These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 3 to 9 form part of these financial statements.

50 HSS Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, 5 Fleet Place, London, EC4M 7RD.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The financial statements have been prepared on a going concern basis. At 31 December 2025, the company had net liabilities of £1,092,890; however, its underlying property rental activities remain cash-generative.

The directors have assessed the company’s cash flow requirements for at least twelve months from the date of approval of these financial statements, taking into account forecast rental income, operating expenditure and the company’s existing financing arrangements. The company’s group financing arrangements are unsecured. The loan from the parent undertaking is interest-free and repayable only upon disposal of the investment property. The interest-bearing loan from a fellow group undertaking, including accrued interest, is repayable on 1 January 2027. Subsequent to the year end, its maturity was extended beyond the going concern assessment period in the event that the property is not sold before that date, with repayment of principal and accrued interest deferred accordingly.

Based on this assessment, the directors consider that the company has adequate resources to meet its liabilities as they fall due and therefore continue to adopt the going concern basis of accounting.

Revenue represents rental income, is recognised at the fair value of the consideration received and is shown net of VAT and other sales related taxes.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

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 statement of financial position 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 trade and other receivables 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 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 and other payables, bank loans and loans from related 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 payables 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 payables 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 income statement 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.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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

Investment properties are valued annually using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself.

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

The deferred tax asset recognised in the prior year has been derecognised in the current year as the recognition criteria under FRS 102 are no longer met.

The fair value of the investment property at 31 December 2025 was determined by the directors and is based on market data including expected rental yields.

The historical cost of the investment property was £8,388,063 (2024 - £8,234,879).

The company has granted fixed and floating charges over its assets, including its investment property, in connection with borrowings of a fellow group undertaking.

The amount owed to the group undertaking is unsecured, interest free and repayable upon disposal of the company's investment property.

The company has entered into an unsecured loan facility of £4,120,000. Interest is charged at the Bank of England Base Rate plus 4% per annum. The loan, together with accrued interest, is repayable on 1 January 2027, or such date being two banking days after the borrower gives notice of repayment to the lender.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 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.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

The company has taken advantage of the exemption available in accordance with Section 33.1A of Financial Reporting Standard 102 whereby it has not disclosed transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

At the balance sheet date the company was owed £760 (2024 - £3,199) by a company under common directorship.

During the year, the balance due from a connected company was repaid in full. At 31 December 2025, the amount owed by the connected company was £nil (2024: £146,759).

At the balance sheet date the company owed £875 (2024: £875) to a company that is under common control.

Subsequent to the year-end, the company entered into a revised lease agreement with one of its tenants. As part of the agreement, the company agreed to refund certain amounts received during the period in which the lease terms were being renegotiated. The net refund payable under the agreement is £82,162.

As the agreement was entered into after the reporting date, no present obligation existed at 31 December 2025. The directors have therefore concluded that the matter represents a non-adjusting post balance sheet event and no liability has been recognised in the financial statements as at that date.

Tellon Capital Two LP, registered in Jersey, is the company's immediate parent entity.

Ultimate parent and controlling party

In the opinion of the directors there is no ultimate controlling party.