The directors present the strategic report for the year ended 30 November 2025.

The 2024/25 financial year commenced with the Park opening for its “Celebration of Christmas” event as planned on Saturday 6th December 2024 running to the same format as prior years.

In line with the Park’s long-established strategy to continually invest in its attractions and infrastructure, Ghostly Manor, an innovative new major attraction, was opened in May 2025 which was very well received by guests. This complemented the two new attractions which were opened during the 2023/24 season, namely a new Ring-Tailed Lemurs exhibit and a new Junior Log Flume, Splash Lagoon. As well as new attractions, the Park continued its investment in its infrastructure with the completion of a major Solar PV project with a design capability of just under 816 kWp which included the installation of Car Ports and roof mounted arrays. Further investment was made with the upgrading and enhancement of the Park’s digital network as well as the refurbishment of one of the highest trafficked toilet blocks.

To ensure our Staff are well served with food and refreshments our Staff Room facilities were extended and upgraded to provide a dedicated kitchen and servery where staff can purchase hot and cold meals throughout the day which has proved popular.

The Park was again proud of the accreditations it received during the year. An overall Quality Score of 97% in the VisitEngland Visitor Attraction Quality Assurance Scheme (VAQAS) was awarded during the annual audit that took place in June 2025 which was identical to the prior year. In addition, the Park was delighted to receive the accolade of being the winner of the 2025 UK Theme Park Awards “Theme Park of the Year”. This was further complemented with six gold awards which were:

• Best Theme Park for Families (Large)

• Best Theme Park for Toddlers (Large)

• Best New Attraction: Ghostly Manor

• Best Customer Service (Large)

• Best New Sustainability Initiative: The Solar Energy Project

• Best Use of IP in an Attraction: Peppa Pig World

The Park also secured two silver awards for “Best Integration of Technology in a Guest Experience – Ghostly Manor” and “Best new Food Outlet – Pancake Kitchen” and a bronze award for “Best Queue Line Experience or Pre-Show – Ghostly Manor”. These continue to complement the continuing industry leading ratings the Park receives from guests on platforms such as TripAdvisor, Google Reviews and Trustpilot.

As in prior years the 2024/25 season had its challenges. The continuing pressures on staffing costs relating to increases in April 2025 to the National Minimum Wage rates and Employer National Insurance Contributions had a significant effect on the cost base which the Directors and Management teams spent a great deal of time and energy to offset by other means as much as was possible. Continued pressures on domestic disposable income, increased opportunity for families to holiday abroad were a continuing theme, along with the Park operating in a very competitive market with aggressive discounting being seen at other attractions at key times of the year. Increasing cost pressures across the business continued to put trading margins under threat and were recurring themes throughout the year. However, despite this, visitor numbers increased slightly over the prior year for the second year in succession, which had a positive impact on turnover.

Energy procurement and cost reduction remained a major focus. The installation of the expanded Solar PV arrays and a battery storage system was completed and fully commissioned in March 2025. Self-generated electricity usage increased from approximately 7% in prior years to 25.8% in 2025. A third solar project phase, comprising nine further roof installations and additional battery storage, is scheduled for the second half of 2026 and will increase the Park’s solar generation from 25.8% to 42% with a further 349 kWp of capacity added.

The Park has continued to maintain its focus on constantly monitoring and managing its input costs for all the main product areas which will continue as cost pressures become ever more acute.

Despite the continuing issues and challenges the business had to deal with during the 2024/25 season the group remains in a strong financial position with closing assets reported as £122,988,605 which is an increase of £7,303,807 from the end of the previous period.

The Park continues its strategy to continually invest in new attractions. The 2026 season will see the launch of a new Viking area, named Valgard. This represents a £12m investment and is designed to extend the range of age whilst still complementing all the other areas and attractions the Park has to offer. Valgard will include Drakon, a new Rollercoaster which will be the first at the Park to invert and Vild Swing, a Swing Ride, which will be a UK first. In addition, to serve this new area, a highly themed restaurant, The Feasting Hall, is being developed which will seat approximately 500 guests both indoors and on a large patio. This will add to the rest of the Park’s award-winning Food & Beverage offering providing both greater capacity and choice of food offering.

Whilst the 2024/25 season presented clear challenges, the Directors believe the financial results reflect a creditable performance and position the business well for the forthcoming year.

The Directors are continually reviewing and identifying key business risks and uncertainties and have processes in place to ensure these risks are managed appropriately. The key risks are identified as follows:

Weather:
As was the case last season, the weather, as with any predominantly outdoor attraction, remains the variable that can have the greatest impact on the performance of the business which the Park has no control over.

General Economic Climate:
Economic uncertainty remains a major concern. Cost-of-living pressures, inflation, rising staffing costs, and global instability all present risks affecting performance, supply chains, and consumer confidence.

Competition:
The Park operates in a highly competitive market. Our mission remains to deliver a unique, high-quality, and value-for-money family experience while investing in unique differentiators.

Health and Safety:
The safety of both our guests and staff remains at the forefront of the daily operation of the Park. We continue to ensure that all staff are fully trained in all aspects of their work and carry out regular management audits. We have rigorous safety systems in place for all rides and attractions with an ongoing cycle of ride maintenance and checks on a daily/weekly/monthly and annual basis. The Park’s Health and Safety Management systems are continually monitored and reviewed internally and by independent external support.

Given the relatively straightforward nature and structure of the business, the directors are of the opinion that analysis using KPI’s is not necessary for an understanding of the development, performance or position of the business.

The directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:

- the likely consequences of any decisions in the long term;

- the interests of the group's employees;

- the need to foster the group's business relationship with suppliers, customers, and the environment;

- the impact of the group's operations on the community and the environment;

- the desirability of the group maintain reputation for high standards of business conduct; and

- the need to act fairly as between members of the group.

The directors of the group have sought to balance the needs of its members with the s.172 matters throughout the year, for example in the policies and practices which run through the group, ensuring that the group's reputation for high standards of conduct are maintained and in our engagement with our employees.

Employee Involvement:
We recognise that our team’s commitment and the continual investment in the development of their skills is paramount to our ongoing success. The business therefore continually invests in both training and development to ensure the teams are able to gain continual improvement and keep ahead of trends and best practice in the many diverse areas the Park operates in. As the business continues to update its equipment and procedures it is critical that all staff receive the pre-requisite training to ensure these are operated correctly to gain maximum advantage both to the efficiency of the business but for the benefit of the individual employee.

The business runs a Staff Forum which is chaired by the Head of Human Resources and each department is represented at the meeting. Due to the structure of the business, it is straightforward for the Directors and Senior Management teams to communicate with all members of staff to keep them updated on any particular matter and various online communication methods are in use within the group to disseminate information quickly and effectively.

Sustainability:
This is becoming ever more important and the Park is actively working on and developing its “Paultons Promise” which covers the Environment we work and live in, our Local Community and the Wellbeing of both our guests and staff.

Engagement with Suppliers:

The business prides itself on these relationships and recognises the importance of providing prompt settlement and being straightforward to deal with.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 November 2025.

The principal activity of the group continued to be that of operating a Family Theme Park. The principal activity of the company itself continued to be that of a holding company.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

The group finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programmes, through external borrowings. The management's objectives are to maximise returns on surplus funds, minimise the group's exposure to fluctuating interest rates when seeking new borrowings and match the repayment schedule of any external borrowings or overdrafts with the expected cash flows from the group's trading activities.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

During the period, the policy of providing employees with information about the group has continued through regular meetings and consultation held between management and employees. This facilitates a free flow of information and ideas on matters of concern to the employees and allows the views and concerns of the employees to be taken into account when decisions are being made which are likely to affect their interests. Additionally, this encourages the involvement of employees in the group's performance and achieves a common awareness on the part of all employees of the financial and economic factors affecting the performance of the group.

The business recognises the importance of key relationships it has with its wide and varied customer and supply base. It is important that our guests feel secure and safe with any visit to the Park. The supply base is also of critical importance to the success of the business and the directors recognise the need for mutual support.

Outside the supply of goods and materials, the Park works with a large number of ancillary companies who support a wide range of the Park's activities which are again critical to the success and resilience of the Park's infrastructure. These range from specialists in IT, engineering, website design, refrigeration, kitchen equipment, CCTV, grounds works etc. many of whom have worked with the Park for a considerable period of time and very much complement the Park's own staff.

The directors are very aware of the above and that the ability to provide first class, safe, and value for money visits for guests and maintain a flexible, reactive and reliable supply base is critical to the long term sustained success of the business.

Fiander ETL were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Environmental Strategy

Paultons Park continues its appreciation and understanding of its ongoing responsibility to the local and global environment. The Park remains committed to striving for a continuous improvement in managing all environmental issues. This includes the responsible management and monitoring of energy use with the objective of reducing the level of consumption.

Core Strategies the Park adopts to minimise its energy use and reduce its impact on the environment are: -

• Continual review of possible energy saving measures that may be feasible.

• Continual monitoring of energy consumption data.

• Regular reporting of consumption data to Board of Directors.

• Ongoing investigations of technology and equipment available to further reduce energy usage.

• Continual programme to replace lighting units around the estate to energy efficient LED alternatives.

• Inception utilisation of refrigeration units to increase efficiencies during shoulder and closed periods.

• Ongoing strategy to increase employee awareness and provide training with respect to energy saving processes and techniques.

Energy Usage & Energy efficiency improvements:

Phase 2 of the Park’s large-scale Solar PV project went live as planned in early March 2025. The phase includes installations across 11 additional roofs, together with large covered canopy structures incorporating solar panels in two of the main car parks, delivering a combined system capacity of 816 kWp. In addition, a Battery Energy Storage System (BESS) was installed at one of the substations, enabling energy generated during the day to be stored for night-time use.

As a result, for the year ending 30 November 2025, the Park generated 25.8% of its total electricity demand, compared with 6.9% in the prior year.

Phase 3 of the Solar PV project has been approved for installation in November 2026. This phase will add a further 349 kWp of solar capacity, together with a second BESS unit. Once operational and annualised, and assuming similar demand levels, the Park is expected to generate over 40% of its total electricity requirements.

The Park remains committed to the Energy Savings Opportunity Scheme (ESOS), which continues to provide an independent, whole-site audit of energy consumption.

Analysis of energy use shows that electricity and LPG account for just under 97% of the Park’s total energy consumption. The table below details electricity usage for the full trading year, based on the 2024/25 financial year.

The only other energy consumed by the business is transport fuel. As the Park operates predominantly from a single site, fuel use is minimal and has been analysed and included within the Environmental Performance figures below.

Energy Usage & Energy efficiency improvements (continued)

Environmental Performance, as of 30 November 2025, the energy usage and carbon emissions for the Park were as follows:

Summary:

The Board of Directors recognises the importance of protecting the environment and is committed to minimising the business’s environmental impact in the short, medium and long term. A strategy of continual improvement is in place to reduce energy consumption across all sources, while ensuring the ongoing operational needs of the business are met.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

The grouptrue has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of a review of the business and future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the group is aware of that information.

We have audited the financial statements of Heronswood Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 group's and the parent company's affairs as at 30 November 2025 and of the group's profit 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 directors' 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 group's and parent 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine is 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 directors are responsible for assessing the parent 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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 an auditor's report 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

• we identified the laws and regulations applicable to the group through discussions with management, and from our commercial knowledge and experience.

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships.

• tested journal entries to identify unusual transactions.

• Tested a sample of BACS payments to identify payments being made to unexpected accounts.

• Performed transactional testing on payroll costs in respect of those employees with responsibility or authority in connection with the payroll function.

• assessed whether judgements and assumptions made in determining the accounting estimates.

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation.

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,791,265 (2024 - £8,644,008 profit).

Heronswood Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Paultons Park, Ower, Romsey, Hampshire, United Kingdom, SO51 6AL.

The group consists of Heronswood Holdings Limited and its subsidiary Paultons Park Limited.

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.

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 properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The consolidated group financial statements consist of the financial statements of the parent company Heronswood Holdings Limited together with its subsidiary.

All financial statements are made up to 30 November 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The group previously operated and reported on a 52 or 53 week financial year ending on the closest Sunday to 30 November. In the prior year the directors made the decision that the current and subsequent reporting periods will end on 30 November. Accordingly the current information represents the year from 1 December 2024 to 30 November 2025. The comparative information represents the period from 4 December 2023 to 30 November 2024.

The turnover shown in the statement of comprehensive income represents amounts receivable from admissions, retail, and catering sales during the period, excluding Value Added Tax. Revenue from sales of annual season tickets is deferred and recognised over the period that the tickets relate to, in proportion to the number of days the Park is open during the year. Revenue for admissions is recognised at date of entry, any admission tickets brought in advance are deferred into the period to which they relate. Retail and catering revenue is recognised when the goods or services are supplied.

Interest income

Interest income is accrued on a time apportioned basis by reference to the principal outstanding at the effective rate of interest.

Rental income

Rental income on assets leased under operational leases is recognised on a straight line basis over the lease term and is presented within other operating income.

Dividend income

Dividend income from investments in subsidiaries is recognised when the company's right to receive payment is established.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land is not depreciated.

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 recognised in the profit and loss account.

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.

Subsidiaries - In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Heronswood Holdings Limited has elected to adopt the cost model.

Associates - Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in associates entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are valued at the lower of cost, being purchase price, and net realisable value, after making allowance for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 current liabilities.

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

Financial assets and liabilities are offset and 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, 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.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its 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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the group’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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee or to the lessee where the company is the lessor. Management have had to make judgements with regard to the level of rent to charge on the intercompany lease. They have sought advice from a local commercial property consultant to arrive at the market rate.

Investment properties included in within the financial statements are carried at fair value. The directors arrange valuations of the investment properties by professional valuers in order to attain a representative fair value at the period end. The directors consider this to be an appropriate basis of valuation given the skills and expertise of the professional valuers. In the current period, no valuation was carried out as the directors determined that there had not been a significant change in the value of the properties. This is inherently judgemental.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The directors have reviewed the tangible assets and have concluded that asset lives and residual values are appropriate.

All income is derived from UK operations.

Other operating income relates mainly to commission received and other miscellaneous revenue streams.

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

As total directors' remuneration was less than £200,000 in the current and prior year, no disclosure is provided.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

The directors have decided not to conduct an external valuation as at 30 November 2025, as they have determined that there has been no significant change in the value of the properties since purchase dates.

Details of the company's subsidiaries at 30 November 2025 are as follows:

Details of associates at 30 November 2025 are as follows:

On 31 March 2024, Encompass Surveys Limited acquired 100% of Siteline Limited. The financial statements reflect an adjustment for the share of the profit or loss for the period, which has been disclosed separately in the statement of comprehensive income. This adjustment incorporates the group position of Encompass Surveys Limited and its subsidiary, Siteline Limited.

On 31 March 2025, Siteline Limited ceased trade, where the trade and assets were transferred over to Encompass Surveys Limited. Encompass Surveys Limited is now known as Encompass Geospatial Limited from 04 March 2025.

During the year an impairment gain on finished goods of £83,905 (2024: £14,025) was recognised within cost of sales. No earlier stock write downs have been reversed during the current period.

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

The deferred tax liability set out above is expected to reverse within the foreseeable future and relates to accelerated capital allowances that are expected to mature within the same period.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the period end no amounts were outstanding (2024: £nil).

All classes of shares hold the same rights.

Each share has full rights in the company with respect to voting, dividends and distributions.

Revaluation reserve

Group

The cumulative revaluation gains and losses in respect of land and buildings, except revaluation gains and losses recognised in profit or loss. This reserve is not distributable.

Profit and loss reserves

Group

Cumulative profit and loss net of distributions to owners.

Company

Cumulative profit and loss net of distributions to owners.

Merger reserve

Group

Where the conditions of a group reconstruction meet the criteria of paragraphs 19.29 - 19.32 of FRS102, the consolidated financial statements are prepared using merger accounting. The merger reserve represents the difference between the nominal value of the new shares issued by the parent company for the acquisition of shares of the subsidiary and the subsidiary's own share capital. This is an undistributable reserve.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Amounts contracted for but not provided in the financial statements:

During the year, rent and buildings insurance amounting to £35,760 (2024: £35,686) was paid to Paultons Properties Limited. During the year the group made sales to Paultons Properties Limited of £9,364 (2024: £6,274) in relation to maintenance works. At the year end amounts of £8,600,000 (2024: £7,500,000) were owed from Paultons Properties Limited to Heronswood Holdings Limited, this loan is interest free and repayable on demand. Paultons Properties Limited is a limited company in which Mr R W Mancey, Mrs S J Mancey, Mr J W Mancey and Mr L J Mancey, are also directors of the company.

During the year expenses totalling £10,361 (2024: £2,560) were paid to Go New Forest CIC. Go New Forest CIC is a not-for-profit Community Interest Company of which Mr S J Lorton, a director of the company, was a director during the year. Mr S J Lorton resigned as a director from Go New Forest CIC on 30th September 2025.

During the year the group paid for survey services totalling £39,004 (2024: £27,464), to Encompass Geospatial Limited. This is a company which J W Mancey and S J Lorton are directors of and Heronswood Holdings Limited is a 33.3% shareholder. At the year end amounts of £588,500 (2024: £625,000) were owed by Encompass Geospatial Limited, interest receivable of £32,000 (2024: £7,743) has been recognised in respect of this loan.

There were no amounts outstanding at the year end for any of the transactions above, with exception of the loan balances owed at the period end.

All transactions were carried out in the ordinary course of business.

Dividends totalling £1,000,000 (2024: £1,100,000) were paid in the period in respect of shares held by the company's directors.

Heronswood Holdings Limited is owned 25% by Mr R W Mancey, 25% by Mrs S J Mancey, 25% by Mr J W Mancey and 25% by Mr L J Mancey. There is no one single identifiable controlling party.