REGISTERED NUMBER: 03977373 (England and Wales)

PARITY TRUST LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

J R Culverwell

S D Dalby-Hopkins

SECRETARY:

S Sesodia

REGISTERED OFFICE:

Suite 73

Port View, One Port Way

Port Solent

Portsmouth

Hampshire

PO6 4TY

REGISTERED NUMBER:

03977373 (England and Wales)

FIXED ASSETS

Intangible assets

4

820

1,639

Tangible assets

5

20,126

26,218

20,946

27,857

CURRENT ASSETS

Debtors: amounts falling due within one year

6

508,931

579,377

Debtors: amounts falling due after more than one year

6

6,917,451

6,899,025

Cash at bank

115,627

187,942

7,542,009

7,666,344

CREDITORS

Amounts falling due within one year

7

(224,609

)

(271,016

)

NET CURRENT ASSETS

7,317,400

7,395,328

TOTAL ASSETS LESS CURRENT LIABILITIES

7,338,346

7,423,185

CREDITORS

Amounts falling due after more than one year

8

(6,805,516

)

(6,888,032

)

NET ASSETS

532,830

535,153

RESERVES

Retained earnings

532,830

535,153

532,830

535,153

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2026 and were signed on its behalf by:

J R Culverwell - Director

1.	STATUTORY INFORMATION

Parity Trust Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and in accordance with FRS 102 Section 1A Small Entities.

The preparation of financial statements in compliance with FRS 102 Section 1A Small Entities requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the accounting policies.

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 £1.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered the current economic climate, including the variability of interest rates and inflation. The organisation holds charges against all property loans and would be reliant on these to ensure the going concern basis can be adopted. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Income and expenditure

Income and expenses are included in the financial statements as they become receivable or due.

Deferred subsidy interest was split over the term of the loan up until 2016, after this date 90% has been taken up front for the work performed and the remaining balance split over the life expectancy or loan term.

Expenses include VAT where applicable, where the company cannot reclaim it.

Asset backed loan interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Website development costs are being amortised evenly over their estimated useful life of four years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

7-10 years

Computer equipment

7 years

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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.

Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 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.

Local authority funding is treated as concessionary loans and are measured at the amount received from the Local authority, no interest is charged and no security is provided.

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 company after deducting all of its liabilities

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 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.

Leases

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 leases asset are consumed.

Concessionary loan

Concessionary loans have been received from connected entities, for the purpose of advancing their objectives. The loan was recognised on initial measurement at the amount advanced and interest has been applied.

Judgements and key sources of estimation uncertainty

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 company has considered the following with regard to areas of significant judgements or areas of estimation uncertainty.

Wages are split based on the time spent by staff across Parity Trust Limited and Portsmouth Area Regeneration Trust. This split is reviewed each year and adjusted accordingly.

The fixed asset depreciation charge is derived from the estimated useful life and residual value of the assets.

These are reviewed annually alongside any impairment indicators.

The directors assess the closing debtor balances for recoverability and those not considered probable of recovery are provided for in full. For the current year, the directors have assessed the balances outstanding and consider no provision to be required against these.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2025 - 4 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2025

and 31 March 2026

3,277

AMORTISATION

At 1 April 2025

1,638

Charge for year

819

At 31 March 2026

2,457

NET BOOK VALUE

At 31 March 2026

820

At 31 March 2025

1,639

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2025

5,662

54,067

59,729

Additions

-

3,123

3,123

Disposals

-

(1,446

)

(1,446

)

At 31 March 2026

5,662

55,744

61,406

DEPRECIATION

At 1 April 2025

2,972

30,539

33,511

Charge for year

632

7,871

8,503

Eliminated on disposal

-

(734

)

(734

)

At 31 March 2026

3,604

37,676

41,280

NET BOOK VALUE

At 31 March 2026

2,058

18,068

20,126

At 31 March 2025

2,690

23,528

26,218

6.

DEBTORS

2026

2025

£

£

Amounts falling due within one year:

Trade debtors

102,557

115,615

Asset backed customer loans

314,383

382,256

Other debtors

91,991

81,506

508,931

579,377

Amounts falling due after more than one year:

Asset backed customer loans

6,917,451

6,899,025

Aggregate amounts

7,426,382

7,478,402

Included with other debtors is a deferred tax asset of £29,266 (2025: £22,097).

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Bank loans and overdrafts (see note 9)

3,334

10,000

Trade creditors

11,128

8,643

Amounts owed to group undertakings

-

30,967

Taxation and social security

33,291

29,107

Other creditors

176,856

192,299

224,609

271,016

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Bank loans (see note 9)

-

3,333

Amounts owed to group undertakings

444,527

465,000

Other creditors

6,360,989

6,419,699

6,805,516

6,888,032

Amounts due to group undertakings include unsecured subordinated loans of £413,582 (2025: £465,000) and inter-company loans of £30,945 (2025: £30,967) to Portsmouth Area Regeneration Trust. Subordinated loans do not require repayment until at least five years after the date of the agreement and only on either party providing not less than 90 days notice. Inter-company loans are treated on the same basis. Interest is charged at Bank of England base rate.

Other creditors include loans from various local authorities, committed to invest in loan capital with an interest rate of 0%, for the provision of affordable finance to individuals who own properties, but cannot access funds on the commercial market. The capital is provided with no defined repayment date. The current year balance also includes £5,369,155 (2025: £5,684,355) representing loan capital advances by third parties to provide loans to borrowers on a project management basis.

9.

LOANS

The bank loan is in regards to a Government bounce back loan repayable over a period of 6 years. The interest rate applicable for the full period of the loan is 2.5%.

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2026

2025

£

£

Within one year

14,701

12,945

11.	MEMBERS' LIABILITY

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1. The total number of members at the year end was 4 (2025: 2).

12.	PARENT COMPANY

The parent company of Parity Trust Limited is Portsmouth Area Regeneration Trust, a charitable company registered in England and Wales whose registered office and principal place of business is Port View, One Port Way, Port Solent, Hampshire, PO6 4TY.

13.	CREDIT FACILITIES

In addition to the borrowings disclosed on the balance sheet, the company has access to further funds as follows:

Local authority capital undrawn at the balance sheet date is available of £1,537,831 (2025: £1,467,669).

This will be drawn when required for onward lending.