The directors present the strategic report for the year ended 31 December 2025.

The Group operates in the acquisition, development and investment of both commercial and residential property throughout London and the South East of England. This is the eighth Annual Review of Lodgecrest Holdings PLC.

The Lodgecrest Group comprises Lodgecrest Developments Ltd, Lodgecrest Investments Ltd and PURE RESi Ltd. The Group continues to focus on the long-term ownership and active management of income-producing assets while selectively pursuing development opportunities that enhance shareholder value.

Results and performance

The Group delivered a strong financial performance during the year ended 31 December 2025 despite continued economic uncertainty and elevated financing costs.

Profit before taxation increased to £2.67 million (2024: £1.64 million), representing an increase of approximately 63%. Profit after taxation increased to £1.99 million (2024: £1.05 million).

Turnover increased to £6.17 million (2024: £5.80 million) driven by growth in rental income across the Group's investment portfolio and continued high occupancy levels.

The Group's investment property portfolio increased in value to £102.0 million (2024: £99.8 million), reflecting both new acquisitions and valuation gains during the year.

Net assets increased to £54.5 million (2024: £53.6 million), further strengthening the Group's balance sheet and providing a solid platform for future growth.

Business environment

The UK property market demonstrated resilience throughout 2025 despite a challenging economic backdrop. Inflation continued to moderate during the year, enabling the Bank of England to commence a cycle of interest rate reductions. This improved affordability and supported a gradual recovery in transactional activity across both residential and commercial property sectors.

The South East residential market experienced modest capital growth, supported by improved consumer confidence, a more stable mortgage market and continued supply constraints. While transaction volumes remained below historic averages, buyer demand strengthened as borrowing costs eased.

The rental sector continued to outperform many expectations during 2025. Demand for quality rental accommodation remained exceptionally strong across London and the South East, driven by limited housing supply, affordability constraints for first-time buyers and continued population growth in key commuter locations.

According to data published by the Office for National Statistics, rental growth remained above long-term averages throughout much of the year, although the pace of increase moderated compared with the exceptional levels experienced in 2023 and 2024.

The Group's portfolio continued to benefit from these favourable rental market conditions, maintaining strong occupancy levels and robust rental income growth.

Strategy

The Group's strategy remains focused on:

• Expanding its portfolio of income-producing residential and commercial assets.

• Maintaining high occupancy rates and strong tenant retention.

• Delivering value through active asset management.

• Identifying selective development opportunities capable of generating attractive risk-adjusted returns.

• Preserving a strong balance sheet and maintaining prudent leverage levels.

PURE RESi Ltd, the Group's Private Rented Sector ("PRS") platform, continued to perform strongly throughout 2025. Occupancy remained at exceptionally high levels with minimal void periods, reflecting the quality of the portfolio and sustained tenant demand.

Lodgecrest Investments Ltd continued to pursue opportunities to acquire long-term commercial and mixed-use investments capable of delivering sustainable income and capital growth.

The Group operates within a sector that remains subject to a range of economic and market risks.

During 2025, although interest rates reduced from the peak levels experienced in previous years, financing costs remained materially higher than historic norms. The Group continues to monitor interest rate exposure and funding requirements carefully.

Other principal risks include:

• Changes in property market values.

• Construction cost inflation and labour shortages.

• Planning and regulatory risks.

• Tenant default and rental arrears.

• Refinancing risk associated with debt facilities.

• Changes in taxation and legislation affecting the property sector.

The Board regularly reviews these risks and maintains appropriate controls to mitigate their potential impact.

Key Performance Indicators

The Board monitors the performance of the Group using the following key indicators:

The Group achieved growth in turnover, profitability, net asset value and investment property holdings during the year, demonstrating continued progress against its long-term strategic objectives.

The Board remains optimistic regarding the Group's prospects.

With a high-quality investment portfolio, strong occupancy levels, improving market conditions and a robust asset base, the Group is well positioned to continue its growth strategy during 2026 and beyond.

The Group intends to continue expanding its Private Rented Sector platform through PURE RESi Ltd while pursuing selective commercial investment opportunities through Lodgecrest Investments Ltd. The Board will maintain a disciplined approach to acquisitions, development activity and capital allocation to ensure sustainable long-term value creation for shareholders.

The directors believe that the Group's strong balance sheet, established market presence and experienced management team provide a solid foundation for continued success.

The directors, in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote success of the group and in doing so have regard, amongst other matters, to the:

• Interests of the group's employees

• The continued desirability of the group to maintain its reputation for high standards of business conduct

• The consequences of any decision in the long term

• A need to foster the group's business relationships with suppliers, customers, and others

• Impact of the group's operations on the community and the environment

The directors regard the above as key to their decision-making process. The group's business strategy is focused on achieving success for the group in the mid to long-term however, the board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. It also ensures these core values are communicated to the group's employees and embedded in the group's policies and procedures.

The directors recognise that building strong and lasting relationships with our stakeholders will help us to deliver our strategy in line with our long-term values and operate a sustainable business.

The directors are supported in the discharge of their duties by:

• A director training programme to further their understanding of their duties and obligations under applicable law and regulation

• Processes which ensure the provision of timely management information and escalation through reporting lines to the directors from the group's business areas, its risk and control functions, support teams and various committees

• Agenda planning for director and committee meetings to provide sufficient time for the consideration and discussion of key matters.

The Group monitors the impact of its developments on the local community and environment. The Group recognises that it has a responsibility to the environment beyond legal and regulatory requirements. It is committed to reducing its environmental impact and continually improving its environmental performance. It expects its suppliers and other stakeholders to do the same.

Stakeholders

The directors understand the importance of engagement with all of its stakeholders and gives appropriate weighting to the outcome of its decisions for the relevant stakeholder in weighing up how best to promote the success of the group.

The directors regularty discuss issues concerning employees, clients, suppliers, community and environment, regulators, and its shareholder, which it takes into account in its discussions and in its decision-making process.

In addition to this, the directors seek to understand the interests and views of the group's stakeholders by engaging with them directly when required.

The below summarises the key stakeholders and how we engage with each:

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company and group continued to be that of property development and the holding of investment properties for rental income.

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

Ordinary dividends were paid amounting to £1,080,000. The directors do not recommend payment of a further dividend.

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

The group's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the group's contractual and legal obligations.

Trade creditors of the group at the year end were less than 30 days purchases (2024 - less than 30 days), based on the average daily amount invoiced by suppliers during the year.

The financial instruments used by the group arise wholly and directly from its activities and comprise of debtors, cash at bank and creditors. The group regularly reviews its performance by producing monthly management accounts and closely reviewing them. The group regularly monitors the level of its debtors and creditors.

The group has put in place the following measures in order to manage the risks arising from these financial instruments:

1. The group’s credit risk is primarily attributable to tenants. Credit risk is managed by running credit checks on new tenants and by monitoring payments against contractual agreements. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

2. The group manages its cash position by regularly monitoring cash flow, using cash flow forecasting and variance analysis.

3. The financial risk arising from the possible non-advance of credit by the group’s trade creditors, either by exceeding agreed credit limits or by not paying with the specified terms, is managed by regularly monitoring the trade balance and credit limit terms from all suppliers.

4. The company’s arrangements with other companies within the group ensures that in the event it has liquidity requirements above the level of cash generated from its on-going operations, it can access additional funds through group funding. The group’s liquidity requirements and interest rate risks are managed at a group level.

The directors are responsible for preparing the Annual Report 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 prepared the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

We have audited the financial statements of Lodgecrest Holdings Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group'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 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 group and parent 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 group's and parent 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 our 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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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, 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 group's and 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 directors either intend to liquidate the group or parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was 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;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the investment and property development sector

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reviewing legal and professional expense incurred;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC.

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, if any.

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 is available on the Financial Reporting Council’s website at: https://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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £9,926 (2024 - £139,786 profit).

Lodgecrest Holdings Plc (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Old Courthouse, 267-273 High Street, Dorking, Surrey, RH4 1RY.

The group consists of Lodgecrest Holdings Plc and all of its subsidiaries.

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.

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, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The consolidated financial statements incorporate those of Lodgecrest Holdings Plc and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 December 2025.

All intra-group transactions, balances and unrealised gain on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

The company has taken advantage of the exemption under the terms of Financial Reporting Standard 102 not to disclose related party transactions with wholly owned subsidiaries within the group.

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover comprises proceeds from property sales, rental income generated from properties held as investments and fees for development of properties held by non-group companies.

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes and is recognised on the following basis;

• Property sales are recognised upon legal completion or unconditional exchange of contracts.

• Rental income is recognised on an accrual's basis. in the period to which it relates.

• Development fees arising from contracts with non-group members are recognised in accordance with the construction contracts policy.

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 recognised in the profit and loss account.

Investment properties are stated at fair value at each reporting date, in accordance with Section 16 of FRS 102. Changes in fair value are recognised in profit or loss in the period in which they arise. A full review of the fair value of the investment property portfolio is carried out at the year end. The review is led by M Bright, a director of the group responsible for land acquisitions and property sales, with extensive experience in the construction industry.

The fair value is determined as follows:

• Complete residential properties (long leasehold) are valued at market value assuming the property is vacant and available for immediate occupation. This valuation utilises the following:

  • An independent external valuer's report, prepared by a professionally qualified valuer; and

  • Comparable market data including advertised sale prices and actual sales evidence obtained from the UK Land registry.

• Commercial investment properties are valued using a capitalisation of rental income approach, applying a yield range of 8% to 12% to current rental income, consistent with prevailing market yields.

• Residential ground rent freehold investments are valued using a capitalisation of ground rent income approach, applying a 4% yield.

• Part-built properties are valued based on cost to date, comprising the land acquisition cost and construction costs incurred up to the reporting date. No valuation uplift is recognised for uncompleted works or expected future development profit.

The directors consider that this valuation methodology provides a reliable estimate of fair value for the Group's investment properties in accordance with FRS 102.

No depreciation is provided. Changes in fair value are recognised in the profit and loss account for the period. Deferred taxation is provided on these changes at the rate expected to apply when the property is sold.

The Companies Act 2006 requires all properties to be depreciated. However this requirement conflicts with the generally accepted accounting principle set out in FRS 102. The directors consider that, because investment properties are not held for consumption, but for their investment potential, to depreciate them would not give a true and fair view.

If this departure from the Companies Act 2006 had not been made to give a true and fair view, the profit for the year would have been reduced by depreciation. However the amounts of depreciation cannot reasonably be quantified, because depreciation is only one of many factors reflected in the annual valuation and the amount relating to depreciation of the property cannot be separately identified.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

At each reporting period end date, the group reviews the carrying amounts of its tangible 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).

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.

Properties in the course of development are valued at the lower of direct costs and sales price. Direct cost comprises the cost incurred to date in respect of land and property purchases, development expenditure and all associated costs relating to the property. Net sales price is based on estimated selling price less further costs expected to be incurred to completion and disposal.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date to the extent that the outcome of the contract can be estimated reliably.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs,

Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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 group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

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 group’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 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.

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

In the application of the group’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.

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

At each year end, a full review of property valuations is carried out by M Bright, a director with the group responsibility for all land acquisitions and property sales. M Bright uses his extensive experience in the construction industry combined with current market data to make his assessment of property valuations. Valuations are carried out on the basis of comparable evidence of properties advertised for sale and Land Registry actual sales evidence.

The company incurs development costs in relation to site acquisition, design and early-stage planning. These costs are recognised as work in progress (WIP) within inventories when management judges the project to be commercially viable and the costs to be recoverable.

A key judgement is whether to capitalise such costs before planning permission is obtained. Management assesses whether it is probable that planning consent will be granted and the project will generate future economic benefits. Where there is sufficient expectation of success, costs are capitalised. Otherwise, they are expensed. WIP is reviewed at each reporting date, and costs are written off if planning approval becomes unlikely or the project is no longer viable.

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

Their aggregate remuneration comprised:

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:

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2025 by the directors. The basis of the valuation is as described in the accounting policy.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

As of reporting date, an assessment of the subsidiary's assets and liabilities has been conducted. The assets are being realised, and liabilities are being settled in accordance with the applicable legal and regulatory requirements.

The long-term loans are secured by fixed and floating charges over the assets in the following companies:

- Lodgecrest Holdings Plc

- Lodgecrest Investments Limited

- Pure Resi Limited

The loan is interest only at a fixed rate over SONIA and is due for repayment in 2027.

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

The deferred tax liability set out above is not expected to reverse within 12 months.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The shares carry full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.

The profit and loss reserve of the group includes an amount of £44,054,396 (2024: £43,788,291) in respect of the revaluation of the investment properties. This amount is not distributable.

The £99 other reserve (2024: £99) is in respect of a merger reserve that was created upon the group reorganisation in 2018.

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

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

During the year, the group took a loan of £640,000 from a legal entity under mutual control which is repayable 28 days after a written demand is issued by the lender. Interest is payable on the loan at a rate of 1% over the Bank of England base rate.

At the year end the directors were owed £299,276 (2024: £nil) by the group. There are no specific repayment terms and interest of £nil (2024: £nil) has been charged to the statement of profit or loss.