The directors present the strategic report for the year ended 31 December 2025.

Introduction
The accounts of Red Oak Taverns Limited for the year ended 31 December 2025 reflect a further year of strong progress for the Company, achieved against a backdrop of persistent, if easing, inflation and a challenging cost environment for the hospitality sector. Despite meaningful increases in employment and property costs during the year, the business delivered record turnover and a substantial improvement in profitability, underpinned by disciplined financial management, operational resilience and a continued focus on delivering value.

We have maintained our commitment to investing in our existing portfolio, supporting our tenant partners and strengthening the Company's balance sheet. These efforts reinforce our long-term strategy to build a robust and sustainable pub estate while adapting to changing market conditions.

Sales of the Company reached a record level of £25.5 million, an increase of £2.0 million, or 8.5%, compared to 2024. Growth was led by a 16% increase in wet income to £14.9 million, supported by higher rental income of £7.2 million and a 22% rise in machine income to £0.7 million. Retail income of £2.3 million was lower than the prior year, reflecting the ongoing repositioning of certain sites. Operating profit increased by 13% to £8.0 million.

The operating margin (adjusted for losses on disposal of assets) reduced slightly, from approximately 34% to 32%. This movement principally reflects a deliberate change in the tenure mix of the estate, as a number of sites were converted from free-of-tie agreements to tied agreements. Under a free-of-tie agreement the Company receives rental income only, with no associated cost of sales, whereas a tied agreement generates beer and other wet income alongside a lower rent but carries the associated cost of drink purchases. The effect is to increase both turnover and gross profit in absolute terms while reducing the reported margin percentage, a pattern evident in the 16% growth in wet income during the year against broadly flat rental income. Sector-wide cost inflation, described below, was a secondary factor.

In contrast to the acquisition-led growth of 2024, 2025 was a year of consolidation. No new sites were acquired during the year, with £1.2 million of capital expenditure directed at the existing estate and £2.8 million spent on repairs and maintenance, alongside the selective disposal of underperforming assets to recycle capital and strengthen the balance sheet. We also continued to strengthen our partnerships with tenant partners to support and enhance operational performance.

A key feature of the year was a fair value gain of £7.2 million on the Company's leased and tenanted investment property portfolio, which was revalued at £117.3 million at the year end (2024: £111.0 million). This uplift, together with lower finance costs, drove a profit before taxation of £8.6 million, compared with a small loss of £45k in 2024. After a tax charge of £1.8 million, the profit for the financial year was £6.7 million (2024: £75k). The Company's managed freehold properties were also revalued during the year, giving rise to a further gain of £0.5 million which, net of related deferred tax, is recognised in other comprehensive income rather than in profit. Total comprehensive income for the year was therefore £7.1 million (2024: £163k).

Finance costs reduced by £0.5 million, or 7%, to £6.6 million, reflecting both a reduction in total borrowings and the benefit of falling interest rates over the course of the year, with the Bank of England base rate reduced from 4.75% at the start of 2025 to 3.75% by the year end.

Cost control remained a priority throughout the year, with ongoing efforts to improve operational efficiencies and further develop supplier relationships. These initiatives helped mitigate the substantial inflationary pressures affecting the sector and support profitability.

The principal risks and uncertainties facing the Company are set out below and are monitored on an ongoing basis by management, who meet regularly to assess and respond to changes in the external and internal risk environment.

The most significant cost pressure during the year arose from the changes announced in the Autumn 2024 Budget and implemented from April 2025. Employers' National Insurance contributions increased from 13.8% to 15%, with the secondary threshold at which contributions become payable reduced from £9,100 to £5,000, while the National Living Wage rose by 6.7% to £12.21 per hour. In addition, business rates relief for the retail, hospitality and leisure sector was reduced from 75% to 40%. Together, these changes represented a material increase in the underlying cost of employment and occupancy across the sector, affecting the Company and, in particular, its tenant partners. The Company continues to support its tenant partners and invests in its assets to maintain long-term resilience and quality of service.

The primary risk continues to be broader economic uncertainty and its effect on consumer confidence and discretionary spending. While socialising and hospitality remain core aspects of UK culture, changes in consumer behaviour — particularly in response to cost-of-living pressures — may impact trading performance. Inflation, although well below its recent peaks, remained above the Bank of England's 2% target throughout 2025, easing to around 2.6% in the spring before rising to around 3.5% by the year end, and continued to exert pressure on both the Company's cost base and household budgets. These trends are closely monitored through the production of monthly management accounts and regular board oversight.

The ongoing conflicts in Ukraine and the Middle East continue to present geopolitical risk, with potential macroeconomic consequences such as commodity price volatility, supply chain disruption and impacts on energy and inflation levels. While interest rates began to ease during 2025, borrowing costs remain elevated relative to historical norms and continue to affect both business investment and consumer spending power.

Despite these uncertainties, the Company remains well positioned to manage potential economic challenges, underpinned by its strengthened reserves, prudent financial management and a continued focus on cost control and operational efficiency.

Volume data in relation to barrelage is closely monitored, with all sites reviewed on a regular basis and comparison to prior months and prior years discussed. Where required, any large variances are investigated and rectified through discussion with the tenant partner.

Capital expenditure remains an important part of the Company's outlook and strategy, with the aim of supporting tenant partners and investing in the portfolio. This in turn leads to higher income, stronger covenant and higher quality tenant partners. Capital expenditure is reported monthly to the Board, with an analysis of historic spend and returns and future pipelines discussed.

House EBITDA — we closely monitor our House EBITDA performance. This is reviewed in monthly meetings with the operational and senior management team, and we regularly compare performance to previous years and to Budget to ensure the required growth is being achieved from each site and the estate as a whole.

Other key performance indicators

Closed sites are regularly reviewed, with the financial impact of each site considered alongside the length of time it has been closed and the option to dispose of the site. Closed sites represent both a loss of income and an additional cost to the Company through security costs and empty business rates, and Company policy is therefore to keep these to an absolute minimum.

Agreement types with tenant partners are also reviewed on a regular basis. The aim of the Company is to reduce the number of short-term 'tenancies at will' in place at any one time, with more substantive lease and tenancy agreements considered to be a better long-term income stream for the Company.

As at the end of 2025, the Company's net assets stood at £44.5 million, an increase of £7.1 million (19%) compared with December 2024, driven principally by the revaluation of the investment property portfolio and the retained profit for the year.

The Company's financial position strengthened materially during the year. Net current liabilities of £3.1 million at the end of 2024 moved to a net current asset position of £1.1 million at the end of 2025, supported by an increase in cash reserves to £3.9 million (2024: £1.8 million) and a reduction in the element of bank borrowings falling due within one year. Total bank borrowings reduced to £74.2 million (2024: £76.8 million). No dividend was paid during the year (2024: £200,000), reflecting the directors' focus on strengthening the balance sheet.

Finally, I have the pleasurable task yet again of thanking all the executives and employees of the Red Oak Taverns Group for their hard work and achievements during the year, and I am delighted to be able to express my appreciation for their efforts.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of a property investment company and a pub operator.

The results for the year are set out on page 9.

No ordinary dividends were paid in the year (2024 - £200,000). The directors do not recommend payment of a final dividend.

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

The auditor, BKL Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company and of the profit or loss of the company 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; and

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

The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

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 company’s auditor 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 company’s auditor is aware of that information.

The company will continue to invest in its portfolio and look to make strategic acquisitions that will enable the company to grow over the coming years.

There have been no significant events affecting the Company since the year end.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Red Oak Taverns Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 company's affairs as at 31 December 2025 and of its 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 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 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 company and its 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, 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 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 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 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.

Capability of the audit in detecting irregularities, including fraud:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, health and safety regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated 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 posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:

• Discussions with the directors, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

• Identifying and testing manual journal entries, in particular any journal entries posted with unclear rationale.

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

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

The income statement has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Red Oak Taverns Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gamma 5a 1-5 West Road, Ipswich, Suffolk, England, IP3 9FF.

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, unless otherwise stated within these accounting policies. The principal accounting policies adopted are set out below.

This 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:

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

The financial statements of the company are consolidated in the financial statements of Red Oak Taverns Group Topco Limited. These consolidated financial statements are available from its registered office, Gamma 5a 1-5 West Road, Ipswich, Suffolk, England, IP3 9FF.

Accordingly, the company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

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

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

Revenue consists of rental income, income generated from machines within the pubs and income generated from the pub operations including beverage sales.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

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 credited or charged to the statement of income.

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

Fair values are determined from market based evidence normally undertaken by the directors.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

Investment properties are revalued annually by the directors and carried at fair value. The aggregate surplus or deficit arising from such revaluation is recognised in the statement of comprehensive income and thereafter transferred to the investment property revaluation reserve unless a deficit (or its reversal) on an individual property is expected to be permanent, in which case it is charged (or credited) to the statement of comprehensive income. 

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately 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 company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables 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 company 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 company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and other loans, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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 income statement 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 company’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 income statement, 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 when the company has 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.

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

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 non-current assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Change in accounting policy - investment property valuation

In prior periods, the Company’s accounting policy stated that investment properties were valued annually by external valuers. The directors have reviewed this policy and clarified that investment properties are, and have always been, valued by the directors at fair value at each reporting date, with external market data and independent valuations used as an input to support the directors’ assessment. This clarification does not represent a change in the measurement basis applied but rather a clarification of the existing policy. Accordingly, there is no impact on the amounts previously reported in the financial statements and no restatement has been required.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Impairment of trade debtors

An impairment loss is recognised when there is objective evidence that a financial assets is impaired. Management specifically reviews its trade debtor assets and analyses historical bad debts, customer creditworthiness and current economic trends when making a judgement to evaluate the adequacy of the allowance for impairment losses. Where there is objective evidence of impairment, the carrying amount is adjusted accordingly.

Valuation of investment properties

Investment properties are valued annually at fair value. Fair value is ascertained through review of a number of factors and information flows, including market knowledge, recent market movements, recent sales of similar properties, recent third party valuations, historical experience and rent levels and flows of cash for the respective investment property. There is an inevitable degree of judgement involved and value can only ultimately reliably be tested in the market itself. The valuations the Company places on its property portfolio requires estimates to be made, including, but not limited to, market yields, expected rental values, and void periods. These estimates are based on assumptions made by the valuers. The approach to the valuations and the amounts effected are set in the accounting policy and note on investment properties.

Impairment of property, plant and equipment

Property, plant and equipment is reviewed for impairment if there are any indicators to suggest that the carrying amount may not be recoverable. Recoverable amounts are determined based on value-in-use calculations and fair values. Where fair values have been used these are derived from known sales proceeds or an external valuation, if available.

All revenue arose within the United Kingdom.

The company generates revenue from rental income, income from the management of its own sites, wet income and machine income. A segmental analysis of turnover, operating profit and net assets has not been disclosed, as in the opinion of the directors, such disclosure would be seriously prejudicial to the company's interests.

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

Their aggregate remuneration comprised:

All directors are paid a salary from Red Oak Taverns Group Holdings Limited and Red Oak Group Taverns Topco Limited.

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

In addition to the amount charged/(credited) to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

The fair value of the investment property has been arrived at on the basis of a valuation carried out as at 31 December 2025 by the Directors who are considered to have sufficient industry experience.

Details of the company's subsidiaries at 31 December 2025 are as follows:

The bank loan is secured by way of fixed and floating charges over the land and buildings and the investment properties held in all Red Oak Group companies. Interest is charged at the Bank of England base rate plus 4.27% and is repayable on 30 November 2028.

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

The deferred tax liability arises in respect of fair value revaluation gains on investment property and land and buildings. The deferred tax liability is expected to reverse on the disposal of the investment property.

At 31 December 2025, the company had no capital commitments (2024: £nil).

The company has taken advantage of the exemption available under Section 33.1A of FRS 102 and has therefore not disclosed transactions entered into between wholly owned subsidiaries of the group.

Transactions with group undertakings that are not wholly owned by the parent, including the ultimate parent undertaking, are disclosed below.

During the year, the company incurred consultancy fees of £483,584 (2024: £467,356) from Red Oak Capital Partners LLP (ROCP), an entity in which M Grunnell is a member. There is a fee owed by the company to ROCP totaling £270,000 (2024: £310,000) owing at year end relating to the financing of the group.

The company has also taken advantage of the exemptions available to qualifying entities under Section 33 of FRS 102 and has therefore not disclosed key management personnel compensation.

The ultimate parent company is Red Oak Taverns Group Topco Limited.