Company Registration No. 09284828 (England and Wales)
Secure Home Purchase (2015) Limited
Annual report and
group financial statements
for the year ended 31 October 2024
Secure Home Purchase (2015) Limited
Company information
Directors
R G Cade
R G Jeffrey
R D King
S J King
Company number
09284828
Registered office
Suite 2
Clare Hall
St Ives Business Park
St Ives
Cambridgeshire
PE27 4WY
Independent auditor
Saffery LLP
Suite 12
Westpoint
Peterborough Business Park
Lynch Wood
Peterborough
PE2 6FZ
Secure Home Purchase (2015) Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Income statement
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 28
Secure Home Purchase (2015) Limited
Strategic report
For the year ended 31 October 2024
1

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

Fair review of the business

The UK residential housing market has been robust during the year with Bank of England two base rate reductions later in the year from 5.25% to 4.75% boosting confidence. It is against this improved market environment that the Company is delighted to report a profit before tax of £569k (2023: £137k). Turnover has increased to £17.4m (2023: £16.2m) and stock turnover averaged 3.8 (2023: 3.1).

Principal risks and uncertainties

The Board recognises the main risks and uncertainties are as follows:

 

Liquidity risk

The Group has to have confidence that it can meet its financial obligations as and when they fall due. It manages liquidity risk through having access to a revolving credit facility which is provided weekly and allows properties do be held for up to one year.

 

Interest rate risk

The interest on bank loans is fixed with a variable element based on the Bank of England base rate from January 2022 which replaces Libor. This is charged on a daily basis based on the amount drawn down. The Group manage this risk by reviewing rates annually in conjunction with the facility renewal.

Credit risk

The groups credit risks are primarily attributable to cash deposits. This risk is mitigated as funds are held by large international banks with credit rating of at least A.

 

External Factors

Increases in corporation tax and personal tax together with inflationary pressures are the key uncertainty the Group faces. The directors are confident that profitable property trading will continue through this tougher economic outlook.

Key performance indicators

Stock turnover 3.8 (2023: 3.1)

Properties purchased £17.8m (2023: £11.5m)

Properties sold £17.4m (2023: £16.2m)

 

The Company continues to enjoy a good relationship with its funding partners with the facility renewed in October 2024 for a further 3 years.

 

On behalf of the board

S J King
Director
29 January 2025
Secure Home Purchase (2015) Limited
Directors' report
For the year ended 31 October 2024
2

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

Principal activities

The principal activity of the Company and Group was that of buying and selling owned real estate.

Results and dividends

The results for the year are set out on

Ordinary dividends were paid amounting to £900,000. The directors do not recommend payment of a further dividend.

Directors

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

R G Cade
R G Jeffrey
R D King
S J King
Auditor

Saffery LLP have expressed their willingness to continue in office.

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 Group and Company, and of the profit or loss of the group 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 Group’s and Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The trueGroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of fair review of the business, principal risks and uncertainties and key performance indicators.

Secure Home Purchase (2015) Limited
Directors' report (continued)
For the year ended 31 October 2024
3
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 auditor of the Group and Company 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 auditor of the Group and Company is aware of that information.

S J King
Director
29 January 2025
Secure Home Purchase (2015) Limited
Independent auditor's report
To the members of Secure Home Purchase (2015) Limited
4
Opinion

We have audited the financial statements of Secure Home Purchase (2015) Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2024 which comprise the group income statement, the group statement of financial position, the Company statement of financial position, the Group statement of changes in equity, the Company statement of changes in equity, the Group statement of cash flows 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 Group and Parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 Group's and Parent 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 directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. 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.

Secure Home Purchase (2015) Limited
Independent auditor's report (continued)
To the members of Secure Home Purchase (2015) Limited
5

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent 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 parent 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.

Secure Home Purchase (2015) Limited
Independent auditor's report (continued)
To the members of Secure Home Purchase (2015) Limited
6

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the Group and Parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the Group and Parent company by discussions with directors and by updating our understanding of the sector in which the Group and Parent company operates.

 

Laws and regulations of direct significance in the context of the Group and Parent company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of Group and Parent company financial statement disclosures. We reviewed the Parent Company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the Parent Company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

 

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Secure Home Purchase (2015) Limited
Independent auditor's report (continued)
To the members of Secure Home Purchase (2015) Limited
7

Use of our report

This report is made solely to the Parent Company's members, as a body, 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Ross Lomas (Senior Statutory Auditor)
For and on behalf of Saffery LLP
29 January 2025
Statutory Auditors
Suite 12
Westpoint
Peterborough Business Park
Lynch Wood
Peterborough
PE2 6FZ
Secure Home Purchase (2015) Limited
Group income statement
For the year ended 31 October 2024
8
2024
2023
Notes
£
£
Turnover
3
17,394,031
16,186,696
Cost of sales
(16,021,007)
(15,192,212)
Gross profit
1,373,024
994,484
Administrative expenses
(438,738)
(425,689)
Other operating income
800
1,225
Operating profit
4
935,086
570,020
Interest payable and similar expenses
7
(365,810)
(433,029)
Profit before taxation
569,276
136,991
Tax on profit
8
(135,505)
(31,665)
Profit for the financial year
433,771
105,326
There was no other comprehensive income for 2024 (2023: £nil).
Profit for the financial year is all attributable to the owners of the parent company.
Secure Home Purchase (2015) Limited
Group statement of financial position
As at 31 October 2024
9
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
7,135
9,996
Investment properties
11
2,305,000
2,700,000
2,312,135
2,709,996
Current assets
Stocks
14
6,116,795
3,760,750
Debtors
15
181,843
156,224
Cash at bank and in hand
228,651
1,136,880
6,527,289
5,053,854
Creditors: amounts falling due within one year
16
(4,322,975)
(2,532,122)
Net current assets
2,204,314
2,521,732
Total assets less current liabilities
4,516,449
5,231,728
Creditors: amounts falling due after more than one year
17
(1,131,300)
(1,371,300)
Provisions for liabilities
Deferred tax liability
19
31,089
40,139
(31,089)
(40,139)
Net assets
3,354,060
3,820,289
Capital and reserves
Called up share capital
21
2,000,000
2,000,000
Profit and loss reserves
1,354,060
1,820,289
Total equity
3,354,060
3,820,289
The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
29 January 2025
S J King
Director
Company Registration No. 09284828
Secure Home Purchase (2015) Limited
Company statement of financial position
As at 31 October 2024
31 October 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,625
3,797
Investments
12
100
100
2,725
3,897
Current assets
Stocks
14
6,116,795
3,760,750
Debtors
15
1,053,174
1,228,050
Cash at bank and in hand
173,034
1,029,730
7,343,003
6,018,530
Creditors: amounts falling due within one year
16
(4,369,119)
(2,512,525)
Net current assets
2,973,884
3,506,005
Total assets less current liabilities
2,976,609
3,509,902
Provisions for liabilities
Deferred tax liability
19
592
1,139
(592)
(1,139)
Net assets
2,976,017
3,508,763
Capital and reserves
Called up share capital
21
2,000,000
2,000,000
Profit and loss reserves
976,017
1,508,763
Total equity
2,976,017
3,508,763

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £367,254 (2023 - £120,770 profit).

The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
29 January 2025
S J King
Director
Company Registration No. 09284828
Secure Home Purchase (2015) Limited
Group statement of changes in equity
For the year ended 31 October 2024
11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
2,000,000
2,414,963
4,414,963
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
105,326
105,326
Dividends
9
-
(700,000)
(700,000)
Balance at 31 October 2023
2,000,000
1,820,289
3,820,289
Year ended 31 October 2024:
Profit and total comprehensive income for the year
-
433,771
433,771
Dividends
9
-
(900,000)
(900,000)
Balance at 31 October 2024
2,000,000
1,354,060
3,354,060
Secure Home Purchase (2015) Limited
Company statement of changes in equity
For the year ended 31 October 2024
12
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
2,000,000
2,087,993
4,087,993
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
120,770
120,770
Dividends
9
-
(700,000)
(700,000)
Balance at 31 October 2023
2,000,000
1,508,763
3,508,763
Year ended 31 October 2024:
Profit and total comprehensive income
-
367,254
367,254
Dividends
9
-
(900,000)
(900,000)
Balance at 31 October 2024
2,000,000
976,017
2,976,017
Secure Home Purchase (2015) Limited
Group statement of cash flows
For the year ended 31 October 2024
13
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(1,443,343)
2,528,969
Interest paid
(365,810)
(433,029)
Income taxes paid
(30,643)
(161,610)
Net cash (outflow)/inflow from operating activities
(1,839,796)
1,934,330
Investing activities
Purchase of tangible fixed assets
(505)
(6,102)
Proceeds on disposal of investment property
395,000
-
Net cash generated from/(used in) investing activities
394,495
(6,102)
Financing activities
Net increase/(repayment) of bank loans
1,437,072
(802,095)
Dividends paid to equity shareholders
(900,000)
(700,000)
Net cash generated from/(used in) financing activities
537,072
(1,502,095)
Net (decrease)/increase in cash and cash equivalents
(908,229)
426,133
Cash and cash equivalents at beginning of year
1,136,880
710,747
Cash and cash equivalents at end of year
228,651
1,136,880
Secure Home Purchase (2015) Limited
Notes to the group financial statements
For the year ended 31 October 2024
14
1
Accounting policies
Company information

Secure Home Purchase (2015) Limited (“the Company”) is a private limited company incorporated in England and Wales. The registered office is Suite 2, Clare Hall, St Ives Business Park, St Ives, Cambridgeshire, PE27 4WY.

 

The Group consists of Secure Home Purchase (2015) Limited and all of its subsidiaries as referenced in note 13.

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 Group and 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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for Parent Company information presented within the consolidated financial statements:

 

Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
15
1.2
Business combinations

In the Parent Company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the Parent Company Secure Home Purchase (2015) Limited together with all entities controlled by the Parent Company (its subsidiaries) and the Group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the Group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the Group 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.

1.5
Turnover

Turnover represents income from the provision of property trading activity and includes the sale proceeds from the properties completed together with the fees charges to clients, excluding VAT.

 

Turnover and commissions are recognised at the point the company is contractually entitled to receive the income which occurs at the point of completion of the purchase of a property. Turnover from property sales is recognised at the point of completion of the sale of the property.

 

Income from rental properties is recognised evenly over the life of the lease, to the extent that it is probable that the economic benefits will flow to the group.

 

1.6
Tangible fixed assets

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

Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
16

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:

Fixtures and fittings
15% reducing balance
Office equipment
15% straight line

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 recognised in the income statement.

1.7
Investment properties

Investment property is carried at fair value determined annually by external valuers or the directors, considering comparable properties, 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. Changes in fair value are recognised in the Consolidated Profit and Loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.9
Stocks

Stock represents properties held for resale and is stated at the lower of cost, being the purchase

price, and net realisable value. Net realisable value is the estimated sale consideration, less costs of realising the sale.

1.10
Cash and cash equivalents

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.

1.11
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
17
Basic financial assets

Basic financial assets, which include debtors, 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.

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.

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 group 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.

 

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.

Other financial liabilities

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 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.

1.12
Equity instruments

Equity instruments issued by the group 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 Group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
1
Accounting policies (continued)
18
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.14
Employee benefits

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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Foreign exchange

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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Management performed a detailed review of the stock listing on a line by line basis and included a stock provision of £14,205 (2023: £52,125) as at 31 October 2024 to ensure stock is held at the lower of cost or net realisable value.

 

Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
19
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of properties
17,233,000
16,001,423
Rental income
161,031
185,273
17,394,031
16,186,696
Other significant revenue
Other income
800
1,225
800
1,225
All turnover arose within the United Kingdom.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
2,556
3,297
Loss on disposal of tangible fixed assets
810
-
Operating lease charges
62,732
67,025
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,390
19,605
Audit of the financial statements of the company's subsidiaries
3,435
3,300
23,825
22,905
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
20
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Operations
2
2
2
2
Treasury
2
2
2
2
Directors
4
4
4
4
Total
8
8
8
8

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
211,693
174,098
211,693
174,098
Social security costs
19,773
14,497
19,773
14,497
Pension costs
3,212
3,441
3,212
3,441
234,678
192,036
234,678
192,036
No directors were remunerated through the Group (2023: none). The directors are considered to be key management personnel.
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
365,810
433,029
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
21
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
145,701
32,031
Adjustments in respect of prior periods
(1,146)
(116)
Total current tax
144,555
31,915
Deferred tax
Origination and reversal of timing differences
(10,576)
-
0
Changes in tax rates
-
0
(250)
Adjustment in respect of prior periods
1,526
-
0
Total deferred tax
(9,050)
(250)
Total tax charge
135,505
31,665

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

2024
2023
£
£
Profit before taxation
569,276
136,991
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
142,319
30,850
Tax effect of expenses that are not deductible in determining taxable profit
1,935
957
Adjustments in respect of prior years
(1,146)
(117)
Effect of change in corporation tax rate
(10,522)
-
Deferred tax adjustments in respect of prior years
1,526
-
0
Remeasurement of deferred tax for changed in tax rates
-
0
(25)
Chargeable gains
1,393
-
0
Taxation charge
135,505
31,665
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
900,000
700,000
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
22
10
Tangible fixed assets
Group
Fixtures and fittings
Office equipment
Total
£
£
£
Cost
At 1 November 2023
17,558
9,917
27,475
Additions
505
-
0
505
Disposals
(900)
-
0
(900)
At 31 October 2024
17,163
9,917
27,080
Depreciation and impairment
At 1 November 2023
10,813
6,666
17,479
Depreciation charged in the year
1,517
1,039
2,556
Eliminated in respect of disposals
(90)
-
0
(90)
At 31 October 2024
12,240
7,705
19,945
Carrying amount
At 31 October 2024
4,923
2,212
7,135
At 31 October 2023
6,745
3,251
9,996
Company
Fixtures and fittings
Office equipment
Total
£
£
£
Cost
At 1 November 2023 and 31 October 2024
1,822
9,917
11,739
Depreciation and impairment
At 1 November 2023
1,276
6,666
7,942
Depreciation charged in the year
133
1,039
1,172
At 31 October 2024
1,409
7,705
9,114
Carrying amount
At 31 October 2024
413
2,212
2,625
At 31 October 2023
546
3,251
3,797
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
23
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 November 2023
2,700,000
-
Disposals
(395,000)
-
At 31 October 2024
2,305,000
-

Investment property comprises of six, two bedroom flats owned by De Hav House Limited. The fair value of the investment property has been arrived at on the basis of a valuation carried out in December 2022 by Chartered Surveyors who are not connected with the company. Management have deemed this assessment to remain appropriate at 31 October 2024. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

On 14 December 2023, the Company sold one of the flats, 70 Whittle Road, for £395,000, which is in line with the valuation.

 

After the year end, on 13 January 2025, the Company sold another one of the flats, 58 Whittle Avenue, for £380,000, which is in line with the valuation.

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
-
0
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
100
Carrying amount
At 31 October 2024
100
At 31 October 2023
100
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
24
13
Subsidiaries

Details of the Company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
shares held
% Held
Direct
De Hav House Limited
Suite 2, Clare Hall, St Ives Business Park, Parsons Green, St Ives, Cambridgeshire, PE27 4WY
Rental of properties
Ordinary
100
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
6,116,795
3,760,750
6,116,795
3,760,750
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,854
1,560
12,854
1,560
Amounts owed by group undertakings
-
-
873,200
1,073,200
Other debtors
132,014
132,414
131,514
132,414
Prepayments and accrued income
36,975
22,250
35,606
20,876
181,843
156,224
1,053,174
1,228,050

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
4,042,181
2,365,109
4,042,181
2,365,109
Trade creditors
39,721
50,760
38,473
50,550
Amounts owed to group undertakings
-
0
-
0
80,000
-
0
Corporation tax payable
145,720
31,808
127,964
31,808
Other taxation and social security
5,064
6,708
5,064
6,708
Other creditors
8,635
8,569
8,635
8,569
Accruals and deferred income
81,654
69,168
66,802
49,781
4,322,975
2,532,122
4,369,119
2,512,525
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
16
Creditors: amounts falling due within one year (continued)
25

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
1,131,300
1,371,300
-
0
-
0
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
5,173,481
3,736,409
4,042,181
2,365,109
Payable within one year
4,042,181
2,365,109
4,042,181
2,365,109
Payable after one year
1,131,300
1,371,300
-
0
-
0

Bank loans falling due within one year are in the form of a revolving loan facility and are secured by property held for resale. The loan attracts interest based on the aggregate of 5.25 percent and the applicable rate, equal to Bank of England base rate. Properties are funded individually until the earlier of sale completion or for a maximum of 12 months under the banking facility. Interest is charged on the amount drawn on a daily basis.

 

The bank term loan was issued in January 2018 and is due for repayment in full 60 months after issue. It is secured on investment properties and accrues interest at a variable rate equal to Bank of England base rate. On 10 January 2023, the banking facility attached to the investment properties was renewed for a period of 36 months.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the Group and Company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,449
1,242
Revaluations
29,640
39,000
Short term timing differences
-
(103)
31,089
40,139
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
19
Deferred taxation (continued)
26
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
592
1,242
Short term timing differences
-
(103)
592
1,139
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
40,139
1,139
Credit to profit or loss
(9,050)
(547)
Liability at 31 October 2024
31,089
592
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,212
3,441

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000,000
2,000,000
2,000,000
2,000,000

There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.

Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
27
22
Operating lease commitments
Lessee

At 31 October 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
51,285
51,285
51,285
51,285
Between two and five years
168,000
177,285
168,000
177,285
In over five years
42,000
84,000
42,000
84,000
261,285
312,570
261,285
312,570
23
Related party transactions
Transactions with related parties

During the year, the Company had a loan outstanding to Secure Home Purchase (2014) Limited, a company controlled by the same directors. At the year end £129,031 (2023: £129,031) was outstanding and included within other debtors.

 

In 2020, the Company provided a loan to De Hav House Limited, a wholly owned subsidiary. The Company received £200,000 loan repayments during the current year. At the current year end £873,200 (2023: £1,073,200) was outstanding and included within amounts owed by group undertakings.

 

Rent and service charges of £80,109 (2023: £53,896) was paid to Secure Home Purchase (2014) Limited during the year. There was no outstanding balance at the year end (2023: £Nil).

 

Consultancy fees totalling £14,250 (2023: £9.000) were paid to S 2 Coaching Limited, a company controlled by Sean King, during the financial year for Sean's services to the Company.

 

The freehold for De Havilland House is owned by Secure Home Purchase (2014) Limited.

24
Controlling party
In the opinion of the directors, there is no ultimate controlling party.
Secure Home Purchase (2015) Limited
Notes to the group financial statements (continued)
For the year ended 31 October 2024
28
25
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
433,771
105,326
Adjustments for:
Taxation charged
135,505
31,665
Finance costs
365,810
433,029
Loss on disposal of tangible fixed assets
810
-
Depreciation and impairment of tangible fixed assets
2,556
3,297
Movements in working capital:
(Increase)/decrease in stocks
(2,356,045)
1,967,453
(Increase)/decrease in debtors
(25,619)
27,415
Decrease in creditors
(131)
(39,216)
Cash (absorbed by)/generated from operations
(1,443,343)
2,528,969
26
Analysis of changes in net debt - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
1,136,880
(908,229)
228,651
Borrowings excluding overdrafts
(3,736,409)
(1,437,072)
(5,173,481)
(2,599,529)
(2,345,301)
(4,944,830)
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