Statement of compliance

These financial statements have been prepared in accordance with FRS 102 Section 1A, The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. They are the first financial statements prepared under FRS 102 Section 1A. The previous financial statements, for the year ended 31 January 2025, were prepared in accordance with FRS 105. The date of transition was 1 February 2024. The transition has not affected the reported financial position or financial performance of the company. Certain comparative figures have been reclassified to be consistent with the current year presentation.

Basis of preparation

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The financial statements are prepared in sterling, which is the functional currency of the company.

The financial statements have been prepared on a going concern basis, which assumes the continued financial support of the directors. The directors have confirmed that this support will be provided for at least twelve months from the date of approval of these financial statements.

Turnover represents rental income receivable from investment properties in the period, net of Value Added Tax where applicable. Rental income is recognised on an accruals basis over the period of the tenancy.

Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years, calculated using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Deferred tax on investment property measured at fair value is measured using the tax rates and allowances that apply to the sale of the asset. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Current and deferred tax assets and liabilities are not discounted.

Investment properties are properties held to earn rentals and/or for capital appreciation. They are initially recognised at cost, including transaction costs. They are subsequently measured at fair value at each reporting date, where fair value can be measured reliably without undue cost or effort. Gains and losses arising from changes in fair value are recognised in profit or loss in the period in which they arise. Investment properties are not depreciated. Deferred tax is recognised on revaluation gains in accordance with the taxation policy.

The investment property is stated at its fair value of £369,437 at 31 January 2026 (2025: £369,437). The valuation was carried out by the directors on an open market basis, by reference to market evidence for similar properties. No independent valuation was obtained.