These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Hurstwood Properties (R) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Peter Street, Manchester, England, M2 5GP.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 cover the company as an individual entity.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At 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.true

Turnover is recognised at the fair value of the consideration received or receivable in respect of property rental income (comprising rents, service charges and insurance rents) accounted for on an accruals basis, all net of VAT.

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at it's fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the income statement. Deferred tax is provided on these gains at the rate expected to apply when the property is sold. Any deferred tax assets created can only be offset against future gains. As these future gains are not certain the deferred tax assets will not be recognised.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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 balance sheet 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 debtors, amounts due from fellow group companies 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 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 creditors, 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 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.

Equity instruments issued by the company 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 company.

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 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 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 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.

In the application of the company’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.

Crucial judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of investment property

Investment property is measured using the fair value model and as such requires significant judgement from the directors. The valuation has been based on the directors knowledge of the portfolio of investment properties taking account of geographical locations, estimated rental values and external valuations undertaken in the period.

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

Investment property comprises of commercial property. The fair value of the investment property has been determined by the directors of the company, on an open market basis for an existing use basis. The valuation has been based on the directors' knowledge of the portfolio of investment properties taking into account of the geographical locations and their estimated rental value.

The company's investment properties were valued in May 2026 by an external professional valuer and the directors have taken this into account in coming to their assessment.

Included within trade debtors is £687,665 (2024:£4,523,340) due from group companies.

Bank loans of £500,000 (2024:£500,000) disclosed within creditors due within one year are secured by a fixed and floating charge covering all the property held by the company.

Bank loans of £22,625,000 (2024: £24,450,000) disclosed within creditors due after more than one year are secured by a fixed and floating charge covering all the property held by the company.

The provision relates to the directors' best estimate of the company's obligation regarding unbilled rates relating to previous accounting periods. The timing of any payments in this regard is unknown.

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

Included within profit and loss reserves are non-distributable reserves of £11,171,895 (2024: £11,152,212).

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

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.

After the year end the company purchased investment property at a cost of £1m.

The company is a 100% owned subsidiary of Hurstwood Holdings Limited, which is the ultimate parent company. The ultimate parent company prepares consolidated financial statements as at 31 December 2025 and these financial statements may be obtained from 40 Peter Street, Manchester, M2 5GP.

During the year, the company reviewed the classification of its operating expenses. To provide a more reliable and relevant presentation of its trading performance, property costs have been reclassified from administrative expenses to cost of sales.This change ensures that costs directly associated with the investment properties are accurately reflected in the company's gross profit margin. Consequently, prior year comparative figures have been restated to align with the current year presentation. Administrative expenses for the year ended 31 December 2024 decreased by £2,137,414, with a corresponding increase in cost of sales. There is no impact on the reported operating profit, net assets, or equity for either period.