The notes on pages 4 to 8 form part of these financial statements.

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

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

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).

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

The notes on pages 4 to 8 form part of these financial statements.

Essential Property (NW) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Abbey Square, Chester, England, CH1 2HU.

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

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

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

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

The directors undertake a valuation each year in line with FRS102.

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.

Audit Exemption

The company is exempt from the requirement to have its financial statements audited for the year ended 31 August 2025 under section 479A of the Companies Act 2006.

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

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

The company’s parent undertaking, Assum Limited, registered at 1 Abbey Square, Chester, United Kingdom, CH1 2HU, has given a guarantee under section 479C of the Companies Act 2006 in respect of the financial year ended 31 August 2025.

In the application of the company’s accounting policies, the director is 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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The valuation of investment property is a key area of judgement due to the inherent estimation uncertainty involved in determining fair value. FRS 102 requires investment properties to be measured at fair value at each reporting date, where this can be reliably determined. The fair value is often based on professional valuations, market transactions, or other valuation techniques, all of which involve significant judgement.

Key estimates include assumptions regarding market conditions, comparable property values, yields, and future rental income, all of which can fluctuate due to economic factors. In cases where fair value cannot be reliably measured without undue cost or effort, investment property must be carried at cost less depreciation and impairment, introducing further judgement regarding useful life and residual value. Given the subjectivity involved, the valuation of investment property is a critical accounting estimate that could materially impact the financial statements.

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

Investment properties were valued on an open market basis on 23 February 2024 by Tom Parker MRICS RICS Registered Valuer. The directors have reviewed the current market conditions and believe that there has been no material change in the fair value of the investment property since the previous reporting date.

On 12 November 2024, LHEB Limited became the new ultimate parent undertaking and controlling party of the Company.

The Group’s results are consolidated at two levels:

(i) in the consolidated financial statements of Assum Limited, and

(ii) in the consolidated financial statements of LHEB Limited.

The smallest and largest group of undertakings for which consolidated financial statements are prepared and in which the Company is included is that headed by LHEB Limited. Copies of those financial statements are available from 1 Abbey Square, Chester, United Kingdom, CH1 2HU.

The company’s ultimate controlling party comprises two equal shareholders,Mr B Borbely and Mrs E Murvai, each of whom holds 50% of the voting rights.

As neither shareholder has a majority interest or unilateral power to direct the company’s financial and operating policies, there is no single ultimate controlling party.