For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Tea Tree Bay Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 101 Highfield House, Cheadle Royal Business Park, Cheadle, SK8 3GY.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The Company has net assets current assets of £5,581,361 (2024 net current liability: £1,859,586) at the balance sheet date. Despite this apparent lack of liquidity, the nature of the business and the entity’s key creditors allows it to continue in operational existence, as the loans have been provided to enable long term investments to be made for the benefit of the shareholder and therefore the company has a reasonable expectation that loan funding in excess of the investment value will not be withdrawn for the foreseeable future.

The directors believe that the company's principal activity and investment choices shelter it from much of the expected economic downturn and as such consider it appropriate to prepare the company's financial statements on a going concern basis.

Income represents amounts receivable in the year from UK and foreign investments held within the investment portfolio, including any bank and investment interest receivable. The company has elected to disclose this income as the first line of the income statement as this is deemed to be a better representation of the principal activity of the company.

Investments other than those in group undertakings are classified as financial instruments and accounted for

in accordance with the accounting policy at fair value through profit or loss, except for investments in equity

instruments that are not publicly traded and whose fair values cannot be measured reliably. Such investments

are measured at cost less impairment.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company 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, which include cash and bank balances and amounts due from group undertakings, are

initially measured at transaction price including transaction costs and are subsequently carried at amortised

cost using the effective interest method unless the arrangement constitutes a financing transaction, where the

financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

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 company after deducting all of its liabilities.

Basic financial liabilities, including 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.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the

exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling

at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at

the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when

that fair value was determined.

All translation differences are taken to profit or loss account.

The average monthly number of persons (including directors) employed by the company during the year was:

Fixed asset investments revalued

The investment portfolio is managed by Bank Julius Baer & Co Limited who have valued the investment portfolio at the year end based on market valuations. The historical cost of the portfolio at 31 March 2025 was £12,614,724 (2024: £3,599,171 ).

Included within creditors due within one year is a loan facility of £6,275,664 (2024: £17,116,731) which is secured on the company's investment portfolio.

During the year the company received interest of £1,480,395 (2024 - £353,767) from entities over which the entity has control, joint control or significant influence.

At the period ended, the company was due £11,564,124 (2024 - £13,611,839) from entities over which the entity has control, joint control or significant influence.

During prior periods the directors introduced an amount into the company which was to be invested. The balance at the year end 31 March 2025, which is included within other creditors is £21,637,461 (2024: £16,950,806). The directors have confirmed that they will not seek to withdraw these fund earlier than 12 months after the balance sheet date, and therefore have been disclosed as other creditors falling due after more than one year. The amount is unsecured, interest free and has no fixed repayment date.