For the financial year ending 31 December 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

At 31 December 2025 the investment property had a carrying value of £9,490,000 (2024: £8,880,000). The tax base of the property is higher than its carrying value, giving rise to a deductible temporary difference of £54,417 (2024: £664,416).

This would give rise to a deferred tax asset of approximately £13,604 (2024: £166,104) at the enacted UK corporation tax rate of 25%.

No deferred tax asset has been recognised in respect of this temporary difference as it is not considered probable that sufficient taxable profits will be available in this company against which the temporary difference could be utilised. The directors will continue to review this position annually.

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Interest-bearing borrowings are initially recorded at the proceeds received, net of any directly attributable transaction costs.

In accordance with FRS 102, borrowings are ordinarily measured subsequently at amortised cost using the effective interest method. However, for the Company’s interest-only borrowings, the directors consider that applying the effective interest method would not provide relevant information about the Company’s financial performance, as it would result in recognising non-cash finance charges which do not reflect the actual interest profile of the loan.

As such, the Company has accounted for these loans at their nominal value, with interest expenses recognised on a cash basis as incurred. The directors consider this treatment to be appropriate on grounds of materiality and that it gives a true and fair view of the Company’s financial position and performance.

Loan arrangement and legal fees are recognised in the profit and loss account as incurred. For group reporting purposes, adjustments are made to align with the Group’s accounting policy, which applies the effective interest method and amortises loan fees over the life of the facility.

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

An independent firm of professional valuers has been instructed to carry out a valuation of the investment property at Forthstone, South Gyle Business Park, Edinburgh EH12 9EB at the end of the financial year, and a valuation report showed the fair value of the property was £9,490,000.