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

During the year the group consisted of the group company and its subsidiaries, Cornwallis Care Services Ltd and Porthia Land Investments Limited.

Fair review of the business

Porthia Group Ltd

Porthia Group Limited’s income relies in the main on the care home properties owned and let to Cornwallis Care Services Ltd.

Property valuations for the Porthia Group Ltd properties have been reviewed again at year end of 2025 by the Directors for reasonableness and relevance. There have been no material additions to the properties apart from normal asset additions.

Cornwallis Care Services Ltd

The principal activity of Cornwallis Care Services Ltd is the provision of residential and nursing care services across 10 care homes located in Cornwall. The Company delivers a mix of local authority-funded adult social care placements, NHS-funded beds, and privately funded residential and nursing care. Additional income is generated through the provision of one-to-one care support for residents with enhanced needs.

The year ended 31 October 2025 represents a strong trading period for the Company. Average occupancy levels were approximately 92% throughout the year. Fee rate increases implemented in April 2025, following local authority inflationary uplifts, have supported revenue growth and partially mitigated increased operating costs, including higher employer National Insurance contributions.

The Company continues to maintain a strong quality profile, with the majority of its homes rated “Good” by the Care Quality Commission (CQC), and one home rated “Requires Improvement.” Maintaining high standards of care remains a key operational priority.

The Company maintains a positive and collaborative relationship with Cornwall Council, its principal commissioning body, supported by regular quarterly strategic review meetings. However, the local care market is becoming increasingly competitive, with national operators seeking acquisition opportunities and new care home developments being progressed by property developers. Cornwall Council is also focused on enhancing the quality and capacity of care provision to meet future demand.

The adult social care sector continues to face funding pressures, and there is an increasing emphasis from local authorities on promoting independence in later life. As a result, alternative care models such as extra care housing are being encouraged alongside traditional residential care provision.

Staff recruitment and retention remain key challenges within the sector. During the year, the Company has made progress in strengthening its workforce, maintaining staffing levels at approximately 500 employees and reducing reliance on agency staff. The Company holds a Home Office sponsorship licence, enabling access to international recruitment where appropriate. The Company continues to offer pay rates above the National Minimum Wage in order to attract and retain staff and to support career development opportunities.

Looking forward, the Company, as part of the Porthia Group, intends to expand its operations through both the development of new facilities and the extension of existing homes. Potential developments include sites at Karenza, Hendra, Meadowbrook and Bolitho, alongside ongoing consideration of acquisition opportunities. Strategic focus remains on increasing provision for residential dementia care in response to growing demand within Cornwall.

The principal risks facing the Company include maintaining the quality of care across its homes and sustaining strong relationships with key commissioning bodies. In addition, the business is exposed to sector-wide challenges including funding constraints, workforce availability, and increasing competition within the local market.

Plans remain within Porthia Group to both build new and indeed extend current homes to offer additional care provisions to the local market along with providing a number of close care independent units. These plans would include the sites at Karenza, Hendra, Meadowbrook, and Bolitho. Focus is on providing additional residential dementia provisions.

The results for Cornwallis Care Services Ltd were as follows:

                2025            2024

Average Bed Numbers         341            341

Average Staff Numbers        483            518

Average Block Booked Beds     140            150

Average bed occupancy        92.6%            95%

Average Fee £’s            £1,316            £1,256

The income and profits of Cornwallis Care Services Ltd were as follows:

                2025            2024

Turnover            £23,546,545        £22,300,625

Profit after tax            £1,374,837        £895,041

There were no exceptional items of note within the accounts.

The consolidated income and profits of Porthia Group Ltd were as follows:     

                2025            2024

Income                £23,546,545        £22,300,626

Profit after tax            £2,201,811        £1,876,785

The following disclosure describes how the directors have had regard to the matters set out in section 172(1a) to (f) and forms the Directors' statement required under the Companies Act 2006 when performing their duty to promote the success of the company under s172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the group.

The Company recognises the importance of effective employee engagement in supporting the delivery of high-quality care services. A range of initiatives are in place to encourage staff involvement and feedback, including an Employee of the Month awards programme and internal communication channels such as a dedicated social media platform to promote engagement and share updates.

At an operational level, there is regular interaction between staff and management within each home, providing opportunities for employees and home managers to contribute ideas and feedback. The Company also operates a structured appraisal system to support employee development and performance management.

The Company maintains strong and constructive relationships with its key stakeholders. Relationships with its principal customers, including local authority commissioners, remain positive, supported by regular quarterly strategic review meetings and ongoing dialogue in relation to funding and contractual matters.

The Company is committed to maintaining high standards of care and has an established quality assurance function that undertakes regular audits and monitoring across all 10 homes. This team works closely with home management to ensure compliance with regulatory standards and continuous improvement in care delivery. The Company also engages regularly with the local authority’s quality assurance team.

Supplier relationships are actively managed and maintained to a high standard. The Company operates a structured payment process, with suppliers paid on a four-weekly cycle. The finance team adopts a proactive approach to supplier management, ensuring clear communication and accuracy in all dealings.

The Company’s bankers, Barclays Bank plc, maintain an active relationship with the business, including representation at Board level. They regularly attend Board meetings and receive monthly financial reporting on the Company’s performance and activities.

On behalf of the board

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

The principal activities of the group continued to be those of owning and operating care homes and a childcare nursery.

The results for the year are set out on page 15.

Ordinary dividends were paid amounting to £101,040. The directors do not recommend payment of a further dividend.

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

The group's principal financial instruments are bank balances and cash, trade and other debtors, and trade and other creditors.

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations, the group uses long term debt finance and other short term finance.

Given the nature of its business, the group does not undertake material research and development activities.

The Company maintains strong and constructive relationships with its key stakeholders. Relationships with its principal customers, including local authority commissioners, remain positive, supported by regular quarterly strategic review meetings and ongoing dialogue in relation to funding and contractual matters.

The Company is committed to maintaining high standards of care and has an established quality assurance function that undertakes regular audits and monitoring across all 10 homes. This team works closely with home management to ensure compliance with regulatory standards and continuous improvement in care delivery. The Company also engages regularly with the local authority’s quality assurance team.

Supplier relationships are actively managed and maintained to a high standard. The Company operates a structured payment process, with suppliers paid on a four-weekly cycle. The finance team adopts a proactive approach to supplier management, ensuring clear communication and accuracy in all dealings.

The Company’s bankers, Barclays Bank plc, maintain an active relationship with the business, including representation at Board level. They regularly attend Board meetings and receive monthly financial reporting on the Company’s performance and activities.

Details on future developments can be found in the strategic report.

In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the group will be put at a General Meeting.

As the group has consumed more than 40,000 kWh of energy in this reporting period, it does not qualify as a low energy user under these regulations and is therefore required to report on its emissions, energy consumption and energy efficiency activities.

The Group Consolidation report (the boundaries of which include the properties owned and used by Porthia Group Ltd in consolidation) contains the following:

Overview: The Group owns 10 residential care homes and a number of associated other properties which use a combination of gas, electric and Kerosene for energy purposes. Clearly usage for a home with, for example 50 residential beds would, through necessity, be relatively high and it will use a considerable amount of energy.

This must be respected, in that with vulnerable and elderly people in care, this situation is difficult to significantly improve upon. This is a key environmental impact for the company.

There is also one company owned vehicle, although for the purposes of this report all company business related mileage for the relevant periods have been calculated.

The Directors have adopted the Streamlined Energy and Carbon Reporting Scheme (SECR) for large companies and, therefore, provides disclosure of the total figure in kWh and CO2 emissions for the annual quantity of energy consumed. This includes electricity, gas, Kerosene and company staff transport (fuel) used with the base year being year end October 2025 and includes comparatives for 2024.

The following reporting requirements are included in the report:

1.    The annual quantity of emissions and energy consumed within the UK.

2.    The calculation method and details of any energy efficiency improvement measures undertaken.

3.    At least one ratio that expresses the company’s annual emissions in relation to a quantifiable factor     associated with the company’s activities.

4.    Prior year equivalent figures.

The total annual quantity of energy consumed in kWh and associated KG of emissions are as follows: KWH expressed as Total Kg CO2 per unit.

1.Electricity

2024         821,333 KWH * 0.20705 Kg CO2e            170,057Kg        

2025        721,390 KWH * 0.20705 Kg C02e            149,363Kg

2.Gas

2024        2,392,600 KWH (Gross CV) * 0.18290 Kg CO2e    437,606Kg

2025        2,213,538 KWH (Gross CV) * 0.18290 Kg CO2e    404,856Kg

3.Kerosene/Butane

2024        24,017 Litres * (KWH Gross CV) 0.22241 Kg CO2e    5,342Kg

2025        27,966 Litres * (KWH Gross CV) 0.22241 Kg CO2e    6,219Kg

4.Propane

2024        107,939 Litres * (KWH Gross CV) 0.21411Kg CO2e    23,110Kg    

2025        91,678 Litres * (KWH Gross CV) 0.21411 Kg CO2e    19,629Kg

Total 1+2+ 3+4 Kg of CO2

2024        636,115Kg    

2025        580,067Kg

The CO2e in UK Imperial Tons produced by these usage totals 1 + 2 +3 + 4 are as follow:

2024        636.11

2025        580.06

5. Transport Fuel

The Company has adopted the following intensity ratio for transport fuel - Kg of CO2 per total miles travelled.

This is based on CO2 emissions per gallon of fuel divided by the average fuel economy of typical passenger vehicles. UK Data from the UK Government GHG Conversion Factors for Company Reporting 2024 and 2025.

Passenger vehicle emissions data:

Total miles travelled on business related journeys:

2024        60,143 miles x (average kg CO2 emissions per mile petrol/diesel medium car 0.22996 = 13,830         Kg CO2e

2054        60,184 miles x (average kg CO2 emissions per mile petrol/diesel medium car 0.298 = 17,934             Kg CO2e

6. Water

The company has adopted the following ratio using UK Government water supply and wastewater metric. Cornwall has adjusted rates based on our supplier, South West Water in the region.

The company has used a total of 15,775 units of waste during the year 24/25.

Water Supply & Waste = 15,775 x 0.30kg CO2 per m2 = 4,733Kg CO2e

Intensity Ratio

The Company has adopted the following intensity ratios for gas, electricity and Kerosene use:

1.    Kg of CO2 per total £m sales revenue

2.    Kg of CO2 per average occupied bed

        Sales Revenue         Occupied bed numbers    

2024        £22.35m        341

2025        £23.54m        337

1.Sales Revenue     

2024        28,300 Kg CO2 per £m Revenue

2025        24,461 Kg CO2 per £m Revenue

2. Per Occupied Bed.

2024        1,865 Kg CO2 per occupied bed

2025        1,721 Kg CO2 per occupied bed

Conclusion

So overall the CO2e totals in UK Tons for the Consolidated Group are as follows to include Gas, Electricity, Kerosene, Propane, Transport and Water (1+2+3+4+5+6)

2024         649.95 UK Imperial Tons

2025         602.72 UK Imperial Tons

This shows a notable decrease compared with the previous year, while adding in the water element to our calculations. Total reduction of 47.23 UK imperial Tons.

Energy efficiency actions

The company has smart meters installed in most of its sites. An energy broker is contracted to ensure best practice is adhered to. In terms of fuel usage, only necessary journeys to cover shifts or attend training are allowed. We are seeing an increase in hybrid and electric vehicles being used to complete standard commutes to work across our workforce.

Against the backdrop of the type of care provided it is very difficult to make radical changes to energy usage requirements, or indeed to expect significant reductions in CO2 emissions. However, all 10 sites have seen an 8.68% decrease in energy consumption. Electricity has seen a 12.17% decrease in consumption, while gas has decreased by 7.68%. We are hoping to install EV charging points developments going forward and encourage use of electric vehicles to further support reduction in consumption and CO2 emissions.

Due to improvements surrounding accurate readings and management of the utilities, we can report that during 24/25 the group in total used 15,775 units of water. We will continue to monitor and compare water efficiency on an ongoing basis.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

We have audited the financial statements of Porthia Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group profit and loss account, the group statement of comprehensive income, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

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

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks 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, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

• We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

• We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

• We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the 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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,749,826 (2024 - £2,305,022 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Porthia Group Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is Sea Thrift, St. Ives Road, Carbis Bay, St. Ives, Cornwall, United Kingdom, TR26 2JX.

The group consists of Porthia Group Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The consolidated group financial statements consist of the financial statements of the parent company Porthia Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 October 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Where care home income has been invoiced for periods that straddle the year end, revenue is recognised on a time apportioned basis.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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

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

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

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

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

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

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.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

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

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The 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.

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

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

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

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

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

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

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

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.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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

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

The group's turnover arises from a single geographical location, being 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:

Investment income includes the following:

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

The carrying value of land and buildings comprises:

Freehold property comprises of the group entity's portfolio of care homes and other property. The fair value of the freehold property has been arrived at on the basis of a valuation of care home property carried out in December 2024 by a firm of Chartered Surveyors, who are not connected with the group, and other land by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

If land and buildings had not been revalued, they would have been included at an historical cost of £14,657,278 (2024: £15,076,606) and an aggregate depreciation of £2,873,369 (2024: £2,640,011).

The historic cost of land included in freehold land and buildings is £2,529,501 (2024: £3,010,219).

Investment property comprises of the group entity's portfolio of care homes and other property. The fair value of the investment property has been arrived at on the basis of a valuation of care home property carried out in December 2024 by a firm of Chartered Surveyors, who are not connected with the company, and other land by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

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

All of the above subsidiaries are included in the consolidation, and all investments are held directly by the company.

The group has taken advantage of the audit exemption for subsidiaries in accordance with Section 479A of the Companies Act 2006 in respect of subsidiary company Porthia Land Investments Limited. The parent company has guaranteed all outstanding liabilities at the year end, until they are settled in full.

Investments in subsidiaries are all stated at cost.

Bank loans are secured on the various properties owned by the group.

The company has two loan facilities, one originally for £6.7m and carrying a fixed interest rate of 2.962% for a period of 5 years until January 2025 with a 15 year repayment profile. This loan was extended so as to end on 31 October 2026. The second loan was originally for £707,000 with a fixed interest rate of 2.680% with a 5 year term until November 2025, also with a 15 year repayment profile.

The bank has indicated that it is its intention to refinance the company's loan facilities beyond their original repayment dates and accordingly the part of the loans falling due for repayment after 31 October 2026 is shown as a long term liability.

The other provision represents a government grant received in 2008 for the building of the extension at Trecarrel. It is being released to the profit and loss account over a period of 50 years in line with the depreciation.

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

The deferred tax liability relating to accelerated capital allowances set out above is expected to reverse in line with the depreciation of the related plant and machinery assets. The liability in relation to revalued property will only materialise when revaluation gains become realised.

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

On 16 March 2026 the company completed the sale of one of its properties in the sum of £2.7m.

The group has also exchanged contracts to acquire a further care home property for the sum of £50,000.

The remuneration of key management personnel is as follows.

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

During the year, the group also purchased services from a company in which the adult child of a member of key management personnel is a director in the sum of £392,504 (2024: £405,295).

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The following amount was advanced to Mr Ellsmore during the year, free of interest and repayable on demand. The loan was settled within nine months of the year end.

Dividends totalling £89,930 (2024 - £89,930) were paid in the year in respect of shares held by the company's directors.