HARRIS KERNOW LIMITED

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

HARRIS KERNOW LIMITED is a private company, limited by shares, incorporated in England & Wales, registered number 07982229 . The registered office is Sunset, Porthmeor, St Ives, Cornwall, TR26 1JZ.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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

2.2. Going Concern Disclosure

The financial statements have been prepared on the going concern basis. At 31 March 2026 the company had net liabilities of £3,357,750, and net current assets of £5,271,377,

The company's principal liabilities comprise loans advanced by five family members totalling £9,021,683. These loans are not interest bearing. These loans are governed by formal agreements in force at 31 March 2026 which provide for repayment by instalments and restrict the lenders' rights to demand early repayment. Monthly repayments currently total £11,400 (£136,800 per annum).

The director has prepared and reviewed cash-flow forecasts up to October 2027 and considered the company's anticipated income, operating expenditure, contractual loan repayments, available financial resources and amounts receivable from subsidiary undertakings.

Having considered the completed cash-flow forecasts, the contractual financing arrangements and the company's financial position, the director is satisfied that the company has adequate resources to meet its liabilities as they fall due and to continue in operational existence for the foreseeable future. Accordingly, the director considers it appropriate to prepare the financial statements on the going concern basis.

2.3. Investment Properties

All investment properties are carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided for. Changes in fair value are recognised in the profit and loss account.

2.4. Financial Instruments

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

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.

Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans 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.

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HARRIS KERNOW LIMITED

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.4. Financial Instruments - continued

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 in current liabilities.

Loans from directors and close family members

The company has elected to apply the exemption available under paragraph 11.13A(a) of FRS 102 in respect of loans received from directors and members of their group of close family members. Accordingly, qualifying loans are initially recognised at transaction price rather than at the present value of future repayments discounted at a market rate of interest. These loans are subsequently measured at amortised cost using the effective interest rate implicit in the contractual arrangements, which is nil for the interest-free loans concerned.

2.5. Investments in subsidiary and associated undertakings

Investments in subsidiary and associated undertakings are measured at cost less accumulated impairment losses.

At each reporting date, the company assesses whether there is any indication that an investment may be impaired. Where such an indication exists, the investment’s recoverable amount is estimated and any impairment loss is recognised in the profit and loss account.

Dividend income is recognised when the company’s right to receive payment is established.

2.6. Equity instruments

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.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 1 (2025: 1)

4. Investment Property

	2026
	£
Fair Value
As at 1 April 2025 and 31 March 2026	255,456

The investment property is carried at a fair value of £255,456 at 31 March 2026 (2025: £255,456).

The director has reviewed the valuation at the reporting date and considers that there has been no change in the property’s fair value during the year. Accordingly, no fair value gain or loss has been recognised in the profit and loss account.

5. Investments

	Subsidiaries	Associates	Total
	£	£	£
Cost or Valuation
As at 1 April 2025	100	-	100
Additions	-	200	200

As at 31 March 2026	100	200	300

Provision
As at 1 April 2025	-	-	-

As at 31 March 2026	-	-	-

Net Book Value
As at 31 March 2026	100	200	300

As at 1 April 2025	100	-	100

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HARRIS KERNOW LIMITED

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

At 31 March 2026, the company held 100 ordinary shares in Cottage Holidays Kernow Limited, representing 100% of its issued share capital. Cottage Holidays Kernow Limited is a wholly owned subsidiary of the company.

At the same date, the company held 200 ordinary A shares in Scan2Recycle Limited, representing 25% of its issued share capital. Scan2Recycle Limited is an associated undertaking of the company.

6. Debtors

	2026	2025
	£	£
Due within one year
Amounts owed by group undertakings	4,643,195	4,565,189
Amounts owed by participating interests	-	104,705
Other debtors	78,856	114,975

	4,722,051	4,784,869
Due after more than one year
Other debtors	650,000	700,000

	5,372,051	5,484,869

Amounts owed by group undertakings

The amount is unsecured, interest-free and repayable on demand. The director has assessed the recoverability of the balance by reference to the net assets of the subsidiary and the market value of its properties, which are sufficient to cover the amount owed, and no impairment has been recognised.

Other debtors

At 31 March 2026 other debtors relates to a loan owed by an unrelated company. Of this balance £650,000 is due after more than one year. The loan is interest-free. The loan is carried at its undiscounted amount, as the director has assessed that discounting is not required. The director has assessed the recoverability of the loan at the reporting date and concluded that the balance is recoverable in full.

7. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Trade creditors	831	-
Other loans	136,800	107,972
Other creditors	5,189	26,481

	142,820	134,453

Family Loans and Financing Arrangements

At 31 March 2026, the company had outstanding loans from five family members totalling £9,021,683 (2025; £9,145,669) made up of other loans falling due within one year of £136,800 (2025; £107,972) and amounts falling due after more than one year of £8,884,883 (2025; £9,037,697) (see Note 8). These loans have been provided as long-term funding for the company's activities and its investment in subsidiary undertakings and have been classified as other loans in Disclosure Notes 7 and 8.

The loans are governed by formal agreements in force at the balance sheet date which restrict the lenders' rights to demand early repayment and provide for repayment by instalments. Repayments total £11,400 per month to the five lenders, representing aggregate annual repayments of £136,800. On this basis, £136,800 is classified as due within one year and £8,884,883 as due after more than one year.

The director considers these arrangements to provide a stable source of long-term financing for the company and its subsidiary.

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HARRIS KERNOW LIMITED

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

7. Creditors: Amounts Falling Due Within One Year - continued

These loans were previously classified as falling due within one year. The comparative figures have been restated. The director considers under the terms of the loan agreements that these loans at 31 March 2025 should accordingly be reclassified on a consistent basis with the current year. This has been corrected as a prior period adjustment; it has no effect on net liabilities or on the profit and loss account for either year.

8. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Other loans	8,884,883	9,037,697

For details of Other Loans see"Family Loans and Financing Arrangements" included in Note 7.

Of the creditors falling due after more than one year the following amounts are due after more than five years.

	2026		2025
	£		£
Other Creditors	8,354,118		8,516,193

9. Share Capital

	2026	2025
	£	£
Allotted, Called up and fully paid	100	100

10. Related Party Transactions

At 31 March 2026 the company owed £9,021,683 (2025: £9,145,669) to five individuals who are family members of the director, Mr Adrian Harris. The loans are interest-free, unsecured and repayable in accordance with the agreements described in note 7. During the year the company repaid £123,986 of capital to these individuals.

The company is the parent undertaking of Cottage Holidays Kernow Limited, a wholly owned subsidiary. At 31 March 2026 the subsidiary owed the company £4,643,195 (2025: £4,565,189) (See Note 6).

During the year the company received dividends of £110,500 from an associated company.

11. Subsidiary Financing and Proposed Property Restructuring

The company wholly owns Cottage Holidays Kernow Limited. At 31 March 2026, £4,643,195 was owed to the company by its subsidiary, representing funding advanced to support its property-related activities.

The director is considering a restructuring of the group's property holdings under which two properties currently owned by Cottage Holidays Kernow Limited would be transferred to the company in partial settlement of the outstanding intercompany balance. The proposed transfers are intended to reduce the subsidiary's indebtedness and facilitate the arrangement of mortgage financing against the transferred properties.

The transfers remain subject to agreement of the relevant property valuations, legal and taxation considerations, any necessary lender consents and completion of the required documentation. No proposed transfer has been recognised in these financial statements.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Investment Properties	4		255,456		255,456
Investments	5		300		100

			255,756		255,556
CURRENT ASSETS
Debtors	6	5,372,051		5,484,869
Cash at bank and in hand		42,146		9,299

		5,414,197		5,494,168
Creditors: Amounts Falling Due Within One Year	7	(142,820 )		(134,453 )

NET CURRENT ASSETS (LIABILITIES)			5,271,377		5,359,715

TOTAL ASSETS LESS CURRENT LIABILITIES			5,527,133		5,615,271

Creditors: Amounts Falling Due After More Than One Year	8		(8,884,883 )		(9,037,697 )

NET LIABILITIES			(3,357,750 )		(3,422,426 )

CAPITAL AND RESERVES
Called up share capital	9		100		100
Profit and Loss Account			(3,357,850 )		(3,422,526 )

SHAREHOLDERS' FUNDS			(3,357,750)		(3,422,426)