Lexington Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

1	General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
44 Fulham High Street
London
SW6 3LQ
England

Principal activity

The principal activity of the Company is the purchase and development of land and buildings for trading and resale.

These financial statements were authorised for issue by the Board on 21 November 2025.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The company has made a loss in the year but has significant assets at the year-end. The company also holds significant cash reserves and so is able to meet its liabilities as they fall due, therefore the financial statements have been prepared on a going concern basis

Turnover recognition

Turnover represents income from the sale of properties and rents receivable on development properties. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Lexington Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Long term leasehold property	Cost over shorter of period of lease or 50 years
Plant and machinery	20% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Properties held for resale

Properties held for resale are valued at the lower of cost and net realisable value. Net realisable value is deemed to be estimated sales proceeds less attributable costs.

The cost of properties held for resale comprises direct purchase costs and, where applicable, direct labour costs and those overheads that have been incurred in bringing the properties held for resale to their present condition. At each reporting date, properties held for resale are assessed for impairment. If properties held for resale are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Lexington Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Lexington Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Lexington Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

3	Significant judgements and key sources of estimation uncertainty

Key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the Director's opinion the only significant judgements or key sources of estimation uncertainty are the valuation of properties held in stock and the recoverability of the deferred tax asset.

Valuation of properties held in stock
Properties are valued at the lower of cost and net realisable value. Where the directors have reason to believe that the market value of a property is lower than its cost, a provision is made against that property. When assessing the value of properties, the directors must take into account variables such as current and future market conditions, which requires judgement. The carrying amount is £18,712,268 (2024 -£21,644,981).

Recoverability of deferred tax asset
The company has recognised a deferred tax asset for its corporation tax losses carried forwards. It is the directors' opinion that sufficient profits will be made in successive periods that will be relieved by these losses. The carrying amount is £561,841 (2024 -£429,844).

4	Staff numbers

The average number of persons employed by the Company (including directors) during the year, was 11 (2024 - 10).

5	Tangible assets

	Long leasehold land and buildings £	Office equipment £	Total £
Cost or valuation
At 1 July 2024	185,754	12,757	198,511
Additions	-	1,199	1,199
At 30 June 2025	185,754	13,956	199,710
Depreciation
At 1 July 2024	37,153	9,339	46,492
Charge for the year	3,715	2,099	5,814
At 30 June 2025	40,868	11,438	52,306
Carrying amount
At 30 June 2025	144,886	2,518	147,404
At 30 June 2024	148,601	3,417	152,018

Lexington Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

6	Investments

	2025 £	2024 £
Investments in subsidiaries	201	201