The notes on pages 3 to 7 form part of these financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Melwood Limited is a private company limited by shares incorporated in England and Wales. The registered office is 23 Primrose Lane, Highburton, Huddersfield, HD8 0QY.

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 as applicable to companies subject to the small companies regime. 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 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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Turnover is measured at the fair value of the consideration received or receivable and represents the total amount of rents receivable and the value of services provided.

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

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

In the year of acquisition tangible fixed assets are depreciated from 1 January.

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 credited or charged to profit or loss.

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 at the reporting end date. Changes in fair value are recognised in profit or loss.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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

Current tax represents the amount of tax payable or receivable in respect of the taxable profit for the current or past reporting periods. If is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at the date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

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

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

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

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

Freehold investment properties are valued by the director, Mr A Dobson.

The historic cost of freehold investment properties at 31 December 2024 and at 31 December 2025 is £1,264,226.

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

On a written resolution, every member holding one or more A Ordinary shares shall have one vote for each A Ordinary share held.

Members holding B Ordinary shares or C Ordinary shares or D Ordinary shares shall not be entitled to receive notice, nor attend and vote at, any general meeting or on a written resolution of the Company.

Any profits which the Company may determine to distribute in respect of any financial year may be distributed amongst the members holding C Ordinary shares and the members holding the D Ordinary shares and the Company may declare different amounts of dividend on these different classes of shares.

The members holding the A Ordinary shares shall not be entitled to receive a dividend on the A Ordinary shares.

The members holding the B Ordinary shares shall not be entitled to receive a dividend on the B Ordinary shares.

Transactions with directors

Included in other creditors are loans of £1,563,332 (2024: £1,657,331) due to the directors'. These loans are unsecured and repayable on demand. Interest on the loans from the directors was charged during the year and amounted to £17,000 (2024: £42,500).

Mr A Dobson is a director of Melwood 2 Limited and holds 76.35% of the company's ordinary share capital. Included in other debtors is a loan due from Melwood 2 Limited in the amount of £Nil (2024: £159,664). Interest on the loan was charged during the year and amounted to £Nil (2024: £Nil).

Mr A Dobson is a director of Melwood Lettings Limited and indirectly holds 76.35% of the company's ordinary share capital. Included in other debtors is a loan due from Melwood Lettings Limited in the amount of £1,710,817 (2024: £1,664,153). Interest on the loan was charged during the year and amounted to £Nil (2024: £66,000).

Included in other creditors are amounts totalling £1,236,000 (2024: £1,236,000) due to children of the directors. These creditors are unsecured and repayable on demand. Interest on these creditors was charged during the year and amounted to £Nil (2024: £Nil).

Control of the company

The company is controlled by the directors.