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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Daiwa House UK Limited is a private company limited by shares. The Company is incorporated in England and Wales. The principal place of business and registered address is 2-6 Boundary Row, London, England, SE1 8HP.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
The financial statements have been prepared on a going concern basis.
The Company incurred a loss of £1,879,027 (2024:£1,350,416) during the year and, as at 31 December 2025, had net current liabilities of £24,785,970 (2024:£11,781,542). The Company operates as an investment holding entity and is dependent on the successful completion of its underlying development projects, from which income is expected to be realised upon project completion. The Company finances its investments through a revolving loan facility with a third-party financial institution, which is guaranteed by its ultimate parent undertaking explained in note 8, Daiwa House Industry Co,. LTD. The directors expect this facility to remain available to the Company for the foreseeable future. In addition, the Company has received a letter of support from its ultimate parent undertaking confirming that it will provide financial support to enable the Company to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements. Based on the above, the directors have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the period of at least twelve months from the date of approval of these financial statements and therefore consider it appropriate to adopt the going concern basis of accounting in preparing these financial statements.
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The Company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The Company’s policies for its major classes of financial assets and financial liabilities are set out below. Financial assets Basic financial assets, including other debtors and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. Financial liabilities Basic financial liabilities, including other creditors and intercompany working capital balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Impairment of financial assets Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the Company would receive for the asset if it were to be sold at the reporting date. For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 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 and financial liabilities Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. Offsetting of financial assets and financial liabilities Financial assets and liabilities are offset and the net amount reported in the balance sheet when
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
there is an 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.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. The accounting estimates used in the preparation of the financial statements that are considered critical because they require management to make such estimations. The Company assessed its investment for impairment indicators during 2025 and concluded no impairment triggers exist as of 31 December 2025. This was determined by reviewing various internal and external factors in accordance with FRS 102 which included market value conditions and other factors.
The average monthly number of employees, including directors, during the period was 7. (2024: 2)
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
During the period, 1 ordinary share of £1.00 each was issued (2024: 7), fully paid for a total cash consideration of £11,707,000. The amount paid in excess of nominal value has been recognised as share premium.
The following non-adjusting events have occurred since 31 December 2025:
∙On 6 January 2026, the Company drew down £3,769,251 under its existing revolving loan facility in order to fund an additional investment in its subsidiary.
∙On 8 January 2026, the Company made a capital contribution of £3,769,251 to its subsidiary.
∙On 7 April 2026, the Company drew down a further £1,288,524 under the same revolving loan facility to finance additional investment in its subsidiary.
∙On 9 April 2026, the Company made a capital contribution of £1,288,524 to its subsidiary.
∙On 26 April 2026, the Company issued 1 £1.00 ordinary share, fully paid for a total cash consideration
of £1,750,000
∙On 12 June 2026, the Company drew down £22,875,000 under the same revolving loan facility in order to fund an additional investment in its subsidiary.
∙On 15 June 2026, the Company made a capital contribution of £22,875,000 to its subsidiary.
∙On 16 June 2026, the Company issued 1 £1.00 ordinary share, fully paid for a total cash consideration
of £6,750,000
∙On 17 June 2026, the Company made a capital contribution of £6,750,000 to its subsidiary.
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DAIWA HOUSE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The immediate parent undertaking is
The ultimate parent undertaking is
The audit report was signed on
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