Company No: 10501687 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2026		2025
		£		£
Fixed assets
Investment property	3	31,762,937		20,680,844
Investments	4	100		100
		31,763,037		20,680,944
Current assets
Debtors	5	391		41,358
Cash at bank and in hand		17,994		2,142,832
		18,385		2,184,190
Creditors: amounts falling due within one year	6	( 862,651)		( 985,018)
Net current (liabilities)/assets		(844,266)		1,199,172
Total assets less current liabilities		30,918,771		21,880,116
Creditors: amounts falling due after more than one year	7	( 15,808,685)		( 12,283,334)
Provision for liabilities	8	( 3,432,191)		( 2,119,993)
Net assets		11,677,895		7,476,789
Capital and reserves
Called-up share capital	9	12		12
Share premium account		617,630		687,544
Revaluation reserve		0		6,359,980
Profit and loss account		11,060,253		429,253
Total shareholders' funds		11,677,895		7,476,789

For the financial year ending 31 March 2026 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Capel Estates Limited (registered number: 10501687) were approved and authorised for issue by the Board of Directors on 01 July 2026. They were signed on its behalf by:

Z Khan Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Capel Estates Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 86 - 90 Paul Street, London, EC2A 4NE, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors note that the business has net current liabilities of £844,266. The Company is supported through loans from the directors and confirmed that £250k of the facility would be continue to be available for at least 12 months from the date of signing these financial statements and the directors will continue to support the Company. Additionally, the Company has access to a £1.8m facility which it has started to draw down on post year end. A 24-unit build-to-rent development is nearing completion, which will significantly improve the Company's cash position and recurring income. Given the current position, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Group accounts exemption

Group accounts exemption s399
The Company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the Company as an individual entity and not about its group.

Turnover

Rental income from investment property leased out under operating leases is recognised in the statement of income and retained earnings on a straight-line basis over the term of the lease.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Finance costs

Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Borrowing costs

Borrowing costs that are directly attributable to acquisition, construction or production of qualifying assets, are capitalised as part of the cost of those assets. Capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Leases

The Company as lessor
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Company's net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company's net investment outstanding in respect of leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the Company reviews 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). The recoverable amount of an asset is the higher of its fair value less costs to sell and its 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.

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. 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.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the directors, on an open market value for existing use basis.

Fixed asset investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Trade and other debtors

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

Cash and cash equivalents

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	2026		2025
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	4		3

3. Investment property

	Investment property
	£
Valuation
As at 01 April 2025	20,680,844
Additions	5,494,241
Fair value movement	5,587,852
As at 31 March 2026	31,762,937

Valuation

The Directors have determined the fair value of investment properties, on an open market value for existing use basis.

4. Fixed asset investments

	Other investments		Total
	£		£
Cost or valuation before impairment
At 01 April 2025	100		100
At 31 March 2026	100		100
Carrying value at 31 March 2026	100		100
Carrying value at 31 March 2025	100		100

5. Debtors

	2026		2025
	£		£
Trade debtors	391		41,358

6. Creditors: amounts falling due within one year

	2026		2025
	£		£
Amounts owed to Group undertakings	59,065		62,003
Amounts owed to directors	490,865		769,571
Accruals	93,349		83,942
Taxation and social security	57,467		20,087
Other creditors	161,905		49,415
	862,651		985,018

There are no amounts included above in respect of which any security has been given by the small entity.

7. Creditors: amounts falling due after more than one year

	2026		2025
	£		£
Bank loans (secured)	15,808,685		12,283,334

The loans are secured by way of fixed charges over all properties containing negative pledges. The subsidiary ZK1 Limited also has securities by way of fixed charges containing negative pledges.

8. Deferred tax

	2026		2025
	£		£
At the beginning of financial year	( 2,119,993)		( 1,460,631)
Charged to the Profit and Loss Account	( 1,312,198)		( 659,362)
At the end of financial year	( 3,432,191)		( 2,119,993)

9. Called-up share capital

	2026		2025
	£		£
Allotted, called-up and fully-paid
6 Class A ordinary shares of £ 1.00 each	6.00		6.00
6 Class B ordinary shares of £ 1.00 each	6.00		6.00
1 Class C ordinary share of £ 0.01	0.01		0.01
1 Class D ordinary share of £ 0.01	0.01		0.01
1 Class E ordinary share of £ 0.01	0.01		0.01
1 Class F ordinary share of £ 0.01	0.01		0.01
1 Class G ordinary share of £ 0.01	0.01		0.01
1 Class H ordinary share of £ 0.01	0.01		0.01
	12.06		12.06

10. Related party transactions

Transactions with the entity's directors

	2026		2025
	£		£
Amounts owed to directors	490,865		769,571

Amounts owed to directors are interest free and repayable on demand.

11. Profit and Loss Account

	2026		2025
	£		£
Profit and loss account - distributable	1,040,851		429,253
Profit and loss account - non-distributable	10,637,044		6,359,980
	11,677,895		6,789,233

Profit and loss account - distributable

This reserve relates to the aggregate of distributable profits and losses generated to date.

Profit and loss account - non-distributable

This reserve relates to the aggregate of fair value adjustments in respect of the investment properties, less the deferred tax charges on those fair value movements.