The directors present the strategic report for the year ended 31 December 2025.

The Company's turnover is for the year is £62.3m (2024: £62.5m) which reflects the generally challenging economic conditions.

The Company's gross profit margin has fallen to 19.1% (23.4% in 2024). Gross margins are under pressure due to the tough market conditions where input price increases cannot be passed on in sales price and more sale incentives are required to convert potential sales into actual sales.

The Company will continue to adapt and be flexible as the economic climate changes.

At the end of the year, the cumulative retained profit of the Company was £47.3m (2024: £49.1m).

The Company has maintained a strong Balance Sheet position, with Net Current Assets of £67 million compared with £64 million at 31 December 2024.

The day-to-day operations of the Company give rise to potential health and safety and environmental risks. The Directors provide internal audits, risk assessments, regular training for all staff and site personnel as well as ensuring an effective communication process to mitigate these risks. Reviews by external bodies also contribute to improvement in these areas.

The Company's principal risk is the market in which it operates and the ability to mitigate its inherent risks. The inherent risks associated with speculative development and in particular the recent impact of the general economy, are reviewed, monitored and controlled throughout the site process.

The planning process represents a principal risk and delays to forecast timeframes for consents have a material impact on the company's performance.

It is the company's policy to have at least two preferred suppliers for each type of material in order to minimise the risk of shortages due to one supplier being unable to provide these. Maintaining a rigorous approach to land acquisitions and budget monitoring enables the business to plan the individual sites in the most effective manner.

The Company is also reliant upon the bank and its directors for borrowing and therefore are subject to movements in interest rates. Changes in interest rates are monitored and factored into forecasts. Regular reviews are undertaken by the bank and good working relationships are maintained.

The statutory accounts were prepared and finalised whilst the war in the Middle East is continuing. The directors are very aware of the potential economic risks that the conflict could bring to the UK economy. At this stage there are a whole range of possible outcomes for the economy dependent upon the duration of the conflict. The directors and senior management team constantly monitor the key performance indicators of the business and forecasts and will take all appropriate action to successfully manage the current heightened trading risk. The company is well capitalised and has significant undrawn banking facilities to help navigate through these uncertain times.

During the year the Company reviewed its level of production and sales value, to adapt to the market changes. The business will continue to invest in people as the team has been a key factor to business success.

Customer satisfaction surveys and scores are high. The company continued with its success in NHBC "Pride in the Job" awards received in 2023 and 2024 by adding further awards in 2025 for the Dartmouth and Tavistock sites.

The Company's principal financial instruments comprise of trade debtors and creditors, loans from Directors, together with bank and other loans.

Liquidity risk is managed by the Directors' monitoring of rolling forecasts, maintaining a balance between available cash reserves and its undrawn bank loan facility at a floating rate of interest.

In respect of loans, these comprise loans from financial institutions. The interest rate on bank loans is variable and driven by SONIA rates which are subject to variation depending on economic forces. Repayments of capital are based on completed sales. The Company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Loans from Directors are unsecured and subject to interest at commercial rates.

Trade debtors are managed in respect of credit and cash flow risk by the implementation of policies that require appropriate checks on potential customers before any sales are made. The company has no significant concentration of credit risk due to the nature of the business.

Trade creditors risk is managed by ensuring that there are sufficient funds available to meet amounts as they fall due.

The Company monitors key performance indicators in relation to revenue, gross margin and overhead costs throughout the development process. Internal KPI's for the business are looked at on a site-by-site basis.

The directors recognise that building professional and co-operative relationships with third parties is integral to the company's operations. Communications with customers and suppliers tend to take place verbally on an ongoing basis through the staff in the company's head office. In addition, communications with customers are through sales teams located at each site, and with suppliers through staff at the site offices. Where there are significant changes to the company's operations, then communications are made both verbally and in writing to inform customers and suppliers of how changes may impact on their interactions with the business.

The company is committed to building a significant number of affordable homes, which can be purchased or occupied by local young people and families.

The company has a commitment to work with local subcontractors to build our developments. The company also offers apprenticeships and work experience for those in the community looking to start their career.

The directors monitor the company's culture to ensure that high standards of business conduct are maintained. Open and constructive dialogue with employees and other key stakeholders is critical to inform the Board's decisions.

The directors monitor the company's performance in relation to health and safety on a regular basis.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025. Information required to be disclosed under Schedule 7 of the Companies Act 2006 is set out in the Strategic Report on page 2.

The principal activity of the company continued to be that of residential property development.

The results for the year are set out on page 10.

The directors do not recommend payment of a final dividend.

The Directors who held office during the year and up to the date of signature of the financial statements were as follows:

For commercial reasons the directors agreed to change the period end of the company to 31 October going forward starting from 2026. This change should improve access to subcontractors and legal resources around the year end without the distraction of the Christmas holidays.

The year has commenced with 29.2% in hand position with speculative homes, compared 25.3% in January 2025, a reasonable position to start 2026. This is still being impacted by wider economic factors, including the sustained higher interest base rate and low customer confidence. The Directors remain optimistic that selling prices will not fall significantly and that other new mortgage products will become available to buyers during the year. We continue to review and monitor our cost base, margins and resources to ensure that our operations are controlled for the forthcoming year, whilst maintaining the highest standards of quality and performance.

Darnells Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate standard and have used the 2024 and 2025 UK Government GHG conversion factors for company reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £ Million of turnover.

The company continues to take a number of measures to improve energy efficiency that include:

- focusing on energy efficiency and improvements to our activities;

- focusing on the awareness campaign, with an emphasis on the operational efficiency of plant;

- continuing to replace the company car fleet with hybrid and electric vehicles;

- expanding the number of electric car charging points at head office and on sites, to aim to reduce our emissions from business travel of the company car fleet and enable our customers to continue to reduce their emissions in the future.

-focusing on producing energy efficient new homes, with increased insulation, double glazing, ventilation, 100% energy saving bulbs. These new homes produce just a third of the annual carbon emissions produced by older properties.

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

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

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Baker Estates Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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 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 risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the company and management.

We obtained an understanding of the legal and statutory frameworks that are applicable to the company, and determined that the most significant are NHBC standards, Building Regulations 2010 (as amended), the Health & Safety at Work Act 1974 and the Health & Safety Regulations 1992 & 1999 (as well as FRS 102, the Companies Act 2006 and relevant tax compliance regulations in the UK).

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by considering the controls that the company has established to both address risks identified by management and to prevent, deter and detect fraud in the areas of:

• Recognition of sales; and

• Physical security of materials on site.

We evaluated the conditions in the context of incentives and/or pressure to commit fraud, considering the opportunity to commit fraud and the potential rationalisation of the fraudulent act.

Based on this understanding, we designed our audit procedures to detect material misstatements in respect of irregularities, including fraud, and to identify non-compliance with the laws and regulations above, as follows:

• Enquiry of management and those charged with governance around actual and potential litigation and claims.

• Enquiry of management in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

• Reviewing compliance with building, employment, environmental and health and safety legislation.

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

We corroborated our enquiries through inspection of supporting documentation and records, as well as reviewing correspondence with regulatory bodies where available.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and-ethics/auditors-responsibilities-for-the-audit/. This description forms part of our auditor's report.

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 auditor's 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Baker Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Green Tree House, Silverhills Road, Decoy Industrial Estate, Newton Abbot, Devon, TQ12 5LZ.

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.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 405 of the Companies Act 2006 not to prepare consolidated accounts as all its subsidiary undertakings are dormant and not material in total. The financial statements present information about the company as an individual entity and not about its group.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised when the significant risks and rewards of ownership have been transferred to the purchaser. Revenue comprises the fair value of the consideration received or receivable net of rebates, discounts and value added tax.

Revenue and profit are recognised on housebuilding and land sales as follows:

• Revenue from private housing sales represents amounts receivable from the sale of properties. Properties are treated as sold and profit is recognised at the point control of the unit is passed to the customer, which has been determined as the point of legal completion. Profit is recognised on a site-by-site basis by reference to the expected result of each site.

• Revenue from land sales is recognised on the unconditional exchange of contracts.

• Contracting development sales for affordable housing are accounted for as construction contracts.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Interests in listed investments are initially measured at cost plus any additional costs of purchase, and revaluated at the year end to current market price.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long-term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Stock and developments are valued at the lower of cost and net realisable value. Work in progress is valued at the lower of cost, including direct costs and directly attributable overheads, and net realisable value. On initial recognition, land is included within developments at its fair value, which is its cost to the company. Stock of land is recognised at the time a liability is recognised; either on unconditional exchange of contract or once the acquisition has completed.

Where a development is in progress net realisable value is assessed by considering the expected future revenues and total costs to complete the development, including direct costs and directly attributable overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 debtors and cash and bank balances, 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors on normal terms are not interest bearing and are stated at their nominal value. Trade payables on extended terms, particularly in respect of land, are recorded at their fair value at the date of acquisition of the assets to which they relate and subsequently held at amortised cost. The discount to nominal value is amortised over the period of the credit term and charged to finance costs using the effective interest rate. Changes in estimates of the financial payment due are taken to the developments (land) and, in due course, to cost of sales in the profit and loss account.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight-line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The Company holds work in progress which is stated at the lower of cost and net realisable value. To assess the net realisable value of land held of development and housing work in progress, the Company completes a financial appraisal of the likely revenue which will be generated for each site. Where the financial appraisal demonstrates that the revenue will exceed the costs of sale and other associated costs of constructing the residential properties, the work in progress is stated at cost. Where the assessed revenue is lower, the extent to which there is a shortfall is written off through the profit and loss statement leaving the stock and work in progress stated at realisable value.

The gross margin from revenue generated on each of the Company's individual sites within the year is recognised based on the latest forecast for the gross margin expected to be generated over the remaining life of the site. The remaining life gross margin is calculated using forecasts for selling prices and all land, build, infrastructure, and overhead costs associated with that site. There is an inherent uncertainty and sensitivity to external forces (predominately house prices, labour costs and construction costs) in these forecasts, which are reviewed regularly throughout the year by management.

All of the turnover arose within the United Kingdom.

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

Their aggregate remuneration comprised:

The gains above relate to unrealised profit on the revaluation of the company's listed investments - see note 18 to the financial statements.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Details of the company's subsidiaries at 31 December 2025 are as follows:

SM16 Limited is wholly-owned by Viewvista Limited.

The subsidiary companies were dormant during the accounting year and the comparative year.

The registered offices of all of the subsidiary companies are the same as that of the company.

See note 19 for details of securities given on land and development costs included within work in progress.

Prepayments and accrued income above include an amount of £4,572,144 (2024: £3,919,396) for deferred expenditure relating to S106 Contributions, where the potential liability has been triggered, yet the milestones have not been reached.

Listed fixed asset investments purchased in the prior year with a historical cost of £1,995,031 have been revalued to market value at the year end, with any tax implications adjusted as deferred tax.

Post year end, at date of signing these accounts the listed shares have fallen 55% from the market price at the end of the year. These accounts have not been adjusted to reflect the post year end movement.

The bank loans are secured by fixed charges over all present freehold land developments; first fixed charge over book and other debt, both present and future; and first floating charge over all assets and undertaking both present and future.

Other borrowings include amounts due to the directors within 12 months of £Nil (2024: £7,000,000), which are unsecured and bear interest at 12% per annum (2024: 7% per annum).

There is also an unlimited cross company guarantee given by Viewvista Limited, a dormant subsidiary company.

Included in Other creditors are short term liabilities for deferred consideration on land purchases of £ Nil (2024: £4,950,000). Deferred consideration is secured by fixed charges over the specific land registry numbers that they relate to.

Other borrowings falling due after more than one year comprise long term loans by the directors which are unsecured and bear interest at 12% per annum (2024: 7% per annum). Amounts of £NIil (2024: £7,000,000) are included in Creditors falling due within one year - see note 19 to the financial statements.

The bank loan is secured by fixed and floating charges over the company's assets. It represents a revolving facility, with interest charged on a daily basis at the sterling overnight index average (SONIA) plus 2.7%. (2024: SONIA plus2.7%).

Other loans above represent loans from the directors - see note 20 to the financial statements.

The above provision includes the probable best estimate of S106 planning obligations that may fall due in the future on developments that have started.

The following deferred tax asset is recognised by the company and the movement thereon is as follows:

The deferred tax liability set out above relates to accelerated capital allowances and deferred tax on revalued fixed asset investments that are expected to mature within the foreseeable future.

The company operates a defined contribution pension schemes for all qualifying employees. The assets of the scheme are held separately from those of the company in independently administered funds.

The non distributable profit reserve was created due to a basic loan carrying interest below a market rate of interest being accounted for under the effective interest method. As the effective interest cost was charged to the profit and loss account, an amount equal to this charge was treated as distributable and transferred out of the non-distributable reserve.

The non-distributable reserve has been reversed at 1 January 2025, as the original loan was replaced by a loan carrying interest at the market rate.

The company is party to planning obligations with local planning authorities that can include future estimated financial contributions to the local authority for infrastructure. Such obligations become a liability when S106 planning consent is signed and work has commenced, becoming payable at a future date when and if milestones have been achieved. These liabilities are fully allowed for in the costing projections for each site. As at 31 December 2025 the company has contracted potential future commitments of £2.6m (2024: £3.3m), where developments are unstarted, that are not provided for in the accounts, as either assets or liabilities.

Advantage has been taken of the exemption from disclosing the remuneration of key management personnel on the grounds that they are the same as the directors.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

During the year interest arising on loans by the directors to the company totalled £2,064,818 (2024: £1,028,954).

Non-cash items in Financing activities:

The reversal of the discount for notional interest on borrowings below a market rate of interest of £780,974 has been excluded from the Statement of Cash Flows.