REGISTERED NUMBER: 10266634 (England and Wales)

Financial Statements

for the Year Ended 30 September 2025

for

Mandale Apartments 3 Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

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:

10266634 (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

FIXED ASSETS

Investments

4

18

-

CURRENT ASSETS

Stocks

675,083

2,581,114

Debtors

5

3,926,349

2,588,285

Cash at bank

26,449

303,097

4,627,881

5,472,496

CREDITORS

Amounts falling due within one year

6

1,454,115

2,058,802

NET CURRENT ASSETS

3,173,766

3,413,694

TOTAL ASSETS LESS CURRENT LIABILITIES

3,173,784

3,413,694

PROVISIONS FOR LIABILITIES

7

620,100

550,001

NET ASSETS

2,553,684

2,863,693

CAPITAL AND RESERVES

Called up share capital

8

1

1

Retained earnings

2,553,683

2,863,692

SHAREHOLDERS' FUNDS

2,553,684

2,863,693

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 Income Statement has not been delivered.

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

R T Harriman - Director

1.	STATUTORY INFORMATION

Mandale Apartments 3 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Mandale Apartments 3 Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Mandale Homes Holdings Limited, Mandale House, Mandale Park, Urlay Nook Road, Eaglescliffe, Stockton on Tees TS16 0TA.

Turnover

Sales of properties are recognised on legal completion. Turnover also represents rents and service charges receivable, excluding value added tax.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

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 Income Statement, 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.

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.

3.	EMPLOYEES AND DIRECTORS

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

4.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

18

At 30 September 2025

18

NET BOOK VALUE

At 30 September 2025

18

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Amounts owing from group undertakings

586,441

2,365,192

Amounts owing from associated undertakings

3,320,056

-

VAT

19,852

23,093

Deferred tax asset

-

200,000

3,926,349

2,588,285

As shown above, debtors include £3,906,497 (2024 : £2,365,192 ) 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 director to be greater than one year for a significant proportion of this amount. There are no formal terms of repayment for these balances.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

11,244

7,840

Taxation

591

591

Other creditors

2,000

-

Amounts owing to associated undertakings

87,577

867,000

Amounts owing to group undertakings

1,336,303

1,152,192

Provisions

7,900

30,179

Accrued expenses

8,500

1,000

1,454,115

2,058,802

As shown above, creditors include £1,423,880 ( 2024 : £2,019,192) 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.

7.	PROVISIONS FOR LIABILITIES

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 recorded a combustible materials charge of £223,315 in the current year's financial statements (2024 : £31,988). This represents the movement on the company's best estimate of future remediation costs at 30 September 2025, resulting in a closing provision of £628,000 (2024 : £580,180). 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 within a 3 year period, using £7,900 (2024: £30,179) of the provision within one year and the balance 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.

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

1

Ordinary

£1

1

1

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

David Shawcross FCA (Senior Statutory Auditor)

for and on behalf of Anderson Barrowcliff Limited

10.	CONTINGENT LIABILITIES

In the period ended 30 September 2022 the company created a combustible materials provision which has been reviewed and updated at 30 September 2023, 30 September 2024 and 30 September 2025 (see note 8). 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.

11.	RELATED PARTY DISCLOSURES

During the year the company provided or received funds to assist or to be assisted with working capital requirements as necessary.

Other related parties - group companies

2025

2024

£

£

Net receipt of finance

(1,962,862

)

(2,413,349

)

Balance at year end - debtor

586,441

2,365,192

Balance at year end - creditor

(1,336,303

)

(1,152,192

)

The above debtor balance at the year end is net of a bad debt provision of £484,004 (2024 : £484,004). A charge of £Nil (2024 : £Nil) was recognised in the profit and loss in respect of bad or doubtful debts.

Other related parties - common control

2025

2024

£

£

Development work (purchases)

(2,210,000

)

(950,000

)

Wages recharges

(67,049

)

(83,518

)

Management charges

(69,037

)

-

Net provision/(receipt) of finance

6,445,565

(198,146

)

Balance at year end - debtor

3,320,056

-

Balance at year end - creditor

(87,577

)

(867,000

)

12.	POST BALANCE SHEET EVENTS

After the year end, the directors declared dividends totalling £1,900,000 (2024: £Nil). These dividends have not been provided for in the financial statements as they were not declared until after the reporting date.

13.	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 3 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.