ACCOUNTS - Final Accounts preparation

Registered number: 11471474

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

COMPANY INFORMATION

Directors	W M Adriaanse
	J K Andersson
	A E Lindblom
	B L Williams


Company secretary	CSC CLS (UK) Limited


Registered number	11471474


Registered office	C/O CSC CLS (UK) Limited
	5 Churchill Place
	10th Floor
	London
	United Kingdom
	E14 5HU


Independent auditor	HaysMac LLP
	10 Queen Street Place
	London
	EC4R 1AG

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

CONTENTS

	Page
Directors' Report	1 - 2
Independent Auditor's Report	3 - 6
Statement of Comprehensive Income	7
Statement of Financial Position	8
Statement of Changes in Equity	9
Notes to the Financial Statements	10 - 25

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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

Directors

The directors who served during the year were:

W M Adriaanse

J K Andersson

A E Lindblom

B L Williams

Directors' responsibilities statement

The directors are responsible for preparing the Directors' 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 elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

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

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

The 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 to 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.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

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

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

Auditor

Under section 487(2) of the Companies Act 2006, HaysMac LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Page 1

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

................................................

B L Williams

Director

Date: 29 June 2026

Page 2

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

Opinion

We have audited the financial statements of Pandox Highlander Glasgow Propco Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2025 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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.

Page 3

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PANDOX HIGHLANDER GLASGOW PROPCO LIMITED (CONTINUED)

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.

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Page 4

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PANDOX HIGHLANDER GLASGOW PROPCO LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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, 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Based on our understanding of the Company and industry, we identified that the principal risks of noncompliance with laws and regulations are Companies Act 2006 and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, corporate income tax and sales tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

∙inspecting correspondence with regulators and tax authorities;

∙inquires with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

∙evaluating management’s controls designed to prevent and detect irregularities;

∙identifying and testing journals, in particular journal entries posted with unusual account combinations, postings with high value transactions or rounded entries; and

∙challenging assumptions and judgements made by management in their critical accounting estimates.

Page 5

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PANDOX HIGHLANDER GLASGOW PROPCO LIMITED (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Christopher Morgan (Senior Statutory Auditor)

for and on behalf of

HaysMac LLP

Statutory Auditors

10 Queen Street Place

London

EC4R 1AG

29 June 2026

Page 6

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover		2,508,468	2,510,000
Administrative expenses		(1,571,467)	(1,595,249)
Impairment losses on fixed assets		(2,626,000)	(2,567,734)
Operating loss		(1,688,999)	(1,652,983)
Interest receivable and similar income	5	455,421	120,942
Interest payable and similar expenses	6	(4,485,509)	(4,265,688)
Loss before tax		(5,719,087)	(5,797,729)
Tax on loss	7	(1,531,030)	33,140
Loss for the financial year		(7,250,117)	(5,764,589)

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

The notes on pages 10 to 25 form part of these financial statements.

Page 7

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

REGISTERED NUMBER: 11471474

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	9		-		-
Tangible assets	10		39,399,393		39,799,486
Investments	11		7,942,576		7,579,884
			47,341,969		47,379,370
Current assets
Debtors	12	2,685,947		3,537,378
Cash at bank and in hand		553,161		2,428,306
		3,239,108		5,965,684
Creditors: Amounts falling due within one year	13	(5,371,671)		(5,437,574)
Net current (liabilities)/assets			(2,132,563)		528,110
Total assets less current liabilities			45,209,406		47,907,480
Creditors: amounts falling due after more than one year	14		(71,833,581)		(68,812,568)
Provisions for liabilities
Deferred tax	16	(1,915,228)		(384,198)
Net liabilities			(28,539,403)		(21,289,286)

Capital and reserves
Called up share capital	17	5,940,000	5,940,000
Profit and loss account		(34,479,403)	(27,229,286)
		(28,539,403)	(21,289,286)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

B L Williams

Director

Date: 29 June 2026

The notes on pages 10 to 25 form part of these financial statements.

Page 8

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2024	5,940,000	(21,464,697)	(15,524,697)

Loss for the year	-	(5,764,589)	(5,764,589)

At 1 January 2025	5,940,000	(27,229,286)	(21,289,286)

Loss for the year	-	(7,250,117)	(7,250,117)
At 31 December 2025	5,940,000	(34,479,403)	(28,539,403)

The notes on pages 10 to 25 form part of these financial statements.

Page 9

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Pandox Highlander Glasgow Propco Limited is a private company limited by shares incorporated in England and Wales. The Company's registered number is 11471474 and registered address is C/O CSC CLS (UK) Limited, 5 Churchill Place, 10th Floor, London, United Kingdom, E145HU.
The Company's principal activity is that of letting its own leased real estate. The address of the property and principal place of business is 301 Argyle Street, Glasgow, G2 8DL, United Kingdom.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

Going concern

The Company is wholly reliant, for the foreseeable future, on the continued financial support from its ultimate parent company, Pandox AB, in order to meet its obligations as and when they fall due.
Management have reforecasted the expected financial performance and cash flows for the period up to 31 December 2027 and performed additional sensitivity analysis in order to understand the level of support that may be required. This has been discussed with Pandox AB and a letter of support has been provided to the Board of Directors.
Whilst the letter of support is not legally binding the Board of Directors believe that the Company will be provided financial support from Pandox AB in order for the Company to meet its obligations as and when they fall due until at least 31 December 2027. The directors have also considered the financial position of Pandox AB and concluded that they have sufficient financial resources with which to provide the support detailed in the letter.
Therefore on the basis of the above, the directors have approved the financial statements utilising the going concern basis of preparation.

Page 10

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.4

Turnover

Turnover is recognised to the extent that it is probable that economic benefits will flow to the Company and that revenue can be reliably measured. Turnover is measured at fair value of the consideration received or receivable. Turnover comprises rental income recognised on an accruals basis, exclusive of Value Added Tax and trade discounts.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that 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.

2.7

Borrowing costs

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

2.8

Equity instruments

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.

Page 11

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.10

Leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors net of finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

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.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Page 12

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Land and buildings

up to 50 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

During the year, the Company undertook a review of the useful economic lives of its leasehold land and buildings. Following this review, management revised the estimated useful economic lives from a previous range of 20–200 years to a maximum of 50 years, to better reflect the expected period over which these assets will generate economic benefits, taking into account lease terms, usage patterns and asset condition. In accordance with FRS 102 paragraph 10.18, this revision has been accounted for as a change in accounting estimate and applied prospectively. Accordingly, the impact of the revised useful economic lives has been recognised in depreciation charges in the current and future periods, with no restatement of prior periods. The effect of this change was to increase the depreciation expense by £545,443 in the year.

2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 13

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment.

2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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.

Page 14

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

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.
Key sources of estimation uncertainty
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.
Impairment of tangible fixed assets
A key source of estimation uncertainty arises in relation to the impairment of tangible fixed assets, which are held at cost less depreciation and accumulated impairments. Management assesses at each reporting date whether there are indicators of impairment or impairment reversals and, where necessary, estimates the recoverable amount of the relevant assets.
Recoverable value is determined with reference to external valuations prepared by RICS-qualified firms using discounted cash flow methodologies, providing an independent assessment of fair value. The valuation process requires judgement, particularly in determining the appropriate yield, forecast cash flows and discount rates, which are informed by available market data for the relevant geographical location and other influencing factors.
In addition, significant judgement is required in respect of ongoing renovation works. The underlying discounted cash flow models reflect the asset in a stabilised or completed condition; accordingly, capital deductions are applied to reflect the estimated costs required to complete these works and bring the asset to that condition. This requires estimation of the total cost to complete, the timing of expenditure, and consideration of the extent to which such costs are already reflected within projected cash flows.
In the current year, the recoverable amount has been assessed at £39,400,000, resulting in an impairment charge of £2,626,000 recognised in the Statement of Comprehensive Income. These estimates are based on management’s best assessment of current market conditions and development costs at the reporting date. Actual outcomes may vary from these estimates.

Employees

The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL).

5.	Interest receivable
		2025	2024
		£	£

Interest receivable from group companies

455,421

120,942

Page 15

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

6.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	1,475,484	1,617,743
Loans from group undertakings	2,317,240	1,982,868
Finance leases and hire purchase contracts	692,785	656,206
Loan fees	-	8,871
	4,485,509	4,265,688

7.	Taxation

		2025	2024
		£	£

Corporation tax
Adjustments in respect of previous periods	-	14,608

Total current tax	-	14,608

Deferred tax
Origination and reversal of timing differences	62,564	92,006
Adjustment in respect of prior periods	1,468,466	(139,754)
Total deferred tax	1,531,030	(47,748)


		1,531,030	(33,140)

Page 16

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8.	Impairments
	An impairment review was performed in respect of the Company’s property during the year. The carrying value was compared to its recoverable amount, determined with reference to an external independent valuation. The valuation reflects the property in its expected completed condition. As renovations are ongoing at the reporting date, a deduction has been made for the estimated capital expenditure required to complete the works. As a result of this assessment, an impairment loss of £2,626,000 (2024: £2,567,734) has been recognised in the profit and loss account.
		2025	2024
		£	£


	Property, plant and equipment	10	2,626,000	2,567,734

9.	Intangible assets

		Goodwill
		£
	Cost
	At 1 January 2025	7,706,224
	At 31 December 2025	7,706,224
	Amortisation
	At 1 January 2025	7,706,224
	At 31 December 2025	7,706,224
	Net book value
	At 31 December 2025	-
	At 31 December 2024	-

Page 17

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.	Tangible fixed assets

	Land and buildings	Assets under construction	Total
	£	£	£
Cost
At 1 January 2025 (as previously stated)	51,159,387	2,955,457	54,114,844
Prior year adjustment - Additions	1,833,620	-	1,833,620
Prior year adjustment - Transfers between classes	(751,404)	751,404	-
At 1 January 2025 (as restated)	52,241,603	3,706,861	55,948,464
Additions	939,610	2,556,093	3,495,703
Transfers between classes	4,196,817	(4,196,817)	-
At 31 December 2025	57,378,030	2,066,137	59,444,167
Depreciation
At 1 January 2025 (as previously stated)	14,315,358	-	14,315,358
Prior year adjustment - Impairment charge	1,833,620	-	1,833,620
At 1 January 2025 (as restated)	16,148,978	-	16,148,978
Charge for the year	1,269,796	-	1,269,796
Impairment charge	2,626,000	-	2,626,000
At 31 December 2025	20,044,774	-	20,044,774
Net book value
At 31 December 2025	37,333,256	2,066,137	39,399,393
At 31 December 2024	36,844,029	2,955,457	39,799,486

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PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.Tangible fixed assets (continued)

Assets with a net book value of £13,006,978 are held under finance leases (2024: £12,701,543).
Land and buildings consists of property which is rented out to another group entity. In accordance with FRS 102, the Company has chosen to account for this at historic cost less depreciation within tangible fixed assets rather than as an investment property at fair value.
Prior period adjustment
In the year, the directors identified both a netting off error and a classification error within the opening balances of the tangible fixed assets note.
In periods prior to FY24, adjustments were made to uplift the value of the finance lease asset as a result of modifications to the lease amounts payable. These were then subsequently impaired in those same prior periods as this brought the carrying value of the tangible fixed assets above their recoverable amount. However, this was not reflected within the note as there was no impact on the net book value of tangible fixed assets.
Additionally, the prior period accounts had included £751,404 of assets under construction within land and buildings. This was purely a presentational error within the note and the depreciation for land and buildings in the prior period has been calculated correctly.
As such, these have been corrected in the opening balances above, with both brought forward cost and brought forward accumulated depreciation increasing by £1,833,620 and a reclassification of cost from land and buildings to assets under construction of £751,404.
As noted above, these modifications and impairments occurred in periods prior to FY24 so there is no impact on the primary statements in either period presented in these accounts. Furthermore, the classification error between assets under construction and land and buildings has no impact on the primary statements.

Page 19

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.	Fixed asset investments

	Investments in subsidiary companies	Loans to subsidiaries	Total
	£	£	£
Cost or valuation
At 1 January 2025	100	7,579,784	7,579,884
Additions	-	362,692	362,692
At 31 December 2025	100	7,942,476	7,942,576

Loans owed to group undertakings consist of two loans receivable from a fellow group undertaking.

The first loan is for the amount of £1,539,401 (2024: £1,539,401) which bears interest at a rate of SONIA+1.75% and is repayable in January 2028.
The second loan is for the amount of £6,403,175 (2024:£6,040,383) which bears interest at a rate of SONIA+1.6% and is repayable in December 2029.

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PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.

Debtors

					2025	2024
					£	£


Tax recoverable	546,299	544,299
Amounts owed by group undertakings	1,873,465	1,653,736
Other debtors	80,635	1,268,721
Prepayments and accrued income	185,548	70,622
	2,685,947	3,537,378

Amounts owed by group undertakings are interest free and repayable on demand.

13.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank loans	222,885	222,855
Trade creditors	533,815	-
Amounts owed to group undertakings	4,444,983	5,044,404
Accruals and deferred income	169,988	170,315
	5,371,671	5,437,574

Amounts owed to group undertakings are interest free and repayable on demand.

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PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	21,561,970	21,797,211
Net obligations under finance leases and hire purchase contracts	13,705,198	12,766,185
Amounts owed to group undertakings	36,566,413	34,249,172
	71,833,581	68,812,568

Amounts owed to Group undertakings consist of three loans payable to a fellow group undertaking;
Loan one is for the amount of £15,943,879 (2024: £15,354,564) and bears interest at the rate of SONIA+1.75% and is repayable in December 2029.
Loan two is for the amount of £12,836,484 (2024: £11,914,464) and bears interest at the rate of SONIA+3.25% and is repayable in November 2028.
Loan three is for the amount of £7,786,050 (2024: £7,316,144) and bears interest at the rate of SONIA+2% and is repayable in November 2029.
The remaining term of the finance lease is 166 years with the effective interest rate of 5.14% being used.

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PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15.	Loans
	Analysis of the maturity of loans is given below:
		2025	2024
		£	£

Amounts falling due within one year
Bank loans	222,885	222,855
	222,885	222,855
Amounts falling due 1-2 years
Bank loans	21,561,970	21,797,211


	21,784,855	22,020,066

On 20 December 2023 the Company refinanced its loan agreement with Svenska Handelsbanken AB for an amount of £22,288,500. At year end the amounts falling due after more than one year of £21,561,970 (2024:£21,797,211) and amount falling due within one year of £222,885 (2024:£222,855) were outstanding. Prepaid financing fees of £57,875 (2024:£45,549) have been netted off the loan balance
Interest is due and payable quarterly in arrears, the rate of interest on the loan for each interest period is the percentage rate per annum which is the aggregate of the margin and the reference rate.
The applicable nominal interest margin amounts to 2.25% per annum and the reference rate is equal to the cumulative compounded RFR rate for the relevant interest period. The loan term is for 40 months and is repayable in quarterly installments of £55,721 with a final repayment due on 31 March 2027.

16.	Deferred taxation

		2025
		£

	At beginning of year	(384,198)
	Charged to profit or loss	(1,531,030)
	At end of year	(1,915,228)

Page 23

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

	Accelerated capital allowances	(1,915,228)	(384,198)
		(1,915,228)	(384,198)

17.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

5,940,000 (2024 - 5,940,000) Ordinary shares of £1.00 each	5,940,000	5,940,000

18.	Capital commitments
	At 31 December 2025 the Company had capital commitments as follows:
		2025	2024
		£	£

	Contracted for but not provided in these financial statements	2,405,000	3,928,000
		2,405,000	3,928,000

19.	Operating lease receivables
	At 31 December 2025 the Company had future minimum lease receipts due under non-cancellable operating leases for each of the following periods:
		2025	2024
		£	£

Not later than 1 year	2,550,000	2,510,000
Later than 1 year and not later than 5 years	10,200,000	10,040,000
Later than 5 years	7,650,000	10,040,000
	20,400,000	22,590,000

Page 24

PANDOX HIGHLANDER GLASGOW PROPCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.	Controlling party

The Company's immediate parent undertaking is SECH Holding AB, a company registered in Sweden.
The largest and smallest group to consolidate the results of this company are the group headed by Pandox AB. The ultimate parent undertaking is Pandox AB, a company registered at Box 15, 10120 Stockholm, Sweden. Financial statements for Pandox AB are available from the following website:
https://www.pandox.se
There is no individual ultimate controlling party.

Page 25