REGISTERED NUMBER: 03871240 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

FOR

REDCASTLE (214 OXFORD STREET) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Timothy Farlam

Jenna Grader

Mark Skinner

Constantinos Mourouzides

REGISTERED OFFICE:

c/o Websters

12 Melcombe Place

London

NW1 6JJ

REGISTERED NUMBER:

03871240 (England and Wales)

AUDITORS:

Thorne Lancaster Parker

Chartered Accountants & Statutory Auditors

5th Floor

Palladium House

1-4 Argyll Street

London

W1F 7TA

The directors present their strategic report of Redcastle (214 Oxford Street) Limited (“the Company”) for the year ended 31August2025.

PRINCIPAL ACTIVITIES

The principal activity of the Company is property investment and leasing. The Company holds a headlease interest in 214/234 (even numbers) Oxford Street, 272/286 (even numbers) Regent Street, 32/39 (all numbers) Great Castle Street and 1/13 (odd numbers) Great Portland Street, London W1. The Company is a private company limited by shares, incorporated and domiciled in England and Wales in the UK with its registered office C/O Websters, 12 Melcombe Place, London NW1 6JJ.

RESULTS FOR THE YEAR

The reported loss for the financial year amounted to £239K (2024: £29,578K).

As at 31 August 2025 the Company had net assets of £268,779K (2024: £269,018K).

BUSINESS REVIEW

A review of Ingka Group's operations during this financial year can be found in the Ingka Group Annual Summary and Sustainability Report FY25 and on the online reporting website on Ingka.com. These resources provide a transparent account of the group's performance, highlighting areas where progress is being made as well as where challenges are faced.

PRINCIPAL DEVELOPMENTS

During the year the company has completed a significant renovation project in respect of the headlease interest referred to in Principal Activities above. The total investment for these leasehold improvement works is forecasted to be approximately £100m, funded by Ingka Group. A sharing agreement has been entered into in regard to approximately 36% of the floor area of the headlease interest to Ingka Group companies agreed on an arm's length basis. The existing lease with Nike has been renegotiated extending their occupation until 2043. New lettings have been completed to Space NK for a unit on the ground floor of Oxford Street and Dream Games for the 1 Great Portland Street offices. On this basis 100% occupancy has been reached.

FUTURE DEVELOPMENTS

The directors expect the Company to remain in its current form and to be profitable in future periods.

The unit above Nike will form a further project and will be a refurbishment to class A offices. This is estimated to complete in 4th quarter 2026.

MANAGEMENT AND REPORTING OF PRINCIPAL RISKS

The directors of the Company manage the Company's risks at a group level. The risks of Ingka Investments Real Estate B.V. and all of its group companies are managed centrally as the risks this Company faces are materially dependent on the group as a whole. Key business risks have been reduced following the successful letting. Risks are monitored on an ongoing basis by the directors, and strategies are developed to mitigate such risks and minimise their impact.

The Company is dependent on the success and continuation of trade within other group companies, particularly as it is both reliant on refurbishment funding and also as it is intended for group companies to pay a licence fee and service charge on an arm's length basis to the Company.

ON BEHALF OF THE BOARD:

Jenna Grader - Director

27 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the Company is property investment and leasing.

DIVIDENDS

No dividends will be distributed for the year ended 31 August 2025 (2024: £Nil).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 September 2024 to the date of this report.

Timothy Farlam

Jenna Grader

Mark Skinner

Constantinos Mourouzides

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

As permitted by the Articles of Association the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout this financial year and is currently in force. The Company also purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its directors.

MATTERS COVERED IN THE STRATEGIC REPORT

The principal activities, business review, principal developments, financial risk management, KPI's and future developments are all discussed in the Strategic Report on page 2.

GOING CONCERN

In the opinion of the directors, following preparation of financial forecasts, it is appropriate to prepare the financial statements on the going concern basis and the directors expect the Company to be in a position to meet its financial commitments for the foreseeable future, being at least 12 months from the date of approval of the financial statements. This conclusion also takes account of the group ability and intent to fund planned leasehold improvement works.

The Company has at the time of approval of these accounts no external borrowings outside the group and a working capital cycle enabling the company to meet all liabilities as they fall due. As a consequence of this, the directors believe that the company is well placed to manage its business risks successfully in the current economic climate and, accordingly, they believe that the going concern basis is appropriate.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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

In accordance with Section 418 of the Companies Act, each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

- so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

- the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The Company has passed an elective resolution to dispense with the annual appointment of auditors. Thorne Lancaster Parker will continue as auditors in accordance with and subject to Section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Jenna Grader - Director

27 May 2026

Opinion

We have audited the financial statements of Redcastle (214 Oxford Street) Limited (the 'company') for the year ended 31 August 2025 which comprise the Income Statement, Other 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 August 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 prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect 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, or intentional misrepresentations, 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 both those charged with governance of the entity and management.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and compliance with the relevant direct and indirect tax regulation in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to its operations, including UK employment laws, health and safety, and GDPR.

- We understood how Redcastle (214 Oxford Street) Limited is complying with those frameworks by making enquires with management and those charged with governance to understand how the Company maintains and communicates policies and procedures in these areas. We understood any controls put in place by management to reduce the opportunities of fraudulent transactions.

- We assessed the susceptibility of the company's financial statements to material misstatements including how fraud might occur through internal team conversations and inquiry of management and those charged with governance. Through these procedures we determined there to be a risk of management override associated with revenue and a fraud risk around transactions at the year end. We have performed tests of detail, including understanding of the nature of the transactions, verifying that the margin is appropriate, and verifying the clerical accuracy of the revenue recognised. In relation to management override, we selected a sample from the entire population of journals, including manual journals, identifying specific transactions which did not meet our expectations, in order to investigate, understand and agree to source documentation. We selected a sample of revenue transactions recorded before the year end and obtained documentation to verify that revenue adjustments had been recorded in the appropriate period.

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved verifying that material transactions are recorded in compliance with FRS 102 and where appropriate Companies Act 2006. Compliance with other operational laws and regulations were covered through our inquiry with no indication of non-compliance identified.

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.

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.

Neil Usher BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of Thorne Lancaster Parker

Chartered Accountants & Statutory Auditors

5th Floor

Palladium House

1-4 Argyll Street

London

W1F 7TA

27 May 2026

TURNOVER

15,598

13,614

Cost of sales

(5,044

)

(3,172

)

GROSS PROFIT

10,554

10,442

Administrative expenses

(1,520

)

(361

)

9,034

10,081

Other operating income

-

84

Gain/loss on revaluation of investment property

(5,921

)

(47,667

)

OPERATING PROFIT/(LOSS)

5

3,113

(37,502

)

Interest receivable and similar income

125

11

3,238

(37,491

)

Interest payable and similar expenses

6

(3,295

)

(1,593

)

LOSS BEFORE TAXATION

(57

)

(39,084

)

Tax on loss

7

(182

)

9,506

LOSS FOR THE FINANCIAL YEAR

(239

)

(29,578

)

LOSS FOR THE YEAR

(239

)

(29,578

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(239

)

(29,578

)

FIXED ASSETS

Investment property

8

361,500

344,000

CURRENT ASSETS

Debtors

9

42,423

23,412

CREDITORS

Amounts falling due within one year

10

(102,091

)

(66,079

)

NET CURRENT LIABILITIES

(59,668

)

(42,667

)

TOTAL ASSETS LESS CURRENT LIABILITIES

301,832

301,333

PROVISIONS FOR LIABILITIES

12

(33,053

)

(32,315

)

NET ASSETS

268,779

269,018

CAPITAL AND RESERVES

Called up share capital

13

200,000

200,000

Capital redemption reserve

14

164,847

164,847

Retained earnings

14

(96,068

)

(95,829

)

SHAREHOLDERS' FUNDS

268,779

269,018

The financial statements were approved by the Board of Directors and authorised for issue on 27 May 2026 and were signed on its behalf by:

Mark Skinner - Director

Jenna Grader - Director

Timothy Farlam - Director

Constantinos Mourouzides - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£'000

£'000

£'000

£'000

Balance at 1 September 2023

364,847

(66,251

)

-

298,596

Changes in equity

Issue of share capital

(164,847

)

-

-

(164,847

)

Total comprehensive income

-

(29,578

)

164,847

135,269

Balance at 31 August 2024

200,000

(95,829

)

164,847

269,018

Changes in equity

Total comprehensive income

-

(239

)

-

(239

)

Balance at 31 August 2025

200,000

(96,068

)

164,847

268,779

Cash flows from operating activities

Cash generated from operations

1

16,411

12,079

Interest paid

(3,295

)

(1,593

)

Net cash from operating activities

13,116

10,486

Cash flows from investing activities

Purchase of investment property

(23,421

)

(71,667

)

Interest received

125

11

Net cash from investing activities

(23,296

)

(71,656

)

Cash flows from financing activities

New loans in year

10,180

61,170

Net cash from financing activities

10,180

61,170

Increase in cash and cash equivalents

-

-

Cash and cash equivalents at beginning of year

-

-

Cash and cash equivalents at end of year

-

-

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.8.25

31.8.24

£'000

£'000

Loss before taxation

(57

)

(39,084

)

Loss on revaluation of fixed assets

5,921

47,667

Finance costs

3,295

1,593

Finance income

(125

)

(11

)

9,034

10,165

Increase in trade and other debtors

(18,455

)

(223

)

Increase in trade and other creditors

25,832

2,137

Cash generated from operations

16,411

12,079

1.	STATUTORY INFORMATION

Redcastle (214 Oxford Street) Limited ("the Company") operates as a property investment and leasing company and is a wholly-owned subsidiary of the Ingka Group, registered in the Netherlands.

The Company is a private company limited by shares and is domiciled and incorporated in the United Kingdom. The address of its registered office is C/O Websters, 12 Melcombe Place, London NW1 6JJ.

2.	STATEMENT OF COMPLIANCE

The financial statements of the Company have been prepared in compliance with United Kingdom Accounting Standards, comprising Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared for the year ended 31 August 2025.

The Company's financial statements are prepared on a going concern basis, under the historical cost convention.

The Company's functional and presentational currency is the pound sterling. The financial statements are rounded to thousands.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4.

From 18 January 2022, the directors have elected to classify the long leasehold property as an Investment Property (as defined by FRS102) and therefore the long leasehold property is held on the balance sheet at fair value.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.

The Company makes estimates, judgements and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Company doesn't believe there have been any estimated, judgements or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.

Turnover

Turnover represents rent and service charges receivable from external tenants. There was no turnover in the year from group undertakings.

Turnover accrues on a daily basis and is stated net of value added tax. All turnover arose within the United Kingdom.

Investment property

Investment Property is held on the balance sheet at its revalued amount. The revalued amount equates to the fair value at the date of revaluation less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amount does not materially differ from using the fair value at the date of the balance sheet.

Any revaluation increase or decrease on the Investment Property is recognised in the Income Statement and held in the reserves as "Retained Earnings".

At each balance sheet date, the Company reviews the carrying amount of its Investment Property to determine whether there is any indication that that the asset has suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, then the carrying amount of the asset is reduced to the recoverable amount. Impairment losses are recognised as an expense immediately.

Where an impairment loss subsequently reverses the carrying amount of the asset is increased to the revised estimate of its recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined net of depreciation had no impairment loss been recognised for the asset in prior years.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price. 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. Such assets are subsequently measured at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

(ii) Financial liabilities

Basic financial instruments, including trade and other creditors and loans from fellow group companies are initially recognised at transaction price.

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 recognised initially at transaction price and subsequently measure at amortised cost using the effective interest method.

(iii) Offsetting

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Other provisions

A provision is recognised when the Company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.

Taxation

Tax expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account.

Current tax

Current tax is the amount of corporation tax payable in respect of the taxable profit for the period or prior periods. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These 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 recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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.

Leased assets

Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the lease term. Incentives to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

Where the Company is committed to disposing of a leasehold property, provision is made for the expected direct costs of disposal, together with any net cash outflows under the lease during the period prior to disposal. The Company also provides for the unavoidable costs of vacant properties and, where properties are sublet, any shortfall between the rents payable to its landlords and those recovered under tenancy agreements. These provisions are discounted where the impact is material and unwind upon the earlier of lease expiry and disposal.

The Company also provides for dilapidations where there is an obligation to repair damages which occur during the life of the lease such as wear and tear. The cost is charged to the profit and loss account as the obligation arises.

Rental income is recognised in the profit and loss account on a straight-line basis over the term of the lease.

Going concern

As set out in the Directors' Report, in the opinion of the directors, following preparation of financial forecasts, it is appropriate to prepare the financial statements on the going concern basis and the directors expect the Company to be in a position to meet its financial commitments for the foreseeable future, being at least 12 months from the date of approval of the financial statements. This conclusion also takes account of the group ability and intent to fund planned leasehold improvement works.

The Company has no external borrowings outside the group and a working capital cycle enabling the company to meet all liabilities as they fall due. As a consequence of this, the directors believe that the company is well placed to manage its business risks successfully in the current economic climate and, accordingly, they believe that the going concern basis is appropriate.

Interest payable and similar expenses

Costs associated with the issue of bank and other borrowings are deferred and are charged to the profit and loss account over the term of the respective loan at a constant rate to the loan's carrying value.

Property provisions

The Company provides for the unavoidable costs of vacant properties and, where properties are sublet, any shortfall between the rents payable to its landlords and those recovered under tenancy agreements to the end of the lease period. The Company also provides for dilapidations where there is an obligation to repair damages which occur during the life of the lease such as wear and tear. The cost is charged to the profit and loss account as the obligation arises.

Amounts owed from/to group undertakings

Amounts owed from/to group undertakings are stated at cost, less any provision for impairment. Provision is made where in the opinion of the directors there has been a reduction of the amount recoverable by the Company. When assessing impairment of amounts due from group undertakings, management considers factors including the current financial position of the associated undertaking and historical experience.

Impairment provisions recognised in prior periods are assessed at each reporting date for any indication that the loss has changed. Where there is an indication that the loss has decreased or no longer exists, the impairment loss is reversed. Impairment is recognised as an exceptional item in the profit and loss account.

4.	EMPLOYEES AND DIRECTORS

The key management personnel are considered to be the directors of the Company.

The company had no employees during the year, other than the directors (2024: none).

The directors of the Company received no remuneration during the year.

5.	OPERATING PROFIT/(LOSS)

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

31.8.25

31.8.24

£'000

£'000

Foreign exchange differences

-

(84

)

The Directors of the company were paid for their services to the Company by a fellow group undertaking, (Ingka Group), which makes no specific director recharge to the Company. Their services as directors of the Company are incidental to their other services within the Group and it is not possible to make an accurate apportionment of their emoluments in respect of their services to the Company.

Auditors' remuneration of £24,000 (2024: £23,000).

There are no non-audit services provided by the auditors to the Company in this or the previous period.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.8.25

31.8.24

£'000

£'000

Intra-group loan interest

3,295

1,593

Interest relates to loans from other group companies, which bear interest at commercial rates..

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the loss for the year was as follows:

31.8.25

31.8.24

£'000

£'000

Current tax:

UK corporation tax

(556

)

(7,698

)

Deferred tax

738

(1,808

)

Tax on loss

182

(9,506

)

Reconciliation of total tax charge/(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:

31.8.25

31.8.24

£'000

£'000

Loss before tax

(57

)

(39,084

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(14

)

(9,771

)

Effects of:

Expenses not deductible for tax purposes

195

38

Adjustments to tax charge in respect of previous periods

1

227

current and deferred tax rates

Total tax charge/(credit)

182

(9,506

)

At the balance sheet date the company had incurred losses of £48,148K (2024 - £45,924K) to carry forward against future trading profits. A deferred tax asset has been recognised of £12,037K (2024 - £11,481K) and included within other debtors in the financial statements.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. A deferred tax liability of £33,053K (2024 - £32,315K) has been recognised on the revaluation of investment property calculated at the current rate of corporation tax.

8.	INVESTMENT PROPERTY

Total

£'000

FAIR VALUE

At 1 September 2024

344,000

Renovation & Improvements

23,421

Revaluations

(5,921

)

At 31 August 2025

361,500

NET BOOK VALUE

At 31 August 2025

361,500

At 31 August 2024

344,000

The property was valued as at 31 August 2025 by Colliers International.

The directors are of the opinion that the combination of high inflation and high interest rates have had a negative impact on the valuation of the property. They consider that the valuation will improve as the economic climate stabilises and the renovation of the property nears completion.

Fair value at 31 August 2025 is represented by:

£'000

Valuation in 2025

361,500

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£'000

£'000

Trade debtors

772

34

Other debtors

39,679

18,951

VAT

-

3,026

Prepayments and accrued income

1,972

1,401

42,423

23,412

Trade debtors are stated after provisions for impairment of £nil (2024: £nil).

At the balance sheet date the company had incurred losses of £48,148K (2024 - £45,924K) to carry forward against future trading profits. A deferred tax asset has been recognised of £12,037K (2024 - £11,481K) and included within other debtors in the financial statements.

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£'000

£'000

Trade creditors

212

102

Amounts owed to group undertakings

71,350

61,170

VAT

945

-

Other creditors

23,766

914

Accruals and deferred income

5,818

3,893

102,091

66,079

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.8.25

31.8.24

£'000

£'000

Within one year

1,627

1,627

Between one and five years

6,509

6,509

In more than five years

148,746

150,373

156,882

158,509

The above are the directors' best estimate of future minimum lease payments.