REGISTERED NUMBER: 09614431 (England and Wales)

MCO INVESTMENTS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

P R Setterfield

Ms M Southworth

A Reeve

REGISTERED OFFICE:

Guy Harlings

53 New Street

Chelmsford

CM1 1AT

REGISTERED NUMBER:

09614431 (England and Wales)

SENIOR STATUTORY AUDITOR:

Dean Osborne

AUDITORS:

Clay Ratnage Daffin & Co Limited

Chartered Accountants and

Statutory Auditors

Suite D, The Business Centre

Faringdon Avenue

Romford

Essex

RM3 8EN

PRINCIPAL ACTIVITY

The company's principal activity during the year continued to be that of an investment property company.

REVIEW OF BUSINESS

During the year, the company did not generate any income and reported a loss. The directors consider this performance to be in line with expectations, given the current purpose and stage of development of the company.

The company has been established to hold and manage investment property assets and, as such, has been in a preparatory phase during the period under review.

Following the year end, a lease agreement has been entered into with the ultimate controlling party, with effect from April 2026. This arrangement is expected to result in the generation of rental income going forward, and the directors are therefore confident that the company will move into an income-generating phase in the forthcoming financial periods.

GOING CONCERN

The directors have prepared forecasts and cash flow projections for the foreseeable future, which take into account the commencement of the lease agreement with the ultimate controlling party in April 2026.

Based on these forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are responsible for identifying, evaluating and managing the principal risks and uncertainties facing the company. Regular reviews are undertaken to assess the nature and extent of these risks and to ensure that appropriate mitigation strategies are in place.

At this stage of the company's development, the key risks relate primarily to:

- the timing and certainty of income generation from property assets;

- dependence on arrangements with the ultimate controlling party; and

- ongoing costs associated with holding and maintaining property assets prior to income being realised.

The directors consider that these risks are appropriately managed through active oversight, careful cost control, and formal agreements governing the use of the company's assets.

With the lease agreement commencing in April 2026, the directors expect the risk profile of the company to change as it transitions into an operational, income-generating entity.

ON BEHALF OF THE BOARD:

P R Setterfield - Director

18 May 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2025.

DIRECTORS

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

P R Setterfield - appointed 6 August 2024

Ms M Southworth - appointed 6 August 2024

A Reeve - appointed 6 August 2024

S C Miller - resigned 6 August 2024

Mrs J Miller - resigned 6 August 2024

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Clay Ratnage Daffin & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P R Setterfield - Director

18 May 2026

Opinion

We have audited the financial statements of MCO Investments Limited (the 'company') for the year ended 31 May 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

o Obtaining an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate.

o Obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries to the management of the company's accounting department, and management itself.

o The susceptibility of the company's financial statements to material misstatement caused by fraud or other irregularities were assessed with the following procedures:

o Identifying and assessing the design effectiveness of controls which management have in place to prevent and detect fraud

o Understanding how those charged with governance considered and addressed the potential for override of controls and management biases

o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations

o Assessing the extent of compliance with the relevant laws and regulations

o Assessing the extent to which pressures existed which may have increased the risk of fraudulent revenue recognition

Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team.

The inherent limitations of audit present an unavoidable risk that we, the auditors, may not have detected some material misstatements within the financial statements despite proper planning and performance of our duties as auditors. Equally, there remains a risk of the non-detection of fraud which could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The audit procedures carried out are designed to detect material misstatements within the financial statements, and as such we take no responsibility for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Other matters

The financial statements of MCO Investments Limited for the year ended 31 May 2024 were unaudited due to the fact that the company was exempt from requiring an audit under applicable law.

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.

Dean Osborne (Senior Statutory Auditor)

for and on behalf of Clay Ratnage Daffin & Co Limited

Chartered Accountants and

Statutory Auditors

Suite D, The Business Centre

Faringdon Avenue

Romford

Essex

RM3 8EN

18 May 2026

TURNOVER

-

20,949

Administrative expenses

5,550

52,530

OPERATING LOSS

4

(5,550

)

(31,581

)

Interest receivable and similar income

31

156

(5,519

)

(31,425

)

Gain/loss on revaluation of investment property

-

65,000

(LOSS)/PROFIT BEFORE TAXATION

(5,519

)

33,575

Tax on (loss)/profit

6

-

(5,546

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(5,519

)

39,121

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(5,519

)

39,121

FIXED ASSETS

Investment property

7

365,000

365,000

CURRENT ASSETS

Debtors

8

54

20,654

Cash at bank

25

3,192

79

23,846

CREDITORS

Amounts falling due within one year

9

319,128

337,376

NET CURRENT LIABILITIES

(319,049

)

(313,530

)

TOTAL ASSETS LESS CURRENT LIABILITIES

45,951

51,470

PROVISIONS FOR LIABILITIES

10

2,923

2,923

NET ASSETS

43,028

48,547

CAPITAL AND RESERVES

Called up share capital

11

100

100

Fair value reserve

12

124,472

124,472

Retained earnings

12

(81,544

)

(76,025

)

SHAREHOLDERS' FUNDS

43,028

48,547

The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2026 and were signed on its behalf by:

P R Setterfield - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 June 2023

100

(44,600

)

53,926

9,426

Changes in equity

Total comprehensive income

-

(31,425

)

70,546

39,121

Balance at 31 May 2024

100

(76,025

)

124,472

48,547

Changes in equity

Total comprehensive income

-

(5,519

)

-

(5,519

)

Balance at 31 May 2025

100

(81,544

)

124,472

43,028

Cash flows from operating activities

Cash generated from operations

1

(3,198

)

(24,285

)

Net cash from operating activities

(3,198

)

(24,285

)

Cash flows from investing activities

Interest received

31

156

Net cash from investing activities

31

156

Cash flows from financing activities

Amount introduced by directors

-

188

Net cash from financing activities

-

188

Decrease in cash and cash equivalents

(3,167

)

(23,941

)

Cash and cash equivalents at beginning of year

2

3,192

27,133

Cash and cash equivalents at end of year

2

25

3,192

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(5,519

)

33,575

Loss on disposal of fixed assets

-

2,263

Gain on revaluation of fixed assets

-

(65,000

)

Finance income

(31

)

(156

)

(5,550

)

(29,318

)

Decrease in trade and other debtors

20,600

769,318

Decrease in trade and other creditors

(18,248

)

(764,285

)

Cash generated from operations

(3,198

)

(24,285

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

25

3,192

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

3,192

27,133

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank

3,192

(3,167

)

25

3,192

(3,167

)

25

Total

3,192

(3,167

)

25

1.	STATUTORY INFORMATION

MCO Investments Limited 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.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Investment property

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

Financial instruments

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

Financial instruments are recognised in the 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

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

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

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

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

Taxation

Taxation for the year 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 year 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.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 May 2025 nor for the year ended 31 May 2024.

The average number of employees during the year was as follows:

2025

2024

Directors

3

2

2025

2024

£

£

Directors' remuneration

-

-

4.	OPERATING (LOSS)/PROFIT

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

2025

2024

£

£

Loss on disposal of fixed assets

-

2,263

5.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

1,750

-

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2025

2024

£

£

Deferred tax

-

(5,546

)

Tax on (loss)/profit

-

(5,546

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

(Loss)/profit before tax

(5,519

)

33,575

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2024 - 19%)

(1,049

)

6,379

Effects of:

Expenses not deductible for tax purposes

437

6,781

Depreciation in excess of capital allowances

-

430

Utilisation of tax losses

-

(1,240

)

Book profit on chargeable assets

-

(12,350

)

Deferred tax timing differences

-

(5,546

)

Tax losses carried forward

612

-

Total tax credit

-

(5,546

)

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 June 2024

and 31 May 2025

365,000

NET BOOK VALUE

At 31 May 2025

365,000

At 31 May 2024

365,000

If freehold investment property had not been revalued it would have been included at historical cost of £237,605 (2024 - £237,605).

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

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

VAT

41

20,547

Prepayments

13

107

54

20,654

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

-

20,467

Amounts owed to group undertakings

316,378

-

Amounts owed to associates

-

312,109

Accrued expenses

2,750

4,800

319,128

337,376

10.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

Investment property revaluations

2,923

2,923

Deferred

tax

£

Balance at 1 June 2024

2,923

Balance at 31 May 2025

2,923

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

46

Ordinary shares

1

46

46

54

Ordinary A shares

1

54

54

100

100

All shares rank equally, except Ordinary and Ordinary A shares have independent dividends rights.

12.

RESERVES

Fair value reserve

Non-distributable reserves relating to the unrealised gain or loss on the fair value adjustment of investment properties. Deferred tax has been provided on the revaluation of investment properties.

Profit and loss account

Includes all current and prior period retained profits and losses.

13.	RELATED PARTY DISCLOSURES

2025

2024

£

£

Amounts due to companies under common control

-

312,109

Amounts due to parent undertaking

316,378

-

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is The Chelmsford Diocesan Board of Finance, company number 00137029 and registered office of Guy Harlings, 53 New Street, Chelmsford, Essex, CM1 1AT.