Company registration number 12930998 (England and Wales)
KELLEN HOMES HOLDCO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
KELLEN HOMES HOLDCO LIMITED
COMPANY INFORMATION
Director
Mr D Whitaker
Company number
12930998
Registered office
105 Dalton Avenue
Birchwood Park
Warrington
WA3 6YF
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
KELLEN HOMES HOLDCO LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 32
KELLEN HOMES HOLDCO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The director presents the strategic report for the year ended 30 September 2024.

Review of the business

The past year has seen challenges remain in the housing market and the wider economic environment in general, however the business has successfully navigated the uncertainty through a strong order book built on relationships with our key Affordable Homes and BTR clients. This partnership led strategy has allowed for the business to deliver increased turnover and profitability with good execution by delivering on contracted sites during a period of low demand in the private sales market.

There continues to be a generational shortage of new homes in the UK. The Government’s agenda and focus on housebuilding through a reform of the planning system and the re-introduction of housing targets, will take some time to bear fruit, but does indicate a desire to accelerate the supply of new homes across multiple tenures. Recent Government focus and comment in regard to Regulators is also noteworthy, as these bodies have a significant impact on delivery of new homes, especially if they are refocused on economic growth as a performance metric.

Whilst the private sales market remains cautious, we have seen some increased momentum in the last few months as mortgage costs have stabilised and there is early evidence of competition amongst the major lenders for market share.

We can also see that BTR demand remains strong with the pace of lettings post-handover to our clients, especially in the suburban housing market particularly within the Greater Manchester region.

The business continues to exercise controlled growth on a year to year basis. We have the advantage of a robust future pipeline, strong customer base and additional new clients seeking to partner with Kellen for the delivery of mixed tenure housing and communities.

Consistent Government policy and stable financial markets are a pre requisite for most businesses to succeed. With these factors Kellen will strive to make a contribution to the national housing crisis, working with quality private and public partners to deliver an increasing number of quality mixed tenure, sustainable communities.

Transitioning land opportunities into developments is fundamental to our future financial and operational success. Kellen has the skill set , experience and resources to meet this challenge and believe we are well placed to contribute to the national agenda of delivering more quality, multi tenure, sustainable new homes throughout the North West.

Supply Chain

Key to delivery is the management of the supply chain and the ability to ensure a continuing supply of materials and a skilled labour force. The high level of visibility on our forward activity enables long term supply side relationships to support our increasing growth and business expansion. Our ability to offer greater security and continuity of work, together with a focus on meeting supplier trade payments on time, Health & Safety training for our subcontract partners and open communications, helps to negotiate competitive terms and builds supplier loyalty.

People

The success of the business is built on the foundations of our people and are conscious that we need to continue to attract and retain the best people to achieve our growth plans. Our headcount increased during the year by 43% to 80 employees (2023: 56) which included recruitment of 9 new apprentices. This supports our dedication to investing in young talent and giving them a platform and opportunity to develop the skills needed as they embark on a career that enhances an industry need. We are currently supporting 20% of our employees through training and development programmes, providing valuable skills and knowledge that will continue to support and achieve our growth plans.

The health and safety of our employees and all stakeholders on our sites remains a key priority. Through a continuous monitor of processes and procedures we identify those key risks that have the potential to impact on business operations, which provides for a well considered approach on maintaining a safe work environment for all. This strong promotion of our health and safety culture has led to the successful accreditation of the ISO 45001 quality management certification in the year, alongside being awarded the Safety Schemes in Procurement (SSIP) for Principal Contractor and Principal Designer.

KELLEN HOMES HOLDCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Results

The business continued to demonstrate the resilience of its Partnership model delivering strong growth in revenue and profit.

Revenue in the year increased 143.6% to £101.6m (2023: £41.7m) reflecting strong operational performance for pre-sold equivalent housing units with our Housing Association (HA) and Build to Rent (BTR) clients. Private for sale completions delivered 17 new homes following a successful launch of the development at Mill Vale, Middleton (16 unit completions) and the sale of the last remaining home at Vernon Gardens, Oldham.

Profit before taxation of £17.8m (2023: £1.5m) giving margin of 17.5% (2023: 3.6%) which further demonstrates the ability to navigate exposure on its cost base and reported margins on each of its projects.

Key Performance Indicators

 

12 Months to Sept 2024

12 Months to Sept 2023

Turnover (£’000)

101,582

41,745

Gross Profit (£’000)

18,409

6,302

Gross Profit %

18.12%

15.10%

Net Profit/(loss) (£’000)

14,296

1,489

Net Profit %

14.07%

3.57%

Principal Risks and Uncertainties

The Board of Directors oversee risk management across the business that determines the risk policy, it’s overall appetite for risk and the procedures that are put in place to manage the identified risks. The key principal risks which the Group faces are:

Through a robust and regular management review, the business monitors and encompasses mitigating actions to ensure that risk appetite is managed consistently by the Directors. Risk management remains inherent in all operations and is given prominent place through the project review process in place, monthly health and safety committee meetings and weekly site visits by the senior team.

KELLEN HOMES HOLDCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Promoting the success of the company

The Directors of the company confirm that during the year ended 30 September 2024 they have acted to promote the long-term success of the Company for the benefit of the members as a whole (having regard to the stakeholders and matters set out in s172 (1)(a-f) of the Companies Act 2006).

This statement sets out how the Directors have considered the following matters:

On behalf of the board

Mr D Whitaker
Director
17 February 2025
KELLEN HOMES HOLDCO LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

The director presents his annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company and group continued to be that of a holding company.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

Mr D Whitaker
Auditor

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

Energy and carbon report

This financial year is the first streamlined energy and carbon report, covering the 12 months to 30 September 2024.

Quantification and reporting methodology

The figures set out are in accordance with the Greenhouse Gas (GHG) protocol including Streamlined Energy and Carbon Reporting guidelines. The latest published UK Government Conversion factors have been used for all calculations.

We have identified the relevant emission sources which we are required to report under SECR requirements:

Scope 1 – Direct Emissions – Gas Combustion:

The quantity of energy consumed resulting from the purchase of gas across the business, with consumption encompassing both our office and development sites. We have calculated the quantity of gas consumed by analysing our expenditure with our utility providers and apply an average unit price in the period.

Scope 1 – Direct Emissions – Transport:

Calculated as the quantity of fuel purchased for our owned customer care van. Volume of fuel purchased as analysed from fuel card reports.

Scope 2 – Indirect Emissions – Electricity:

Calculated as the quantity of energy consumed resulting from the purchase of electricity across the business. Our electricity consumption encompasses both our development sites and office. We have calculated the quantity of gas consumed by analysing our expenditure with our utility providers and apply an average unit price in the period.

Scope 3 – Other Indirect Emissions – Transport:

We have calculated the quantity of energy consumed by our employees in their personal cars on business. Mileage claims have been collated during the period and applied the government issued conversion factors to determine our emissions and energy use.

KELLEN HOMES HOLDCO LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -

 

Scope

GHG Emissions (tCo2e)

Energy Consumption (kWh)

Combustion of Gas at premises

1

183

744,414

Consumption of fuel for transport

1

2

7,873

Purchased Electricity

2

16

78,525

Sub total

 

201

830,813

Consumption of fuel for transport

3

84

346,376

Totals

 

285

1,177,188

 

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m of revenue, the recommended ratio for the sector.

 

 

2024

tCo2 per £1m revenue

2.7

 

Measures taken to improve energy efficiency

Kellen Homes are actively identifying environmental opportunities, working positively towards our energy efficiency and minimising risk.

This encompasses prioritising energy efficient homes through a ‘fabric first approach’ to minmise heat loss and improve airtightness in all of our homes, thus reducing energy costs for homeowners and provide a comfortable living environment all year round.

Working closely with build technology partners to create more eco-friendly housing, we are exploring ways to provide renewable technology such as Solar PV, Airsource heat pumps and waste water heat recovery to name a few into our homes as standard, all of which will significantly reduce carbon and lower running costs of our homes.

Our commitment to providing homes that contribute towards energy efficiency aligns with the Future Homes Standard that addresses environmental concerns and paves the way for reducing carbon emissions in all new homes.

Throughout the forever changing outlook on energy consumption, we also continually look to drive down emissions and develop more efficient means of operating and improving on our quality culture. More specifically and not limited to:

KELLEN HOMES HOLDCO LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

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 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 company is aware of that information.

On behalf of the board
Mr D Whitaker
Director
17 February 2025
KELLEN HOMES HOLDCO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KELLEN HOMES HOLDCO LIMITED
- 7 -
Opinion

We have audited the financial statements of Kellen Homes Holdco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 director's 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 director 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 other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KELLEN HOMES HOLDCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELLEN HOMES HOLDCO LIMITED
- 8 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the Directors (as required by auditing standards) and discussed with the Directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; laws related to Health and Safety, Employment, UK Companies Act, Pension Legislation, Tax Legislation and Construction Regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

KELLEN HOMES HOLDCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELLEN HOMES HOLDCO LIMITED
- 9 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outline below to detect material misstatement due to fraud:

 

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.

Use of our report

This report is made solely to the 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 company’s members those matters we are required to state to them 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Stead (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
17 February 2025
Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
KELLEN HOMES HOLDCO LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
101,581,556
41,744,569
Cost of sales
(83,173,015)
(35,442,760)
Gross profit
18,408,541
6,301,809
Administrative expenses
(4,216,289)
(4,593,550)
Other operating income
5,089,311
1,089,989
Operating profit
4
19,281,563
2,798,248
Interest payable and similar expenses
7
(1,520,690)
(1,309,345)
Profit before taxation
17,760,873
1,488,903
Tax on profit
8
(3,464,963)
-
0
Profit for the financial year
14,295,910
1,488,903
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
KELLEN HOMES HOLDCO LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
53,556
94,022
Tangible assets
10
53,638
89,509
107,194
183,531
Current assets
Stocks
13
22,473,897
18,845,766
Debtors
14
23,853,742
6,500,213
Cash at bank and in hand
5,292,762
950,526
51,620,401
26,296,505
Creditors: amounts falling due within one year
15
(34,024,854)
(22,362,334)
Net current assets
17,595,547
3,934,171
Total assets less current liabilities
17,702,741
4,117,702
Creditors: amounts falling due after more than one year
16
(6,640,254)
(7,351,125)
Net assets/(liabilities)
11,062,487
(3,233,423)
Capital and reserves
Called up share capital
20
20
20
Share premium account
43,621
43,621
Profit and loss reserves
11,018,842
(3,277,068)
Equity attributable to owners of the parent company
11,062,483
(3,233,427)
Non-controlling interests
4
4
Total equity
11,062,487
(3,233,423)
The financial statements were approved and signed by the director and authorised for issue on 17 February 2025
17 February 2025
Mr D Whitaker
Director
Company registration number 12930998 (England and Wales)
KELLEN HOMES HOLDCO LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
41
41
Current assets
Debtors
14
19,376,968
15,689,712
Cash at bank and in hand
254
254
19,377,222
15,689,966
Creditors: amounts falling due within one year
15
(19,379,815)
(15,691,733)
Net current liabilities
(2,593)
(1,767)
Net liabilities
(2,552)
(1,726)
Capital and reserves
Called up share capital
20
20
20
Profit and loss reserves
(2,572)
(1,746)
Total equity
(2,552)
(1,726)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £826 (2023 - £620 loss).

The financial statements were approved and signed by the director and authorised for issue on 17 February 2025
17 February 2025
Mr D Whitaker
Director
Company registration number 12930998 (England and Wales)
KELLEN HOMES HOLDCO LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 October 2022
20
43,621
(4,765,971)
(4,722,330)
4
(4,722,326)
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
1,488,903
1,488,903
-
1,488,903
Balance at 30 September 2023
20
43,621
(3,277,068)
(3,233,427)
4
(3,233,423)
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
14,295,910
14,295,910
-
14,295,910
Balance at 30 September 2024
20
43,621
11,018,842
11,062,483
4
11,062,487
KELLEN HOMES HOLDCO LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
20
(1,126)
(1,106)
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
(620)
(620)
Balance at 30 September 2023
20
(1,746)
(1,726)
Year ended 30 September 2024:
Profit and total comprehensive income
-
(826)
(826)
Balance at 30 September 2024
20
(2,572)
(2,552)
KELLEN HOMES HOLDCO LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
6,707,786
2,386,448
Interest paid
(1,520,690)
(1,309,345)
Income taxes paid
(3,128,571)
-
0
Net cash inflow from operating activities
2,058,525
1,077,103
Investing activities
Purchase of intangible assets
-
(25,548)
Purchase of tangible fixed assets
(5,418)
(37,003)
Net cash used in investing activities
(5,418)
(62,551)
Financing activities
Proceeds from borrowings
14,000,000
2,000,000
Repayment of borrowings
(11,710,871)
(4,839,941)
Net cash generated from/(used in) financing activities
2,289,129
(2,839,941)
Net increase/(decrease) in cash and cash equivalents
4,342,236
(1,825,389)
Cash and cash equivalents at beginning of year
950,526
2,775,915
Cash and cash equivalents at end of year
5,292,762
950,526
KELLEN HOMES HOLDCO LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(3,000,000)
7,499,880
Interest paid
(688,082)
(889,603)
Net cash (outflow)/inflow from operating activities
(3,688,082)
6,610,277
Investing activities
Interest received
688,082
889,603
Net cash generated from investing activities
688,082
889,603
Financing activities
Proceeds from borrowings
14,000,000
2,000,000
Repayment of borrowings
(11,000,000)
(9,500,000)
Net cash generated from/(used in) financing activities
3,000,000
(7,500,000)
Net decrease in cash and cash equivalents
-
(120)
Cash and cash equivalents at beginning of year
254
374
Cash and cash equivalents at end of year
254
254
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
1
Accounting policies
Company information

Kellen Homes Holdco Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 105 Dalton Avenue, Birchwood Park, Warrington, WA3 6YF.

 

The group consists of Kellen Homes Holdco Limited and all of its subsidiaries.

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. The principal account policies adopted are set out below.

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 Kellen Homes Holdco 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 30 September 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Private housing revenue

Revenue is recognised on the sale of private housing at a point in time on legal completion, as this is when the customer obtains control of the property and the Company has fulfilled its performance obligations.

 

Affordable housing and private rental section (PRS) revenue

Contract revenue for affordable housing and PRS contracts is recognised over time, by reference to the stage of completion of contract activity at the balance sheet date. This is normally measured by surveys of work performed to date. Where there is a disposal of land to the customer under the contract, revenue for this disposal is recognised in line with the accounting policy for land sales below.

 

Where the company provides design, contruction, and mobilisation activities on a development across multiple units simultaneously, this is considered to represent one performance obligation. Where these services are provided across multiple development sites, each site is considered to represent a distinct performance obligation.

 

Bare land sales

Revenue is recognised on bare land sales from the point of control passing to the buyer. Where the Company has significant obligations to perform under the terms of the contract, revenue is recognised when the obligations are performed.

 

Other revenue

Any other revenue is only recognised at the point that the Group has fulfilled their obligations under the contract.

 

Government grant income

Government grants are recognised once the Company has reasonable assurance that the related conditions of the grant will be met and that the grant will be received. Government grant income is recorded within other operating income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Accounting software
straight line over 5 years
Development costs
straight line over 3 years
1.7
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.

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:

Plant & Machinery
Straight line over 3 years
Fixtures and fittings
Straight line over 5 years
Computers
Straight line over 3 years
Motor vehicles
Straight line over 3 years

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 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.

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

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

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

1.12
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 balance sheet 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
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 group 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.

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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
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.

1.14
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.17
Government grants

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

 

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimation of stage of completion for construction contracts

The company recognises revenue and profit based on the stage of completion. In doing so, management must make certain estimations. The management review all contracts on a monthly basis and assess financial and operational performance versus budget as well as physically inspecting the work to corroborate the stage of completion.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
PRS Revenue
81,930,963
13,799,831
Affordable Housing Revenue
2,811,963
4,538,961
Bare Land Sales
11,222,000
12,500,000
Open Market Revenue
5,616,630
10,905,777
101,581,556
41,744,569
2024
2023
£
£
Other revenue
Grants received
4,957,911
1,015,034
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(4,957,911)
(1,015,034)
Depreciation of owned tangible fixed assets
41,289
36,951
Amortisation of intangible assets
40,466
40,999
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
-
-
Audit of the financial statements of the company's subsidiaries
34,200
27,000
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
Directors
1
1
-
-
Senior Management
6
6
-
-
Administrative
35
29
-
-
Operational
29
13
-
-
Total
71
49
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,095,123
4,404,734
-
0
-
0
Social security costs
566,823
440,910
-
-
Pension costs
138,847
109,513
-
0
-
0
6,800,793
4,955,157
-
0
-
0

The director remuneration of Kellen Homes Holdco Limited was nil (2023: Nil).

KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
1,520,690
1,309,345
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,464,963
-
0

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
17,760,873
1,488,903
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
4,440,218
372,226
Tax effect of expenses that are not deductible in determining taxable profit
13,752
232,086
Tax effect of utilisation of tax losses not previously recognised
(987,773)
-
0
Unutilised tax losses carried forward
207
34
Group relief
(1,441)
(603,984)
-
0
(362)
Taxation charge
3,464,963
-
9
Intangible fixed assets
Group
Accounting software
Development costs
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
102,600
66,018
168,618
Amortisation and impairment
At 1 October 2023
41,772
32,824
74,596
Amortisation charged for the year
20,520
19,946
40,466
At 30 September 2024
62,292
52,770
115,062
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 30 September 2024
40,308
13,248
53,556
At 30 September 2023
60,828
33,194
94,022
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.

More information on impairment movements in the year is given in note .

10
Tangible fixed assets
Group
Plant & Machinery
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
3,200
110,320
33,569
29,588
176,677
Additions
-
0
-
0
5,418
-
0
5,418
At 30 September 2024
3,200
110,320
38,987
29,588
182,095
Depreciation and impairment
At 1 October 2023
1,689
60,148
21,222
4,109
87,168
Depreciation charged in the year
1,067
21,671
8,688
9,863
41,289
At 30 September 2024
2,756
81,819
29,910
13,972
128,457
Carrying amount
At 30 September 2024
444
28,501
9,077
15,616
53,638
At 30 September 2023
1,511
50,172
12,347
25,479
89,509
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
41
41
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
41
Carrying amount
At 30 September 2024
41
At 30 September 2023
41
12
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Kellen Homes Limited
1
Buying and selling of own real estate
Ordinary
100.00
Kellen Partnerships Limited
1
Buying and selling of own real estate
Ordinary
100.00
Kellen Homes (GM) Limited
1
Buying and selling of own real estate
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
1st Floor, 103 Dalton Avenue, Birchwood Park, Warrington, WA36YF
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
22,473,897
18,845,766
-
-
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
17,693,104
5,341,072
-
0
-
0
Unpaid share capital
20
20
20
20
Amounts owed by group undertakings
-
-
19,376,948
15,689,692
Other debtors
1,282,495
85,221
-
0
-
0
Prepayments and accrued income
4,195,097
190,278
-
0
-
0
23,170,716
5,616,591
19,376,968
15,689,712
Amounts falling due after more than one year:
Trade debtors
683,026
883,622
-
0
-
0
Total debtors
23,853,742
6,500,213
19,376,968
15,689,712
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
17
17,000,000
14,000,000
17,000,000
14,000,000
Trade creditors
7,838,437
3,353,674
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
20
20
Corporation tax payable
336,392
-
0
-
0
-
0
Other taxation and social security
218,103
210,817
-
-
Deferred income
18
2,560,354
2,094,966
-
0
-
0
Other creditors
1,545,815
28,201
-
0
-
0
Accruals and deferred income
4,525,753
2,674,676
2,379,795
1,691,713
34,024,854
22,362,334
19,379,815
15,691,733
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
17
6,640,254
7,351,125
-
0
-
0
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
23,640,254
21,351,125
17,000,000
14,000,000
Payable within one year
17,000,000
14,000,000
17,000,000
14,000,000
Payable after one year
6,640,254
7,351,125
-
0
-
0

The long term loan of £6,640,254 (2023: £7,351,125) is secured by a fixed and floating charge over the property or undertaking of Kellen Homes (GM) Limited and Kellen Homes Holdco Limited.

18
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
1,112,111
2,094,966
-
-
Other deferred income
1,448,243
-
-
-
2,560,354
2,094,966
-
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
138,847
109,513

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.

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
20
20
20
20
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
21
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
152,934
66,790
-
-
Between two and five years
722,933
89,772
-
-
875,867
156,562
-
-
22
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102 Section 33, not to disclose transactions entered into between two or more members of a group, where any subsidiary party to the transaction is wholly owned.

 

Included within other borrowings falling due within one year is an amount of £17,000,000 (2023: £14,000,000) due to QMS (NW) Limited, a company under the same common control as the reporting entity. During the year interest totaling £688,082 (2023: £889,603) was charged on the loan. As at 30 September 2024 a total of £2,379,795 (2023: £1,691,713) of interest was included within accruals.

23
Controlling party

The ultimate controlling party is Mr Daren Whitaker by virtue of his 100% shareholding in the reporting entity.

24
Cash generated from group operations
2024
2023
£
£
Profit after taxation
14,295,910
1,488,903
Adjustments for:
Taxation charged
3,464,963
-
0
Finance costs
1,520,690
1,309,345
Amortisation and impairment of intangible assets
40,466
40,999
Depreciation and impairment of tangible fixed assets
41,289
36,951
Movements in working capital:
Increase in stocks
(3,628,131)
(2,514,317)
Increase in debtors
(17,353,529)
(3,066,127)
Increase in creditors
7,860,740
2,995,728
Increase in deferred income
465,388
2,094,966
Cash generated from operations
6,707,786
2,386,448
KELLEN HOMES HOLDCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
25
Cash (absorbed by)/generated from operations - company
2024
2023
£
£
Loss after taxation
(826)
(620)
Adjustments for:
Finance costs
688,082
889,603
Investment income
(688,082)
(889,603)
Movements in working capital:
(Increase)/decrease in debtors
(3,687,256)
6,612,418
Increase in creditors
688,082
888,082
Cash (absorbed by)/generated from operations
(3,000,000)
7,499,880
26
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
950,526
4,342,236
5,292,762
Borrowings excluding overdrafts
(21,351,125)
(2,289,129)
(23,640,254)
(20,400,599)
2,053,107
(18,347,492)
27
Analysis of changes in net debt - company
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
254
-
254
Borrowings excluding overdrafts
(14,000,000)
(3,000,000)
(17,000,000)
(13,999,746)
(3,000,000)
(16,999,746)
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