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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Inspired Investment Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Woodhouse Farm, Lords Lane, Nether Poppleton, York, North Yorkshire, YO26 6GQ.

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. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Income from the leasing of properties to group undertakings is recognised within other operating income on a straight-line basis over the lease term. Income is measured at the fair value of the consideration receivable and is recognised in the period to which it relates.

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

No depreciation is provided on freehold property as the directors consider that the lives of these assets are so long and the residual values, based on prices prevailing at the time of valuation and ongoing state of maintenance, are so high that any depreciation charge would be immaterial.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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, 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.

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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 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 initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts totalling £37,324 (2024: £49,765).

The bank loans are secured by way of a fixed and floating charge against certain properties owned by the company.

A Bounce Back Loan of £29,787 (2024: £36,122) is unsecured and is supported by a guarantee provided by the UK Government under the Bounce Back Loan Scheme. Amounts totalling £6,374 (2024: £5,600) are included in creditors amounts falling due under one year.

The hire purchase liability of £14,457 (2024: £23,214), included within other creditors, is secured against the asset to which it relates.

The bank loans are secured by way of a fixed and floating charge against certain properties owned by the company.

A Bounce Back Loan of £29,787 (2024: £36,122) is unsecured and is supported by a guarantee provided by the UK Government under the Bounce Back Loan Scheme. Amounts totalling £23,413 (2024: £30,522) are included in creditors amounts falling due over one year.

The hire purchase liability of £41,032 (2024: £4,559), included within other creditors, is secured against the asset to which it relates.

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.

Subsequent to the year end, Inspired Investment Solutions Ltd completed the acquisition of the trading freehold property of a further nursery business, a group undertaking acquired the trade and trading assets, this was a material fixed asset acquisition. The transaction represents a material non-adjusting event occurring after the reporting date.

During the year the company entered into the following transactions with related parties:

At the year end £14,030 (2024: £45,321) was owed by the company to Spring Childcare Agency Limited, a company under common control. The balance is included within other creditors.

At the year end £67,735 (2024: £34,547) was owed by the company to Sutherland Property Ventures Limited, a company under common control. The balance is included within other creditors.

At the year end £6,033 (2024: £2,142) was owed by the company to Are We There Yet? Properties Ltd, a company under common control. The balance is included within other creditors.

As permitted by FRS 102, these financial statements do not disclose transactions with the parent undertaking and fellow subsidiaries where 100% of the voting rights are held within the group.

During the year, the following unsecured loans to directors occurred.

During December 2024, the trade and assets of the subsidiary were hived up into the parent company and a dividend was subsequently paid by the subsidiary. As the dividend totalling £760,543 represented a return of value from the subsidiary following the hive-up, the carrying value of the investment has been impaired by the amount of the dividend.

Following the hive-up, the subsidiary no longer holds the underlying trade or assets. The remaining carrying value of the investment has therefore been reclassified to goodwill, reflecting the future economic benefits associated with the business and assets transferred to the parent company. Amortisation has been charged on this goodwill totalling £46,491.

The adjustment has been recognised as a prior year adjustment to reflect the substance of the hive-up and the appropriate carrying value and classification of the asset at 31 December 2024.

During the current year, it was identified that a freehold property had previously been recognised within the incorrect group company following an earlier group reorganisation. The comparative financial statements have therefore been restated to reflect the property within the entity holding legal ownership.

The adjustment resulted in a net increase of £592,941 in tangible fixed assets and a corresponding increase in amounts due to group undertakings. The adjustment has no impact on the overall result for the prior year or the net assets of the company.

During the year, the company reclassified properties with a carrying value of £2,951,568 from investment property to tangible fixed assets in the comparative figures, utilising the exemption available for properties held for use by other group entities. The reclassification was made to better reflect the nature and use of the properties within the group.

The reclassification has no impact on the reported profit or loss or net assets of the company.