The directors present the strategic report for the year ended 31 December 2025.
Introduction
The consolidated accounts of Red Oak Taverns Group Topco Limited for the year ended 31 December 2025 reflect a further year of strong progress for the Group, 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 Group 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 Group'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 Group reached a record level of £26.8 million, an increase of £2.2 million, or 9%, compared to 2024. This growth was underpinned by continued investment in the estate and strong trading across both the Group's managed and tenanted sites, supported by growth in wet income alongside broadly stable rental income. Operating profit increased by 13% to £8.3 million.
The operating margin (adjusted for losses on disposal of assets) reduced slightly, from approximately 33% to 31%. 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 Group 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. Sector-wide cost inflation, described below, was a secondary factor.
In contrast to 2024, when the Group spent £13.7 million acquiring new sites and £1.5 million on capital expenditure, 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, alongside ongoing repairs and maintenance and 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 £8.1 million on the Group's leased and tenanted investment property portfolio, which was revalued at £125.0 million at the year end (2024: £117.8 million). This uplift, together with lower finance costs and stronger operating cash generation, drove a profit before taxation of £9.7 million, compared with £0.2 million in 2024. After a tax charge of £2.1 million, the profit for the financial year was £7.6 million (2024: £0.3 million). The Group'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 £8.0 million.
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. Cash generated from operations rose by 24% to £9.7 million (2024: £7.8 million).
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 Group 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 Group and, in particular, its tenant partners. The Group 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 Group'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 Group 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 Group'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 Group through security costs and empty business rates, and Group 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 Group 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 Group.
As at the end of 2025, the Group's net assets stood at £49.6 million, an increase of £8.0 million (19%) compared with December 2024, driven principally by the revaluation of the investment property portfolio and the retained profit for the year.
The Group's financial position strengthened materially during the year. Net current liabilities reduced from £5.0 million at the end of 2024 to £0.4 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) and net debt improved from £75.0 million to £70.3 million. Cash reserves include £1.8 million held in a restricted account with the lender, available only for acquisitions or the repayment of debt. No dividend was paid during the year (2024: £nil), 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 results for the year are set out on page 9.
No ordinary dividends were paid (2024 - £nil). 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.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 parent 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 United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent 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 parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The group will continue to invest in its portfolio and look to make strategic acquisitions that will enable the group to grow over the coming years.
There have been no significant events affecting the group since the year end.
This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the medium-sized exemptions.
We have audited the financial statements of Red Oak Taverns Group Topco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the consolidated statement of comprehensive income, the consolidated statement of financial position, the company statement of financial position, the consolidated statement of changes in equity, the company statement of changes in equity, the consolidated 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).
Basis for 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
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.
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 parent 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 parent 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 parent company and the parent 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 income statement and related notes. The company’s loss for the year was £79,963 (2024 - £84,535 profit).
Red Oak Taverns Group Topco Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Gamma 5a 1-5 West Road, Ipswich, Suffolk, England, IP3 9FF.
The group consists of Red Oak Taverns Group Topco Limited and all of its subsidiaries.
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 in these accounting policies. The principal accounting policies adopted are set out below.
The preparation of financial statements in accordance with FRS 102 requires management to make certain critical accounting estimates and to exercise judgement in applying the group’s accounting policies (see Note 2).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The consolidated group financial statements consist of the financial statements of the parent company Red Oak Taverns Group Topco Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 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.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have 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.
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 income statement.
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.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group has elected to apply the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all of its financial instruments.
The group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the group's statement of financial position 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 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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 trade and other payables, bank loans and loans from fellow group companies, 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 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. 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 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 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 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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.
Change in accounting policy - investment property valuation
In prior periods, the group'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.
In the application of the group'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, 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 group 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 directors. 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.
Impairment of goodwill
Goodwill is tested for impairment annually, or more frequently where events or changes in circumstances indicate that the carrying value may be impaired.
All revenue arose within the United Kingdom.
The group 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 group's interests.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Directors' remuneration for the company totalled £79,963 (2024 - £110,465).
The actual charge/(credit) 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:
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
Freehold property consists of land and buildings held at the revalued amount less accumulated depreciation.
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 group and company, and movements thereon:
Amounts due to and from related parties are unsecured, repayable on demand and interest free.
During the year, a subsidiary 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.
Cash at bank and in hand includes £1.8 million held in a restricted account with the lender, which is not freely available and can only be utilised for the purposes of acquisitions or repayment of debt.