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REGISTERED NUMBER: 04286432 (England and Wales)

| STRATEGIC REPORT, |

| REPORT OF THE DIRECTOR AND |

| FINANCIAL STATEMENTS |

| FOR THE PERIOD |

| 1 APRIL 2024 TO 31 MAY 2025 |

| FOR |

| SOMERLEIGH COURT LTD |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

Page |

Company Information | 1 |

Strategic Report | 2 |

Report of the Director | 4 |

Report of the Independent Auditors | 5 |

Statement of Comprehensive Income | 9 |

Statement of Financial Position | 10 |

Statement of Changes in Equity | 11 |

Notes to the Financial Statements | 12 |

SOMERLEIGH COURT LTD

COMPANY INFORMATION

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

| DIRECTOR: | Mr M P Madden

| REGISTERED OFFICE: | Granville Hall

| Granville Road

| Leicester

| Leicestershire

| LE1 7RU

| REGISTERED NUMBER: | 04286432 (England and Wales)

| SENIOR STATUTORY AUDITOR: | Mr P Bott FCA

| AUDITORS: | Mark J Rees LLP Chartered Accountants

| and Statutory Auditors

| Granville Hall

| Granville Road

| Leicester

| LE1 7RU

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

STRATEGIC REPORT

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

The director presents his strategic report for the period 1 April 2024 to 31 May 2025.

The principal activity of Somerleigh Court Ltd 'the company' is to provide residential, respite, palliative and nursing care.

REVIEW OF BUSINESS

The director is pleased with the results for the year which have been achieved in a challenging and strong market. Despite market pressures, occupancy has remained strong and fees are increasingly competitive due to a focused sales strategy and ongoing contact with local authorities. Although there has been an increase in revenue for the year the company did not make as much profit as in the previous financial year as their focus was on creating a stabilised workforce. The company will continue to seek opportunities for further growth through independent developments.

The company has continued to develop its working practices and governance to ensure the home meets Care Quality Commission (CQC) standards. Internal quality assurance monitoring accurately reflects the CQC inspection standard and the company is committed to working with the CQC to maintain the delivery of high rate quality care.

On 04 September 2024, Welford Healthcare South Limited acquired the entire issued share capital of the Company. Following this transaction, the Company became a wholly-owned subsidiary of Welford Healthcare South Limited.

The results for the year and financial position of the company are shown in the annexed financial statements.

Performance of the business and outlook

This year's financial period covered 14 months, from 01 April 2024 to 31 May 2025, which is not directly comparable to last year's 12-month period. For comparative purposes, this year's income and staff costs has been prorated to a 12-month period to allow for a more meaningful analysis of performance trends as detailed below.

Our KPI's for the year show how much we have achieved this year:

KPI's £ |  | 01 April 2024 to 31 May 2025 (14 Month Period) |  | 1 April 2024 to 31 May 2025 (Prorated 12 months) |  | 31 March 2024 |  |

Turnover |  | 3,251 |  | 2,786 |  | 2,797 |  |

Staff costs |  | 2,147 |  | 1,840 |  | 1,635 |  |

EBITDARM |  | 262 |  |  | 431 |  |

EBITDARM is profit as measured using UK GAAP principles adjusted for the effects of Interest, Taxes, Depreciation, Amortisation, Rent and Management Fees. EBITDARM is reported to the board as management considers that it provides a useful proxy for the Group's operating profit excluding non-cash items and costs that can be variable or negotiated, such as rent and management fees.

The company completes monthly management accounts, comparing these to budgets to measure actual performance.

The company's results are consolidated within Welford Healthcare South Limited, the ultimate parent company.

Our experienced management team and strong financial position enable us to be well positioned to continue the development of the company.

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

STRATEGIC REPORT

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks for the company considered during the period ending 31 May 2025 are:

- Staff Recruitment - The ability to recruit and retain qualified carers and nurses is a continuing challenge for the whole sector. It impacts directly on the costs of operating care home and the subsequent quality of care delivered.

- Home Occupancy - The company faces competition from other care providers in the regions in which it operates. If a home were to experience an increase in the volume of vacant rooms or the duration of vacancies, income streams and profitability of the care home can be impacted. The company manages occupancy levels continually and works to ensure relationships with local authorities and other commissioning bodies remain strong to ensure that room voids are filled as promptly as possible.

- Government Policy and Legislation Change - The company's operations are closely regulated by the Care Quality Commission (CQC). The consequences of non-compliance with regulations could be significant. The company has a robust system in place to ensure adherence to policies and compliance with regulatory requirements. Changes to CQC compliance are monitored to ensure policies and processes reflect any updates to ensure quality ratings are maintained. Risks also include those around health and safety compliance, legislative requirements and contractual risks.

ON BEHALF OF THE BOARD:

Mr M P Madden - Director

24 February 2026

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

REPORT OF THE DIRECTOR

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

The director presents his report with the financial statements of the company for the period 1 April 2024 to 31 May 2025.

DIVIDENDS

The total distribution of dividends for the year ended 31 May 2025 will be £900,681.

DIRECTORS

The directors who have held office during the period from 1 April 2024 to the date of this report are as follows:

Mr G P Heather - resigned 4 September 2024

Mr S M Nayee - resigned 4 September 2024

Ms J M S Smart - resigned 4 September 2024

Mr M P Madden - appointed 4 September 2024

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, 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 he 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 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 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 he 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 company's auditors are aware of that information.

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M P Madden - Director

24 February 2026

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SOMERLEIGH COURT LTD

Disclaimer of Opinion

We have audited the financial statements of Somerleigh Court Ltd (the 'company') for the period ended 31 May 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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).

We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matters described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for Disclaimer of opinion

The evidence available to us was limited because we were unable to obtain supporting documentation for income statement transactions covering the period from 1 April 2024 to 31 August 2024. This limitation arises because the company was acquired by the current shareholders in September 2024.

The accounting records for the period prior to acquisition were maintained by the previous owners. The current directors have attempted to obtain these supporting documents from the previous owners but were unsuccessful. Consequently, we were unable to verify the occurrence, accuracy and completeness of revenue and expenses reported during these five months.

As a result of this matter, we were unable to determine whether any adjustments were necessary in respect of the profit or loss for the period ended 31 May 2025 or the related elements of the statement of financial position and statement of changes in equity.

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 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.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SOMERLEIGH COURT LTD

Opinions on other matters prescribed by the Companies Act 2006

Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:

- the information given in the strategic report and directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors’ report.

Arising from the limitation of our work referred to above:

- we have not obtained all the information and the explanations that we considered necessary for the purpose of our audit; and

- we were unable to determine whether adequate accounting records have been kept.

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:

- 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 directors’ remuneration specified by law are not made.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SOMERLEIGH COURT LTD

Auditors' responsibilities for the audit of the financial statements

Our responsibility is to conduct an audit of the Company’s financial statements in accordance with International Standards on Auditing (UK) (ISAs (UK)) and to issue an auditor’s report. However, because of the matters described in the Basis for Disclaimer of Opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, significant one-off or unusual transaction, going concern and the CQC rating.

We obtained an understanding of the legal and regulatory frameworks applicable to the company and industry in which it operates through our general commercial and sector experience, discussions with management, and inspection of legal correspondence. We determined that the following laws and regulations were most significant: Health and Social Care Act 2008 and its related regulations, FRS 102 'The Financial reporting Standard applicable in the UK and Republic of Ireland" and Companies Act 2006.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

- A review of a sample of occupancy reports in the year to ensure these were correctly recorded in revenue and detailed cut off testing around the year end to ensure revenue is correctly recognised.

- A review of laws and regulations the company is subject to, being specifically the CQC review and rating and discussion with management to ensure no instances of non compliance.

- Addressing the risks of fraud through management override of controls by performing journal entry testing.

- A review of the going concern through an inspection of the after date position, consideration of group support and a review of management's going concern risk assessment.

These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error. Detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SOMERLEIGH COURT LTD

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.

Mr P Bott FCA (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

25 February 2026

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

| Period |

| 1.4.24 |

| to |  | Year Ended

| 31.5.25 |  | 31.3.24

| Notes | £ | £ |

TURNOVER | 3 | 3,250,597 |  | 2,797,082 |  |

Cost of sales | 2,411,877 |  | 2,075,795 |  |

GROSS PROFIT | 838,720 |  | 721,287 |  |

Administrative expenses | 864,743 |  | 362,324 |  |

OPERATING (LOSS)/PROFIT | 5 | (26,023 | ) | 358,963 |  |

Interest payable and similar expenses | 6 | 78,805 |  | 189,430 |  |

(LOSS)/PROFIT BEFORE TAXATION | (104,828 | ) | 169,533 |  |

Tax on (loss)/profit | 7 | (71,821 | ) | (72,251 | ) |

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD | (33,007 | ) | 241,784 |  |

OTHER COMPREHENSIVE INCOME |

Revaluation of freehold property | 777,569 |  | (289,005 | ) |

Income tax relating to other comprehensive income | (194,392 | ) | - |  |

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX | 583,177 |  | (289,005 | ) |

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 550,170 |  | (47,221 | ) |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

STATEMENT OF FINANCIAL POSITION

31 MAY 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 9 | 5,330,935 |  | 4,693,074 |  |

Investment property | 10 | 406,450 |  | 406,450 |  |

5,737,385 |  | 5,099,524 |  |

CURRENT ASSETS

Stocks | 11 | - |  | 3,344 |  |

Debtors | 12 | 171,293 |  | 941,526 |  |

Cash at bank and in hand | 337,470 |  | 120,349 |  |

508,763 |  | 1,065,219 |  |

CREDITORS

Amounts falling due within one year | 13 | 2,558,781 |  | 2,249,436 |  |

NET CURRENT LIABILITIES | (2,050,018 | ) | (1,184,217 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 3,687,367 |  | 3,915,307 |  |

PROVISIONS FOR LIABILITIES | 16 | 354,649 |  | 232,078 |  |

NET ASSETS | 3,332,718 |  | 3,683,229 |  |

CAPITAL AND RESERVES

Called up share capital | 17 | 1 |  | 1 |  |

Revaluation reserve | 18 | 2,938,772 |  | 2,355,595 |  |

Retained earnings | 18 | 393,945 |  | 1,327,633 |  |

SHAREHOLDERS' FUNDS | 3,332,718 |  | 3,683,229 |  |

The financial statements were approved by the director and authorised for issue on 24 February 2026 and were signed by:

Mr M P Madden - Director

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

| Called up |

| share |  | Retained |  | Revaluation |  | Total

| capital |  | earnings |  | reserve |  | equity

£ | £ | £ | £ |

Balance at 1 April 2023 | 1 |  | 1,085,849 |  | 2,644,600 |  | 3,730,450 |  |

Changes in equity

Total comprehensive income | - |  | 241,784 |  | (289,005 | ) | (47,221 | ) |

Balance at 31 March 2024 | 1 |  | 1,327,633 |  | 2,355,595 |  | 3,683,229 |  |

Changes in equity

Dividends | - |  | (900,681 | ) | - |  | (900,681 | ) |

Total comprehensive income | - |  | (33,007 | ) | 583,177 |  | 550,170 |  |

Balance at 31 May 2025 | 1 |  | 393,945 |  | 2,938,772 |  | 3,332,718 |  |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

1. | STATUTORY INFORMATION

| Somerleigh Court Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

| The presentation currency of the financial statements is the Pound Sterling (£).

2. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

| Comparative Figures

| The financial statements cover an extended accounting period of 14 months from 01 April 2024 to 31 May 2025. The company extended its reporting period to align its accounting reference date with its parent undertaking, Welford Healthcare South Limited.

| Going Concern

| After reviewing the company’s forecasts and projections, which cover the 12-month period from the date of signing the financial statements, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to

| adopt the going concern basis in preparing its consolidated financial statements. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

| Financial Reporting Standard 102 - reduced disclosure exemptions

| The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

| • | the requirements of Section 7 Statement of Cash Flows.

| Related party exemption

| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

| Significant judgements and estimates

| In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

| Key source of critical accounting judgement - Impairment

| The company is required to assess at each reporting date whether there is any indication that an asset may be impaired. If any such indication exists, the company shall estimate the recoverable amount of the asset. If there is no indication of impairment, it is not necessary to estimate the recoverability of the amount. An impairment loss recognised for goodwill is not reversed. Impairment loss recognised for other assets is reversed only if the reasons for the impairment have ceased to apply.

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

2. | ACCOUNTING POLICIES - continued

| Turnover

| Turnover is measured at the fair value of the consideration received or receivable excluding discounts and

| rebates.

| Turnover represents income receivable from health and care provision services rendered and goods supplied.

| Turnover is recognised in the accounting period in which the company obtains the right to consideration in

| exchange for its performance.

| Tangible fixed assets

| Tangible fixed assets, with the exception of freehold property, are measured using the cost model. These assets 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 as follows:

| Freehold property |  | - 2% per annum |  |

| Fixtures and fittings |  | - 20% - 25% per annum |  |

| Freehold property is measured using the revaluation model. These assets are stated at fair value on the date of the latest revaluation less subsequent accumulated depreciation and any impairment losses, where applicable. Valuations are made on annual basis so that the carrying amount of these asset does not differ materially from its fair value.

| At the date of revaluation, the freehold buildings accumulated depreciation is eliminated against the gross carrying amount of the asset and the carrying amount is then restated to the revalued amount of the asset.

| Any revaluation surplus is recognised in other comprehensive income, net of the related tax impact, and accumulated in equity, or in profit or loss if it reverses a downwards revaluation previously recognised in profit or loss. Such reversal is recorded in profit or loss. A revaluation deficit is recognised in other comprehensive income, net of the related tax impact, to the extent that it offsets an existing surplus on the same asset with any excess recognised in profit or loss.

| The revaluation reserve included in equity in respect of an item of a tangible fixed assets is transferred directly to retained earnings when the asset is derecognised. However, while the asset is being used, the revaluation reserve is transferred to retained earnings for an amount equivalent to the difference between

| depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost. Such transfers are not made through profit or loss.

| At each reporting date tangible fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss.

| 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 the fair value are recognised in profit or loss.

| Stocks

| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

2. | ACCOUNTING POLICIES - continued

| Taxation

| Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

| Current or deferred taxation assets and liabilities are not discounted.

| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

| Deferred tax

| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

| Pension costs and other post-retirement benefits

| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

| 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, where material, at amortised cost using the effective interest method, less any impairment.

| Creditors

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

3. | TURNOVER

| The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

| An analysis of turnover by geographical market is given below:

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| United Kingdom | 3,250,597 |  | 2,797,082 |  |

3,250,597 |  | 2,797,082 |  |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

4. | EMPLOYEES AND DIRECTORS

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| Wages and salaries | 2,017,305 |  | 1,480,140 |  |

| Social security costs | 110,358 |  | 124,114 |  |

| Other pension costs | 19,576 |  | 30,727 |  |

2,147,239 |  | 1,634,981 |  |

| The average number of employees during the period was as follows:

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

| Care staff | 73 |  | 76 |  |

| Administrative staff | 1 |  | 1 |  |

74 |  | 77 |  |

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| Directors' remuneration | - |  | - |  |

5. | OPERATING (LOSS)/PROFIT

| The operating loss (2024 - operating profit) is stated after charging:

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| Hire of plant and machinery | 6,431 |  | 7,785 |  |

| Depreciation - owned assets | 197,869 |  | 72,722 |  |

| Auditors remuneration | 8,279 |  | 10,967 |  |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

6. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| Bank loan interest | 78,078 |  | 169,430 |  |

| Other interest payable | 727 |  | 20,000 |  |

78,805 |  | 189,430 |  |

7. | TAXATION

| Analysis of the tax credit

| The tax credit on the loss for the period was as follows:

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| Deferred taxation | (71,821 | ) | (72,251 | ) |

| Tax on (loss)/profit | (71,821 | ) | (72,251 | ) |

| Reconciliation of total tax credit included in profit and loss

| The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| (Loss)/profit before tax | (104,828 | ) | 169,533 |  |

| (Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%) | (26,207 | ) | 42,383 |  |

| Effects of:

| Expenses not deductible for tax purposes | 209 |  | 2,594 |  |

| Capital allowances in excess of depreciation | (30,265 | ) | (44,514 | ) |

| Capital gains | (15,558 | ) | (72,714 | ) |

| Total tax credit | (71,821 | ) | (72,251 | ) |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

7. | TAXATION - continued

| Tax effects relating to effects of other comprehensive income |

| 1.4.24 to 31.5.25 |

| Gross |  | Tax |  | Net |

£ | £ | £ |

| Revaluation of freehold property | 777,569 |  | (194,392 | ) | 583,177 |  |

| 2024 |

| Gross |  | Tax |  | Net |

£ | £ | £ |

| Revaluation of freehold property | (289,005 | ) | - |  | (289,005 | ) |

8. | DIVIDENDS

| Period |

| 1.4.24 |

| to | Year Ended

| 31.5.25 |  | 31.3.24

£ | £ |

| Ordinary share of £1

| Interim | 900,681 |  | - |  |

| During the year, the company declared and paid an interim dividend of £900,681 to its previous parent undertaking, Lifecare Residences Ltd. This dividend was settled through the waiver of an intercompany loan balance due from the parent undertaking.

9. | TANGIBLE FIXED ASSETS

| Fixtures |

| Freehold |  | and |

| property |  | fittings |  | Totals

£ | £ | £ |

| COST OR VALUATION

| At 1 April 2024 | 4,508,529 |  | 687,065 |  | 5,195,594 |  |

| Additions | - |  | 58,161 |  | 58,161 |  |

| Revaluations | 741,471 |  | - |  | 741,471 |  |

| At 31 May 2025 | 5,250,000 |  | 745,226 |  | 5,995,226 |  |

| DEPRECIATION

| At 1 April 2024 | - |  | 502,520 |  | 502,520 |  |

| Charge for period | 108,054 |  | 89,815 |  | 197,869 |  |

| Revaluation adjustments | (36,098 | ) | - |  | (36,098 | ) |

| At 31 May 2025 | 71,956 |  | 592,335 |  | 664,291 |  |

| NET BOOK VALUE

| At 31 May 2025 | 5,178,044 |  | 152,891 |  | 5,330,935 |  |

| At 31 March 2024 | 4,508,529 |  | 184,545 |  | 4,693,074 |  |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

9. | TANGIBLE FIXED ASSETS - continued

| Effective 1 April 2024, the Company revised the estimated useful life of the buildings element of its freehold property. Previously assessed as having an indefinite useful life, these assets are now estimated to have a remaining useful life of 50 years.

| In accordance with FRS 102, this change has been applied prospectively. The effect is an increase in the depreciation expense £106,661 for the period ended 31 May 2025. This change is expected to have a similar impact on depreciation charges in future periods.

| Cost or valuation at 31 May 2025 is represented by:

| Fixtures |

| Freehold |  | and |

| property |  | fittings |  | Totals

£ | £ | £ |

| Valuation in 2025 | 5,250,000 |  | - |  | 5,250,000 |  |

| Cost | - |  | 745,226 |  | 745,226 |  |

5,250,000 |  | 745,226 |  | 5,995,226 |  |

| If freehold property had not been revalued they would have been included at the following historical cost:

2025 | 2024 |

£ | £ |

| Cost | 2,768,697 |  | 2,768,697 |  |

| Value of land in freehold land and buildings | 350,000 |  | 350,000 |  |

| Freehold property were valued on on open market basis on 2 August 2024 by Cushman & Wakefield .

| The surplus on revaluation of investment property arising of £741,471 (2024: Deficit -£289,005) was credited (2024: debited) to other comprehensive income.

10. | INVESTMENT PROPERTY

| Total

£ |

| FAIR VALUE

| At 1 April 2024

| and 31 May 2025 | 406,450 |  |

| NET BOOK VALUE

| At 31 May 2025 | 406,450 |  |

| At 31 March 2024 | 406,450 |  |

| Included in fair value of investment property is freehold land of £ 30,000 (2024 - £ 30,000 ) which is not depreciated.

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

11. | STOCKS

2025 | 2024 |

£ | £ |

| Finished goods | - |  | 3,344 |  |

12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade debtors | 176,481 |  | 170,924 |  |

| Bad debt provision | (30,548 | ) | (15,434 | ) |

| Amounts owed by group undertakings | - |  | 716,343 |  |

| Other debtors | 5,035 |  | - |  |

| Prepayments and accrued income | 20,325 |  | 69,693 |  |

171,293 |  | 941,526 |  |

| The amounts owed by group undertakings of £716,343 at 31 March 2024 was in relation to the company's previous ownership. The balance was settled through issue of dividend to Lifecare Residences Ltd as detailed in note 8.

13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Bank loans and overdrafts (see note 14) | - |  | 2,001,371 |  |

| Trade creditors | 67,269 |  | 51,064 |  |

| Amounts owed to group undertakings | 2,072,074 |  | - |  |

| Paye/Ni payable | 18,418 |  | 31,885 |  |

| Other creditors | 237,868 |  | 90,346 |  |

| Accruals and deferred income | 163,152 |  | 74,770 |  |

2,558,781 |  | 2,249,436 |  |

14. | LOANS

| An analysis of the maturity of loans is given below:

2025 | 2024 |

£ | £ |

| Amounts falling due within one year or on demand:

| Bank loans - less than 1 year | - |  | 2,001,371 |  |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

15. | SECURED DEBTS

| The following secured debts are included within creditors:

2025 | 2024 |

£ | £ |

- |  | 2,001,371 |  |

| The loan is secured over the property which is held at valuation of £5,250,000 (2024: £5,100,000).

| Interest is payable at SONIA (previously LIBOR) + 3% per annum. The loan was repaid in full in the current year.

16. | PROVISIONS FOR LIABILITIES

2025 | 2024 |

£ | £ |

| Deferred tax

| Accelerated capital allowances | (71,821 | ) | - |  |

| Taxation on revaluation | 426,470 |  | 232,078 |  |

354,649 |  | 232,078 |  |

| Deferred |

| tax |

£ |

| Balance at 1 April 2024 | 232,078 |  |

| Provided during period | 122,571 |  |

| Balance at 31 May 2025 | 354,649 |  |

17. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2025 | 2024 |

| value: | £ | £ |

| 1 | Ordinary | £1 | 1 |  | 1 |  |

18. | RESERVES

| Retained |  | Revaluation |

| earnings |  | reserve |  | Totals

£ | £ | £ |

| At 1 April 2024 | 1,327,633 |  | 2,355,595 |  | 3,683,228 |  |

| Deficit for the period | (33,007 | ) | - |  | (33,007 | ) |

| Dividends | (900,681 | ) | - |  | (900,681 | ) |

| Revaluation in year | - |  | 583,177 |  | 583,177 |  |

| At 31 May 2025 | 393,945 |  | 2,938,772 |  | 3,332,717 |  |

SOMERLEIGH COURT LTD (REGISTERED NUMBER: 04286432)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 1 APRIL 2024 TO 31 MAY 2025

19. | PENSION COMMITMENTS

| The company operates a defined contribution pension scheme. The assets of the schemes are held separately from those of the company within administered funds. The total contributions paid in the period amounted to £19,576 (2024: £30,727). Contributions of £5,577 (2024: 6,452) were unpaid at year end.

20. | ULTIMATE PARENT COMPANY

| Welford Healthcare South Limited is regarded by the director as being the company's ultimate parent company.

| Welford Healthcare South Limited is a private limited company incorporated and registered in England and Wales. The registered office of Welford Healthcare South Limited is Granville Hall, Granville Road, Leicester, LE1 7RU and copies of the consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

21. | RELATED PARTY DISCLOSURES

| At 31 May 2025 the company was owed £NIL (2024: £716,343 ) by related parties.

| At 31 May 2025 the company owed £2,072,074 (2024: £NIL) to related parties.

| All of the related party companies share the same director.

22. | ULTIMATE CONTROLLING PARTY

| The ultimate controlling party is Mr M P Madden.