Introduction

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

The principal activity of the group and company continued to be the provision of flexible workspace within London.

The trading performance of the group continues to improve within a challenging London office market, with the current year results reflecting increases in profitability and other key performance indicators.

The group's turnover of £11,019,285 for 2025 is stable when compared to the prior year, as improving workstation rates are offset by a slight reduction in occupancy. Gross profits have increased 11% over the same period, as the group continues to control its costs wherever possible.

The group generated a profit from operations of £711,808, including a £27,700 credit on reversal of prior year impairments for one the group's property assets.

The profit before tax for the year was £809,555. The current year position is driven by a 50% share of the profit on disposal of one of the group's property assets, Delta House, which was owned by a joint venture. This is supplemented by the increase in gross profits but mitigated slightly by an increase in net finance costs, whilst the valuation of the group's investment property has been held stable for the year. Net finance costs edge upwards due to the expiry of the groups interest rate cap in June 2025, the cap, which limited interest charges on the group's loan to 2.0% above SONIA, was subsequently replaced with a similar instrument with a 2.5% rate.

The directors believe that the group is in a solid financial position, with net assets at the year end of £41,501,653 (2024: £40,776,263). During the year the group generated £2,674,121 of cash from its underlying activities, ending 2025 with adequate liquidity reserves of £9,847,700.

The company did not pay any dividends during 2025 (2024: £nil).

Financial risk management objectives and policies

The main risk of the group is continued uncertainty within the wider global economy, caused by conflicts in the Middle East and Ukraine. Such uncertainty could suppress the demand for flexible office space within the United Kingdom, drive inflationary pressures within the groups cost base, and lead to interest rates remaining higher, for longer.

The group's existing bank loan contains covenants related to the operating performance of the property portfolio, if these covenants were to be breached it could materially impact the group's ability to finance its business activities. The directors continuously model the forecast cash flows of the property portfolio in order to identify any risk related to the covenants, which can then be remedied in advance of possible breaches. The group's existing loan expires in July 2026, and the directors are currently negotiating with potential lenders in order to achieve the most competitive terms available, to reduce the risk that covenants may be breached in the future.

Further risks include the group's utilities and other input costs, which remain high following a sustained period of inflation, and result in the group's profitability and cash generation becoming more sensitive to any reductions in revenue. The group is currently exposed to risks regarding business rates, where future and currently unknown legislative changes could increase the underlying liability of the group's property portfolio, whilst also restricting its access to reliefs and as a result, potentially increasing the costs of this nature in future periods. The group continues to engage with its advisors in order to assess the impact of any changes in rates legislation.

The group maintains a policy of fixing utility rates in order to reduce its exposure to energy rate rises, and key property contracts are benchmarked and negotiated in order to control expenditure. During the year the group agreed contracts with energy suppliers to fix the majority of its utility costs until the end of 2026.

The directors believe that the group has sufficient resources to be able to withstand these short-term pressures.

Liquidity risk

The group manages its cash and borrowing requirements to ensure it has sufficient liquid resources to meet the operating needs of its business.

Interest rate risk

The group has purchased interest rate caps to reduce its exposure to future interest rate rises.

The group's current bank loan expires in July 2026, the directors are currently negotiating with potential lenders in order to achieve the most competitive terms available on a new facility, ensuring that interest costs remain manageable.

Principal operational risks and uncertainties

The directors consider the following to be the principal operating risks and uncertainties facing the group:

• Changes in the market and demand for office space;

• Long term economic environment, including risks of future recession;

• High utility costs and high levels of inflation on input costs;

• Burdensome investment requirements arising from updates in climate change legislation could result in stranded property assets;

• Changes in business rates legislation; and

• Competition from new and existing flexible workspace operators.

The directors have taken measures to minimise the group's exposure to these risks, which are reviewed on an ongoing basis.

The directors consider the group's key performance indicators to be average occupancy levels and average workstation rates. Whilst average rates per workstation rose during the year from £320 to £333 per month, average occupancy levels fell slightly to 64% (2024: 67%).

The directors remain focused on driving occupancy in the existing portfolio and improving the quality of the group's products and services. Despite ongoing economic uncertainty; market sentiment remains positive and current research suggests the demand for flexible workspace in the UK commercial property sector will continue to increase, driven by consumer requirements for flexibility and hybrid working models.

Further to this, the directors continue to explore additional sources of revenue, whether through investment in new properties, or repositioning existing assets. Additionally, during the year the group has entered into an agreement to manage the flexible workspace operations for a third party landlord, and continues to review similar opportunities as they arise.

The directors believe that the financial standing of the group, a good portfolio of properties, alongside a rolling program of targeted refurbishments, and the existing business model means the group is well placed to benefit from any increased demand in the longer term.

On behalf of the board

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

The results for the year are set out on page 10.

No ordinary dividends were paid during the year. The directors do not recommend payment of a final dividend (2024: £nil).

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

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

On 30 January 2026 the company purchased the 50% of the ordinary share capital of Applepeach Limited it did not already own, this company was accounted for as a joint venture during the year ended 31 December 2025 but is now a wholly owned subsidiary of the company.

During the year ended 31 December 2025 the company owned a 50% interest in an unincorporated partnership which owned a freehold property. On 30 January 2026 the company purchased the remaining 50% of this property.

On 30 April 2026 the company purchased a further freehold property, which was previously held by the company under the terms of a long leasehold agreement.

Further details for these transactions are contained in Note 33 to the financial statements.

The auditor, RSM UK Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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 and group 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 and the group is aware of that information.

The directors are responsible for preparing the Strategic Report and the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare group and company financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group and the company for that period.

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

• select suitable accounting policies and then apply them consistently;

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

• 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 the company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Lenta Properties Limited (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 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 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 on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the 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.

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

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

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

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

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

• obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the group and parent company operate in and how the group and parent company are complying with the legal and regulatory framework;

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

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

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

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing a sample of journal entries and other adjustments utilising data analytics techniques, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, and challenging judgements and estimates.

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

Use of our report

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

There are no items of other comprehensive income for either the year or the prior year other than the profit/(loss) for the year. Accordingly, no statement of other comprehensive income has been presented.

The notes on pages 16 to 41 form part of these financial statements.

The notes on pages 16 to 41 form part of these financial statements.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The company’s loss for the year was £113,308 (2024: £525,210 loss).

The principal activity of Lenta Properties Limited is the provision of flexible workspace within London. The company is a private company limited by shares and is incorporated in England and Wales. The address of its registered office is CP House, Otterspool Way, Watford, England, WD25 8HR.

The group consists of Lenta Properties Limited and all of its subsidiaries.

The financial statements are presented in Sterling (£).

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 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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the company's accounting policies (see note 2).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The principal accounting policies adopted are set out below.

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Joint ventures

An entity is treated as a joint venture where the group is a party to a contractual agreement with one or more parties from outside the group to undertake an economic activity that is subject to joint control.

In the consolidated financial statements, interests in joint venture undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the joint venture. The consolidated profit and loss account includes the group's share of the profit or loss of such undertakings applying accounting policies consistent with those of the group. In the consolidated balance sheet, the interests in joint venture undertakings are shown as the group's share of the identifiable net assets.

Where entities are jointly controlled by the group but the economic interest in the joint interest differs, the entity is classified as a joint venture but the economic share is accounted for rather than the equity participation.

Having considered the company and group's post year end trading performance, and through forecasting cash reserves on a rolling monthly basis, the directors have a reasonable expectation that the company and group has adequate resources to meet its liabilities as they fall due for a period of at least twelve months from the date these financial statements were approved.

The company and group's loan facility expires on 14 July 2026, credit approved heads of terms to refinance the loan on expiry of the current facility have been received.

Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Revenue is recognised to the extent that it is probable that the future economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, after deducting discounts, rebates, value added tax and other sales taxes.

Revenue comprises licence fee income, rental income, service charges and other recoveries from occupiers of the group's property assets, along with management fees charged to group undertakings.

Licence and rental income is recognised on an accruals basis in the period which it is earned, in accordance with the terms of the licence agreement or lease.

The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

• the amount of revenue can be measured reliably; and

• it is probable that the group will receive the consideration due under the contract.

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

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Tangible fixed assets 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.

If the group's property assets cease to meet the definition of investment property they are reclassified as tangible fixed assets. Where reclassification is made, assets are transferred at their fair value at the date of change in use. Such assets are depreciated from the date of transfer.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated, which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Freehold land is not depreciated. Depreciation on other assets 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:

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 within 'cost of sales' if relating to business centres and 'administrative expenses' for all other assets.

Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in joint ventures are stated at the group's share of net assets. The group's share of the profits or losses of the joint ventures is included in the consolidated profit and loss account using the equity accounting basis.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

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

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

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

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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.

Financial assets and liabilities are offset and 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.

The group’s policies for its major classes of financial assets and financial liabilities are set out below.

Basic financial assets, including trade and other debtors, cash and bank balances and intercompany working capital balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

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 trade and other creditors, bank loans, and intercompany working capital balances, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

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

Derivatives, including interest rate caps, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

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

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 balance sheet date.

Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the consolidated profit or loss account in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

Defined contribution pension plan

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in the consolidated profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Group pension plan

Lenta Properties Limited ("the company") participates in a group wide pension scheme administered by CP Holdings Limited providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the company. There is no contractual agreement or stated policy for charging the net defined benefit costs of the scheme to individual group entities. Therefore, the amounts charged in the consolidated profit and loss account are the contributions payable in the year.

Rentals paid under operating leases are charged to the consolidated profit or loss account on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term.

Finance costs

Finance costs are charged to the consolidated profit or loss account 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.

Interest income

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

Dividends

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

In the application of the group’s accounting policies, which are described in note 1, the following judgements have been made by the directors:

In preparing these financial statements, the directors have exercised judgement in determining whether there are indicators of impairment of the group's investments and tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

The majority of the group's properties are used in the business of the group, with the remainder held for rental income and capital appreciation.

The directors consider the group's business to be the provision of flexible workspace, which is distinguished from the other property-based activities of the group by shorter, more flexible license agreements with occupiers, which include a significant range of ancillary services and costs at the risk of the flexible workspace provider, such as reception, cleaning, business rates and utilities. Where properties are occupied under licence agreements, these are considered as the operating assets of the group and are classified as property, plant and equipment.

Where occupation is by tenants under the terms of leasehold agreements, property assets are determined to be held for rental income and capital appreciation, as such they are classified as investment properties.

For the year ended 31 December 2025 one of the company's properties was partially used in the business of the company, and the remainder was held for rental income and capital appreciation. As such, the valuation of the property was split between tangible fixed assets and investment property. The split of the two components was calculated using the total valuation of the property and apportioning this dependent on the use of each floor.

During the year ended 31 December 2025 the proportion of the property used in the business activities of the group has increased further, and accordingly, a transfer is made between the two components. As at 31 December 2025 this property is now entirely used for the business activities of the group.

As at 31 December 2025 the remaining investment property was valued by the directors. Investment properties are valued annually using yield methodology, using market rental values capitalised at market capitalisation rates, but there is an inevitable degree of judgement involved in this approach in that every property is unique and value can only ultimately be reliably tested in the market itself.

The whole of the turnover is attributable to the provision of services.

All turnover arose within the United Kingdom.

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

Their aggregate remuneration comprised:

During the year retirement benefits were accruing to 1 director (2024:1) in respect of defined contribution pension schemes (see note 26 for Retirement benefit schemes).

The value of the company's contributions to a defined contribution pension scheme in respect of the highest paid director amounted to £6,180 (2024: £nil).

A number of directors also received remuneration through a shareholder, CP Holdings Limited.

Impairments, and reversals thereof, arise due to fluctuations in the market valuation of the property, plant and equipment component of the Group's mixed use asset, which is carried at fair value on the date of transfer from investment property, less accumulated depreciation therefrom.

At each reporting date, the asset is revalued as part of the investment property valuations. Where the valuation indicates the recoverable amount is lower than the carrying amount, an impairment loss is recognised within profit and loss. Where subsequent increases in the valuation occur, impairments are reversed to the extent the asset's value does not exceed the initial measurement less depreciation to date.

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:

Interest on bank overdrafts and loans is disclosed net of interest receivable in respect of interest rate caps.

Intangible assets comprise the group's new reporting and forecasting software. The software was substantially complete at 31 December 2025 and was brought into use during March 2026, with depreciation commencing thereafter.

Freehold and leasehold property with a net book value of £44,629,835 (2024: £43,953,929) are pledged as security for bank loans.

At 31 December 2025, one investment property was valued at £1,880,000 by the directors.

At 31 December 2024, one investment property was valued at £1,880,000 and one mixed use property was valued at £4,400,000. Both properties were valued by the directors.

The mixed use property was apportioned on a floor space basis, dependent on the use of each floor. At 31 December 2025 the balance of £1,306,813 was transferred to property, plant and equipment within fixed assets, as a result this property is now entirely held as property, plant and equipment.

At 31 December 2024, £3,093,191 of the mixed use property was held as property, plant and equipment.

All valuations were made on an open market value for existing use basis.

Investment properties with a valuation of £1,880,000 (2024: £3,186,813) are pledged as security for bank loans.

For the year ended 31 December 2025, the share of the result from joint ventures in the profit and loss account is £1,092,360 (2024: £355,977).

The profit for the current year is increased as a result of the sale of Delta House by Applepeach Limited. The property was sold on 16 May 2025 for gross proceeds of £2,850,000, recognising a profit on disposal of £1,361,468. For the year ended 31 December 2025 the group held a 50% shareholding in Applepeach Limited.

The impairment provision above represents the group's share of the net liabilities of Lenta Management Limited at 31 December 2025.

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

Details of joint ventures at 31 December 2025 are as follows:

Co-Work Space Two LLP operated from one set of leased premises, for which the lease expired on the 30 April 2023. The members made the decision to renew this lease from 1 May 2023 within another associated company as part of a restructure. All licences, employees and assets were transferred to the associated company. The members intend for the LLP to be liquidated within the next 6 months.

Lenta Management Limited was incorporated on 16 March 2023 and has not yet commenced trading. The group owns 62.5% of the ordinary share capital, however, the number of shares with voting rights attached equal those of another member. As such, the entity is classified as a joint venture at 31 December 2025.

Financial assets measured at fair value through profit or loss comprise interest rate caps which are valued at the present value of future cash flows estimated and discounted based upon the applicable yield curves derived from quoted interest rates.

Amounts owed by group undertakings are unsecured, interest free and have no fixed date for repayment.

Within amounts owed by joint ventures is a term loan to Lenta Management Limited. The balance at 31 December 2025 is £100,000, with a further £5,526 owed in accrued interest. The loan facility is for a maximum of £1,500,000 and expires on 31 December 2030. Interest is charged at 4% above Bank of England base rate.

All other amounts owed by joint ventures are unsecured, interest free and have no fixed date for repayment.

Amounts owed to group undertakings are unsecured, interest free and have no fixed date for repayment.

The company and its subsidiary have a term loan facility, consisting of a £12m company term loan and £4m subsidiary term loan. The loan facility has a final maturity date of 14 July 2026.

The loans have been secured by fixed charges over certain group properties, and floating charges over certain assets of the group.

The bank loan represents the financial liability amount currently drawn down on the facility, measured at amortised cost using the effective interest rate method. The drawn down amount and any future borrowings bear interest at a rate of SONIA plus a margin which ranges between 2.1% and 2.75%. The rate of SONIA which is applied to the company's borrowings was capped at 2.0% to 14 June 2025, and 2.5% thereafter.

The company has received credit approved heads of terms to refinance the loan on expiry of the current facility.

The provision at 31 December 2025 consists of the group's share of accumulated losses of a joint venture. The accumulated losses of the joint venture exceeded the carrying amount of the investment.

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

The company participates in a defined benefit pension scheme known as the CP Holdings Limited (1986) Retirement Benefit Scheme. The scheme provides retirement benefits on the basis of members’ final salary. The scheme is a group scheme that shares risks between entities under the common control of CP Holdings Limited. There is no contractual agreement or stated policy for charging the net defined benefit cost of the plan as a whole to individual group entities that participate in the plan. Therefore, as required by FRS 102 Section 28 “Employee Benefits”, the company accounts for this scheme as if it was a defined contribution scheme. The amount charged to the consolidated profit and loss account represents contributions payable to the scheme in respect of the accounting period. Additional contributions are agreed with the trustee to reduce any funding deficit where necessary.

The surplus for CP Holdings Limited (1986) Retirement Benefit Scheme as at 31 December 2025 was £3,074,000 (2024: £3,327,000). This valuation is based upon the most recent actuarial valuation of the scheme as at 5 April 2025, which has been adjusted to 31 December 2025 by a qualified independent actuary.

The contribution rate is generally reviewed every three years following each full actuarial valuation of the scheme. Following the full actuarial valuation of the scheme as at 5 April 2025, the schemes trustees and participating employers agreed that no further employer contributions were required.

There were no contributions made by the company during the year (2024: £nil).

The fair value of the major class of scheme assets as at the reporting date was as follows:

            2025        2024

Annuities        £10,168,000    £10,467,000        

Gilts            £6,296,000    £6,174,000        

Cash            £52,000        £461,000

Liquidity Fund        £999,000    £1,103,000

Corporate bonds        £1,561,000    £1,465,000

The group also operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £149,093 (2024: £130,477).

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

Company

The company has guaranteed bank borrowings of other group companies. At 31 December 2025 the amount outstanding was £4,000,000 (2024: £4,000,000).

The profit and loss account represents accumulated comprehensive income for the year and prior periods.

At 31 December the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Within amounts owed by related parties is a term loan to Lenta Management Limited. The balance at 31 December 2025 is £100,000, with a further £5,526 owed in accrued interest. The loan facility is for a maximum of £1,500,000 and expires on 31 December 2030. Interest is charged at 4% above Bank of England base rate.

All other amounts owed to or from related parties are unsecured, interest free and repayable on demand.

The aggregate remuneration of key management personnel for the year ended 31 December 2025 was £346,017 (2024: £322,826).

The parent undertaking of the smallest group of undertakings for which group financial statements are drawn up and of which the company is a member of CP Holdings Limited, whose registered office is at CP House, Otterspool Way, Watford, WD25 8HR. Copies of these group financial statements are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ.

As at the balance sheet date the ultimate parent company was CP Holdings Ltd a company incorporated in England and Wales. Subsequent to the year end the ultimate parent company has changed and has become Greystone Holdings Ltd a company incorporated in the Isle of Man but managed and controlled in the UK. Despite this change, and in the opinion of the directors the ultimate controlling party continues to be the Gibbor and Schreier families.

During the year ended 31 December 2025 the group owned 50% of the ordinary share capital of Applepeach Limited. This investment was accounted for as a joint venture within Fixed Asset Investments (Note 16).

On 29 January 2026 Applepeach Limited repaid shareholder loans of £763,182 to the parent company of the group, Lenta Properties Limited, and made a dividend payment of £1,770,178. On 30 January 2026, Lenta Properties Limited purchased the 50% shareholding of Applepeach Limited not already owned by the group. Applepeach Limited is now a wholly owned subsidiary of the group.

During the year ended 31 December 2025 the group owned a 50% interest in an unincorporated partnership with Searchgrade Limited, the partnership owned a freehold property. The partnership was accounted for as a joint venture within Fixed Asset Investments (Note 16). On 30 January 2026 the group purchased the remaining 50% of the freehold of the property owned by the partnership. The remaining net assets of the partnership were distributed to the partners on this date.

On 30 April 2026 the group purchased a further freehold property, which was previously held by the group under the terms of a long leasehold agreement.

Cash and cash equivalents at the end of the year comprise cash at bank and in hand.