The Board are pleased to present their annual report on behalf of Property Legal (Manchester) Limited together with the audited financial statements and auditors report for the year ended 30 September 2025.

Principal activities

Property Legal (Manchester) Ltd, trading as PLS Solicitors, is a law firm specialising in residential property conveyancing in England and Wales. The firm provides end to end legal services for home buyers, sellers, and lenders, with particular expertise in new-build property transactions. PLS is recognised as an industry leader in this niche, consistently ranking as one of the country’s largest conveyancers for new-build homes and among the top firms for overall conveyancing volumes.

The financial year 2025 was a year of strong growth and strategic restructuring for PLS. The firm achieved its highest annual revenue since incorporation, with revenues exceeding £18 million for the first time (approximately 7% growth year-on-year). This record revenue reinforced PLS’s market leading position in new build conveyancing. Market conditions in the UK housing sector were challenging and unpredictable, with overall transaction volumes down, but PLS demonstrated resilience and adaptability. Interest was earned on client account £895K (2024 £1,199k).

The Board took proactive steps to strengthen the firm’s structure and improve operational quality during this period. Operating profit for the year of £1,151K was lower than the prior year of £2.5m due to deliberate investments in people and infrastructure. Nevertheless, the firm remained profitable, and these investments have positioned PLS for future growth with a more efficient operation going forward.

Net assets were £3.323m (2024: £3.020m).

Net Cash at the end of the year was £2.042m, compared with £3.058m in the prior year. Details of the movement in net cash can be found in the cash flow statement on page 14.

Key Achievements and Changes

PLS made significant operational and organisational improvements in FY2025. The firm undertook an operational restructuring of its core conveyancing teams to drive efficiency and service quality. In the New Build department, a new operating model was introduced with clearer reporting lines, stronger developer relationships, and improved fee discipline. The full benefits of this restructure are expected to be realised in the coming year as the new model becomes fully embedded .

PLS also saw strong performance in key service lines despite the market headwinds. Non new build residential conveyancing was a standout, with case volumes and fees growing approximately 10% year on year. Overall, PLS ends the year stronger in quality, structure, and leadership alignment, having used FY2025 as a period of “reset and rebuilding” to improve the firm’s foundations for sustainable growth.

Strategic Priorities:

Progress was made in FY2025 across strategic areas. The firm’s digital marketing efforts yielded improved lead flow and the groundwork was laid for a new website and client portal through investment in people and systems.

Investment in people was exemplified by the Associate Director appointments and ongoing staff training. These accomplishments have enhanced PLS’s resilience and agility, ensuring the business is well-aligned with its strategic objectives.

Technology

Technology and innovation are at the heart of PLS’s business model. The firm has a track record as an early adopter of legal technology, using digital tools to enhance both internal operations and client service. PLS’s technology platform allows for efficient case management and effective communication with clients. During FY2025, PLS continued to build out its digital capabilities. The firm further streamlined its processes and introduced improvements to its online client interfaces, enhancing the digital offering to clients and providing a more user friendly, transparent conveyancing experience.

A notable development has been the use of technology to strengthen business to business channels. PLS has developed an Introducer Portal online platform for estate agents, brokers, and other referrers to simplify referral interactions and capture new work streams. The portal is expected to drive efficiency and generate new B2B work by offering partners real time case tracking and easier engagement with PLS .

Looking ahead, PLS is pursuing an ambitious digital transformation agenda. The firm has begun a major IT re-platforming project, aiming to modernise its core systems and integrate advanced technologies.

An AI roadmap is in the course of being initiated, outlining how artificial intelligence and machine learning tools will be incorporated into the workflow. Early groundwork will include partnering with tech experts to explore AI-driven process automation and data analytics. These efforts will enable PLS to automate routine tasks, reduce turnaround times, and improve accuracy in areas such as document analysis and client communications. By investing in cutting edge technology, PLS seeks to maintain its competitive edge and continue offering market leading digital client service.

Principal Risks and Uncertainties

The Board regularly reviews the principal risks facing the business and has implemented policies to mitigate them. The key risks and uncertainties for PLS Solicitors are as follows:

• Housing Market Dependency: The firm’s activity levels are strongly influenced by the overall health of the UK housing market and residential transaction volumes . A downturn in housing market activity (due to economic factors, interest rates, or government policy changes) can adversely affect the volume of conveyancing work available. To mitigate against this PLS continuously monitors housing market data and trends, and this insight is fed into management decisions . The firm remains agile in adjusting its capacity and cost base to ride out market fluctuations. Moreover, PLS’s focus on new-build transactions positions it to benefit from any government initiatives to boost housing supply, while its growing diversification into related service lines provides some buffer against market swings.

• Client Acquisition and Competition: Maintaining a strong pipeline of new work is an ongoing challenge amid competitive market conditions. In order to mitigate against this PLS employs data driven marketing and management information (MI) to track lead volumes and conversion rates in real time. This allows the business development teams to target effort where it’s most effective and respond quickly to any dips in demand. The firm has also embarked on a regional expansion program (opening local hubs and deploying regional Business Development Managers) to tap into local markets and attract clients and referrers who prefer a personal, on the ground service .

• Liquidity and Financial Risk: As with any growing business, ensuring sufficient liquidity for operations and investment is crucial. The principal financial uncertainties include cash flow timing (due to case completion cycles) and funding growth initiatives. In order to mitigate against this PLS maintains a conservative financial structure. The company keeps substantial cash reserves. Liquidity is monitored on a daily basis, and rolling cash flow forecasts are in place to identify any potential cash shortfalls. PLS’s prudent approach to cash management gives the Directors confidence that the business can meet its obligations and fund planned investments in the foreseeable future.

Future Developments and Outlook

The Board remains optimistic about PLS Solicitors’ growth prospects and has a clear strategy for the year ahead and beyond. Having strengthened the business fundamentals in 2025, the firm is poised to convert this groundwork into renewed growth and profitability .

The firm aims to establish itself firmly as the UK’s leading new-build conveyancing specialist, targeting a large increase in national market share in that segment , while also growing its presence in the broader residential conveyancing market.

To support these growth objectives, PLS will continue investing in technology, people, and process innovation. A major focus in the coming year is the digital transformation programme already underway. The firm is progressing with a comprehensive IT re-platforming. By the end of FY2026, PLS expects to deploy a new client portal and mobile app offering improved user experience for clients and referrers. The website redesign project is on track to launch a fully revamped PLS website to enhance online engagement and lead generation. Crucially, the firm’s AI integration roadmap will start to bear fruit in the next 12 months. Management plans to implement the first AI-driven process automation in live operations as a proof of concept.

In summary, the Directors are confident that PLS Solicitors enters FY2026 with a resilient platform and clear strategic direction. The significant investments made in the past year in people, technology and process improvements have enhanced the firm’s capacity and capability.

PLS is well positioned to capitalise on growth opportunities in the improving market environment, particularly as industry trends shift toward digitalisation and scale. Notably, the legal tech revolution is expected to favour firms like PLS that have the resources and vision to innovate. The company’s strong governance, market leading service offerings, and financial discipline provide a solid foundation to navigate any near-term uncertainties.

With efficiency now embedded, cutting-edge technology on the horizon, and expansion initiatives in motion, PLS Solicitors is poised for the next phase of sustainable growth, to the benefit of its clients, employees, and stakeholders.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 September 2025.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £562,000. The directors do not recommend payment of a final dividend.

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

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

In accordance with the company's articles, a resolution proposing that RSM UK Audit LLP be reappointed as auditor of the company will be put at a General Meeting.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and future developments.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

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; and

• 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.

We have audited the financial statements of Property Legal (Manchester) limited (the ‘company’) for the year ended 30 September 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 30 September 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

As explained more fully in the directors’ responsibilities statement set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to Solicitors Accounts Rules. We performed audit procedures to inquire of management whether the company is in compliance with these law and regulations and inspected correspondence with licensing or regulatory authorities.

The audit engagement team identified the risk of management override of internal controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. In respect of revenue recognition, audit procedures included substantive testing of revenue transactions and challenging judgements and estimates made by management over the recoverability of amounts recoverable on contracts.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

No other comprehensive income was recognised in the period and profit for the year is equal to the total comprehensive income.

The notes on pages 15 to 31 form part of these financial statements.

Property Legal (Manchester) Limited is a private company limited by shares incorporated in England and Wales. The registered office is PLS House, 2 Aegean Road, Atlantic Street, Altrincham, Cheshire, WA14 5UW.

The company's principal activities are as stated in the Strategic report.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006, including the provision of the large and Medium size Companies and groups (accounts and Reports) Regulations 2008.

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

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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. We have prepared P&L and cashflow forecasts up until the end of September 2027, which shows that the company can meet its liabilities as they become due. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents amounts chargeable to clients for professional services provided during the year but excluding value added tax.

Turnover is recognised when a right to consideration has been obtained through performance under each contract. Consideration accrues as contract activity progresses by reference to the value of work performed.

Turnover is not recognised where the right to receive payment is contingent on events outside the control of the company.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Other income represents interest generated from client monies held as part of conveyancing services and is recognised as it is earned.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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

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

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

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

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

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

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. The subsidiary is dormant and is not material to the group and has therefore not been consolidated.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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 extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

At the balance sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the company), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward in work in progress.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

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

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

Basic financial liabilities, including creditors, bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

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

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

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

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

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

These financial statements include estimates and assumptions with regard to the valuation of amounts recoverable from clients, provisions and discount rates applied.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The company implemented an incentive based share scheme in a previous period which vests a number of shares to management if certain future conditions are met. The directors of the company have concluded that any such charge associated with the share scheme will be immaterial to the company, both in the current period and in future periods.

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

The company carries an element of work in progress for work undertaken but not yet completed, the valuation of which reflects the estimated level of value based on stage of completion, historic recovery rates and probability of reaching completions.

The company provides for unutilised amounts of excess under its PII provision. The company utilises information provided by insurers and legal advisors to asset the likelihood of utilisation from outstanding claims made against the policy.

The company have capitalised development costs based on an estimate of time spent and associated costs.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 9 (2024 - 7).

All tax recognised in the period relates to continuing operations.

Corporation tax is calculated at 25% (2024:25%) of the profit for the year. The Finance Act 2021 which was substantively enacted on 24 May 2021 created a 25% main rate, 19% small profits rate and a marginal rate which is effective from 1 April 2023. Deferred tax has been calculated at 25% (2024:25%) which is the rate that the deferred tax liabilities and assets are expected to crystallise.

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

Tangible fixed assets includes assets held under finance leases or hire purchase contracts as follows:

Depreciation totals are shown in the operating profit note.            

Details of the company's subsidiaries at 30 September 2025 are as follows:

During the period the company provided for £421,544 of customer invoices (2024: £603,820). The debtors figure shown above is net of a £555,446 bad debt provision (2024: £632,136).

Client work in progress was presented separately in the previous year but now included within debtors to better represent the nature of the balance. Prior year comparatives have not been restated.

Bank loans comprise a CBILS loan of £266,684 repayable over 8 monthly instalments. The interest rate on the facility was 3% + Bank of England Base rate and the bank holds a fixed and floating charge dated 4 October 2013 on all of the assets of the business.

Finance lease payments represent rentals payable by the company for certain items of computer equipment and plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years and the average interest rate is 3.5%. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The PII excess provision of £443,803 was included within Accruals and deferred income last year, within creditors falling due in one year. The balance has been reclassified within provisions this year to better reflect the nature of the balance. Prior year comparatives have not been restated.

Provisions are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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

The ordinary shares in issue have attached to them full rights in respect of voting.

A corporate guarantee, by Natwest bank, was in place at the balance sheet date relating to the properties of Bridgewater Court and PLS House, owned by the shareholders Mr A Dhand and Mr R Thomas and there is a maximum amount of guarantee of £529k. The loan relates to the purchase of those buildings. If the liability were to crystallise Property Legal (Manchester) Limited would take over these liabilities.

The company also acts as guarantor to a loan made to Mr R Thomas up to the value of £150,000 in July 2023 by Natwest bank.

In addition to this Mr A Dhand and Mr R Thomas have personal guarantees with NatWest bank of £75,000 each.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The remuneration of key management personnel is as follows.

Two directors of the company, Aashim Dhand and Robert Thomas, own two properties that the company operates from. The annual rent paid on the properties was £200,000 (2024: £200,000).

During the year the firm made purchases relating to conveyancing services of £1,500,000 (2024: £1,325,000) to PLS Lawyers Private Limited, registered in India, which is linked to Property Legal (Manchester) Limited by common shareholders.

Contingent liabilities note

A corporate guarantee, by Natwest bank, was in place at the balance sheet date relating to the properties of Bridgewater Court and PLS House, owned by the shareholders Mr A Dhand and Mr R Thomas and there is a maximum amount of guarantee of £529k. The loan relates to the purchase of those buildings. If the liability were to crystallise Property Legal (Manchester) Limited would take over these liabilities.

The company also acts as guarantor to a loan made to Mr R Thomas up to the value of £150,000 in July 2023 by Natwest bank.

In addition to this Mr A Dhand and Mr R Thomas have personal guarantees with NatWest bank of £75,000 each.

Dividends totalling £562,000 (2024 - £498,417) were paid in the year in respect of shares held by the company's directors.

The ultimate controlling parties are the directors Mr A Dhand & Mr R Thomas.

On 30th December 2025, PLS EBT Limited, the 100% owned subsidiary, ceased trading and is in the process of being struck off the register.

On 21 October 2025 the company received a PII loan of £1.4M at 2.75 % over base over a 4 year period and received a bank facility extension of an extra £1m.

From 8th May 2026 Property Legal (Manchester) Limited is now wholly owned by PLS Holdco Limited and PLS Lawyers Private Limited (a related party), became a fellow subsidiary within this new group.