Company No: 16430277 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	31.05.2026
		£
Fixed assets
Investment property	3	900,000
		900,000
Current assets
Cash at bank and in hand		13,647
		13,647
Creditors: amounts falling due within one year	4	( 293,466)
Net current liabilities		(279,819)
Total assets less current liabilities		620,181
Creditors: amounts falling due after more than one year	5	( 624,070)
Net liabilities		( 3,889)
Capital and reserves
Called-up share capital	6	100
Profit and loss account		( 3,989 )
Total shareholder's deficit		( 3,889)

For the financial period ending 31 May 2026 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial period in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Erme Lettings Ltd (registered number: 16430277) were approved and authorised for issue by the Director on 20 August 2026. They were signed on its behalf by:

A J Plummer Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial period, unless otherwise stated.

General information and basis of accounting

Erme Lettings Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Fardel Farm, Fardel, Ivybridge, PL21 9HT, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The director has assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The director notes that the business has net liabilities of £3,889. The Company is supported through loans from the director. The director has confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the director will continue to support the Company. Given the current position, the director believes that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Reporting period length

The reporting period has been extended to 31 May 2026 due to the company being incorporated on 6 May 2025, resulting in a first accounting period of 13 months. Accordingly, the amounts presented in these financial statements are not entirely comparable with those that would be reported for a standard 12‑month accounting period.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from 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 Statement of Financial Position date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Statement of Financial Position date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the director, on an open market value for existing use basis.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

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, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a 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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

2. Employees

	Period from 06.05.2025 to 31.05.2026
	Number
Monthly average number of persons employed by the Company during the period, including the director	1

3. Investment property

	Investment property
	£
Valuation
As at 06 May 2025	0
Additions	897,826
Fair value movement	2,174
As at 31 May 2026	900,000

Valuation

The valuation of the properties at the balance sheet date were made by the directors based on open market value for existing use basis.

4. Creditors: amounts falling due within one year

	31.05.2026
	£
Amounts owed to director	290,286
Accruals	3,180
	293,466

There are no amounts included above in respect of which any security has been given by the small entity.

5. Creditors: amounts falling due after more than one year

	31.05.2026
	£
Bank loans (secured)	624,070

The loans are secured by way of fixed and floating charges over all properties containing negative pledges.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	31.05.2026
	£
Bank loans (secured)	624,070

The loans are secured by way of fixed and floating charges over all properties containing negative pledges.

6. Called-up share capital

	31.05.2026
	£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 1.00 each	100

100 Ordinary shares with a nominal value of £1 each were issued on incorporation of the Company.

7. Related party transactions

Transactions with the entity's director

	31.05.2026
	£
Amounts owed to the director	290,286

The amounts owed to the directors have no fixed date for repayment and interest is not being charged.

8. Profit and Loss Account

	31.05.2026
	£
Profit and loss account - distributable	(14,519)
Profit and loss account - non-distributable	10,530
	(3,989)