HRS Development Group Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2025

	Note	2025 £	2024 £
Cash flows from operating activities
Profit for the year		1,220,127	1,765,046
Adjustments to cash flows from non-cash items
Depreciation and amortisation	5	150,187	78,757
Finance income	6	(82,616)	(86,296)
Finance costs	7	1,471	1,152
Income tax expense	9	429,016	597,867
		1,718,185	2,356,526
Working capital adjustments
(Increase)/decrease in stocks	13	(2,889,569)	194,553
Decrease/(increase) in trade debtors	14	1,406,837	(1,455,017)
(Decrease)/increase in trade creditors	15	(2,280,769)	10,346,608
Cash generated from operations		(2,045,316)	11,442,670
Income taxes (paid)/received	9	(849,124)	109,079
Net cash flow from operating activities		(2,894,440)	11,551,749
Cash flows from investing activities
Interest received		82,616	86,296
Acquisitions of tangible assets		(77,161)	(73,299)
Acquisition of intangible assets	10	-	(1,092,254)
Net cash flows from investing activities		5,455	(1,079,257)
Cash flows from financing activities
Interest paid	7	(1,471)	(1,152)
Proceeds from bank borrowing draw downs		(10,887)	(2,523,502)
Repayment of other borrowing		(9,100)	9,100
Net cash flows from financing activities		(21,458)	(2,515,554)
Net (decrease)/increase in cash and cash equivalents		(2,910,443)	7,956,938
Cash and cash equivalents at 1 January		9,335,636	1,378,698
Cash and cash equivalents at 31 December		6,425,193	9,335,636

HRS Development Group Limited

Statement of Cash Flows for the Year Ended 31 December 2025

	Note	2025 £	2024 £
Cash flows from operating activities
Profit/(loss) for the year		-	-
Working capital adjustments
Increase in trade creditors	15	-	3,000,000
Net cash flow from operating activities		-	3,000,000
Cash flows from investing activities
Acquisition of subsidiaries	12	-	(3,000,000)
Net increase/(decrease) in cash and cash equivalents		-	-
Cash and cash equivalents at 1 January		-	-
Cash and cash equivalents at 31 December		-	-

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Time Technology Park
Blackburn Road
Simonstone
BB12 7TY

These financial statements were authorised for issue by the Board on 23 September 2026.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2025.

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Revenue recognition

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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Asset class	Depreciation method and rate
Furniture, fittings and equipment	25 - 33% per annum reducing balance basis
Motor vehicles	25% per annum straight line basis

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10% per annum straight line basis

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

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

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 group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stock comprises properties held for resale in the ordinary course of business. Stock is initially recognised at cost, including costs directly attributable to the acquisition of the properties, and is subsequently measured at the lower of cost and net realisable value.

Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs of completion and costs necessary to make the sale. Any write-down of stock to net realisable value is recognised as an expense in the period to which the write-down arises.

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Trade creditors

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 group 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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Comparative information

Due to differences in the financial year ends of certain subsidiaries within the Group, the FY24 comparative Consolidated Profit and Loss account information is not directly comparable with the current year information in all respects.

3	Judgements and key sources of estimation uncertainty

Judgements

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 periods.

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Amortisation and depreciation

Amortisation and depreciation respresents the allocation of the cost of fixed assets over their useful economic lives. Judgements are made in determining these useful lives, which are reviewed regularly and adjusted where necessary to reflect current conditions.

4

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

	2025 £	2024 £
Property services	37,181,220	27,554,473

5	Operating profit

Arrived at after charging/(crediting)

	2025 £	2024 £
Depreciation expense	40,962	24,144
Amortisation expense	109,225	54,613

6	Other interest receivable and similar income

	2025 £	2024 £
Interest income on bank deposits	82,616	86,135
Other finance income	-	161
	82,616	86,296

7	Interest payable and similar expenses

	2025 £	2024 £
Interest on bank overdrafts and borrowings	1,471	1,152
Foreign exchange losses	(8,495)	(39,515)
	(7,024)	(38,363)

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

8	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2025 £	2024 £
Wages and salaries	2,391,953	4,195,469
Social security costs	147,381	59,019
Pension costs, defined contribution scheme	44,433	29,203
Other employee expense	18,680	3,897
	2,602,447	4,287,588

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

	2025 No.	2024 No.
Administration and support	70	60
	70	60

9

Taxation

Tax charged/(credited) in the consolidated profit and loss account

	2025 £	2024 £
Current taxation
UK corporation tax	430,076	590,659
Deferred taxation
Arising from origination and reversal of timing differences	(1,060)	7,208
Tax expense in the income statement	429,016	597,867

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 25%).

The differences are reconciled below:

	2025 £	2024 £
Profit before tax	1,649,143	2,362,913
Corporation tax at standard rate	412,286	590,728
Tax increase from effect of capital allowances and depreciation	27,307	13,653
Decrease from effect of different UK tax rates on some earnings	(795)	(2,986)
Tax decrease from other tax effects	(9,782)	(3,528)
Total tax charge	429,016	597,867

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Deferred tax

Group

Deferred tax assets and liabilities

2025	Asset £	Liability £
Difference between accumulated depreciation and capital allowances	-	6,148
	-	6,148

2024	Asset £	Liability £
Difference between accumulated depreciation and capital allowances	-	7,208
	-	7,208

10	Intangible assets

Group

	Goodwill  £	Total £
Cost or valuation
At 1 January 2025	1,092,254	1,092,254
At 31 December 2025	1,092,254	1,092,254
Amortisation
At 1 January 2025	54,613	54,613
Amortisation charge	109,225	109,225
At 31 December 2025	163,838	163,838
Carrying amount
At 31 December 2025	928,416	928,416
At 31 December 2024	1,037,641	1,037,641

HRS Development Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

11	Tangible assets

Group

	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 January 2025	77,400	131,465	208,865
Additions	12,314	64,847	77,161
At 31 December 2025	89,714	196,312	286,026
Depreciation
At 1 January 2025	39,463	47,902	87,365
Charge for the year	17,893	23,069	40,962
At 31 December 2025	57,356	70,971	128,327
Carrying amount
At 31 December 2025	32,358	125,341	157,699
At 31 December 2024	37,938	83,563	121,501

12	Investments

Company

	2025 £	2024 £
Investments in subsidiaries	3,000,201	3,000,201