Company registration number 07900938 (England and Wales)
ZFA GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
ZFA GROUP LIMITED
COMPANY INFORMATION
Directors
Mr A H Anwar
Mr Z H Anwar
Company number
07900938
Registered office
Unit 7 Anderson Road
Woodford Green
England
IG8 8ET
Auditor
Vision Consulting Accountants Limited
The Gherkin Building
28th Floor
30 St. Mary Axe
London
EC3A 8EP
ZFA GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
ZFA GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 1 -

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

Review of the business

The Directors are pleased to report that, despite ongoing economic uncertainty, the group has made significant strides in strengthening its market position. By expanding partnerships with more local authorities and forging new relationships with large developers, the property portfolio has grown considerably. Additionally, the implementation of streamlined processes has led to improved profitability. The group remains committed to meeting the increasing demand for social housing, with continued strategic investment driving sustainable growth.

Outlook

Looking ahead, the directors remain optimistic about the company’s growth trajectory. With a renewed focus on business development and an increased investment in marketing, we anticipate further improvements in profitability, particularly by 2026.

While the past few years have presented challenges, market conditions have begun to stabilise, and this is already being reflected in the group’s improved performance. We are confident that the foundations laid this year will support sustained success in the years to come.

Principal risks and uncertainties

To achieve the group's business objectives, the directors regularly assess and evaluate the main risks to the group identified below. The list does not include all risks that the group faces.

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.

Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Development and performance

The Group achieved revenue growth in the year ended 31 May 2025, underscoring our ability to thrive in a competitive market:

- Turnover increased by 3.90% to £46.22 million (2024: £44.49 million), driven by expanded property management portfolios and enhanced service offerings. Gross profit reduced by 26.72% to £7.54 million (2024: £10.29 million) while profit before tax reduced by 52.38% to £4.2 million (2024 : £8.82 million). This decrease primarily arises from an increase in rent payable and other direct costs, reflecting inflationary pressures and higher service charges across the property portfolio.

- Net assets increased by 25.94% to £11.36 million (2024: £9.02 million), reinforcing our financial stability.

These results validate our strategic focus on cost optimisation, portfolio diversification, and partnership development, positioning us strongly for future expansion.

ZFA GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 2 -
Key performance indicators

The key performance indicators are as follows:

2025
2024
£
£
Turnover
46,222,977
44,489,025
Gross profit
7,540,569
10,292,678
Profit before tax
4,196,937
8,824,481
Shareholder's funds
11,355,929
9,022,951

On behalf of the board

Mr A H Anwar
Director
21 July 2026
ZFA GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 3 -

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

Principal activities

The principal activity of the group continued to be that of property management, development, investme n t, maintenance and other related activities.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £550,100. The directors do not recommend payment of a further dividend.

Directors

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

Mr A H Anwar
Mr Z H Anwar
Financial instruments
Treasury operations and Financial instruments

The company’s treasury function is responsible for managing its liquidity, interest rate, foreign currency, and credit risks. It oversees the financial instruments used in the company’s operations, including cash deposits, trade debtors, trade creditors, and borrowings, to ensure sound financial management and support sustainable growth.

Liquidity risk

The company actively manages its cash and borrowing requirements to ensure it maintains sufficient liquid resources to meet operational and capital commitments as they fall due. Cash flow forecasts are reviewed regularly to optimize interest income and minimize borrowing costs. The company’s policy is to maintain adequate headroom in available facilities to support its ongoing trading activities.

Interest rate risk

The company is exposed to interest rate risk through its interest-bearing borrowings and cash deposits. The treasury function manages this exposure by maintaining an appropriate balance between fixed and variable rate debt, reviewing market conditions regularly, and assessing the impact of potential interest rate movements on future cash flows. The overall sensitivity to interest rate changes is not considered material.

Foreign currency risk

The company’s principal foreign currency exposure arises from trading with international customers and suppliers. Although the use of hedging instruments is not mandatory, the company may enter into foreign exchange forward contracts to mitigate short-term fluctuations and to stabilise sterling-denominated costs. The exposure to foreign exchange movements is monitored on an ongoing basis.

Credit risk

Credit risk arises primarily from trade receivables and deposits held with financial institutions. The company manages its exposure by conducting business with creditworthy counterparties that meet board-approved credit criteria. Trade receivables are subject to ongoing credit evaluations, and provisions are made for doubtful debts where required. Cash balances are maintained with reputable banks that have strong credit ratings.

Auditor

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

ZFA GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 4 -
Statement of directors' responsibilities

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

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

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

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable U nited K ingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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.

On behalf of the board
Mr A H Anwar
Director
21 July 2026
ZFA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ZFA GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of ZFA Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 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 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 May 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the directors' r eport 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.

ZFA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ZFA GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

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 identifie d material misstatements in the strategic report or the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

- The nature of the industry and sector, control environment, business performance including the design of the policies and performance targets.

- Results of our enquiries of management. Any matters we identified having obtained and reviewed the entity’s documentation of their policies and procedures relating to ;

- Identifying, evaluating and complying with laws and regulations such as companies act 2006 as applied to limited company and whether management were aware of any instances of non-compliance .

- Detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud .

- Entity's procedures to identify related party transactions.

- The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations and

- The matters discussed among the audit engagement team where fraud might occur in the financial statements and any potential indicators of fraud.

It is common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the entity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the entity’s ability to operate.

ZFA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ZFA GROUP LIMITED
- 7 -
Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations having a direct effect on the financial statements.

- Enquiring the management regarding related party disclosures and transactions outside the normal course of the business.

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

- Reading minutes of meetings of those charged with governance.

- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments.

- Assessing whether the judgments made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

Use of our report

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

David White (Senior Statutory Auditor)
For and on behalf of Vision Consulting Accountants Limited, Statutory Auditor
Chartered Accountants
The Gherkin Building
28th Floor
30 St. Mary Axe
London
EC3A 8EP
22 July 2026
ZFA GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
46,222,977
44,489,025
Cost of sales
(38,682,408)
(34,196,347)
Gross profit
7,540,569
10,292,678
Administrative expenses
(1,964,907)
(1,487,933)
Other operating income
127
66,969
Operating profit
4
5,575,789
8,871,714
Interest receivable and similar income
7
14,765
447
Interest payable and similar expenses
8
(285,817)
(252,497)
Amounts written off investments
9
(1,107,800)
-
Fair value gains and losses on investment properties
13
-
0
204,817
Profit before taxation
4,196,937
8,824,481
Tax on profit
10
(1,313,859)
(2,208,408)
Profit for the financial year
26
2,883,078
6,616,073
Profit for the financial year is all attributable to the owners of the parent company.
ZFA GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2025
- 9 -
2025
2024
£
£
Profit for the year
2,883,078
6,616,073
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
2,883,078
6,616,073
Total comprehensive income for the year is all attributable to the owners of the parent company.
ZFA GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2025
31 May 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
521,732
225,745
Investment property
13
300,000
2,957,817
821,732
3,183,562
Current assets
Stocks
16
576,299
576,299
Debtors
17
13,829,095
10,760,732
Cash at bank and in hand
2,009,150
1,046,309
16,414,544
12,383,340
Creditors: amounts falling due within one year
18
(5,783,668)
(6,154,114)
Net current assets
10,630,876
6,229,226
Total assets less current liabilities
11,452,608
9,412,788
Creditors: amounts falling due after more than one year
19
(78,364)
(294,868)
Provisions for liabilities
Deferred tax liability
21
18,315
94,969
(18,315)
(94,969)
Net assets
11,355,929
9,022,951
Capital and reserves
Called up share capital
24
100
100
Other reserves
48,750
278,714
Profit and loss reserves
26
11,307,079
8,744,137
Total equity
11,355,929
9,022,951

The financial statements were approved by the board of directors and authorised for issue on 21 July 2026 and are signed on its behalf by:
21 July 2026
Mr A H Anwar
Director
Company registration number 07900938 (England and Wales)
ZFA GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2025
31 May 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
14
300
500
Current assets
Debtors
17
154,962
169,881
Cash at bank and in hand
510
677
155,472
170,558
Creditors: amounts falling due within one year
18
(135,012)
(145,791)
Net current assets
20,460
24,767
Net assets
20,760
25,267
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
26
20,660
25,167
Total equity
20,760
25,267

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £545,593 (2024 - £796,304 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 21 July 2026 and are signed on its behalf by:
21 July 2026
Mr A H Anwar
Director
Company registration number 07900938 (England and Wales)
ZFA GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 12 -
Share capital
Other Reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2023
100
125,101
3,081,677
3,206,878
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
6,616,073
6,616,073
Dividends
11
-
-
(800,000)
(800,000)
Other movements
-
153,613
(153,613)
-
Balance at 31 May 2024
100
278,714
8,744,137
9,022,951
Year ended 31 May 2025:
Profit and total comprehensive income
-
-
2,883,078
2,883,078
Dividends
11
-
-
(550,100)
(550,100)
Other movements
-
(229,964)
229,964
-
Balance at 31 May 2025
100
48,750
11,307,079
11,355,929
ZFA GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2023
100
28,863
28,963
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
796,304
796,304
Dividends
11
-
(800,000)
(800,000)
Balance at 31 May 2024
100
25,167
25,267
Year ended 31 May 2025:
Profit and total comprehensive income
-
545,593
545,593
Dividends
11
-
(550,100)
(550,100)
Balance at 31 May 2025
100
20,660
20,760
ZFA GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2025
- 14 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
5,597,720
2,818,080
Interest paid
(285,817)
(252,497)
Income taxes (paid)/refunded
(1,127,656)
8,501
Net cash inflow from operating activities
4,184,247
2,574,084
Investing activities
Purchase of tangible fixed assets
(375,819)
(236,013)
Proceeds from disposal of subsidiaries, net of cash disposed
(65,900)
-
Loans made to other entities
(865,984)
-
Interest received
14,765
446
Net cash used in investing activities
(1,292,938)
(235,567)
Financing activities
Repayment of borrowings
-
(198,389)
Repayment of bank loans
(1,378,368)
(337,350)
Dividends paid to equity shareholders
(550,100)
(800,000)
Net cash used in financing activities
(1,928,468)
(1,335,739)
Net increase in cash and cash equivalents
962,841
1,002,778
Cash and cash equivalents at beginning of year
1,046,309
43,531
Cash and cash equivalents at end of year
2,009,150
1,046,309
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
- 15 -
1
Accounting policies
Company information

ZFA Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 7 Anderson Road, Woodford Green, England, IG8 8ET.

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

1.1
Basis of preparation

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 a mounts in these financial statements are rounded to the nearest £.

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

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

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

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

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company ZFA 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 May 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 g roup.

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.

1.4
Going concern

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

1.5
Revenue

Turnover represents amounts receivable for rents.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

1.6
Tangible fixed assets

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:

Fixtures and fittings
5% straight line basis
Computers
33% cost basis
Motor vehicles
20% straight line basis

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.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 17 -
1.8
Fixed asset investments

Equity in vest ments 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.

I n 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.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

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.

1.10
Stocks

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.

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.

1.11
Cash and cash equivalents

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

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest m ethod 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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.

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, 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 th r ough 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.

Derecognition of financial liabilities

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

1.13
Equity instruments

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.

1.14
Taxation

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

Current 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

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.

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 20 -

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.

1.15
Employee benefits

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.

1.16
Retirement benefits

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

1.17
Leases
As lessee

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 lease d asset are consumed.

2
Judgements and key sources of estimation uncertainty

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.

Investment properties are based on fair value measurement. The valuation was performed by directors and their opinion of fair value was primarily derived using comparable recent market value, see note 1 2 for valuation.

Stock s are stated i n line with FRS 102 which requires stocks to be measured at the lower of cost and estimated selling price less costs to complete and sell, see note 15 for stock value.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. The assets are estimated to lose their value at the following rates:

Motor Vehicle 20% straight line basis

Fixtures, fittings and equipment 5% straight line basis

Computer equipment 33% cost basis

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 21 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Rental income
46,222,977
44,489,025
2025
2024
£
£
Other revenue
Interest income
14,765
447
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
3,600
2,400
Depreciation of tangible fixed assets
79,832
69,254
Operating lease charges
226,327
119,377
5
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Administration
2
2
2
2
Operations
35
29
-
-
Total
37
31
2
2

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
972,780
738,834
-
0
-
0
Social security costs
93,225
59,159
-
-
Pension costs
12,625
10,275
-
0
-
0
1,078,630
808,268
-
0
-
0
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 22 -
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
120,000
70,000
Company pension contributions to defined contribution schemes
1,761
1,756
121,761
71,756
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
14,765
447
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
114,761
217,475
Other interest
171,056
35,022
Total finance costs
285,817
252,497
9
Amounts written off investments
2025
2024
£
£
Other gains and losses
(1,107,800)
-

This loss represents loss arising on the disposal of a subsidiary during the year as part of a group restructure.

10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
1,323,319
2,163,032
Deferred tax
Origination and reversal of timing differences
(9,460)
45,376
Total tax charge
1,313,859
2,208,408
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
10
Taxation
(Continued)
- 23 -

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:

2025
2024
£
£
Profit before taxation
4,196,937
8,824,481
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
1,049,234
2,206,120
Effects of:
Expenses that are not deductible in determining taxable profit
15,386
2,079
Gains not taxable
-
0
(16,250)
Change in unrecognised deferred tax assets
-
0
15,707
Permanent capital allowances in excess of depreciation
(3,289)
1,011
Depreciation on assets not qualifying for tax allowances
-
0
(21)
Other permanent differences
262,221
-
0
Tax at marginal rate
-
0
(238)
Changes in deferred tax assets
(9,693)
-
0
Taxation charge in the financial statements
1,313,859
2,208,408

Finance No. 2 Bill 2021 became substantively enacted on 24 May 2021. As a result, deferred tax for timing differences that are forecast to unwind on or after 1 April 2023 will need to be re-measured and recognised at 25% if the company profits are expected to be in excess of £250,000 (or at the marginal rate if profits are expected to be between £50,000 and £250,000) with an adjustment recognised in the 2021 total tax charge.

11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
550,100
800,000
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 24 -
12
Tangible fixed assets
Group
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2024
35,841
33,838
557,346
627,025
Additions
-
0
-
0
375,819
375,819
Disposals
-
0
-
0
(23,500)
(23,500)
At 31 May 2025
35,841
33,838
909,665
979,344
Depreciation and impairment
At 1 June 2024
10,003
22,548
368,729
401,280
Depreciation charged in the year
1,792
2,822
75,218
79,832
Eliminated in respect of disposals
-
0
-
0
(23,500)
(23,500)
At 31 May 2025
11,795
25,370
420,447
457,612
Carrying amount
At 31 May 2025
24,046
8,468
489,218
521,732
At 31 May 2024
25,838
11,290
188,617
225,745
The company had no tangible fixed assets at 31 May 2025 or 31 May 2024.
13
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 June 2024 and 31 May 2025
2,957,817
-
Disposals
(2,657,817)
-
At 31 May 2025
300,000
-

Investment property comprises residential properties. The valuation was made by the directors on an open market value basis by reference to market evidence of transaction prices for similar properties. The disposals were in respect of a disposal of a subsidiary during the year.

14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
300
500
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
14
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2024
500
Disposals
(200)
At 31 May 2025
300
Carrying amount
At 31 May 2025
300
At 31 May 2024
500
15
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
ZFA Ltd
England and Wales
Property management
Ordinary Shares
100.00
ZFA Accomodation Limited
England and Wales
Property management
Ordinary Shares
100.00
ZFA Construction Limited
England and Wales
Property maintenance
Ordinary Shares
100.00

Top Grade Education Limited was dissolved on 18 June 2024 and ZFA Properties Limited was disposed off on 2 May 202 5.

16
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Work in progress
576,299
576,299
-
-
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 26 -
17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,255,527
3,125,767
-
0
-
0
Amounts owed by group undertakings
-
0
-
0
154,962
169,881
Other debtors
9,730,160
4,223,106
-
0
-
0
Prepayments and accrued income
1,783,267
3,361,178
-
0
-
0
13,768,954
10,710,051
154,962
169,881
Deferred tax asset (note 21)
60,141
50,681
-
0
-
0
13,829,095
10,760,732
154,962
169,881

These are unsecured balances which are repayable on demand and carry no interest.

18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
20
56,552
1,218,416
-
0
-
0
Other borrowings
20
105,995
105,995
105,995
105,995
Trade creditors
-
0
157,045
-
0
-
0
Corporation tax payable
2,963,208
2,974,551
-
0
-
0
Other taxation and social security
1,144,183
1,296,528
-
0
-
0
Deferred income
22
-
0
10,100
-
0
-
0
Other creditors
77,478
140,513
25,417
24,896
Accruals and deferred income
1,436,252
250,966
3,600
14,900
5,783,668
6,154,114
135,012
145,791
19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
20
78,364
294,868
-
0
-
0
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 27 -
20
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
134,916
1,513,284
-
0
-
0
Loans from related parties
105,995
105,995
105,995
105,995
240,911
1,619,279
105,995
105,995
Payable within one year
162,547
1,324,411
105,995
105,995
Payable after one year
78,364
294,868
-
0
-
0

Bank loans and overdrafts are secured by a fixed and floating charge over the assets of the group. In addition, the directors have also provided additional personal guarantees.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Group
£
£
£
£
Accelerated capital allowances
1,573
1,573
60,141
50,681
Revaluations
113,020
76,654
-
-
Investment property
16,742
16,742
-
-
On disposals
(113,020)
-
-
-
18,315
94,969
60,141
50,681
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 June 2024
44,288
-
Credit to profit or loss
(9,460)
-
Transfer on disposal
(76,654)
-
Asset at 31 May 2025
(41,826)
-

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 28 -
22
Deferred income
Group
Company
2025
2024
2025
2024
£
£
£
£
Other deferred income
-
10,100
-
-
23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,625
10,275

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.

24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
25
Other Reserves
2025
2024
Group
£
£
At the beginning of the year
278,714
125,101
Other movements
(229,964)
153,613
At the end of the year
48,750
278,714
2025
2024
Company
£
£
At the beginning and end of the year
-
-

Other reserves represents fair value gains net of deferred tax on revaluation of investment property.

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 29 -
26
Profit and loss reserves
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
8,744,137
3,081,677
25,167
28,863
Profit for the year
2,883,078
6,616,073
545,593
796,304
Dividends
(550,100)
(800,000)
(550,100)
(800,000)
Other movements
229,964
(153,613)
-
-
At the end of the year
11,307,079
8,744,137
20,660
25,167
27
Disposals

On 2 May 2025 the group disposed of its 100% holding in ZFA Properties Limited. Included in these financial statements are profits of £158,485 arising from the company's interests in ZFA Properties Limited up to the date of its disposal.

28
Operating lease commitments
As lessee

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

Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
41,036,465
34,170,316
-
-
Years 2-5
65,037,521
40,018,817
-
-
106,073,986
74,189,133
-
-

29
Events after the reporting date

After the year end, the company invested £1.2 million in a number of properties under the course of construction overseas. Due to worldwide events following the investment the construction of the properties has ceased and the value of their investment is uncertain. The directors are of the opinion that in due course construction should continue and they will be able to realise a profit on their investment.

ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 30 -
30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2025
2024
£
£
Aggregate compensation
300,000
190,113
Transactions with related parties

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

2025
2024
£
£
Group
Other related parties - Expenses
1,637,478
175,575

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2025
2024
£
£
Group
Other related parties
105,995
300

Company

At the year end the company owed £105,995 (2024: £105,995) to a company in which the close family member of a Director ha s significant influence.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2025
2024
Balance
Balance
£
£
Group
Other related parties
8,828,304
4,105,234
31
Directors' transactions
ZFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
31
Directors' transactions
(Continued)
- 31 -
Loans
% Rate
Opening balance
Amounts advanced
Amounts repaid
Amounts written off
Closing balance
£
£
£
£
£
Amounts advanced to director 1
-
-
862,651
-
-
862,651
Amounts loaned by director 1
-
(75,277)
(31,296)
37,725
10,956
(57,892)
Amounts advanced to director 2
-
-
3,333
-
-
3,333
(75,277)
834,688
37,725
10,956
808,092
32
Cash generated from group operations
2025
2024
£
£
Profit after taxation
2,883,078
6,616,073
Adjustments for:
Taxation charged
1,313,859
2,208,408
Finance costs
285,817
252,497
Investment income
(14,765)
(447)
Fair value gain on investment properties
-
0
(271,786)
Depreciation and impairment of tangible fixed assets
79,832
69,254
Other gains and losses
1,107,800
-
Movements in working capital:
Increase in stocks
-
(114,836)
Increase in debtors
(2,189,408)
(6,354,289)
Increase in creditors
2,141,607
707,687
Decrease in deferred income
(10,100)
(294,481)
Cash generated from operations
5,597,720
2,818,080
33
Analysis of changes in net funds/(debt) - group
1 June 2024
Cash flows
Acquisitions and disposals
31 May 2025
£
£
£
£
Cash at bank and in hand
1,046,309
1,022,058
(59,217)
2,009,150
Borrowings excluding overdrafts
(1,619,279)
910,564
467,804
(240,911)
(572,970)
1,932,622
408,587
1,768,239
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