IRIS Accounts Production v26.1.10.61 SC649487 director 30.6.25 1.7.24 30.6.25 30.6.25 Medium entities These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. 0 0 true true true false true true false true false false false true false false true false 0 0 Ordinary 0 iso4217:GBP iso4217:USD iso4217:EUR xbrli:shares xbrli:pure utr:tonnes utr:kWh SC649487 2024-06-30 SC649487 2025-06-30 SC649487 2024-07-01 2025-06-30 SC649487 2023-06-30 SC649487 2023-07-01 2024-06-30 SC649487 2024-06-30 SC649487 ns15:Scotland 2024-07-01 2025-06-30 SC649487 ns14:PoundSterling 2024-07-01 2025-06-30 SC649487 ns10:Director1 2024-07-01 2025-06-30 SC649487 ns10:Consolidated 2025-06-30 SC649487 ns10:ConsolidatedGroupCompanyAccounts 2024-07-01 2025-06-30 SC649487 ns10:PrivateLimitedCompanyLtd 2024-07-01 2025-06-30 SC649487 ns10:Consolidated ns10:MediumEntities 2024-07-01 2025-06-30 SC649487 ns10:Consolidated ns10:Audited 2024-07-01 2025-06-30 SC649487 ns10:Medium-sizedCompaniesRegimeForDirectorsReport 2024-07-01 2025-06-30 SC649487 ns10:Medium-sizedCompaniesRegimeForAccounts 2024-07-01 2025-06-30 SC649487 ns10:Consolidated 2024-07-01 2025-06-30 SC649487 ns10:Consolidated ns10:Medium-sizedCompaniesRegimeForDirectorsReport 2024-07-01 2025-06-30 SC649487 ns10:Consolidated ns10:Medium-sizedCompaniesRegimeForAccounts 2024-07-01 2025-06-30 SC649487 ns10:FullAccounts 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary1 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary2 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary3 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary4 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary5 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary6 2024-07-01 2025-06-30 SC649487 ns10:OrdinaryShareClass1 2024-07-01 2025-06-30 SC649487 ns10:RegisteredOffice 2024-07-01 2025-06-30 SC649487 ns10:Consolidated 2023-07-01 2024-06-30 SC649487 ns5:CurrentFinancialInstruments 2025-06-30 SC649487 ns5:CurrentFinancialInstruments 2024-06-30 SC649487 ns5:ShareCapital 2025-06-30 SC649487 ns5:ShareCapital 2024-06-30 SC649487 ns5:RetainedEarningsAccumulatedLosses 2025-06-30 SC649487 ns5:RetainedEarningsAccumulatedLosses 2024-06-30 SC649487 ns5:ShareCapital 2023-06-30 SC649487 ns5:RetainedEarningsAccumulatedLosses 2023-06-30 SC649487 ns5:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 SC649487 ns5:RetainedEarningsAccumulatedLosses 2024-07-01 2025-06-30 SC649487 ns5:PlantMachinery 2024-07-01 2025-06-30 SC649487 ns5:ComputerEquipment 2024-07-01 2025-06-30 SC649487 ns5:CostValuation 2024-06-30 SC649487 ns5:ProvidedReleasedInPeriodProvisionsForImpairmentInvestments 2025-06-30 SC649487 ns5:CostValuation 2025-06-30 SC649487 1 ns5:Subsidiary1 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary1 2025-06-30 SC649487 ns5:Subsidiary1 2024-06-30 SC649487 ns5:Subsidiary1 2023-07-01 2024-06-30 SC649487 ns5:Subsidiary2 3 2024-07-01 2025-06-30 SC649487 5 ns5:Subsidiary3 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary3 2025-06-30 SC649487 ns5:Subsidiary3 2024-06-30 SC649487 ns5:Subsidiary3 2023-07-01 2024-06-30 SC649487 7 ns5:Subsidiary4 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary5 9 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary5 2025-06-30 SC649487 ns5:Subsidiary5 2024-06-30 SC649487 ns5:Subsidiary5 2023-07-01 2024-06-30 SC649487 ns5:Subsidiary6 11 2024-07-01 2025-06-30 SC649487 ns5:Subsidiary6 2025-06-30 SC649487 ns5:Subsidiary6 2024-06-30 SC649487 ns5:Secured 2025-06-30 SC649487 ns5:Secured 2024-06-30 SC649487 ns10:OrdinaryShareClass1 2025-06-30 SC649487 ns5:RetainedEarningsAccumulatedLosses 2024-06-30

REGISTERED NUMBER: SC649487 (Scotland)

Group Strategic Report,

Report of the Director and

Audited Consolidated Financial Statements

for the Year Ended 30 June 2025

for

Velocity Modular Ltd

| Velocity Modular Ltd (Registered number: SC649487) |

Contents of the Consolidated Financial Statements

for the Year Ended 30 June 2025

Page |

| Company Information | 1 |

| Group Strategic Report | 2 |

| Report of the Director | 4 |

| Report of the Independent Auditors | 6 |

| Consolidated Statement of Comprehensive Income | 11 |

| Consolidated Balance Sheet | 12 |

| Company Balance Sheet | 13 |

| Consolidated Statement of Changes in Equity | 14 |

| Company Statement of Changes in Equity | 15 |

| Consolidated Cash Flow Statement | 16 |

| Notes to the Consolidated Cash Flow Statement | 17 |

| Notes to the Consolidated Financial Statements | 18 |

| Velocity Modular Ltd |

Company Information

for the Year Ended 30 June 2025

| DIRECTOR: | Mrs J Higgins

| REGISTERED OFFICE: | Westburn Business Centre

| Mcnee Road

| Prestwick

| South Ayrshire

| KA9 2PB

| REGISTERED NUMBER: | SC649487 (Scotland)

| INDEPENDENT AUDITORS: | Gillespie & Anderson

| Statutory Auditors

| Chartered Accountants

| 147 Bath Street

| Glasgow

| G2 4SN

| Velocity Modular Ltd (Registered number: SC649487) |

Group Strategic Report

for the Year Ended 30 June 2025

The director presents her strategic report of the company and the group for the year ended 30 June 2025.

REVIEW OF BUSINESS

The Group specialises in modular construction including both developments of affordable housing and the construction of private modular homes in rural and Island locations. Following a sustained period of challenging market conditions and a strategic review of group operations, the Director determined that the operation of Connect Modular Limited and Hope South West Limited were no longer commercially viable. Consequently, Connect Modular Ltd has formally entered into administration on 6 January 2025 and Hope South West limited entered liquidation on 22 January 2025. Because it was impracticable to obtain reliable financial information for either entity, the Director has excluded these subsidiaries from the consolidated financial statements for the year ended 30 June 2025 and comparative period.

Excluding these subsidiaries, the underlying group demonstrated improvement from prior year, delivering a 121% increase in turnover and a rise in EBITA (excluding impairment losses) reflecting an improvement in operational efficiency and disciplined cost management. At the balance sheet date, the Group held a net liability position with negative shareholder equity of £620,527 (2024 - £495,203). The deficit mainly reflects the impairment of the assets of Hope South West Limited and Connect Modular Ltd.

Key performance indicators

| 2025 |  | 2024 |  | Change |

Sales |  | £1,366,134 |  | £618,539 |  | 121% |

Gross margin |  | 9.16% |  | (27% | ) | 36.4% |

Cash held |  | £18,364 |  | £8,119 |  | 126% |

Shareholders' equity |  | (£620,527 | ) | (£495,203 | ) | - 25% |

EBITA |  | £33,745 |  | (£191,363 | ) | -118% |

| Velocity Modular Ltd (Registered number: SC649487) |

Group Strategic Report

for the Year Ended 30 June 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties that have been identified are as follows:

Macroeconomic uncertainty in the UK

This risk could have a negative impact on labour market availability and consumer confidence in the private housing market.

Government policy

This could impact the level of new affordable homes being built and could result in significant changes to planning regulations.

Inflation

This risk has had a significant impact in recent years on material prices, commodity prices, and the price of labour.

Health & Safety

Management risks relating to Health & Safety is very important to management. Breaches could have an impact on human health, reputation, delays, and could result in penalties.

Workforce

Recruiting and retaining staff and ensuring that workforce is appropriately developed.

Compliance

As a business we are subject to complex regulations including building regulations. As well as this we have several industry related accreditations that we must comply with.

Risks are managed via a comprehensive suite of risk registers which are reviewed and updated on a regular basis. Risk prevention and mitigation are key considerations. Where appropriate to assist with risk management we will engage external consultants, take part in staff training, undertake internal audits and inspections, and set up teams to manage.

ON BEHALF OF THE BOARD:

Mrs J Higgins - Director

15 June 2026

| Velocity Modular Ltd (Registered number: SC649487) |

Report of the Director

for the Year Ended 30 June 2025

The director presents her report with the financial statements of the company and the group for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of land and property development.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2025.

FUTURE DEVELOPMENTS

During the year, wholly-owned subsidiary Hope South West Limited has entered liquidation and wholly-owned subsidiary Connect Modular Ltd has entered administration. These two subsidiaries were the main trading subsidiaries of the group. The group will continue to focus on developing its land and property going forward.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

Mrs J Higgins held office during the whole of the period from 1 July 2024 to the date of this report.

FINANCIAL INSTRUMENTS

The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling. The group does not enter into any formally designated hedging arrangements.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

- | select suitable accounting policies and then apply them consistently;

- | make judgements and accounting estimates that are reasonable and prudent;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

| Velocity Modular Ltd (Registered number: SC649487) |

Report of the Director

for the Year Ended 30 June 2025

AUDITORS

The auditors, Gillespie & Anderson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs J Higgins - Director

15 June 2026

Report of the Independent Auditors to the Members of

Velocity Modular Ltd

Adverse Opinion

We have audited the financial statements of Velocity Modular Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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, because of the significance of the matter described in the basis for adverse opinion section of our report, the group financial statements:

- do not give a true and fair view of the state of the group's affairs as at 30 June 2025 and of the group's loss for the year then ended;

- have not been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have not been prepared in accordance with the requirements of the Companies Act 2006.

In our opinion, except for the effects of the matter described in the basis for adverse opinion section of our report, the parent company financial statements:

- give a true and fair view of the state of the parent company's affairs as at 30 June 2025 and of the parent company's 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 adverse opinion

As explained in note 2 to the accounts, the group has not consolidated subsidiaries Connect Modular Ltd and Hope South West Limited for the year ended 30 June 2025, because following both entities entering administration and liquidation respectively during the period, the director considers it was impracticable to obtain reliable financial information for the purposes of preparing group accounts. . As a result, those subsidiaries have been excluded from the consolidation and intercompany balances and transactions relating to those entities have been written off in the consolidated profit and loss account.

Under FRS 102, the parent company should have accounted for these subsidiaries as part of the group consolidated figures, and had these been consolidated, many of the figures in the accompanying consolidated financial statements for the year ended 30 June 2025 and year ended 30 June 2024 would have been materially affected. The effects on the consolidated financial statements of the failure to consolidate have not been determined. Our opinion on the parent company's financial statements is also qualified for this matter as the failure to consolidate all subsidiaries is a departure from the requirements of FRS 102 and the Companies Act 2006. In addition, the director's report and strategic report do not consider the effects of the failure to consolidate these subsidiaries.

Further, valuations for land held in stock and work-in-progress have been provided by the director based on judgement and estimates. Although the rationale for those estimated valuations appeared reasonable based on the explanations obtained, no formal professional valuations were undertaken for the year ended 30 June 2025 or the comparative period. Given the nature of land prices and the range of factors that may affect valuation, we were unable to satisfy ourselves by alternative means as to whether any adjustment to these amounts was necessary. This matter is material to the consolidated financial statements because it may affect profit, retained earnings and distributable reserves.

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 group 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 adverse opinion on the group financial statements and qualified opinion on the parent company financial statements.

Report of the Independent Auditors to the Members of

Velocity Modular Ltd

Material uncertainty relating to going concern

We draw attention to our basis for adverse opinion section of the audit report which highlights that the group's two primary trading subsidiaries, Hope South West Ltd and Connect Modular Ltd, have ceased trading and have entered into liquidation and administration respectively. Furthermore, as disclosed in the post-balance sheet events note, the Group has received potential claims amounting to £77k. These matters indicate a material uncertainty over the group's ability to continue as a going concern. As we have issued an adverse opinion on the group financial statements to 30 June 2025, we have concluded that the financial statements do not give a true and fair view of the group's position and so do not issue an opinion on the appropriateness of the group's use of going concern accounting for the year to 30 June 2025.

Further, as explained in Note 2, the parent company operates on an interdependent basis and, following the cessation of trading by the group's two primary trading subsidiaries referred to above, the parent company relies on the continued support of related parties to sustain its operations for the foreseeable future. Should this support be reduced or withdrawn, this may cast significant doubt on the parent company's ability to continue as a going concern.

In auditing the parent company financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. This conclusion is based on the parent company's continued ability to rely on financial support from related parties to meet its cash flow requirements. Our opinion is not modified in respect of this matter.

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

Key audit matters

Except for the matter described in the basis for adverse opinion section and Material uncertainty relating to going concern section, we have determined that there are no key audit matters to be communicated in our report.

Other information

The director is responsible for the other information. The other information comprises the information in the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for adverse opinion section of our report, the group financial statements have not consolidated subsidiaries Hope South West Limited and Connect Modular Ltd and the intercompany balances and transactions relating to these entities have been written off in the consolidated profit and loss account. We have concluded that the other information is materially misstated for the same reason with respect to the amounts or other items in the annual report affected by the failure to consolidate these subsidiaries.

Furthermore, we were also unable to satisfy ourselves concerning the net realisable values of work-in-progress and land held for development within stock of £3,909,597 at 30 June 2025 and the comparative period stock of £4,442,377. We have concluded that where the other information refers to the stock and work-in-progress balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Report of the Independent Auditors to the Members of

Velocity Modular Ltd

Opinions on other matters prescribed by the Companies Act 2006

Due to the significance of the matter described in the basis for adverse opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

- the strategic report has not been prepared in accordance with the applicable legal requirements.

Except for the effects of the matters described in the basis for adverse opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the director's report has been prepared in accordance with the applicable legal requirements.

Matters on which we are required to report by exception

As a result of the matters described in the basis for adverse opinion section of our report, in the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have identified material misstatements in the strategic report. We have not identified any material misstatements in the director's report

Arising from the matters described in the basis for adverse opinion section of our report:

- we have not obtained all the information and explanations necessary for the purpose of our audit of the consolidated financial statements;

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

- returns adequate for our audit have not been received from branches not visited by us;

- we are unable to determine whether the financial statements are in agreement with the accounting records and returns; and

- we are unable to determine whether certain disclosures of director's remuneration specified by law have been unmade.

Responsibilities of director

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

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Report of the Independent Auditors to the Members of

Velocity Modular Ltd

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:

Our approach and assessment were as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

Enquire of management and review supporting documentation concerning the parent company and group's policies and procedures relating to:

- identify, evaluate and comply with laws and regulations and their awareness of any instances of non-compliance;

- detect and respond to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud;

- internal controls established to mitigate risks related to, unusual items, fraud or non-compliance with laws and regulations.

Obtain an understanding of the legal and regulatory framework that the parent company and group operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the parent company and group. The key laws and regulations we considered in this context included the Companies Act 2006 and Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", together with health and safety regulations, building regulations, money laundering regulations, employment legislation and data protection legislation.

Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

Review available Minutes of Meetings of those charged with governance, Reports and correspondence with HMRC and legal advisers.

Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents.

Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations.

To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence.

Report of the Independent Auditors to the Members of

Velocity Modular Ltd

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Alastair Stewart BA (Hons) CA (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

15 June 2026

| Velocity Modular Ltd (Registered number: SC649487) |

Consolidated

Statement of Comprehensive

Income

for the Year Ended 30 June 2025

| 2025 |  | 2024

| Notes | £ | £ |

TURNOVER | 3 | 1,366,134 |  | 618,539 |  |

Cost of sales | 1,241,044 |  | 785,995 |  |

GROSS PROFIT/(LOSS) | 125,090 |  | (167,456 | ) |

Administrative expenses | 251,589 |  | 562,129 |  |

(126,499 | ) | (729,585 | ) |

Other operating income | 1,000 |  | - |  |

OPERATING LOSS | 5 | (125,499 | ) | (729,585 | ) |

Interest receivable and similar income | 255 |  | 27 |  |

(125,244 | ) | (729,558 | ) |

Interest payable and similar expenses | 6 | 328 |  | 771 |  |

LOSS BEFORE TAXATION | (125,572 | ) | (730,329 | ) |

Tax on loss | 7 | (248 | ) | (2,314 | ) |

LOSS FOR THE FINANCIAL YEAR | (125,324 | ) | (728,015 | ) |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (125,324 | ) | (728,015 | ) |

Loss attributable to:

Owners of the parent | (125,324 | ) | (728,015 | ) |

Total comprehensive income attributable to:

Owners of the parent | (125,324 | ) | (728,015 | ) |

| Velocity Modular Ltd (Registered number: SC649487) |

Consolidated Balance Sheet

30 June 2025

| 2025 |  | 2024

| Notes | £ | £ |

CURRENT ASSETS

Stocks | 12 | 3,909,597 |  | 4,442,377 |  |

Debtors | 13 | 139,534 |  | 294,986 |  |

Cash at bank and in hand | 18,364 |  | 8,119 |  |

4,067,495 |  | 4,745,482 |  |

CREDITORS

Amounts falling due within one year | 14 | 4,688,022 |  | 5,240,685 |  |

NET CURRENT LIABILITIES | (620,527 | ) | (495,203 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | (620,527 | ) | (495,203 | ) |

CAPITAL AND RESERVES

Called up share capital | 18 | 200 |  | 200 |  |

Retained earnings | 19 | (620,727 | ) | (495,403 | ) |

SHAREHOLDERS' FUNDS | (620,527 | ) | (495,203 | ) |

The financial statements were approved by the director and authorised for issue on 15 June 2026 and were signed by:

Mrs J Higgins - Director

| Velocity Modular Ltd (Registered number: SC649487) |

Company Balance Sheet

30 June 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 10 | - |  | - |  |

Investments | 11 | 6,341,560 |  | 6,341,660 |  |

6,341,560 |  | 6,341,660 |  |

CURRENT ASSETS

Cash in hand | 100 |  | 100 |  |

CREDITORS

Amounts falling due within one year | 14 | 4,902,222 |  | 4,902,222 |  |

NET CURRENT LIABILITIES | (4,902,122 | ) | (4,902,122 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 1,439,438 |  | 1,439,538 |  |

CAPITAL AND RESERVES

Called up share capital | 18 | 200 |  | 200 |  |

Retained earnings | 19 | 1,439,238 |  | 1,439,338 |  |

SHAREHOLDERS' FUNDS | 1,439,438 |  | 1,439,538 |  |

Company's loss for the financial year | (100 | ) | - |  |

The financial statements were approved by the director and authorised for issue on 15 June 2026 and were signed by:

Mrs J Higgins - Director

| Velocity Modular Ltd (Registered number: SC649487) |

Consolidated Statement of Changes in Equity

for the Year Ended 30 June 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Balance at 1 July 2023 | 200 |  | 239,212 |  | 239,412 |  |

Changes in equity

Dividends | - |  | (6,600 | ) | (6,600 | ) |

Total comprehensive income | - |  | (728,015 | ) | (728,015 | ) |

Balance at 30 June 2024 | 200 |  | (495,403 | ) | (495,203 | ) |

Changes in equity

Total comprehensive income | - |  | (125,324 | ) | (125,324 | ) |

Balance at 30 June 2025 | 200 |  | (620,727 | ) | (620,527 | ) |

| Velocity Modular Ltd (Registered number: SC649487) |

Company Statement of Changes in Equity

for the Year Ended 30 June 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Balance at 1 July 2023 | 200 |  | 1,445,938 |  | 1,446,138 |  |

Changes in equity

Dividends | - |  | (6,600 | ) | (6,600 | ) |

Balance at 30 June 2024 | 200 |  | 1,439,338 |  | 1,439,538 |  |

Changes in equity

Total comprehensive income | - |  | (100 | ) | (100 | ) |

Balance at 30 June 2025 | 200 |  | 1,439,238 |  | 1,439,438 |  |

| Velocity Modular Ltd (Registered number: SC649487) |

Consolidated Cash Flow Statement

for the Year Ended 30 June 2025

| 2025 |  | 2024

| Notes | £ | £ |

Cash flows from operating activities

Cash generated from operations | 1 | (46,682 | ) | (105,666 | ) |

Interest paid | (328 | ) | (771 | ) |

Tax paid | (10,989 | ) | 2,314 |  |

Net cash from operating activities | (57,999 | ) | (104,123 | ) |

Cash flows from investing activities

Interest received | 255 |  | 27 |  |

Net cash from investing activities | 255 |  | 27 |  |

Cash flows from financing activities

New loans in year | 67,989 |  | - |  |

Equity dividends paid | - |  | (6,600 | ) |

Net cash from financing activities | 67,989 |  | (6,600 | ) |

Increase/(decrease) in cash and cash equivalents | 10,245 |  | (110,696 | ) |

Cash and cash equivalents at beginning of year | 2 | 8,119 |  | 118,815 |  |

Cash and cash equivalents at end of year | 2 | 18,364 |  | 8,119 |  |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Cash Flow Statement

for the Year Ended 30 June 2025

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

| 2025 |  | 2024

£ | £ |

| Loss before taxation | (125,572 | ) | (730,329 | ) |

| Impairment of fixed assets | - |  | 916,675 |  |

| Finance costs | 328 |  | 771 |  |

| Finance income | (255 | ) | (27 | ) |

(125,499 | ) | 187,090 |  |

| Decrease in stocks | 532,780 |  | 533,576 |  |

| Decrease in trade and other debtors | 155,453 |  | 1,727,051 |  |

| Decrease in trade and other creditors | (609,416 | ) | (2,553,383 | ) |

| Cash generated from operations | (46,682 | ) | (105,666 | ) |

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 30 June 2025

| 30.6.25 |  | 1.7.24

£ | £ |

| Cash and cash equivalents | 18,364 |  | 8,119 |  |

| Year ended 30 June 2024

| 30.6.24 |  | 1.7.23

£ | £ |

| Cash and cash equivalents | 8,119 |  | 118,815 |  |

3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

| At 1.7.24 | Cash flow | At 30.6.25

£ | £ | £ |

| Net cash |

| Cash at bank and in hand | 8,119 |  | 10,245 |  | 18,364 |  |

8,119 |  | 10,245 |  | 18,364 |  |

| Debt

| Debts falling due within 1 year | - |  | (67,989 | ) | (67,989 | ) |

- |  | (67,989 | ) | (67,989 | ) |

| Total | 8,119 |  | (57,744 | ) | (49,625 | ) |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements

for the Year Ended 30 June 2025

1. | STATUTORY INFORMATION

| Velocity Modular Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

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

2. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

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

| Going concern

| Following the cessation of trading for the group's two primary subsidiaries, Hope South West Ltd and Connect Modular Ltd - which have entered liquidation and administration respectively the group is experiencing liquidity pressures in meeting its obligations as they fall due. In addition, the group received potential claims of approximately £77k as disclosed in post balance sheet even note.

| The director recognises that the group operates on an interdependent basis and relies on the continued support of its related parties to sustain operations for the foreseeable future. Should this level of support reduce or cease, a material uncertainty would arise that may cast significant doubt on the group's ability to continue as a going concern. The group may be unable to realise its assets and settle its liabilities in the normal course of business.

| The director has assessed all available sources of support at both the individual company and group levels. Despite the existence of material uncertainty, the director has a reasonable expectation that sufficient support will be available to the parent company and the group. Accordingly, the going concern basis remains appropriate in the preparation of the financial statements.

| Basis of consolidation

| The consolidated financial statements present the results of the company and its wholly owned subsidiaries, The Wee House Company Ltd (SC701785), Hope Home (Scotland) Limited (SC229203) and Hope Home (Chapelton) Ltd (SC577738) forming the group as if they operate as a single entity, except for those relating to the wholly owned subsidiaries Hope South West Limited and Connect Modular Ltd for the year ended 30 June 2025, where the financial information was not available for consolidation. This approach has also been applied for the year ended 30 June 2024.

| All intercompany transactions and balances between the group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of financial activities from the date on which control is obtained. They are deconsolidated from the date control ceases.

| Significant judgements and estimates

| The director has made judgements, estimates and assumptions that affect the amounts reported within the financial statements during the year. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. The Director's estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements are addressed and detail is provided in the associated note.

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

2. | ACCOUNTING POLICIES - continued

| Turnover

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

| Sales comprise the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of the parent company and group's activities. Sales are presented, net of value-added tax, rebates, and discounts.

| The parent company and group recognises revenue when the entity becomes entitled to the income, the amount of revenue and related cost can be reliably measured, it is probable that the economic benefits associated with the transaction will flow to the entity and the collectability of the related receivables is reasonably assured, and when the specific criteria for each of the company's activities are met.

| Tangible fixed assets

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

| Plant and machinery | - | 25% on cost

| Computer equipment | - | 33% on cost

| Tangible fixed assets are stated at cost less depreciation.

| Impairment of fixed assets

| At each reporting date, the parent company and group reviews the carrying amounts of its tangible and intangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the amount of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the parent company and group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

| Fixed asset investments

| Fixed asset investments are comprised of investments in subsidiaries which are recognised in the financial statements at cost less impairment.

| Stocks and work-in-progress

| Stocks include finished goods and land held for development and are valued at the lower of cost and net realisable value, after making due allowance for obsolete or slow moving items. Cost is calculated using the first-in first-out method for finished goods. Costs include all purchase, transport and handling costs, and professional fees incurred in bringing stocks to their present location and condition. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

| Work in progress is valued at the lower of cost and net realisable value. Costs consist of expenditure on sub-contract labour and materials, and attributable overheads. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal.

| Long-term developments

| Long-term developments are considered on an individual basis and reflected in the profit and loss account by recording turnover and related costs as the development progresses.

| Where it is considered that the outcome of a long-term development can be assessed with reasonable certainty before its conclusion, the prudently calculated attributable profit is recognised in the profit and loss account as the difference between the reported turnover and related costs for that development. The amount by which turnover is in excess of payments on account is classified within accrued income.

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

2. | ACCOUNTING POLICIES - continued

| Financial instruments

| The group and parent company have no complex financial instruments but do hold basic financial instruments of; cash at bank, debtors, and creditors.

| Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities.

| Trade and other debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effect of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts.

| Trade and other creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost.

| A provision for impairment of financial instruments is established when there is objective evidence that, as a result of one or more events that occurred after the initial recognition, the estimated future cash flows have been impacted.

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

| Pension costs and other post-retirement benefits

| The company operates a money purchase pension scheme in the form of employee personal pension plans. The contracts are between the individual and the pension provider and all funds are held externally by a third party pension provider. Pension contributions are charged to the profit and loss account in the period to which they relate.

| Employment benefits

| The total cost of employee benefits to which employees have become entitled as a result of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate.

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

2. | ACCOUNTING POLICIES - continued

| Provision for liabilities

| A provision is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

3. | TURNOVER

| The turnover and loss before taxation are attributable to the one principal activity of the group.

4. | EMPLOYEES AND DIRECTORS

| 2025 |  | 2024

£ | £ |

| Wages and salaries | - |  | 19,081 |  |

| Social security costs | - |  | 2,456 |  |

| Other pension costs | - |  | 584 |  |

- |  | 22,121 |  |

| The average number of employees during the year was NIL (2024 - NIL).

| The average number of employees by undertakings that were proportionately consolidated during the year was nil (2024 - 1).

| 2025 |  | 2024

£ | £ |

| Director's remuneration | - |  | - |  |

5. | OPERATING LOSS

| The operating loss is stated after charging:

| 2025 |  | 2024

£ | £ |

| Auditors' remuneration | 15,000 |  | - |  |

6. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| 2025 |  | 2024

£ | £ |

| Other interest and penalties | 328 |  | 771 |  |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

7. | TAXATION

| Analysis of the tax credit

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

| 2025 |  | 2024

£ | £ |

| Current tax:

| Prior year tax adjustment | (248 | ) | 667 |  |

| Deferred tax | - |  | (2,981 | ) |

| Tax on loss | (248 | ) | (2,314 | ) |

8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

| As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.

9. | DIVIDENDS

| 2025 |  | 2024

£ | £ |

| Ordinary shares of £1 each

| Interim | - |  | 6,600 |  |

10. | TANGIBLE FIXED ASSETS

| Group

| Plant and |  | Computer |

| machinery |  | equipment |  | Totals

£ | £ | £ |

| COST

| At 1 July 2024

| and 30 June 2025 | 3,150 |  | 4,975 |  | 8,125 |  |

| DEPRECIATION

| At 1 July 2024

| and 30 June 2025 | 3,150 |  | 4,975 |  | 8,125 |  |

| NET BOOK VALUE

| At 30 June 2025 | - |  | - |  | - |  |

| At 30 June 2024 | - |  | - |  | - |  |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

11. | FIXED ASSET INVESTMENTS

| Company

| Shares in

| group

| undertakings

£ |

| COST

| At 1 July 2024 | 6,341,660 |  |

| Impairments | (100 | ) |

| At 30 June 2025 | 6,341,560 |  |

| NET BOOK VALUE

| At 30 June 2025 | 6,341,560 |  |

| At 30 June 2024 | 6,341,660 |  |

| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

| Subsidiaries

| The Wee House Company Ltd

| Registered office: Westburn Business Centre, Mcnee Road, Prestwick, Scotland, KA9 2PB

| Nature of business: Construction of domestic buildings

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | (98,315 | ) | (57,413 | ) |

| Loss for the year | (40,902 | ) | (938 | ) |

| The Company is owned 100% by Velocity Modular Ltd.

| Connect Modular Ltd

| Registered office: C/O Frp Advisory, Trading Limited, Level 2, The Beacon, 176 St. Vincent Street, Glasgow, G2 5SG

| Nature of business: Construction of domestic buildings

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| The subsidiary has entered administration on 6 January 2025 and ceased trading operations.

| Hope Homes (Scotland) Limited

| Registered office: Westburn Business Centre, Mcnee Road, Prestwick, Scotland, KA9 2PB

| Nature of business: Development of building projects

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | 4,022,804 |  | 3,946,750 |  |

| Profit/(loss) for the year | 76,054 |  | (188,813 | ) |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

11. | FIXED ASSET INVESTMENTS - continued

| Hope South West Limited

| Registered office: C/O Frp Advisory, Trading Limited, Level 2, 176 St. Vincent Street, Glasgow, G2 5SG

| Nature of business: Development of building projects

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

| The company is owned 100% by Hope Homes (Scotland) Limited and therefore indirectly owned by Velocity Modular Ltd. The company has entered into liquidation on 22 January 2025 and ceased trading operations.

| Hope Homes (Chapelton) Limited

| Registered office: Westburn Business Centre, Mcnee Road, Prestwick, Scotland, KA9 2PB

| Nature of business: Development of building projects

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | 314,907 |  | 316,241 |  |

| Loss for the year | (1,334 | ) | (42 | ) |

| The company is owned 100% by Hope Homes (Scotland) Limited and therefore indirectly owned by Velocity Modular Ltd.

| Connect Modular Frameworks Ltd

| Registered office: Westburn Business Centre, Mcnee Road, Prestwick, Scotland, KA9 2PB

| Nature of business: Dormant company

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | 4 |  | 4 |  |

| The company is owned indirectly by Velocity Modular Ltd since its incorporation on 20 October 2022 due to Connect Modular Ltd owning 75% of the shares and Hope Homes (Scotland) Limited owning the remaining 25% of its shares.

| All of the above subsidiaries, with the exception of Hope South West Limited and Connect Modular Ltd have been included in the consolidation. The two excluded subsidiaries have been omitted on the basis that the information for the year to 30 June 2024 up to the date both entities entered liquidation on 22 January 2026 and 6 January 2025 respectively, was unavailable for inclusion within the financial statements Consequently, their aggregate capital and reserves and profit or loss for the year have not been presented in the note above.

| The director reviewed the carrying value of the above investment in group undertakings for impairment and recognised an impairment charge of £100 in the profit and loss account during the year.

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

12. | STOCKS

| Group |

2025 | 2024 |

£ | £ |

| Work-in-progress | 156,281 |  | 184,667 |  |

| Land held for development | 3,753,316 |  | 4,257,710 |  |

3,909,597 |  | 4,442,377 |  |

| The carrying value of land held for development is determined by the Director, in conjunction with their professional advisers, and based on estimates of the selling value of the land. In the period to 30 June 2025, land held was revalued down by £504,394 (2024: up by £187,000) through the profit and loss account.

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

| Group |

2025 | 2024 |

£ | £ |

| Other debtors | 120,051 |  | 277,356 |  |

| VAT | 2,723 |  | 871 |  |

| Deferred tax asset | 16,760 |  | 16,759 |  |

139,534 |  | 294,986 |  |

| Deferred tax asset

| Group |

2025 | 2024 |

£ | £ |

| Accelerated capital allowances | 858 |  | 858 |  |

| Tax losses carried forward | 15,902 |  | 15,901 |  |

16,760 |  | 16,759 |  |

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

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Other loans (see note 15) | 67,989 |  | - |  | - |  | - |  |

| Trade creditors | 19,741 |  | 5,718 |  | - |  | - |  |

| Amounts owed to group undertakings | - |  | - |  | 717,839 |  | 114,030 |  |

| Tax | 764 |  | 12,001 |  | - |  | - |  |

| Other creditors | 106,026 |  | 93,411 |  | 132 |  | 132 |  |

| Deposits in advance | - |  | 32,250 |  | - |  | - |  |

| Loan notes | 3,341,460 |  | 3,341,460 |  | 3,341,460 |  | 3,341,460 |  |

| Deferred consideration | 841,191 |  | 1,445,000 |  | 841,191 |  | 1,445,000 |  |

| Directors' loan accounts | 100 |  | 100 |  | 100 |  | 100 |  |

| Accruals and deferred income | 310,751 |  | 310,745 |  | 1,500 |  | 1,500 |  |

4,688,022 |  | 5,240,685 |  | 4,902,222 |  | 4,902,222 |  |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

15. | LOANS

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

| Group |

2025 | 2024 |

£ | £ |

| Amounts falling due within one year or on | demand: |

| Other loans | 67,989 |  | - |  |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

16. | SECURED DEBTS

| The following secured debts are included within creditors:

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Loan notes | 3,341,460 |  | 3,341,460 |  | 3,341,460 |  | 3,341,460 |  |

| Deferred consideration | 841,191 |  | 1,445,000 |  | 841,191 |  | 1,445,000 |  |

4,182,651 |  | 4,786,460 |  | 4,182,651 |  | 4,786,460 |  |

| The secured liabilities noted above relate to the purchase of Hope Homes (Scotland) Limited and its two subsidiaries on 30 November 2022. On that date, Hope Homes (Scotland) Limited granted standard securities over the land held as stock in its name in favour of Ian Hope (acting as Security Trustee for and on behalf of the other loan note holders) over all and whole the subjects at:

| Mill O'Shiel Farm, Drongan, KA6 7EF (second-ranking)

| Crofthead Road, Kilmaurs, Kilmarnock

| Croft Street, Tarbolton, Mauchline, KA5 5DS

| Laurelbank House, 1 Alloway Road, Maybole, KA19 8AA

| Lomond Walk, Drongan, Ayr, KA6 6NG

| Bellfield Avenue, Hurlford, Kilmarnock

| Garden Street, Tarbolton, Mauchline

| Tarbolton Road, Dundonald

| Treeswoodhead Road, Hurlford, Kilmarnock

| 24 Alloway Road, Maybole, KA18 8AA

| Ballochmyle View, Catrine, KA5 6EN

| The carrying value of the above secured land in the consolidated financial statements at 30 June 2025 is £3,753,316 (2024 - £4,257,710).

| In addition, a floating charge was also granted by Hope Home Scotland Limited over all the property or undertaking of the company in favour of Ian Hope (as Security Trustee) on 30 November 2022.

| Part of the land at Mill O'Shiel Farm, Drongan, KA6 7EF was sold during the year. The remaining land, with a carrying value of £230,000 at 30 June 2025 (2024: £475,000), is subject to a first ranking standard security in favour of Mr William Bryce Dunlop and Mrs Ellen Smith Dunlop.

| On 10 August 2022, a standard security was granted by Hope Homes (Scotland) Limited in favour of HCC International Insurance Company Plc over all and whole the subjects lying to the east and west sides of Treeswoodhead Road, Hurlford, Kilmarnock. This security is in relation to the performance bond in the sum of £1,580,695 made between Cunninghame Housing Association Limited and Connect Modular Ltd. Contains a negative pledge. The performance bond was released on 11 October 2024.

| In addition, a standard security was granted on 10 August 2022 by Hope Home Scotland Limited in favour of Hub South East Scotland Limited over all and whole the subjects lying to the east and west sides of Treeswoodhead Road, Hurlford, Kilmarnock. This security is in relation to the performance bond in the sum of £850,000 made between the Hub South East Scotland Limited and Connect Modular Ltd. The contingent liability in respect of this bond is disclosed within note 21 of the financial statements.

| On 7 October 2024, a standard security was granted by Hope Home Scotland Limited in favour of Hargreaves Land Limited over all and whole the subjects lying on the South East side of Bellfield Avenue, Hurlford, Kilmarnock. It secures the obligations of Hope Home (Scotland) Limited under the option agreement entered between Hope Home (Scotland) Limited and Hargreaves Land Limited.

| Connect Modular Ltd (in administration on 6 January 2025) has granted the following charges in favour of close family of the director, J Higgins over all and whole subjects at Caponacre Industrial Estate, Cumnock.

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

| - Standard security granted on 30 June 2023

| - Standard security granted on 15 August 2023

| - Standard security granted on 28 January 2025

| - Standard security granted on 24 March 2025

| - A floating charge granted on 2 September 2023

| The securities granted were in relation to sums advanced to Connect Modular Ltd by close family of the director as disclosed within related party disclosures.

17. | DEFERRED TAX

| Group

£ |

| Balance at 1 July 2024 | (16,759 | ) |

| Rounding | (1 | ) |

| Balance at 30 June 2025 | (16,760 | ) |

18. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

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

| value: | £ | £ |

| 200 | Ordinary | £1 | 200 |  | 200 |  |

19. | RESERVES

| Group

| Retained

| earnings

£ |

| At 1 July 2024 | (495,403 | ) |

| Deficit for the year | (125,324 | ) |

| At 30 June 2025 | (620,727 | ) |

| Company

| Retained

| earnings

£ |

| At 1 July 2024 | 1,439,338 |  |

| Deficit for the year | (100 | ) |

| At 30 June 2025 | 1,439,238 |  |

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

20. | CONTINGENT LIABILITIES

| Under the share purchase agreement dated 30 November 2022, Velocity Modular Ltd has committed to total consideration of £6,444,460 for the acquisition of 100% shareholding in Hope Homes (Scotland) Limited. At the balance sheet date, £4,182,651 remained payable and is included within the creditors. The final amount payable in respect of this balance is subject to price adjustment mechanism to which the total consideration is adjusted by reference to the aggregated net sale proceeds achieved on disposal of the heritable properties relative to their net book value as detailed in the year ended 30 June 2022 financial statements of Hope Home (Scotland) Limited. The amount payable is dependent on the future property sale proceeds and may differ to the amount recognised in the financial statements. While there are a few heritable properties under offer or in the process of sale after the year end, no provision is recognised to reflect the potential outflow in excess of the amounts recognised in the year ended 30 June 2025 financial statement due to the resulting proceeds cannot be reliably measured at the reporting date.

| Hope Home Scotland Limited Company has an arrangement under which Mr William Bryce Dunlop and Mrs Ellen Smith Dunlop are entitled to one half of the total net free proceeds from the sale of land at Mill O'Shiel Farm, Drongan, Ayr, KA6 7EF. At 30 June 2025, the land was held as stock with an estimated value of £230,000. As the sale was in progress at the reporting date, the associated profit share could not be measured reliably and has not been recognised. The security charge in respect of this contract is noted within note 16.

| In additions, in May 2025, a claim relating to property defects was brought against Hope Home (Scotland) Limited by an insurer. The outcome of the claim remains uncertain at 30 June 2025. The director considers that the Company has strong defences and that it is unlikely the Company will be found liable for any damages. Consequently, no provision has been recognised in these financial statements.

| Connect Modular Ltd is a party to a bond of £850,000 issued by HCC International Insurance Company Plc in favour of Hub South East Scotland Limited. Following the appointment of administrators on 6 January 2025, a 12 month standstill agreement was entered into from 17 March 2025. Velocity Modular Ltd and The Wee House Company Ltd act as indemnitors, with Hope Home Scotland Ltd providing security. On default, the indemnitors are jointly and severally liable for the bond amount, interest, any reasonable costs under the agreement, and the security may be enforced. At 30 June 2025, no provision has been recognised as an outflow of economic benefits was not considered probable. The security charges in respect of this bond are noted within note 16.

| In additions, Connect Modular Ltd also hold a secured performance guarantee bond of £1,580,695 with Cunninghame Housing Association Limited. The bond is in relation to the construction of 101 properties at Bridgehouse Hill, Treeswoodhead Road, Kilmarnock. The bond was released on 11 October 2024. The security charges in respect of this bond are noted within note 16.

| A Surety Bond was entered into with HCC International Insurance Company Plc to The Scottish Ministers as Surety on behalf of Hope Homes (Chapelton) Limited dated 11 April 2018 for the sum of £80,000. This is in respect of the development, Section 21 - Seamill, West Kilbride. On default, Hope Home (Chapelton) Limited is liable for the bond amount and any reasonable costs under the agreement. At 30 June 2025, no provision has been recognised as an outflow of economic benefits was not considered probable.

| Velocity Modular Ltd (Registered number: SC649487) |

Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2025

21. | RELATED PARTY DISCLOSURES

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

| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. Intergroup purchase of £339,663 (2024 - £492,598) between The Wee House Company Ltd and Connect Modular Ltd has not been eliminated on consolidation due to the unavailability of Connect Modular Ltd's financial information as disclosed in note 2. As a result, the Intergroup purchase remains included within the consolidated Statement of Comprehensive Income.

| During the year, close family members of the Director, J Higgins provided the following financial support to Group:

| - A loan of £67,989 (2024 - £nil) was advanced to The Wee House Company Ltd and remained outstanding at the balance sheet date. The loan is unsecured, interest free and repayable on demand.

| - Expenses totalling £1,100 (2024 - £nil) were paid for on behalf of Hope Home (Chapelton) Limited. This amount also remained outstanding at the balance sheet date.

| - Corporation tax payment totalling £11,317 (2024 - £nil) were paid for on behalf of Hope Home (Scotland)Limited. This amount also remained outstanding at the balance sheet date.

| The above balances are included within creditors.

| In addition, Velocity Modular Ltd owed a total consideration of £6,444,460 to close family members of the Director in respect of the acquisition of 100% shareholding in Hope Homes (Scotland) Limited under the share purchase agreement. At the balance sheet date, £4,182,651 (2024 - £4,786,460) remained payable and is included within the creditors. The security charge in respect of this arrangement is noted within note 16.

| The close family members of the Director also due a sum advanced to Connect Modular Ltd. At the date of the liquidator's appointment, the reported balance due to them amounted to £1.1 million. As at 30 June 2025, the liquidator anticipates that the secured creditors will receive a distribution in full under their securities, subject to the completion of the sale of the property at the Cumnock site. The liability relating to this amount has not been included in the consolidated financial statements for the years ended 30 June 2024 and 30 June 2025, as disclosed in note 2 of the financial statements.

22. | POST BALANCE SHEET EVENTS

| Subsequent to the year end, the following events arise for the group:

| On September 2025, Hope Home (Chapelton) Limited received a potential claim for £69,061 by the property owners in respect of the defect in the completed property.

| On February 2026, Velocity Modular Ltd received a potential claim for £8,411 relating to finance leases.

| The above claims are currently in discussion and the Director deem to vigorously challenge these claims.

| In addition, Connect Modular Frameworks Ltd was subsequently dissolved on 24 March 2026.

23. | ULTIMATE CONTROLLING PARTY

| The ultimate controlling party of the group is the sole director, J Higgins, by virtue of her 100% shareholding in the parent company, Velocity Modular Ltd.