.Taxation (continued)

There are no factors noted that may affect future tax charges.

10.	Tangible fixed assets
	Group

		Fixtures and fittings
		£
	Cost or valuation
	At 1 April 2024	8,181
	At 31 March 2025	8,181
	Depreciation
	At 1 April 2024	8,181
	At 31 March 2025	8,181
	Net book value
	At 31 March 2025	-
	At 31 March 2024	-

Page 29

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

10.Tangible fixed assets (continued)

	Company

		Fixtures and fittings
		£
	Cost or valuation
	At 1 April 2024	8,181
	At 31 March 2025	8,181
	Depreciation
	At 1 April 2024	8,181
	At 31 March 2025	8,181
	Net book value
	At 31 March 2025	-
	At 31 March 2024	-

The net book value of land and buildings may be further analysed as follows:

Page 30

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

11.	Fixed asset investments
	Group

	Investments in subsidiary companies	Investments in associates	Listed investments	Other fixed asset investments	Total
	£	£	£	£	£
Cost or valuation
At 1 April 2024	-	54,614	3,067,050	-	3,121,664
Additions	496,647	-	-	-	496,647
Disposals	(496,647)	-	(3,150,187)	-	(3,646,834)
Revaluations	-	-	83,137	104	83,241
Share of profit/(loss)	-	(39,602)	-	-	(39,602)
At 31 March 2025	-	15,012	-	104	15,116

	Company

	Investments in subsidiary companies	Investments in associates	Listed investments	Other fixed asset investments	Total
	£	£	£	£	£
Cost or valuation
At 1 April 2024	324,000	25	3,067,050	-	3,391,075
Additions	496,647	-	-	-	496,647
Disposals	(496,647)	-	(3,150,187)	-	(3,646,834)
Revaluations	-	-	83,137	104	83,241
At 31 March 2025	324,000	25	-	104	324,129

Page 31

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

AELS 101 Limited	Ordinary	100%
Altermead Limited	Ordinary	100%
Hambledon Road Management Limited	Ordinary	100%
Oakdene (Fair Oak) Property Management Co. Limited	Ordinary	100%
RMB 101 Limited	Ordinary	100%
TTMB Holdings Limited	Ordinary	72%

The aggregate of the share capital and reserves as at 31 March 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
Name	Aggregate of share capital and reserves	Profit/(Loss)
	£	£

AELS 101 Limited	1,334,657	1,416,832
Altermead Limited	12,500	-
Hambledon Road Management Limited	12	-
Oakdene (Fair Oak) Property Management Co. Limited	51	-
RMB 101 Limited	2	-
TTMB Holdings Limited	9,299,517	2,159,179

Page 32

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

12.	Investment property
	Group

	Freehold investment property	Long term leasehold investment property	Total
	£	£	£
Valuation
At 1 April 2024	8,109,649	144,676	8,254,325
Surplus on revaluation	752,213	17,500	769,713
At 31 March 2025	8,861,862	162,176	9,024,038

The 2025 valuations were made by the director, on an open market value for existing use basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2025	2024
	£	£

	Historic cost	8,114,940	8,114,940
		8,114,940	8,114,940

	Company

	Freehold investment property	Long term leasehold investment property	Total
	£	£	£
Valuation
At 1 April 2024	5,437,665	144,676	5,582,341
(Deficit)/surplus on revaluation	(447,229)	17,500	(429,729)
At 31 March 2025	4,990,436	162,176	5,152,612

The 2025 valuations were made by the director, on an open market value for existing use basis.

Page 33

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.	Debtors
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Due after more than one year
Other debtors	8,330,000	14,000,000	5,250,000	5,250,000
	8,330,000	14,000,000	5,250,000	5,250,000

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

Due within one year
Trade debtors	143,092	10,097,015	143,092	215,495
Amounts owed by group undertakings	-	16,583	2,513,760	2,685,672
Amounts owed by joint ventures and associated undertakings	9,967	3,000	9,967	3,000
Other debtors	3,241,618	1,285,441	512,958	1,030,177
Prepayments and accrued income	60,588	79,014	51,648	65,349
	3,455,265	11,481,053	3,231,425	3,999,693

14.	Current asset investments
		Group
		2024
		£


	Unlisted investments	4,881,027
		4,881,027

15.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	268,023	4,704,105	177,158	3,365,732
	268,023	4,704,105	177,158	3,365,732

Page 34

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

16.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Other loans	-	-	7,920,000	-
Trade creditors	61,538	1,218,091	52,424	46,467
Amounts owed to group undertakings	475,707	-	475,707	-
Corporation tax	276,663	90,057	204,199	40,657
Other taxation and social security	24,312	16,195	8,601	-
Other creditors	7,908,703	33,823,535	5,674,444	21,144,482
Accruals and deferred income	155,466	171,302	94,236	99,370
	8,902,389	35,319,180	14,429,611	21,330,976

17.	Financial instruments
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Financial assets
Financial assets measured at fair value through profit or loss	268,023	7,771,155	177,158	6,756,862
Financial assets that are debt instruments measured at amortised cost	11,724,677	30,306,695	8,429,777	9,233,110
	11,992,700	38,077,850	8,606,935	15,989,972

	Financial liabilities
	Financial liabilities measured at amortised cost	8,601,414	(35,296,050)	14,216,809	(21,307,846)

	Financial assets measured at fair value through profit or loss comprise cash at bank and in hand and investments in listed shares.
	Financial assets that are debt instruments measured at amortised cost comprise trade debtors, investments in unlisted shares and other receivables.
	Financial liabilities measured at amortised cost comprise trade and other creditors, accruals and other loans.

Page 35

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

18.	Deferred taxation
	Group

		2025
		£

	At beginning of year	(151,243)
	Charged to profit or loss	151,243
	At end of year	-

Company

		2025
		£

	At beginning of year	(151,243)
	Credited to profit or loss	151,243
	At end of year	-

The deferred taxation balance is made up as follows:
	Group	Group	Company	Company
	2025	2024	2025	2024
	£	£	£	£

Revaluation of listed investments	-	(116,397)	-	(116,397)
Revaluation of investment property	-	(34,846)	-	(34,846)
	-	(151,243)	-	(151,243)

19.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

100 (2024 - 100) Ordinary shares of $1.00 each	54	54

Page 36

A E L PROPERTIES (SOUTHERN) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

20.

Reserves

Other reserves

Consists of increases in the fair value of investment properties and decreases to the extent that such decreases relate to the increase on the same asset. The figure is stated net of the associated deferred tax asset or liability. This reserve is non-distributable.

Profit and loss account

Consists of all current and prior period retained profits and losses.

21.	Controlling party

The ultimate controlling party of the Group is J E Tuttiett.

Page 37