Annual Financial Report

The directors are responsible for preparing the directors' 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), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland 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:

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.

So far as the Directors are aware, there is no relevant audit information of which the Company's auditors are unaware and each Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or herself aware of any relevant information and to establish that the Company's auditors are aware of that information. This report was considered by the board on 19^th May 2026 and has been prepared in accordance with the Small Companies Regime of the Companies Act 2006.

We have audited the financial statements of Camden Living Limited (the ‘company') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 opinion.

The other information comprises the information included in the directors' 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.

We have nothing to report in this regard.

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

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:

As explained more fully in the directors' responsibilities statement set out on page 6, 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.

Auditor's responsibilities for the audit of the financial statements

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 the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: UK Tax Legislation, the Companies Act 2006, FRS 102, including the provisions of Section 1A, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

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 principal activity of the Company is the letting and operating of owned or leased real estate.

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are prepared in Sterling, which is the functional currency of the Company. Monetary amounts have been rounded to the nearest £.

The financial statements have been prepared on a going concern basis.

The Company reported a loss of £33,684 for the year ended 31 March 2026. This loss primarily reflects the accounting treatment of lease costs and does not indicate a deterioration in the underlying trading performance of the business. The Company continues to generate positive cash flows from its core rental activities.

At 31 March 2026, the Company had net current assets of £1.02m and maintained a strong liquidity position, supported by stable rental income streams and low levels of arrears and voids.

The Company has a long-term loan of £5,085,939 due to the London Borough of Camden. The Council has confirmed that it does not intend to require repayment of this loan within the foreseeable future and continues to support the Company as part of its wider housing strategy.

In assessing the appropriateness of the going concern basis, the Directors have considered the Company's current and projected financial position, cash flow forecasts and available funding arrangements. The Directors have reviewed forecasts covering a period of at least twelve months from the date of approval of these financial statements and are satisfied that the Company has sufficient resources to continue in operational existence and meet its liabilities as they fall due.

The Directors have also considered a letter of support from the London Borough of Camden, the Company's ultimate parent undertaking. The letter confirms that the Council believes Camden Living Limited will remain a viable trading entity and a going concern for the foreseeable future, does not intend to demand repayment of amounts owed by the Company within the twelve months following the approval of these financial statements, and will make available such financial support as is reasonably necessary to enable the Company to continue trading on its current basis, if required. The Council further acknowledges the strategic importance of the Company in supporting its housing objectives.

Having considered the Company's forecast financial performance, expected cash flows, available funding arrangements and the continued support of the London Borough of Camden, the Directors have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt upon the Company's ability to continue as a going concern.

Accordingly, the Directors consider it appropriate to prepare the financial statements on the going concern basis.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the Turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before Turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

Short term debtors are measured at transaction price, less any impairment. Loans receivables are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Provision is made for bad debts on rental income from the Company's owned and leased stock. This provision requires management's best estimate of doubtful debts estimated on an agreed basis and status of the debt. The bad debt provision is included in the trade debtor's calculations.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from the Company's parent undertaking.

Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Depreciation is provided by the Company to write off the cost or valuation less the estimated residual value of its tangible fixed assets by equal annual instalments over their useful economic lives as follows:

Following the initial capitalisation of leased assets, depreciation is on the asset over the shorter of the lease term or the useful economic life of the asset.

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.12     Taxation - Value Added tax (VAT)

Where the Company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a ‘finance lease'. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated over its estimated useful life or the term of the lease, whichever is shorter. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payables are apportioned between the finance element, which is charged to the profit and loss account, and the capital element which reduces the outstanding obligation for future instalments.

All other leases are accounted for as ‘operating leases' and the rental charges are charged to the profit and loss account on a straight line basis over the life of the lease.

The properties were valued by a firm of chartered surveyors in accordance with established valuation principles and within guidelines of the Royal Institution of Chartered Surveyors; they were valued on an open market basis (for valuation dates see section 16.4). The cost includes original purchase price for the amount of £8,476,900 and it is secured by a debenture.

7.1     Camden Living Housing Association owes £3,952 to Camden Living Limited (these are benefits relating to CLL tenants which have been incorrectly paid to the CLHA bank account in error by the council)

12.1     Included within the net book value of tangible fixed assets is £7,906,124 in respect of assets held under finance leases and similar hire purchase contracts.

12.2     Creditors amounts on which security has been given by the Company total £5,085,939. The amounts which are payable in more than 5 years amount to £5,085,939.

12.3     Camden Living Limited has a £10m drawdown facility and used this facility to part fund the acquisition of leasehold property. The value of this loan is £5,085,939. As at 31^st March 2026, the company has unutilised borrowing of £4,914,061 with the London Borough of Camden.

13.1     Each ordinary share has a nominal value of £1 and have attached to them equal voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

13.2     Share premium represents the amount Camden Living Limited raised on the issue of shares in excess of their nominal value of the shares.

13.3     No ordinary shares were issued over the period, with 104 ordinary shares in issue; the premium value of these shares is £3,390,752.

The Profit and Loss Reserve is the accumulated distributable profits and losses of the company.

The Major Works Reserve has been established to provide for the future cost of significant repairs and lifecycle replacement of the Company's housing stock. For the year ended 31 March 2026, the Company reported a loss after tax and interest of £34k and, accordingly, no transfer has been made to the Major Works Reserve (2025: £221k transfer).

To date, the Company has not incurred significant major repairs or lifecycle costs, reflecting the relatively new condition of the residential units. However, the Directors anticipate that material expenditure will arise in future periods as the assets age.

The Directors consider it prudent to maintain and build this reserve over time, based on best estimates of future lifecycle costs, in order to protect the Company's long-term financial sustainability and ensure sufficient resources are available when required. The Directors feel it is prudent to separate this now based on their best estimate.