Under each of these scenarios, the Directors are satisfied that the Group has sufficient liquidity and will maintain covenant compliance over the next 12 months. To further support the Directors’ going concern assessment, a ‘Reverse Stress Test’ was performed to determine the level of performance at which adopting the going concern basis of preparation may not be appropriate. This involved assessing the minimum amount of income required to ensure financial covenants would not be breached. Within the tightest covenant, occupancy could fall to approximately 80% in the Group and 68% in the funds before a breach would occur. The Group has capacity for property valuations to fall by around 30% in the Group and 35% in the funds before a breach of LTV and gearing covenants in facilities where such covenants exist. Were income or asset values to fall beyond these levels, the Group has certain cure rights, such that an immediate default could be avoided. The Directors are satisfied that the possibility of such an outcome is sufficiently remote that adopting the going concern basis of preparation is appropriate. Accordingly, after making enquiries and having considered forecasts and appropriate sensitivities, the Directors have formed a judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of these financial statements. Standards and interpretations effective in the current period The accounting policies used in these financial statements are consistent with those applied in the last annual financial statements, as amended where relevant to reflect the adoption of new standards, amendments and interpretations which became effective in the year as listed below. These amendments did not have a material impact on the Group’s consolidated financial statements. • Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity • Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments • Annual Improvements to IFRS Accounting Standards Volume 11– IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7, IFRS 9, IFRS 10, and IAS 7. Impact of accounting standards and interpretations in issue but not yet effective At the date of approval of these financial statements there are a number of new standards and amendments to existing standards in issue but not yet effective. The Group has not adopted the new or amended standards in preparing these consolidated financial statements. The standards are set out below: • IFRS 18 Presentation and Disclosure in Financial Statements. The Group expects that IFRS 18 will result in changes to the presentation of the consolidated statement of profit or loss and related disclosures, including the presentation of operating profit and reconciliation of performance measures. The standard is not expected to impact the recognition or measurement of the Group’s assets, liabilities, income or expenses. The Group will apply the standard retrospectively from 1 January 2027 and will restate comparative information accordingly. The detailed impact is currently being assessed. There were no other standards or amendments effective for the first time in the current period that had a material impact on the Group. Critical accounting judgements and key sources of estimation uncertainty The Group’s significant accounting policies are stated in the relevant notes to the Group financial statements. The preparation of financial statements requires management to exercise judgement in applying the Group’s accounting policies. It also requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses. Critical accounting judgements The areas which involve a high degree of judgement or complexity in applying the accounting policies of the Group are explained in more detail in the accounting policy descriptions in the related notes to the financial statements. Classification of joint venture vehicles (note 3.4) has the most significant impact on the financial statements of the Group. Key sources of estimation uncertainty The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis with revisions recognised in the period in which the estimates are revised and in any future periods affected. The areas involving the most sensitive estimates and assumptions that are significant to the financial statements are valuation of investment property and investment property under development (note 3.1). THE UNITE GROUP PLC Annual Report and Accounts 2025 153