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

Purplebricks Property Limited (the "company") is an online estate agency, incorporated in May 2023 to acquire the trade, assets and substantially all of the liabilities of Purplebricks Group Plc.

Purplebricks' mission is to disrupt the traditional home selling process by offering a cost-efficient way of selling homes which enables the customer, through a technology platform, to take control over the selling process without incurring the equivalent fees charged by high street agents.

During the period reported, the business offered homeowners the ability to sell their home for free, or for those customers that wanted more support Purplebricks had 'Boost' and 'Full House' packages, as well as other specific add-ons. The company also generated revenue from referrals for conveyancing and other home moving associated services, as well as its letting business.

The directors produce the second year of the financials of Purplebricks Property following the company’s acquisition of the trade, assets and substantially all of the liabilities of Purplebricks Group Plc for £1 with all existing employees transferring during May 2023. The process of transferring the existing operations of Strike Limited, the ultimate parent company within the Strike Group of companies, to the company to create a consolidated service offering to customers under the Purplebricks brand also commenced.

As of 31 March 2025, the company had net current liabilities of £55.8m (2024: £22.8m) and net liabilities of £56.2m (2024: £23.5m), and, in the period ended on that date, the company incurred losses before tax of £32.7m (2024: 23.5m). Turnover for the period grew to £26.8m (2024: £21.2m), reflecting a full year of trading following the integration of the Purplebricks and Strike businesses, although the operating loss also increased to £32.5m (2024: £22.6m) as the business continued to invest in the platform and absorb the costs of transition.

Following the business structure and cost base review initiated in late 2023, the business has continued to refine its operating model and cost base throughout the period.

Post financial year end, in March 2026, an effective change in management was undertaken, with Stu Bartlett, interim CEO, stepping aside and Michael Bruce, founder of Purplebricks, together with Kenny Bruce and CFO Neil Cartwright, re-joining the business. This management team previously founded and scaled Purplebricks from a start-up into one of the UK's most recognised estate agency brands, achieving a public listing on AIM in 2015 and, at its peak, a market valuation in excess of £1 billion. The directors believe this team's direct experience of operating large-scale property acquisition funnels, spanning consumer marketing, systematic lead generation, data-driven conversion management and regional scaling, provides renewed confidence in the business's ability to execute its strategy.

Principal risks and uncertainties

The company operates in a highly competitive environment within the real estate sector, where traditional estate agents present a challenge to its market share and profitability. The directors believe that its distinctive proposition sets it apart from conventional estate agencies.

The acquisition and continued evolvement of the Purplebricks business adds a well-established brand and the considerable brand awareness that comes with it, to Strike's innovative business model to create a powerful synergy. The combination provides a unique opportunity to offer a compelling, customer-centric, value proposition.

The directors acknowledge the susceptibility of customer demand to fluctuations in market conditions and mortgage interest rates. They are aware that revenue streams, particularly those reliant on property completions, could be adversely impacted by downturns in the market. Nonetheless, the persistent need among a significant segment of homeowners and first-time buyers to relocate underscores the enduring demand for real estate services. The directors are confident that the company's complimentary offering, combined with its innovative approach to sales, positions it as the preferred agent in the market.

To reduce potential exposure to liquidity risk, the company has ensured a diversified range of real estate and associated revenue streams. This diversification strategy enhances the company's financial resilience by providing multiple sources of income across multiple revenue streams. The company continues to receive robust backing from its parent company, Strike Limited, and its shareholders, who have reaffirmed their commitment to provide financial support for a period of at least 12 months from the date of approval of these financial statements.

The forecast underpinning this support is built on a bottom-up operational methodology, linking planned marketing investment through a series of measurable conversion stages, enquiry generation, qualification and engagement, consultation, instruction and listing, rather than top-down revenue targets. Management does not assume market share gains or growth rates comparable to those achieved during Purplebricks' early expansion, and considers the resulting assumptions to be reasonable and supportable.

To support its digitally enabled business, the wider group undertakes an ongoing programme of development as part of its strategy to lead change across the business and industry.

The company's KPIs are revenues and operating results. Turnover for the period to March 2025 was £26.8m (2024: £21.2m), generating an operating loss of £32.5m (2024: £22.6m). The increase in turnover reflects a first full period of trading; the increase in operating loss reflects continued investment in the platform and the cost of business integration during the period.

As at 31 March 2025, the company had net current liabilities of £55,772,234 (2024: £22,854,606) and net liabilities of £56,211,206 (2024: £23,467,456) and, in the period ended on that date, incurred losses before tax of £32,743,750 (2024: £23,467,457).

Since the balance sheet date, the Strike Group (group) has continued to make losses and has been reliant on shareholder funding to meet its obligations as they fall due. Additional funding of £32.65m has been received since the year end, and utilised to support the working capital requirements of the business, demonstrating the continuing financial support provided to the Group by its shareholders. As of 31 March 2025, the company owed its parent £48.1m.

These financial statements, however, reflect a period during which the business was undergoing significant integration, investment and transition. Since the balance sheet date, and particularly during 2026, the financial, operational and management position of the business has changed materially.

During 2026, a new management team was established, and a comprehensive review of the group's strategy, operating model and cost base was undertaken. In June 2026, the group completed a significant corporate restructuring under which £104.4m of shareholder debt was converted to equity or waived, and new shareholder facilities totalling £8.5m were established. The parent directors consider that this restructuring has materially strengthened the group's capital structure, reduced its ongoing cash interest burden and provided an improved financial platform from which to execute its strategy.

Group management has also implemented a programme of operational and cost improvements to align the cost base with the group's revised strategy and operating model. These initiatives are delivering reductions in the cost base, and management continues to monitor their impact against its plans. Since the implementation of these changes, the business has demonstrated continued progress against its operational plan, with improvements across key trading metrics and a materially reduced cost base.

The parent directors have prepared detailed forecasts for the group covering the period to October 2027. These include a base case representing management's best estimate of future trading and a downside scenario incorporating slower revenue growth, delayed cost savings and adverse market conditions. The parent and company directors acknowledge that the forecasts are subject to external market trends, the group's operational execution and the availability of future funding. Having considered these factors, the directors believe that the current trajectory of the business and progress against the revised operational plan provide support for the assumptions reflected in those forecasts.

Freston Ventures Investments LLP (Freston) has provided a written letter of support pursuant to which it has committed to provide, for a period of at least twelve months from the date of approval of these financial statements, such financial support to the parent company, as may be required to enable the group to meet its liabilities as they fall due, to the extent that the group's other available sources of liquidity are insufficient. This commitment applies notwithstanding that the group's actual funding requirement may exceed that forecast in the downside scenario and is predicated on the group's Board continuing to execute the agreed strategy and business plan, actively managing performance and costs, and continuing to operate and develop the business with the objective of delivering sustainable growth and financial stability. The parent company has also confirmed that it will continue to support the company for the foreseeable future and will not demand repayment of its loan to the company for a period of at least 12 months from the date of approval of these financial statements.

The Shareholder Lenders have also confirmed that they do not intend to demand repayment of the relevant shareholder loans to the parent, during that period.

In assessing going concern, the directors have considered the group's current trading and forecasts, the progress made in implementing its revised strategy and reducing its cost base, the substantial restructuring of its capital position, the £32.65m of additional shareholder funding received since the balance sheet date and the continuing financial support confirmed by its parent and Freston.

The directors acknowledges that Freston's support is predicated on the company and parent Boards continuing to execute the agreed strategy and business plan, actively managing performance and costs, and continuing to operate and develop the business with the objective of delivering sustainable growth and financial stability. The company and parent Boards have resolved to continue to execute the agreed strategy and business plan and to actively manage the company and group's performance, cash position and cost base in accordance with that plan. In doing so, the company and group Boards consider that the company and group will continue to satisfy the conditions upon which the support under the letter of support has been provided.

Having considered all of the above factors, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.

On behalf of the board

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

The principal activity of the company is that of an online real estate agency providing sales and lettings service.

The results for the year are set out on page 11.

No dividends were paid. 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:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

During the period we conducted 'Colleague Forum', monthly, with representatives from all the departments and divisions within the company, chaired by a nominated colleague as 'Chairperson'. Each of the representatives spent time in their respective areas canvassing feedback and suggestions that were then tabled at the meeting for discussion. These meetings were hosted by our Head of Culture & Engagement and designed to facilitate an open and transparent forum for colleagues to give feedback and any views and suggestions to the Company.

Directors involvement

The CEO conducted regular Town Hall meetings, where the company performance and direction was discussed, with colleagues able to ask questions and further clarification. The CEO also met on a regular basis with new colleagues who joined the business, to share his company vision and mission.

The directors have conscientiously considered and prioritised employee interests throughout the financial period, recognising the pivotal role employees play in the success of the company. This consideration has significantly influenced key decisions undertaken by the company, reflecting a commitment to fostering a positive and inclusive workplace environment, ultimately contributing to the overall growth and sustainability of the business. Salary structures, benefits, and incentives are reviewed to attract and retain our top talent.

The business continues to operate as an online estate agent, providing customers a fairer way to sell their house. Since the year end the company has continued to evolve its product offering to ensure customers save money, benefit from our expert estate agents and can choose a package and payment option to suit them. The business has also continued to review and refine the cost base of the business to ensure we operate in the most efficient way following the integration of the Strike and Purplebricks businesses.

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 has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management.

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;

• state whether applicable UK 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 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.

Qualified opinion

We have audited the financial statements of Purplebricks Property Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its loss 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 qualified opinion

Expenditure and creditor cut-off

During our testing of trade creditors and accruals, we identified that the systems and controls operated by the company were not sufficient to identify all items of expenditure or liability existing at the balance sheet date and were unable to obtain sufficient audit evidence as to the accuracy of cut off at that date. Accordingly, we were unable to satisfy ourselves, at the balance sheet date, as to the completeness and accuracy of expenditure in the statement of comprehensive income and the accuracy and completeness of amounts owed to trade creditors of £6.7m and accruals of £2.2m.

Financing partner creditor

In the prior period financial statements, our audit opinion was qualified in respect of our inability to satisfy ourselves as to the amounts that could be owed to the company by a financing partner for customer remittances and refunds arising from cancellations. As at 31 March 2024, the balance included in debtors was £nil and creditors included a balance of £1.56m. Consequently we were unable to determine whether any adjustment to these amounts at 31 March 2024 was necessary or whether there was any consequential effect on profit and loss for the year ended 31 March 2025, including the write back of £721k credited to profit and loss during the year.

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 qualified 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning expenditure and creditor cut-off and external financing partner balance movement posted to the profit and loss. We have concluded that where the other information refers to related balances such as operating losses, net current liabilities and net liabilities, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning expenditure and creditors cut-off and external financing partner balance movement posted to the profit and loss. Consequently, we were unable to determine whether any adjustments to such balances were necessary. In addition, were any adjustment to these balances to be required, the strategic report would also need to be amended.

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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.

Except for the matter described in the basis of qualified opinion section of our report, in the light of the knowledge and understanding of the company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

Arising solely of the limitation on our work relating to expenditure and creditors cut-off and external financing partner balance movement posted to the profit and loss, described above:

• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

• we were unable to determine whether adequate accounting records had been maintained.

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:

• returns adequate for our audit have not been received from branches not visited by us; or

• the company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made.

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.

As part of our planning process:

• We enquired of management the systems and controls the company has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

• We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, General Data Protection Regulation and money laundering.

• We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

• Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

• Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

• Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

• Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to going concern, tangible fixed assets, release of negative goodwill, provisions and impairment of tangible fixed assets.

• Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

• Testing key revenue lines, in particular cut-off, for evidence of management bias.

• Obtaining third-party confirmation of material bank and intercompany loan balances.

• Documenting and verifying all significant related party balances and transactions.

• Reviewing documentation such as company board minutes for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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 profit and loss account 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.

Purplebricks Property Limited is a private company limited by shares incorporated in England and Wales. The registered office is 146 Freston Road, London, W10 6TR.

The current period figures relate to the year ended 31 March 2025. The comparatives are for the period from incorporation on 9 May 2023 to 31 March 2024, therefore comparatives are not directly comparable.

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. 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 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

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

The financial statements of the company are consolidated in the financial statements of Strike Limited. These consolidated financial statements are available from its registered office, 146 Freston Road, London, W10 6TR.

Going concern

As at 31 March 2025, the company had net current liabilities of £55,772,234 (2024: £22,854,606) and net liabilities of £56,211,206 (2024: £23,467,456) and, in the period ended on that date, incurred losses before tax of £32,743,750 (2024: £23,467,457).

Since the balance sheet date, the Strike Group (group) has continued to make losses and has been reliant on shareholder funding to meet its obligations as they fall due. Additional funding of £32.65m has been received since the year end, and utilised to support the working capital requirements of the business, demonstrating the continuing financial support provided to the group by its shareholders. As of 31 March 2025, the company owed its parent £48.1m.

These financial statements, however, reflect a period during which the business was undergoing significant integration, investment and transition. Since the balance sheet date, and particularly during 2026, the financial, operational and management position of the business has changed materially.

During 2026, a new management team was established, and a comprehensive review of the group's strategy, operating model and cost base was undertaken. In June 2026, the group completed a significant corporate restructuring under which £104.4m of shareholder debt was converted to equity or waived, and new shareholder facilities totalling £8.5m were established. The parent directors consider that this restructuring has materially strengthened the group's capital structure, reduced its ongoing cash interest burden and provided an improved financial platform from which to execute its strategy.

Group management has also implemented a programme of operational and cost improvements to align the cost base with the group's revised strategy and operating model. These initiatives are delivering reductions in the cost base, and management continues to monitor their impact against its plans. Since the implementation of these changes, the business has demonstrated continued progress against its operational plan, with improvements across key trading metrics and a materially reduced cost base.true

The parent directors have prepared detailed forecasts for the group covering the period to October 2027. These include a base case representing management's best estimate of future trading and a downside scenario incorporating slower revenue growth, delayed cost savings and adverse market conditions. The parent and company directors acknowledge that the forecasts are subject to external market trends, the group's operational execution and the availability of future funding. Having considered these factors, the directors believe that the current trajectory of the business and progress against the revised operational plan provide support for the assumptions reflected in those forecasts.

Freston Ventures Investments LLP (Freston) has provided a written letter of support pursuant to which it has committed to provide, for a period of at least twelve months from the date of approval of these financial statements, such financial support to the parent company, as may be required to enable the group to meet its liabilities as they fall due, to the extent that the group's other available sources of liquidity are insufficient. This commitment applies notwithstanding that the group's actual funding requirement may exceed that forecast in the downside scenario and is predicated on the group's Board continuing to execute the agreed strategy and business plan, actively managing performance and costs, and continuing to operate and develop the business with the objective of delivering sustainable growth and financial stability. The parent company has also confirmed that it will continue to support the company for the foreseeable future and will not demand repayment of its loan to the company for a period of at least 12 months from the date of approval of these financial statements.

The Shareholder Lenders have also confirmed that they do not intend to demand repayment of the relevant shareholder loans to the parent, during that period.

In assessing going concern, the directors have considered the group's current trading and forecasts, the progress made in implementing its revised strategy and reducing its cost base, the substantial restructuring of its capital position, the £32.65m of additional shareholder funding received since the balance sheet date and the continuing financial support confirmed by its parent and Freston.

The directors acknowledge that Freston's support is predicated on the company and parent Boards continuing to execute the agreed strategy and business plan, actively managing performance and costs, and continuing to operate and develop the business with the objective of delivering sustainable growth and financial stability. The company and parent Boards have resolved to continue to execute the agreed strategy and business plan and to actively manage the company and group's performance, cash position and cost base in accordance with that plan. In doing so, the company and group Boards consider that the company and group will continue to satisfy the conditions upon which the support under the letter of support has been provided.

Having considered all of the above factors, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The company generates turnover from instruction to list property for sale, referrals for home related services and lettings.

The company is entitled to an instruction fee at the point at which a property is listed for sale. The company offers additional services to customers who list their properties for sale, which are typically charged for at the same time as the instruction.

Where the company introduces sellers and buyers of properties to one of the company's third party partners for conveyancing or other home moving related services, the company earns commission for these referrals, which is due at the completion of the property transaction. The company acts as an agent of the third party partner which contracts directly with the seller or buyer of the property and which invoices that seller directly. Therefore, the company recognises as revenue only the referral fee earned from the third party partner, which is the customer of the company.

The company enters into contracts with landlords to provide rent collection and other tenant management services. Fees charged to landlords in exchange for the ongoing management of their rental properties become due to the company monthly in arrears over the period of the tenancy.

Where the fair value of the company's interest in the assets, liabilities and contingent liabilities acquired through a business combination exceeds the cost of the business combination, negative goodwill arises. The company, after consideration of the assets, liabilities and contingent liabilities acquired and the cost of the combination, recognises negative goodwill on the balance sheet and releases this to profit and loss, up to the fair value of non-monetary assets acquired, over the periods in which the non-monetary assets are recovered and any excess over the fair value of non-monetary assets in the income statement over the period expected to benefit.

The attributable non-monetary assets acquired are tangible and intangible fixed assets, which as at 31 December 2024 were expected to benefit the company over 2 years. The directors re-assessed these assets at the balance sheet date and considered that the remaining balance should be written off in full. The excess over the fair value of non-monetary assets was linked to the recovery of trade debtors in the period of acquisition. Accordingly, this excess was released to the profit or loss in the prior period.

Intangible assets are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangibles acquired through business combinations are recognised separately from goodwill at the acquisition date where the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost 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 profit or loss.

At each reporting period end date, the company 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.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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 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 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 creditors 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.

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. 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Short term benefits, including holiday pay and other similar benefits, are recognised as an expense in the period in which the service is received, unless otherwise required to be recognised as a part of fixed assets.

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.

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

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

The directors consideration of going concern includes a number of areas of judgement and estimate, a summary of which is provided at note 1.3.

A record of fixed assets movements was not adequately maintained in the year and therefore management has estimated the value of disposals which is disclosed at note 13. Computer disposals were estimated based on the average cost of equipment multiplied by the number of items likely to have been disposed of in the year with reference to staff leavers. The disclosure in the financial statements is considered to be management's best estimate.

On the acquisition of the Purplebricks Plc group of companies in June 2023, net negative goodwill of £470k was recognised in the period ended 31 March 2024. At acquisition, the directors expected to release this to the profit and loss account over three years, in line with the periods expected to benefit from the acquisition. During the current year, the directors continued the cost reduction strategy and refined the company's service proposition. As a result, they reassessed the periods expected to benefit and concluded that the negative goodwill should be fully released by the end of the current financial year, one year earlier than originally estimated. This has been treated as a change in accounting estimate and applied prospectively. The release recognised in the year was £470k.

Provisions

Provisions are recognised where the group has a present obligation arising from a past event, it is probable that settlement will be required, and the amount can be reliably estimated. The amounts recognised reflect management's best estimate, when each provision was made, of the expenditure required to settle the obligation. They are based on the information available at that date, including past experience and, where appropriate, external advice. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. The actual outcome may differ from the amounts provided.

During the year the directors carried out a detailed review of the tangible fixed assets held and in day-to-day use. The company increasingly uses environmentally friendly, refurbished equipment that is provided and managed by a third party. The directors concluded that the historical cost of equipment previously capitalised no longer reflected the economic benefit expected to flow to the company. As a result, the remaining carrying value of these assets has been written off in full in the year, giving a charge of £182k as noted in note 13. Future expenditure on equipment of this nature will be recognised in the profit and loss account in the period in which it is incurred.

As at the balance sheet date, the company was owed £235k by a fellow group undertaking. Due to the uncertainties related to future trading of the fellow group undertaking, this loan has been provided for in full.

Exceptional costs in the prior period relate to integration costs following the acquisition of the trade and assets of Purplebricks Group Plc and transfer in of the operations of Strike Limited.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2024 - 2).

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

Their aggregate remuneration comprised:

The actual credit for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

At the year end, total trading losses carried forward amounted to £60,356,357 (2024: £27,707,688) and deferred tax assets not recognised amounted to £15,222,663 (2024: £7,017,106). No deferred tax asset has been recognised as the company cannot be certain that there will be future taxable profits. Any changes in future tax rates will impact the tax benefit of any offset of these losses.

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

Refer to note 2 for details on the impairment expense.

More information on impairment movements in the year is given in note 11.

More information on impairment movements in the year is given in note 11.

Amounts payable to group undertakings are interest free and repayable on demand.

The lettings provision was relating to legal claims and disputes relating to the lettings operations of the business acquired in the previous period. This provisions has been fully utilised and released in the year.

The onerous lease provision is to cover the anticipated costs to exit a lease taken on at acquisition of trade and assets of Purplebricks Group Plc. The dilapidations provision is in relation to the same lease. The provision is expected to unwind over the next 12 months.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

On  2 June 2026, the company’s parent, Strike Limited, entered into agreements with Toscafund and Freston Ventures Investments LLP for the provision of a working capital facility in the total sum of £8.5m.

On the same date, Freston Ventures Investments LLP and Toscafund (GP) 7 Limited registered fixed and floating charges over all of the property and undertaking of Strike Limited, to include its investment assets.

On 8 September 2026, Freston Ventures Investments LLP registered a fixed and floating charge over all of the property and undertaking of the company.

The company has a lease agreement with a related party. Rent expense in the period relating to this lease was £5,050 (2024: £nil).

As at the period end, the immediate and ultimate parent company was Strike Limited, a company incorporated in England. The registered office of Strike Limited is 146 Freston Road, London, W10, 6TR.

The results of the company for the period ended 31 March 2024 are included in the consolidated financial statements of Strike Limited which are publicly available or can be obtained at 146 Freston Road, London, W10 6TR.