REGISTERED NUMBER: 10266510 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 30 September 2025

for

Mandale Apartments 5 Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTOR:

R T Harriman

SECRETARIES:

Mrs P Davidson

J Darragh

REGISTERED OFFICE:

Mandale House Mandale Park

Urlay Nook Road

Eaglescliffe

Stockton on Tees

TS16 0TA

REGISTERED NUMBER:

10266510 (England and Wales)

SENIOR STATUTORY AUDITOR:

David Shawcross FCA

AUDITORS:

Anderson Barrowcliff Limited

Statutory Auditors

Chartered Accountants

3 Kingfisher Court

Bowesfield Park

Stockton on Tees

TS18 3EX

The director presents his strategic report for the year ended 30 September 2025.

REVIEW OF BUSINESS

The company has continued its property development activity during the year.

The activity levels have decreased in comparison with the previous year with also a decrease in the overall margin. As explained below the principal risks affecting performance are the general economic climate and in particular its effect on property prices and demand. The gross margin for the year is shown below:-

2025

2024

Gross margin

7%

21.7%

The director is of the opinion that there are no non-financial key performance indicators necessary for the understanding of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

In common with other property development companies, the principal risks affecting performance are the general economic climate and in particular its effect on property prices and demand.

EXCEPTIONAL ITEM

Following the Grenfell Tower tragedy in 2017, the Government and construction sector have been carefully considering and identifying which buildings may be exposed to potentially life-critical fire risks and how these risks should be mitigated. As a legislative response the Building Safety Act became law in April 2022.

As a consequence the company has recorded an exceptional charge of £96,091 (2024 ; £787,796) within these financial statements. Further details can be found in note 5.

ON BEHALF OF THE BOARD:

Mrs P Davidson - Secretary

17 August 2026

The director presents his report with the financial statements of the company for the year ended 30 September 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of property development.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

R T Harriman held office during the whole of the period from 1 October 2024 to the date of this report.

FINANCIAL INSTRUMENTS

The company continues to finance its operations through a combination of related party loans, third party loans and intercompany balances. The company's activities expose it to a number of financial risks, principally liquidity, market and credit risk.

Liquidity risk

In order to maintain liquidity to ensure sufficient funds are available for ongoing activities the company is dependent on the support of its group and associated companies (refer note 9).

Market risk

The company is fundamentally affected by the level of UK property prices which in turn are affected by a number of external factors. Whilst it is not possible for the company to mitigate this risk directly it does continually monitor market conditions and attempt to balance this risk over its various developments within the residential and commercial property sectors to minimise, as far as possible, the effect of market fluctuations.

Credit risk

The nature of the company's business results in the company having minimal exposure to credit risk. Generally full cash receipt for each sale occurs on legal completion. The company is however dependent on the support of its group and associated companies.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Anderson Barrowcliff Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs P Davidson - Secretary

17 August 2026

Opinion

We have audited the financial statements of Mandale Apartments 5 Limited (the 'company') for the year ended 30 September 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 company's affairs as at 30 September 2025 and of its loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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

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

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Audit procedures performed by the engagement team included:

-

Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims.

-

Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

-

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

-

Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

David Shawcross FCA (Senior Statutory Auditor)

for and on behalf of Anderson Barrowcliff Limited

Statutory Auditors

Chartered Accountants

3 Kingfisher Court

Bowesfield Park

Stockton on Tees

TS18 3EX

19 August 2026

TURNOVER

2

7,887,841

27,902,901

Cost of sales

7,333,804

21,854,284

GROSS PROFIT

554,037

6,048,617

Administrative expenses

543,323

991,099

10,714

5,057,518

Other operating income

15,556

1,555

OPERATING PROFIT

4

26,270

5,059,073

Exceptional item - combustible

materials provision

5

96,091

787,796

(69,821

)

4,271,277

Interest receivable and similar income

4,618

-

(65,203

)

4,271,277

Interest payable and similar expenses

6

52,264

1,214,339

(LOSS)/PROFIT BEFORE TAXATION

(117,467

)

3,056,938

Tax on (loss)/profit

7

(59,312

)

578,629

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(58,155

)

2,478,309

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(58,155

)

2,478,309

CURRENT ASSETS

Stocks

8

304,118

2,509,790

Debtors

9

13,460,594

12,995,374

Cash at bank

776,430

98,348

14,541,142

15,603,512

CREDITORS

Amounts falling due within one year

10

7,389,037

8,263,639

NET CURRENT ASSETS

7,152,105

7,339,873

TOTAL ASSETS LESS CURRENT LIABILITIES

7,152,105

7,339,873

PROVISIONS FOR LIABILITIES

12

30,588

160,201

NET ASSETS

7,121,517

7,179,672

CAPITAL AND RESERVES

Called up share capital

13

1

1

Retained earnings

14

7,121,516

7,179,671

SHAREHOLDERS' FUNDS

7,121,517

7,179,672

The financial statements were approved by the director and authorised for issue on 13 August 2026 and were signed by:

R T Harriman - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

1

4,701,362

4,701,363

Changes in equity

Total comprehensive income

-

2,478,309

2,478,309

Balance at 30 September 2024

1

7,179,671

7,179,672

Changes in equity

Total comprehensive income

-

(58,155

)

(58,155

)

Balance at 30 September 2025

1

7,121,516

7,121,517

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Mandale Apartments 5 Limited is a private company incorporated in the United Kingdom under the Companies Act. The address of the registered office and place of business is given on page 1. The nature of the company's operations and its principal activities are set out in the Director's report on page 3.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS102) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of valued added tax, rebates and discounts.

a) Turnover relating to the sales of properties is recognised at legal completion or when legal notice of completion has been issued and the property is subject to unconditional exchange.

b) Turnover for the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date.

c) Turnover also represents rents and service charges receivable, excluding value added tax.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised over time by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by surveys of work performed to date.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost, in relation to work in progress, comprises direct development costs and those overheads, not including any general administrative overheads, that have been incurred in bringing the stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss.

Amounts recoverable on contracts

Amounts recoverable on contracts are stated at cost plus attributable profit to the extent that such profit is reasonably certain and after making provision for any foreseeable losses in completing contracts, less payments on account received.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the financial statements:

Other provisions

In April 2022 the Building Safety Act 2022 became law. This legislation, amongst other things, extends the limitation period in relation to defects on certain buildings to 30 years for works completed before the commencement of the new provisions.

The group has been notified of a number of potential claims which the Director believes create a constructive or legal obligation to remediate certain legacy buildings. This has resulted in the company recording an exceptional combustible materials related charge of £96,091 for the year ended 30 September 2025 (2024 : £787,796).

This provision is subject to the Director's estimates on costs and timing, and the existence and identification of legacy developments where the company may have an obligation to remediate or upgrade to meet new Government guidance where it is responsible to do so.

See notes 12 and 15 for additional information.

2.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sales of properties

5,663,838

18,593,894

Development contract work

2,198,219

9,262,935

Rents and service charges

25,784

46,072

7,887,841

27,902,901

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

205,636

298,332

Social security costs

28,094

35,740

233,730

334,072

The average number of employees during the year was NIL (2024 - NIL).

Payroll costs of 2 (2024 : 3) employees have been recharged to this company from associated companies.

2025

2024

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Auditors remuneration

12,800

10,050

5.	EXCEPTIONAL ITEMS

2025

2024

£

£

Exceptional item - combustible

materials provision

(96,091

)

(787,796

)

Exceptional item - combustible materials related charges

In April 2022 the Building Safety Act 2022 became law. This legislation, amongst other things, extends the limitation period in relation to defects on certain buildings to 30 years for works completed before the commencement of the new provisions.

The company has been notified of a number of potential claims which the Director believes create a constructive or legal obligation to remediate certain legacy buildings. This has resulted in the company recording an exceptional combustible materials related charge of £96,091 for the year ended 30 September 2025 (2024 : £787,796). Due to the nature of the charge, it has been recognised as an exceptional item. See note 12 for additional information.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Corporation tax interest

52,264

59,420

Loan interest

-

1,154,919

52,264

1,214,339

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

(26,000

)

600,000

Over provision for tax in prior year

(33,312

)

(21,371

)

Tax on (loss)/profit

(59,312

)

578,629

UK corporation tax has been charged at 25% .

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

(Loss)/profit before tax

(117,467

)

3,056,938

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(29,367

)

764,235

Effects of:

Adjustments to tax charge in respect of previous periods

(33,312

)

(21,371

)

Group relief

-

(180,400

)

Over provision for tax in year

3,367

16,165

Total tax (credit)/charge

(59,312

)

578,629

8.

STOCKS

2025

2024

£

£

Stock of properties

304,118

2,509,790

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

251,935

922

Amounts recoverable on contract

-

5,629,191

Other debtors

311,684

345,735

Owed by group companies

3,434

3,434

Owed by associated undertakings

12,612,193

6,630,419

VAT

253,096

360,775

Prepayments and accrued income

28,252

24,898

13,460,594

12,995,374

As shown above, debtors include £12,615,627 (2024 : £6,633,853) owing from group and associated undertakings. Due to liquidity concerns within the property sector generally, and therefore within the group and associated debtor undertakings, the timescale for recovery of these debtor balances is unknown, but considered by the directors to be greater than one year for a significant proportion of this amount. There are no formal terms of repayment for these balances.

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

2,388

6,985

Taxation

396,833

658,495

Other creditors

44,885

16,389

Owed to associated undertakings

463,000

463,000

Owed to group undertakings

6,429,751

6,429,885

Provisions

39,804

647,383

Accrued expenses

12,376

41,502

7,389,037

8,263,639

As shown above, creditors include £6,892,751 (2024 : £6,892,885) owing to group and associated undertakings. The company is dependent upon the support of its group and associated companies with regard to the timing of the payment of these group and associated company creditors. Given the liquidity concerns within the property sector generally, and therefore within the group and associated companies, the timescale for payment of these balances is unknown. There are no formal terms of payment for these group and associated company balances.

11.	FINANCIAL INSTRUMENTS

The carrying amounts of the company's financial instruments are as follows:

2025

2024

£

£

Financial liabilities

Measured at amortised cost

- Other loans

-

-

The expenses attributable to the company's financial instruments are summarised as follows:

2025

2024

Total interest expense for financial liabilities at amortised cost

-

1,154,919

12.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Other provisions

Combustible materials provision

30,588

160,201

In response to the fire at Grenfell Tower, the Building Safety Act 2022 (The Act) became law in April 2022. This legislation, amongst other changes, extends the limitation period in relation to defects on certain buildings to 30 years for works completed before the commencement of the new provision.

The company has been notified of a number of potential claims and is working with building owners and fire safety professionals to determine the scope of any necessary remedial works. Where the Director believes that the requirements of Section 21.4 of FRS102 are met provision has been made in these financial statements. Accordingly, the company has recorded a combustible materials charge of £96,091 (2024 : £787,796). The provision of £70,392 represents the company's best estimate of future remediation costs at 30 September 2025. The company will continue to assess the magnitude and utilisation of this provision in future reporting periods.

The company expects to have completed any required remediation between one and three years. The timing of the expenditure is based upon the Director's best estimates of the timing of remediating buildings. Actual timing may differ due to delays in agreeing scope of works, obtaining licences and tendering works contracts.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

1

Ordinary

£1

1

1

14.

RESERVES

Retained

earnings

£

At 1 October 2024

7,179,671

Deficit for the year

(58,155

)

At 30 September 2025

7,121,516

Retained earnings represent cumulative profits and losses net of dividends and other adjustments.

15.	CONTINGENT LIABILITIES

In the year ended 30 September 2023 the company created a combustible materials provision (see note 12). This provision is subject to the Director's estimates on costs and timing, and the existence and identification of legacy developments where the company may have an obligation to remediate or upgrade to meet new Government guidance where it is responsible to do so.

The company and its associated companies (as defined in The Act) are no longer the freehold owner and have no visibility over remediation requirements. Due to the Building Safety Act 2022 (The Act) becoming law in April 2022, the limitation period in relation to defects was extended to 30 years for works completed before the change in the law and 15 years for these commenced after the new provisions. If the company responsible for the defects no longer exists, then the High Court can provide for a Building Liability Order whereby companies associated with the responsible company (as detailed in The Act) may be liable.

Whilst the company believes that most significant liabilities will have been identified through the process of building owners assessing buildings, contingent liabilities exist where additional buildings have not yet been identified which require remediations. This may lead to liabilities for the company.

Due to the enduring challenges of developing a reliable estimate of these possible costs, the company cannot disclose an expected range.

16.	RELATED PARTY DISCLOSURES

During the year the company traded with the following related parties and/or provided or received funds to be assisted with working capital requirements as necessary.

Other related parties - group companies

2025

2024

£

£

Net provision of finance

134

1,079,516

Balance at year end - debtor

3,434

3,434

Balance at year end - creditor

(6,429,751

)

(6,429,885

)

Other related parties - common control

2025

2024

£

£

Development work (purchases)

(3,365,000

)

(11,695,000

)

Management charges

(202,369

)

(497,944

)

Wages/salaries recharged

(245,542

)

(334,072

)

Net provision of finance

9,794,685

21,657,398

Balance at year end - debtor

12,612,193

6,630,419

Balance at year end - creditor

(463,000

)

(463,000

)

The total remuneration for key management personnel for the year totalled £Nil (2024 : £Nil).

17.	POST BALANCE SHEET EVENTS

After the year end, the directors declared dividends totalling £7,000,000 (2024: £Nil). These dividends have not been provided for in the financial statements as they were not declared until after the reporting date.

18.	PARENT UNDERTAKING

The immediate and ultimate parent company is Mandale Homes Holdings Limited. These financial statements are included in the consolidated financial statements of Mandale Homes Holdings Limited. The parent's registered office address is the same as Mandale Apartments 5 Limited as detailed on the Company Information page.

On 11th March 2026, subsequent to the reporting date, the ultimate parent company transferred to AG IOM Holdings 2026 Limited as part of a group reorganisation. This represents a non-adjusting event under FRS 102. The new ultimate parent undertaking is incorporated in Isle of Man.