REGISTERED NUMBER: 00021531 (England and Wales)

CATHAYS COTTAGE COMPANY LIMITED(THE)

Unaudited Financial Statements

for the Year Ended 31 March 2026

Page

Company Information

1

Chairman's Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

G E C Rogers

P B Kelly

S P Thorpe

SECRETARY:

G E C Rogers

REGISTERED OFFICE:

2nd Floor Office Suite

Agincourt House

Agincourt Square

MONMOUTH

Monmouthshire

NP25 3BT

REGISTERED NUMBER:

00021531 (England and Wales)

ACCOUNTANTS:

MHA (trading name of MHA Advisory Ltd)

Elfed House

Oak Tree Court

Cardiff Gate Business Park

CARDIFF

County of Cardiff

CF23 8RS

I have pleasure, on behalf of your Board of Directors, in presenting the financial statements of the company for the year ended 31 March 2026 and upon which I make the following comments:

Results

The fall of rental income from the ongoing sale process and a small deficit of £12,249 net of costs on disposal of properties, has contributed to an operating loss of £39,728 whereas the sale of fixed asset investments has helped the Company to achieve pre-tax profits of £969,795.

Income

Rents have reduced, mainly on account of houses sold.

Establishment costs

Repairs and maintenance has fallen as expected but there were increases in professional fees.

Administrative costs

Running the office and the Company, although with fewer properties, has not yet led to a reduction in overheads on account of increased input to the disposal programme.

Property performance

It was considered un-necessary to go to the expense of a revaluation when all the remaining properties were on the market; hence there is no increase in the capital return. Although there was a fall in irrecoverable expenditure, the loss in rental income produced only a nominal growth of 2%. Inevitably, the void rate increased due to vacant possession being required pending sale.

Fixed assets

There were no property additions during the year but the company disposed of five properties which resulted in a loss on disposal of £35,350. There were fixtures and fittings additions of £944 during the year and disposals with a net book value of £268. Depreciation of £2,509 has been charged for the year on the remaining assets. The company sold shares in some of the investments which realised a profit of £987,465. The carrying value on the balance sheet of the remaining investments is £14,179.

Current assets

Such assets have increased in the year by £455,936, which is reflected in the increased bank balance.

Creditors

Overall, there has been an increase in creditors of £328,431 as a result of an increase in corporation tax. The amount due in over one year, relating to the loan from Avoca Estate Company Limited, remains unchanged.

Provisions

The decreased provision results from the sale of the investment properties.

Shareholders' funds

These decreased by £988,160 to £2,503,632.

Dividends

A 2nd interim dividend of £3 per share has been paid but further special dividends have been suspended pending discussions with a liquidator. In the meantime, a final dividend is declared at 67p on the reduced number of shares in issue as a result of the buy-backs. Excluding the 2nd interim, the total dividend for the year is £48,796, an increase of 10%.

S P Thorpe,

Chairman

FIXED ASSETS

Tangible assets

4

3,668

5,501

Investments

5

14,179

23,505

Investment property

6

2,296,600

3,498,600

2,314,447

3,527,606

CURRENT ASSETS

Debtors

7

35,673

34,723

Cash at bank and in hand

765,313

310,327

800,986

345,050

CREDITORS

Amounts falling due within one year

8

(379,624

)

(51,193

)

NET CURRENT ASSETS

421,362

293,857

TOTAL ASSETS LESS CURRENT LIABILITIES

2,735,809

3,821,463

CREDITORS

Amounts falling due after more than one year

9

(115,671

)

(115,671

)

PROVISIONS FOR LIABILITIES

10

(116,506

)

(214,000

)

NET ASSETS

2,503,632

3,491,792

CAPITAL AND RESERVES

Called up share capital

11

67,773

115,440

Non-distributable reserve

12

1,072,586

1,542,771

Capital reserve

12

1,044,213

848,685

Capital redemption reserve

12

47,667

-

Retained earnings

12

271,393

984,896

SHAREHOLDERS' FUNDS

2,503,632

3,491,792

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2026 and were signed on its behalf by:

S P Thorpe - Director

1.	STATUTORY INFORMATION

The Cathays Cottage Company Limited is a private company, limited by shares and incorporated in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company's functional and presentational currency in the financial statements is the Sterling (£), rounded to the nearest pound.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

There have been no material departures from Financial Reporting Standard 102 1A.

Preparation of consolidated financial statements

The financial statements contain information about Cathays Cottage Company Limited(The) as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

The turnover shown in the profit and loss account represents gross rent receivable for the year.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Furniture, fixtures and fittings

20% / 33% straight line

Investments

Investments are recorded at cost less any provision required for diminution in value.

Investment property

Investment properties are carried at fair value determined annually by independent professional valuers. Revaluation surpluses and deficits are recognised in the profit and loss account. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold, or the deferred tax liability is settled, based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Current tax

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an un-discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Pension costs and other post-retirement benefits

The company operates a money purchase pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Debtors or creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2025 - 3 ) .

4.	TANGIBLE FIXED ASSETS

Furniture,

fixtures

and

fittings

£

COST

At 1 April 2025

58,764

Additions

944

Disposals

(13,032

)

At 31 March 2026

46,676

DEPRECIATION

At 1 April 2025

53,263

Charge for year

2,509

Eliminated on disposal

(12,764

)

At 31 March 2026

43,008

NET BOOK VALUE

At 31 March 2026

3,668

At 31 March 2025

5,501

5.	FIXED ASSET INVESTMENTS

Shares in

group

Participating

Unlisted

undertakings

interests

investments

Totals

£

£

£

£

COST

At 1 April 2025

14,179

4,273

5,053

23,505

Disposals

-

(4,273

)

(5,053

)

(9,326

)

At 31 March 2026

14,179

-

-

14,179

NET BOOK VALUE

At 31 March 2026

14,179

-

-

14,179

At 31 March 2025

14,179

4,273

5,053

23,505

The investments consist wholly of equity share capital in unquoted companies incorporated in England and Wales as follows:

Company

Cost of shares

Size of holding (%)

Year end of latest accounts

Capital & reserves

Profit/(loss) for year

£

£

£

Group undertakings

Avoca Estate Company Limited*

14,179

100.0%

31.03.26

115,671

-

* Dormant

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2025

3,498,600

Disposals

(1,202,000

)

At 31 March 2026

2,296,600

NET BOOK VALUE

At 31 March 2026

2,296,600

At 31 March 2025

3,498,600

Investment property held at 31 March 2026 is included at its independent professional valuation at 31 March 2025. The Directors have not undertaken an independent valuation at the year end as they consider that there has been no movement in the valuations in the year. Additionally, the company is actively marketing all the remaining properties for sale. The historic cost equivalent of these assets is £1,107,014 (2025: £1,741,829).

The methods and significant assumptions used to ascertain the fair values are as follows:

-

Recent rental and sales prices of comparative properties in similar areas.

-

Properties have been valued on an individual stand alone basis and not on the basis of a sale as part of a portfolio.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade debtors

179

1,281

Other debtors

33,533

32,243

Prepayments and accrued income

1,961

1,199

35,673

34,723

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade creditors

285

1,296

Corporation tax

341,540

20,066

PAYE and social security

3,504

-

Other creditors

11,558

-

Rents in advance

7,515

11,256

Accruals

15,222

18,575

379,624

51,193

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Amounts owed to group undertakings

115,671

115,671

10.	PROVISIONS FOR LIABILITIES

2026

2025

£

£

Deferred tax

116,506

214,000

Deferred

tax

£

Balance at 1 April 2025

214,000

Provided during year

(97,494

)

Balance at 31 March 2026

116,506

The deferred tax liability has arisen on the revaluation of the investment properties in previous years.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2026

2025

value:

£

£

67,773

Ordinary

£1

67,773

115,440

(2025 - 115,440 )

12.

RESERVES

Capital

Retained

Non-distributable

Capital

redemption

earnings

reserve

reserve

reserve

Totals

£

£

£

£

£

At 1 April 2025

984,896

1,542,771

848,685

-

3,376,352

Profit for the year

725,749

725,749

Dividends

(229,412

)

(229,412

)

Purchase of own shares

(1,484,497

)

-

-

47,667

(1,436,830

)

Revaluation of investment

properties

-

(567,185

)

567,185

-

-

Transfer to capital reserve on

disposal

336,307

-

(336,307

)

-

-

Deferred tax on investment properties

(97,000

)

97,000

-

-

-

Transfer to capital reserve

35,350

-

(35,350

)

-

-

At 31 March 2026

271,393

1,072,586

1,044,213

47,667

2,435,859

13.	RELATED PARTY DISCLOSURES

Details of the company's related parties, where there were transactions during the year such as require disclosure under Financial Reporting Standard 102 1A are:-

Name

Nature of relationship

Avoca Estate Company Limited

Entity over which the company has control

During the year the company entered into transactions, in the ordinary course of business, with its related parties. Transactions entered into, and balances outstanding at the year end, are as follows:

2026

2025

£

£

Key management personnel

Dividend paid

12,000

1,365