Company Registration No. 02158998 (England and Wales)
GALLIARD HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GALLIARD HOMES LIMITED
COMPANY INFORMATION
Directors
S S Conway
D E Conway
M J Watson
P L Huberman
D P Maguire
G A Conway
R M Conway
E Dias
D J Hirschfield
A L Dijk
Secretary
D J Hirschfield
Company number
02158998
Registered office
3rd Floor
Sterling House
Langston Road
Loughton
Essex
IG10 3TS
Auditor
Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Business address
PO Box 206
Loughton
Essex
IG10 1PL
GALLIARD HOMES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26
GALLIARD HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

The company continues to fund various developments and until the ventures are complete, the company maintains healthy revenue streams from it's management fees and non development investment income.

 

Turnover increased from £0.6m to £4.2m due to sales completions during the year. The company continues to seek its returns on investments and income from the group to recover its overhead costs.

Our Stakeholders

The directors have always paid due regard to the effect of their actions on the various stakeholders who have an interest in the business. Section 172 of the Companies Act requires us to report each year on the steps taken to fulfil these obligations towards our stakeholders.

 

There are a great many parties who may be affected by the decisions made in the day-to-day running of the business and, as such, can be considered stakeholders. It is the responsibility of the board of directors to balance these interests in order to deliver the best possible outcome for all concerned.

 

Shareholders

Shareholders will look for annual income in the form of dividends as well as capital appreciation from growth in

the net assets of the company. Robustness in moral awareness and social responsibility are also increasingly

important considerations for this company.

 

Employees

Salary and benefit packages are obviously high on an employee’s list of priorities but so, too, are the working environment, a sense of community and the self-worth that comes from the knowledge that your employer values your opinion.

 

JV Partners

Our joint venture partners are equity investors in specific projects. They will expect to be kept informed of the progress of their investment and to receive their agreed share of profits at its conclusion. They will also want to ensure that appropriate social and moral protocols are being followed.

 

Funders

The financial institutions that fund our debt requirement each have their own commercial and ethical frameworks within which they work. We are required to conform to their standards of management in relation to any outstanding borrowing.

 

Subcontractors & Suppliers

We treat our subcontractors in the same way as our employees in terms of working conditions and inclusivity. We also keep in close contact with our suppliers as it is of mutual benefit to be well informed.

 

Local Community

It is important to appreciate and respect the views of the communities in which we work. Each has its own issues that have local significance and are not ignored.

 

Customers

Arguably the most important stakeholder of all is the customer. Without customers we have no business. The quality of both our product and our customer service is therefore of paramount importance.

GALLIARD HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

The principal risks faced by the company are those associated with being part of a large property group. These risks are considered minimal due to strong anticipated trading of the group. Whilst there will always be risks associated with the activity of property development the group is generally risk-averse and makes every effort to manage that risk. Thus the possibility of cost overruns is minimised by the use of fixed price contracts and disciplined budgetary control; the uncertainty inherent in borrowing at fluctuating rates of interest is mitigated by the use of treasury instruments such as interest rate swaps where appropriate; the possibility of failure to obtain planning permission is reduced by acquiring land in suitable locations; and the risk of sustaining significant losses on particular developments is addressed by the participation of joint venture partners in the majority of projects.

Going Concern

The directors have assessed the company’s cashflow forecasts from future sales and operations and with continued support from Galliard Group Limited, they are satisfied that there is sufficient available cash for at least the next twelve months to meet the operating needs of the company.

Key performance indicators

The company's statement of comprehensive income is set out on page 9.

 

The company recorded a gross profit of £209k (2023 gross loss - £2.3m).

 

The significant contribution to other income is the recovery of overhead costs from group developments.

 

The company administration expenses were £8.5m (2023 - £16.7m). The administration expenses in the year ended 31 March 2024 saw a reduction in staffing costs.

 

 

On behalf of the board

S S Conway
Director
18 October 2024
GALLIARD HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continues to be the development and sale of residential and commercial property. In order to help finance its activities the company has invested in joint developments and subsidiary's.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends (2023: £nil) were paid during the year. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

S S Conway
D E Conway
M J Watson
P L Huberman
D P Maguire
G A Conway
R M Conway
E Dias
D J Hirschfield
A L Dijk
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Auditor

The auditor, Buzzacott LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

GALLIARD HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
S S Conway
Director
18 October 2024
GALLIARD HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GALLIARD HOMES LIMITED
- 5 -
Opinion

We have audited the financial statements of Galliard Homes Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report and financial statements, other than the financial statements and our Auditor’s report thereon. The directors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GALLIARD HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GALLIARD HOMES LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the statement of directors' responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

How the audit was considered capable of detecting irregularities including fraud

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

GALLIARD HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GALLIARD HOMES LIMITED
- 7 -

 

We assessed the extent of compliance with the laws and regulations identified above through:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor’s report.

 

GALLIARD HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GALLIARD HOMES LIMITED
- 8 -

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Philip Westerman (Senior Statutory Auditor)
For and on behalf of Buzzacott LLP
18 October 2024
130 Wood Street
London
EC2V 6DL
GALLIARD HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Revenue
3
4,229,656
575,118
Cost of sales
(4,020,717)
(2,838,986)
Gross profit/(loss)
208,939
(2,263,868)
Administrative expenses
(8,492,228)
(16,680,674)
Other operating income
6,739,773
14,191,920
Exceptional items
4
1,755,731
(16,724,226)
Operating profit/(loss)
5
212,215
(21,476,848)
Investment income
7
2,076,817
214,682
Finance costs
10
(1,023,105)
(334,230)
Other gains and losses
11
(2,180,304)
(6,137,742)
Loss before taxation
(914,377)
(27,734,138)
Tax on loss
12
(283,222)
(67,189)
Loss for the financial year
(1,197,599)
(27,801,327)

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 26 form part of these financial statements.
GALLIARD HOMES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
13
293,004
167,681
Investments
14
11,705,578
11,985,109
11,998,582
12,152,790
Current assets
Inventories
17
11,100,628
9,850,027
Trade and other receivables
18
39,409,518
45,832,800
Investments
15
82,425
82,425
Cash and cash equivalents
1,715,209
8,669,015
52,307,780
64,434,267
Current liabilities
19
(75,197,059)
(76,624,069)
Net current liabilities
(22,889,279)
(12,189,802)
Total assets less current liabilities
(10,890,697)
(37,012)
Non-current liabilities
20
-
0
(7,900,355)
Provisions for liabilities
Provisions
22
(17,488,242)
(19,243,973)
(17,488,242)
(19,243,973)
Net liabilities
(28,378,939)
(27,181,340)
Equity
Called up share capital
25
52,000
52,000
Retained earnings
(28,430,939)
(27,233,340)
Total equity
(28,378,939)
(27,181,340)
The financial statements were approved by the board of directors and authorised for issue on 18 October 2024 and are signed on its behalf by:
S S Conway
Director
Company Registration No. 02158998
The notes on pages 12 to 26 form part of these financial statements.
GALLIARD HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 April 2022
52,000
567,987
619,987
Year ended 31 March 2023:
Loss and total comprehensive expense for the year
-
(27,801,327)
(27,801,327)
Balance at 31 March 2023
52,000
(27,233,340)
(27,181,340)
Year ended 31 March 2024:
Loss and total comprehensive expense for the year
-
(1,197,599)
(1,197,599)
Balance at 31 March 2024
52,000
(28,430,939)
(28,378,939)
The notes on pages 12 to 26 form part of these financial statements.
GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Galliard Homes Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Sterling House, Langston Road, Loughton, Essex, IG10 3TS.

1.1
Accounting convention

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.

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, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Galliard Group Limited. These consolidated financial statements are available from its registered office, Sterling House, Langston Road, IG10 3TS.

The company has taken advantage of s400 of the Companies Act not to produce group financial statements, as it is included in the consolidated financial statements of Galliard Group Limited, a company registered in England and Wales.

1.2
Going concern

In their assessment of going concern, the directors have prepared forecasts for a period of at least 12 months from the date of approval of the financial statementstrue and with the continued support of Galliard Group Limited, the directors are satisfied that there is sufficient available cash for at least the next twelve months to meet the operating needs of the company.

 

The company's loan facilities of £7,521,029 and £1,397,876 are due for repayment on 22 November 2024 and 12 December 2024, respectively, which are within the going concern period. The directors are confident that they will be able to refinance both loans, either with the existing or alternative lenders. Written confirmation has been received by the directors from Galliard Group Limited confirming their intention to support the company to ensure it is able to meet its liabilities as they fall due (including and loan repayments if required) for a period of not less than one year from the date of signing these financial statements.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable following legal completion of developed units, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Short Leasehold property
Over the period of the lease
Plant and machinery
5 years
Fixtures and equipment
2 to 5 years
Motor vehicles
4 years
1.5
Non-current investments

Interests in subsidiaries, associates and jointly controlled entities 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.

1.6
Impairment of non-current assets

At each reporting 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 there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

 

If an impairment loss subsequently reverses, the reversal is recognised in profit or loss up to, but not above, its original value.

1.7
Inventories

Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost comprises the purchase cost of land and buildings and development expenditure.

 

Profit on sales of developed properties are taken on receipt of sales proceeds at legal completion. Costs attributable to each sale comprises an appropriate proportion of total costs of the development.

1.8
Financial instruments

Financial assets, other than investments, are initially measured at transaction price and subsequently held at cost, less any impairment.

 

Financial liabilities are measured initially at transaction price and subsequently at amortised cost.

 

Financial liabilities and equity are classified according to the substance of the instrument's contractual obligation, rather than its legal form.

 

Finance costs are charged to profit and loss over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.9
Taxation

The tax expense for the period comprises current and deferred tax.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Current tax

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantially enacted by the reporting date.

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except:

 

 

Deferred tax balances are not recognised in respect of permanent differences.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

1.12
Other operating income
Other operating income comprises commissions, management fees and net rental income receivable.
1.13
Bare trustees

The company is party to a number of joint developments where the property is held on trust by a nominee company. These developments are accounted for as jointly controlled operations. Accordingly the company accounts for its own share of the assets, liabilities and cash flows measured according to its beneficial share of the arrangement.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

The company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. In preparing these financial statements, the directors have had to make the following judgements and estimates:

Carrying amount of inventories

In applying the company’s accounting policy for the valuation of inventories the Directors are required to assess the expected selling price and costs to sell each of the units that constitute the company’s work in progress. Cost includes the cost of acquisition of sites, the cost of infrastructure and construction works, and legal and professional fees incurred during development prior to sale. Estimation of the selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the market value of property.

 

Whilst the Directors exercise due care and attention to make reasonable estimates, taking into account all available information in estimating the future selling price, the estimates will, in all likelihood, differ from the actual selling prices achieved in future periods and these differences may, in certain circumstances, be very significant.

 

The company develops sites for residential and commercial property purposes. The success of the

development depends on short-term variability of the property market and economic factors which affect demand. As a result it is necessary to consider the recoverability of stock and work in progress and the associated provisioning required. When calculating the stock provision, management considers the nature, state and location of the development, as well as applying assumptions around anticipated market and economic conditions affecting the saleability of the respective properties in the development.

Provisions

The company makes assumptions to determine the timing and its best estimate of the quantum of its

developments and other liabilities for which provisions are held. Factors used in the assumptions and

estimates includes inflation, discount rates, phasing of cash flows, period to completion, costs to completion, and assumptions used in deriving internal rates of return for each development project.

 

The company also makes assumptions to assess the economic viability of certain contracts held, which

includes assumptions on future market conditions and revenue streams. The nature of provisions made as at the year end are analysed and disclosed in note 22.

3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Turnover
Development sales
3,784,815
492,500
Management fees
444,841
82,618
4,229,656
575,118

All turnover derives from UK operations.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
4
Exceptional item
2024
2023
£
£
Provisions - (credit)/charge for the year
(1,755,731)
16,724,226

Exceptional (credit)/costs

 

A credit of -£1,755,731 (2023 - charge of £16,724,226) for estimated remediation works to meet the company's commitment to improving building safety standards on historic developments has been recorded.

 

 

5
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
20,000
Depreciation of owned property, plant and equipment
140,097
122,841
Profit on disposal of property, plant and equipment
(95,520)
(61,003)
Bad debt (release)/expense
(41,120)
1,657,935
6
Employees

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

2024
2023
Number
Number
Construction
154
167
Sales
28
38
Administration
104
104
Total
286
309

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
22,727,281
27,575,651
Social security costs
2,274,271
2,936,197
Pension costs
1,762,681
1,825,465
26,764,233
32,337,313

The company recharges wages and salaries to fellow group company's in respect to rendered services in relation to the construction and administration of properties.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
155,673
56,323
Other interest income
205,113
12,013
Total interest revenue
360,786
68,336
Income from fixed asset investments
Income from shares in group undertakings
1,716,031
146,346
Total income
2,076,817
214,682
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
3,604,614
3,258,664
Company pension contributions to defined contribution schemes
205,997
167,858
3,810,611
3,426,522

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
1,173,958
2,275,358
Company pension contributions to defined contribution schemes
10,000
3,333

Amounts included in the prior year reflect settlement payments of £2,244,000 to an outgoing director.

9
Other operating income
2024
2023
£
£
Recovery of overhead costs
5,859,414
7,319,850
Share of profits from joint developments
-
6,303,641
Commissions and fees
581,467
364,061
Net rental income
(7,061)
47,494
Other income
305,953
156,874
6,739,773
14,191,920
GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
10
Finance costs
2024
2023
£
£
Interest on bank overdrafts and loans
980,674
325,236
Other interest on financial liabilities
42,431
8,994
1,023,105
334,230
11
Other gains and losses
2024
2023
£
£
Impairment of fixed asset investment
(2,180,304)
(6,137,742)
12
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
236,849
45,177
Adjustments in respect of prior periods
24,989
-
0
Total current tax
261,838
45,177
Deferred tax
Origination and reversal of timing differences
7,092
-
0
Changes in tax rates
-
0
(2,040)
Adjustment in respect of prior periods
14,292
24,052
Total deferred tax
21,384
22,012
Total tax charge
283,222
67,189

The corporation tax rate changed on 1 April 2023 from 19% to 25%.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(914,377)
(27,734,138)
Expected tax credit based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
(228,594)
(5,269,486)
Tax effect of expenses that are not deductible in determining taxable profit
42,638
216,160
Tax effect of income not taxable in determining taxable profit
(429,008)
(27,806)
Unutilised tax losses carried forward
-
0
1,518,179
Adjustments in respect of prior years
24,989
-
0
Group relief
320,784
2,390,028
Deferred tax adjustments in respect of prior years
14,292
24,052
Other permanent differences
3,033
49,247
Effect of rate change
-
0
644
Impairment of fixed asset investments
535,088
1,166,171
Taxation charge for the year
283,222
67,189
13
Property, plant and equipment
Short Leasehold property
Plant and machinery
Fixtures and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
304,820
169,500
1,651,449
742,277
2,868,046
Additions
-
0
-
0
-
0
265,429
265,429
Disposals
-
0
(169,500)
-
0
(130,798)
(300,298)
At 31 March 2024
304,820
-
0
1,651,449
876,908
2,833,177
Depreciation and impairment
At 1 April 2023
304,820
169,500
1,651,021
575,024
2,700,365
Depreciation charged in the year
-
0
-
0
305
139,792
140,097
Eliminated in respect of disposals
-
0
(169,500)
-
0
(130,789)
(300,289)
At 31 March 2024
304,820
-
0
1,651,326
584,027
2,540,173
Carrying amount
At 31 March 2024
-
0
-
0
123
292,881
293,004
At 31 March 2023
-
0
-
0
428
167,253
167,681
GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
16
9,110,738
6,636,768
Unlisted investments
2,594,840
5,348,341
11,705,578
11,985,109
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2023
6,636,768
5,348,341
11,985,109
Additions
1,901,446
-
1,901,446
Impairment
573,197
(2,753,501)
(2,180,304)
Disposals
(673)
-
(673)
At 31 March 2024
9,110,738
2,594,840
11,705,578
Carrying amount
At 31 March 2024
9,110,738
2,594,840
11,705,578
At 31 March 2023
6,636,768
5,348,341
11,985,109
15
Current asset investments
2024
2023
£
£
Unlisted investments
82,425
82,425

There are no listed investments.

16
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Class
% Held
Direct
Drayton Park Developments Ltd
Ordinary
50.00
Fieldfind Ltd
Ordinary
100.00
Galliard (Southwark) Ltd
Ordinary
100.00
Iconsheild Ltd
Ordinary
100.00
Lastzone Ltd
Ordinary
100.00
Lionstar Ltd
Ordinary
100.00
Ridegeton Ltd
Ordinary
66.60
Signature Resorts Ltd
Ordinary
100.00
Swingdeal Ltd
Ordinary
100.00
Vitalcharm Ltd
Ordinary
100.00
Workout Ltd
Ordinary
100.00
The registered office for the subsidiaries are 3rd Floor, Sterling House, Langston Road, Loughton, IG10 3TS
17
Inventories
2024
2023
£
£
Work in progress
11,100,628
9,850,027
18
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
3,134,232
99,173
Corporation tax recoverable
2,044,765
7,772,979
Amounts owed by group undertakings
15,705,113
29,504,724
Amounts owed by undertakings in which the company has a participating interest
14,615,512
3,012,387
Other receivables
2,440,279
3,727,691
Prepayments and accrued income
1,443,894
1,669,379
Deferred tax asset (note 23)
25,723
46,467
39,409,518
45,832,800
GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
19
Current liabilities
2024
2023
£
£
Secured bank loans
21
8,918,896
-
0
Trade payables
848,098
411,226
Amounts due to group undertakings
56,532,912
62,651,015
Other taxation and social security
1,078,433
581,168
Other payables
6,263,128
6,819,573
Accruals and deferred income
1,555,592
6,161,087
75,197,059
76,624,069

 

20
Non-current liabilities
2024
2023
Notes
£
£
Bank loans
21
-
0
7,900,355
21
Borrowings
2024
2023
£
£
Bank loans
8,918,896
7,900,355
Payable within one year
8,918,896
-
0
Payable after one year
-
0
7,900,355

The loans are secured against assets of the company. A loan for £7,521,029 is repayable in 22nd November 2024 and a loan for £1,397,867 is repayable in December 2024.

22
Provisions for liabilities
2024
2023
£
£
Remediation works
17,050,242
18,805,973
Other provisions
438,000
438,000
17,488,242
19,243,973
GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Provisions for liabilities
(Continued)
- 24 -
Movements on provisions:
Remediation works
Other provisions
Total
£
£
£
At 1 April 2023
18,805,973
438,000
19,243,973
Reversal of provision
(1,755,731)
-
(1,755,731)
At 31 March 2024
17,050,242
438,000
17,488,242

The remediation provision was established in respect to remedial works to fix cladding materials previously used in the property development process.

23
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2024
2023
Balances:
£
£
Tax losses
25,723
46,467
2024
Movements in the year:
£
Asset at 1 April 2023
(46,467)
Charge to profit or loss
20,744
Asset at 31 March 2024
(25,723)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,394
287,634

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
25,025
25,025
52,000
25,025
Ordinary B shares of £1 each
25,025
25,025
-
25,025
Ordinary C shares of £1 each
1,950
1,950
-
1,950
52,000
52,000
52,000
52,000

All share rank pari passu in all respects.

26
Ultimate controlling party

The immediate parent company is Galliard Holdings Limited, a company registered in England and Wales, and the ultimate holding company is Galliard Group Limited, a company registered in England and Wales.

 

Galliard Group Limited prepares group financial statements and copies can be obtained from 3rd floor Sterling House, Langston Road, Loughton, Essex, IG10 3TS.

 

In the opinion of the directors, the controlling party is Stephen Conway, a director and holds more than 50% of the voting rights.

 

 

 

GALLIARD HOMES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
27
Related party transactions

The company has taken advantage of the exemption allowed by FRS 102 not to disclose any transactions with entities that are in the consolidated financial statements of Galliard Group Limited on the grounds that 100% of the voting rights in the company are controlled within the group and the company is included within those financial statements.

 

The company had outstanding balances during the year with the following companies that are controlled by Mr S S Conway. The balances do not carry interest, nor are there any formal terms of repayment.

 

Details of the outstanding balances due from/(to) are:

Lancelot Management Limited: £191,261 (2023: £191,248)

Real Estate Investment & Trading Limited: £1,725,053 (2023: £1,569,713)

Hanson Street Properties Limited: (£229,420) (2023: £233,405)

Handspan Limited: £3,698,596 (2023: £3,706,170)

Galliard Trading Limited: (£9,058) (2023: £Nil)

 

In addition, there were amounts due to the company at 31 March 2024 in respect of properties owned by Mr S S Conway totaling £212,588 (2023 - £210,319) which related to refurbishment works.

 

A total amount of £1,043,311 (2023 - £339,083) was due to joint ventures, included in other payables.

A total amount of £1,431,202 (£3,012,387) was due from participating interests.

 

The following specific loan balances included in other receivables, were due from directors of the company as at 31 March 2024;

- Mr D Conway: £272,008 (2023: - £258,535) Advances in the year of £13,473.

- Mr S S Conway: £949,300 (2023: 1,336,106). Advances in the year of £2,285,406.

 

The amounts shown were the highest amounts outstanding during the year.

 

No material amounts are paid to any director other than those disclosed elsewhere in this report.

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