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Company Registration Number 04377164























HARRON GROUP LIMITED





FINANCIAL STATEMENTS





 31 DECEMBER 2024


























img2cfd.png

 
HARRON GROUP LIMITED
 

COMPANY INFORMATION


Directors
Mr P A Harrison 
Mr S T Harrison 




Company secretary
Mr P Hayes



Registered number
04377164



Registered office
Ground Floor
3 Colton Mill

Bullerthorpe Lane

Leeds

LS15 9JN




Independent auditor
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditor

Third Floor

10 South Parade

Leeds

West Yorkshire

LS1 5QS




Bankers
Santander UK plc
58-60 Briggate

Leeds

LS1 6AS




Solicitors
Knights plc
Majestic

City Square

Leeds

LS1 2EF





 
HARRON GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 6
Independent Auditor's Report
 
7 - 10
Consolidated Statement of Comprehensive Income
 
11
Consolidated Balance Sheet
 
12
Company Balance Sheet
 
13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16
Notes to the Financial Statements
 
17 - 37


 
HARRON GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors present their report and the financial statements for the year ended 31 December 2024.

Business review
 
Harron Group Limited has had a satisfactory year of business operations during the year ended 31 December 2024. Turnover has decreased to £160,854,000 (2023: decreased to £162,853,000). Profit before tax has decreased to £7,529,000 (2023: decreased to £25,068,000). The decreases in both turnover and profit are due to the number of homes being sold decreasing, due to the continued slowdown in the UK housing market, cost price increases and higher sales incentive levels.
Customer demand remained flat throughout 2024, however, we have seen an improvement in sales rates since the start of 2025, and we are monitoring the progress of the sales market carefully.
During the year, Harron Homes successfully acquired several high-quality new sites within the Group’s areas of operations. These new sites ensure the continued future delivery of much-needed new homes to our customers.

Principal risks and uncertainties
 
The following are considered to be the principal risks and uncertainties affecting the Group: 
 
Changes in the general economic climate, which could adversely impact the UK housing market;
Shifts in customer demand, requiring new product development or changes to existing products and scheme design criteria;
Sourcing sufficient new parcels of high quality land for future development;
Obtaining planning permission for new developments, in accordance with scheme appraisals and in a timely manner;
Recruiting enough skilled, qualified and experienced people to support the Group's growth;
Maintaining and improving quality and customer service standards as the Group's number of active developments increases;
Securing and maintaining committed borrowing facilities for the business on a long-term basis; and
Expanding the supply chain, whilst maintaining quality and controlling costs.

The Board and management constantly monitor these risks and uncertainties and develop strategies to ensure that the business is able to respond swiftly and effectively to these and any other challenges as they arise.

Financial key performance indicators
 
Turnover for the year ended 31 December 2024 was £160,854,000 (2023: £162,853,000). Gross profit was £19,855,000 (2023: £38,456,000). Profit before tax was £7,529,000 (2023: £25,068,000).

Page 1

 
HARRON GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial risk management
The Group's activities expose it to a number of financial risks, including liquidity risk and market risk. 
Liquidity risk 
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a mixture of long-term and short-term debt finance, which are made available to the Group through its Group banking facility (see note 2.3 to the Financial Statements). The Group has agreed set interest rates in place within its banking facilities, linked to bank base rate.
Market risk 
A downturn in the UK housing market could have various impacts on the business, including downward pressure on sales prices and volumes and consequently on profit margins.
Management constantly monitor economic indicators in the economy as a whole, as well as detailed, up to date information on the current sales performance of the business. A range of forecasts of various sensitivities are prepared to assess the impact of various economic scenarios on the business and to ensure that at all times it is able to withstand the effects of any downturn. Mitigating measures available include restricting investment in land, slowing down construction and reducing the overhead base. 


This report was approved by the board and signed on its behalf.





................................................
Mr P A Harrison
Director
Date: 17 April 2025

Page 2

 
HARRON GROUP LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Principal activity

The principal activity of the Company is to act as a holding company for its subsidaries, whose principal activity is house building under the Harron Homes brand.
There have been no significant changes to the Group's principal activity in the year under review. The directors are not aware, at the date of this report, of any likely major changes in the Company's activities in the next year.

Results and dividends

The profit for the year, after taxation, amounted to £5,587,000 (2023: £19,484,000).

Dividends of £4,259,000 have been paid in the year (2023: £7,689,000).

Directors

The directors who served during the year were:

Mr P A Harrison 
Mr S T Harrison 

Future developments

The Directors intend to continue the ongoing operations of the current business model.

Page 3

 
HARRON GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

Overview
Harron Group Limited is the holding company of a group that build new homes across Yorkshire and the North Midlands regions of the UK. Business activities which lead to the consumption of fuel are primarily the building of the houses, the transportation of materials to site, the running of the sites machinery and the requirement to provide facilities on the sites. In addition to the site activities, the business has 2 regional offices and a head office that require the consumption of fuel to heat and provide power to the premises.

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Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2024 UK Government's Conversion Factors for Company Reporting.
 
Measurements taken to improve energy efficiency
Harron Group continue to strive for energy and carbon reduction arising from their activities. However, no energy efficiency actions were recorded during this reporting period.

Materiality
Harron Group Limited are reporting upon all the required fuel sources as per SECR requirements. Due to missing electricity bills for several temporary electricity supplies in 2024, we have used the 2023 consumption figures for these sites as an estimate to ensure the reported data more accurately reflects actual usage. Any estimations used within this report are detailed within the evidence pack.
Preparation of the report
This report has been prepared for Harron Group Limited by an independent, external energy consultant.

Page 4

 
HARRON GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Going concern

The Company and the Group meet their day to day working capital requirements through a Group banking facility, which is next due to be reviewed on 28 March 2027. The directors have prepared forecasts up to the year ending 31 December 2026 which take into account reasonable possible changes in trading. 
A range of sensitivities and scenarios have been considered and modelled against the current banking facilities that are currently in place.
Current company trading forecasts and cashflow modelling indicated that for the period of more than 12 months from the date of signing of the accounts the directors are completely satisfied and confident that the business has adequate resources to continue to trade beyond this period and thus the business is able to continue to adopt the going concern basis in preparation of the director report and the financial statements.
The directors have also considered the potential effects of current market conditions, based upon the latest available information, and do not consider that it will have a significant impact on the Company's or Group's ability to operate as a going concern.

Statement by the directors in performance of their statutory duties in accordance with section
 172 of the Companies Act 2006

Under s172 of the Companies Act 2006 directors of UK companies have a duty to promote the success of their Company for the benefit of the members as a whole and, in doing so, have regard to:
a. the likely consequences of any decision in the long term;
b. the interests of the Company's employees; 
c. the need to foster the Company's business relationships with suppliers, customers and others;
d. the impact of the Company's operations on the community and the environment;
e. the desirability of the Company maintaining a reputation for high standards of business conduct; and
f. the need to act fairly between members of the company.
The directors of Harron Group Limited consider the following areas to be of key importance in its fulfilment of this duty:

carrying out detailed planning and forecasting to ensure the ongoing financial safety of the business;
seeking opportunities, by finding new locations to buy land and build new homes, to grow the business for the benefit of current and future employees, customers and suppliers as well as the wider UK economy;
maintaining the highest standards of integrity and honesty in the Company's dealings with employees, suppliers, the general public and local and national government;
prioritising the maintenance of the highest standards of health and safety and environmental protection through investment in training, equipment, monitoring and external support;
working to constantly maintain and improve the quality of the homes that we build, and providing the best possible aftersales support to our customers; and
listening to feedback from customers in order to identify scope for improvement and to drive to achieve the highest possible reputation for the quality of our designs, standards of construction and customer care.

The results of the measures that we have taken in these areas can be seen in: our positive financial results, the increased strength of our Balance Sheet and land bank, our excellent health and safety and environmental records, and our improving quality ratings as measured by independent surveys.

Supplier payment policy

Supplier payment policy is to settle terms of payment with suppliers when agreeing the terms of each transaction, ensure that suppliers are made aware of the terms of payment and abide by the terms of payment. Trade creditors of the Group at 31 December 2024 were equivalent to 55 (2023: 52) days purchase, based on the average daily amount invoiced by suppliers during the year.

Page 5

 
HARRON GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Employee involvement

The Group's policy is to keep employees informed on matters relevant to them as employees through regular meetings. All employees have access to some form of pension scheme.

Disabled employees

The Group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Group's policy, wherever practical, to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

Qualifying third party indemnity provisions

During the financial year, a qualifying third party indemnity provision for the benefit of the directors was in force.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

The auditor, Armstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Mr P A Harrison
Director
Date: 17 April 2025

Page 6

 
HARRON GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARRON GROUP LIMITED
 

Opinion


We have audited the financial statements of Harron Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the 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.


Page 7

 
HARRON GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARRON GROUP LIMITED (CONTINUED)


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 directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
HARRON GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARRON GROUP LIMITED (CONTINUED)


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

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and knowledge of the Group and Parent Company to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Group and the Parent Company through discussions with the directors and other management and review of appropriate industry knowledge.  Key laws and regulations we identified during the audit were the UK Companies Act 2006, UK tax legislation, Health and Safety legislation and employment law;
we assessed the extent of compliance with the laws and regulations identified above by making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Group and the Parent Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
tested journal entries recorded on the Group and the Parent Company’s finance system to identify unusual transactions that may indicate override of controls;
reviewed key judgements and estimates for any evidence of management bias; and
reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.

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

agreeing financial statement disclosures to underlying supporting documentation; and
enquiring of management to identify actual and potential litigation and claims.

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


Page 9

 
HARRON GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARRON GROUP LIMITED (CONTINUED)


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


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 2006Our 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.





Steven Preston (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditor
Leeds

17 April 2025
Page 10

 
HARRON GROUP LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
160,854
162,853

Cost of sales
  
(140,999)
(124,397)

Gross profit
  
19,855
38,456

Administrative expenses
  
(10,846)
(11,941)

Other operating income
 5 
149
-

Operating profit
 6 
9,158
26,515

Interest receivable and similar income
 10 
135
104

Interest payable and similar expenses
 11 
(1,764)
(1,551)

Profit before taxation
  
7,529
25,068

Tax on profit
 12 
(1,942)
(5,584)

Profit for the financial year
  
5,587
19,484

Profit for the year attributable to:
  

Owners of the parent Company
  
5,587
19,484

  
5,587
19,484

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 17 to 37 form part of these financial statements.

Page 11

 
HARRON GROUP LIMITED
REGISTERED NUMBER: 04377164

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 14 
68
103

Tangible assets
 15 
560
799

  
628
902

Current assets
  

Stocks
 17 
184,243
202,908

Debtors
 18 
2,820
4,234

Cash at bank and in hand
 19 
14,074
3,886

  
201,137
211,028

Creditors: amounts falling due within one year
 20 
(31,757)
(47,650)

Net current assets
  
 
 
169,380
 
 
163,378

Total assets less current liabilities
  
170,008
164,280

Creditors: amounts falling due after more than one year
 21 
(4,400)
-

  

Net assets
  
165,608
164,280


Capital and reserves
  

Called up share capital 
 24 
202
202

Capital redemption reserve
 25 
51
51

Profit and loss account
 25 
165,355
164,027

Equity attributable to owners of the parent Company
  
165,608
164,280


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr P A Harrison
Director
Date: 17 April 2025

The notes on pages 17 to 37 form part of these financial statements.

Page 12

 
HARRON GROUP LIMITED
REGISTERED NUMBER: 04377164

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 14 
399
412

Investments
 16 
251
251

  
650
663

Current assets
  

Debtors
 18 
182
502

Cash at bank and in hand
 19 
14
8

  
196
510

Creditors: amounts falling due within one year
 20 
(519)
(836)

Net current liabilities
  
 
 
(323)
 
 
(326)

Total assets less current liabilities
  
327
337

  

  

Net assets
  
327
337


Capital and reserves
  

Called up share capital 
 24 
202
202

Capital redemption reserve
 25 
51
51

Profit and loss account brought forward
  
84
93

Profit for the year
  
4,249
7,680

Other changes in the profit and loss account

  

(4,259)
(7,689)

Profit and loss account carried forward
  
74
84

  
327
337


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr P A Harrison
Director
Date: 17 April 2025

The notes on pages 17 to 37 form part of these financial statements.

Page 13

 
HARRON GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2023
202
51
152,232
152,485


Comprehensive income for the year

Profit for the year
-
-
19,484
19,484
Total comprehensive income for the year
-
-
19,484
19,484

Dividends: Equity capital
-
-
(7,689)
(7,689)


Total transactions with owners
-
-
(7,689)
(7,689)



At 1 January 2024
202
51
164,027
164,280


Comprehensive income for the year

Profit for the year
-
-
5,587
5,587
Total comprehensive income for the year
-
-
5,587
5,587

Dividends: Equity capital
-
-
(4,259)
(4,259)


Total transactions with owners
-
-
(4,259)
(4,259)


At 31 December 2024
202
51
165,355
165,608


The notes on pages 17 to 37 form part of these financial statements.

Page 14

 
HARRON GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2023
202
51
93
346


Comprehensive income for the year

Profit for the year
-
-
7,680
7,680
Total comprehensive income for the year
-
-
7,680
7,680

Dividends: Equity capital
-
-
(7,689)
(7,689)


Total transactions with owners
-
-
(7,689)
(7,689)



At 1 January 2024
202
51
84
337


Comprehensive income for the year

Profit for the year
-
-
4,249
4,249
Total comprehensive income for the year
-
-
4,249
4,249

Dividends: Equity capital
-
-
(4,259)
(4,259)


Total transactions with owners
-
-
(4,259)
(4,259)


At 31 December 2024
202
51
74
327


The notes on pages 17 to 37 form part of these financial statements.

Page 15

 
HARRON GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£000
£000

Cash flows from operating activities

Profit for the financial year
5,587
19,484

Adjustments for:

Amortisation of intangible assets
44
31

Depreciation of tangible assets
310
157

Loss on disposal of tangible assets
5
1

Interest paid
1,764
1,551

Interest received
(135)
(104)

Taxation charge
1,942
5,583

Decrease/(increase) in stocks
18,664
(7,250)

Decrease in debtors
1,729
5,047

Increase/(decrease) in creditors
7
(32,348)

Corporation tax (paid)
(2,257)
(1,805)

Net cash generated from operating activities

27,660
(9,653)


Cash flows from investing activities

Purchase of intangible fixed assets
(9)
(29)

Purchase of tangible fixed assets
(75)
(545)

Sale of tangible fixed assets
-
240

Interest received
135
104

Net cash from investing activities

51
(230)

Cash flows from financing activities

Repayment of loans
(11,500)
11,500

Dividends paid
(4,259)
(6,878)

Interest paid
(1,764)
(1,551)

Net cash used in financing activities
(17,523)
3,071

Net increase/(decrease) in cash and cash equivalents
10,188
(6,812)

Cash and cash equivalents at beginning of year
3,886
10,698

Cash and cash equivalents at the end of year
14,074
3,886


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
14,074
3,886

14,074
3,886


Page 16

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Harron Group Limited is a private company limited by shares & incorporated in England and Wales. Its registered head office is located at Ground Floor, 3 Colton Mill, Bullerthorpe Lane, Leeds, LS15 9JN.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The presentation and functional currency is the British Pound Sterling (£).

 
2.2

Basis of consolidation

The consolidated financial statements present the results of Harron Group Limited and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

 
2.3

Going concern

The Company and the Group meet their day to day working capital requirements through a Group banking facility, which is next due to be reviewed on 28 March 2027. The directors have prepared forecasts up to the year ending 31 December 2026 which take into account reasonable possible changes in trading. 
A range of sensitivities and scenarios have been considered and modelled against the current banking facilities that are currently in place.
Current company trading forecasts and cashflow modelling indicated that for the period of more than 12 months from the date of signing of the accounts the directors are completely satisfied and confident that the business has adequate resources to continue to trade beyond this period and thus the business is able to continue to adopt the going concern basis in preparation of the director report and the financial statements.
The directors have also considered the potential effects of current market conditions, based upon the latest available information, and do not consider that it will have a significant impact on the Company's or Group's ability to operate as a going concern.

Page 17

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Turnover comprises revenue recognised by the Group in respect of goods supplied during the year from house building activities, including customer extras, exclusive of Value Added Tax and after sales discounts.
Turnover from house building activities is recognised upon legal completion of each sale. Turnover includes the gain or loss arising on the disposal of part-exchange properties, which is calculated as the difference between the cost of the part-exchange property and its net realisable value. Deposits received in advance from customers are deferred until legal completion of each sale. 

 
2.5

Finance leases and hire purchase

Assets obtained under hire purchase contract and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and Loss Account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 18

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Company Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Software

25% per annum straight line
Goodwill

2.5 % per annum straight line

Page 19

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.

Depreciation is provided on the following basis:

Plant and machinery

25% per annum straight line
Motor vehicles

25% per annum reducing balance
Office equipment

25% per annum straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stock includes work in progress and part-exchange properties held for sale.
Work in progress balances represent costs incurred on specific developments, net of amounts transferred to cost of sales.
Profit on legally completed sales is only recognised when the outcome of the whole development can be assessed with reasonable certainty.

  
2.15

Part-exchange properties

Part-exchange properties are stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling prices less all further costs to completion and all relevant marketing and selling costs.

  
2.16

Shared equity debtors

Shared equity debtors consist of loans made to customers which are secured by second charges over the properties sold to them. The loans are recorded at fair value, being the amount receivable by the Company discounted to present day values. The difference between the nominal amount and the fair value is credited over the deferred term to the Consolidated Profit and Loss Account, with the debtor increasing to its full expected cash settlement value on the anticipated receipt date. Credit risk is accounted for in determining fair values and appropriate discount factors are applied.

Page 20

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.17

Trade and other debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

Financial assets and liabilities are offset, with 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Page 21

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 22

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires the directors to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include the carrying value of work in progress and the valuation and recoverability of debts.
The assessment of the carrying value of work in progress relies upon calculations of the cost of sales of each development which are based on detailed forecasts of expected remaining revenues and scheme costs. Such forecasts require judgements to be made, on a development by development basis, about the anticipated revenues on unreserved plots. These judgements are based upon sales experience to date combined with an assessment of market conditions as at the measurement date. Judgements are also required of remaining expenditure on each development. These are based upon an expert knowledge of the current state of completion of each development together with a detailed understanding of the specific outstanding costs to be expended. These judgements together may have a material impact on the carrying value of work in progress balances in the Balance Sheet and the amount charged to the Profit and Loss Account as cost of sales in each accounting period. The carrying value of work in progress in Harron Group Limited as at 31 December 2024 was £174,098,000 (2023: £190,237,000).


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Group.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£000
£000

Other operating income
149
-

149
-



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Depreciation of tangible fixed assets
309
369

(Profit)/loss on sale of tangible fixed assets
5
(7)

Other operating lease rentals - motor vehicles, plant and machinery
309
291

Other operating lease rentals - land and buldings
401
442

Amortisation of intangible assets
44
42

Page 23

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Auditor's remuneration

During the year, the Group obtained the following services from the Group's auditor and its associates:


2024
2023
£000
£000

Fees payable to the Group's auditor and its accociates for the audit of the Group's annual financial statements
6
5




Fees payable to the Group's auditor and its accociates in respect of


Fees payable to the Group's auditor and its associates in respect of the
 auditing of the accounts of subsidiaries of the Group pursuant to legislation
36
35

Fees payable to the Group's auditor and its associates in respect of taxation compliance services
7
6

Fees payable to the Group's auditor and its associates in respect of other services
8
7


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£000
£000


Wages and salaries
12,133
12,544

Social security costs
1,334
1,390

Cost of defined contribution scheme
395
432

13,862
14,366


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Construction
93
106



Sales and marketing
49
52



Administration
95
100

237
258

Harron Group Limited has no employees other than directors. They receive no remuneration from Harron Group Limited and are paid only through Harron Homes Limited.

Page 24

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Directors' remuneration

2024
2023
£000
£000



Directors' emoluments
112
125

112
125

The highest paid director received remuneration of £55,820 (2023: £62,700).
The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023: £NIL).


10.


Interest receivable

2024
2023
£000
£000


Other interest receivable
135
104

135
104


11.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
1,764
1,551

1,764
1,551

Page 25

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
1,768
5,791

Adjustments in respect of previous periods
204
(207)


1,972
5,584


Total current tax
1,972
5,584

Deferred tax


Origination and reversal of timing differences
(30)
-

Total deferred tax
(30)
-


Taxation on profit on ordinary activities
1,942
5,584

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
7,529
25,068


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 23.52%)
1,882
5,896

Effects of:


Expenses not deductible for tax purposes
64
172

Capital allowances for year in excess of depreciation
-
(140)

Adjustments to tax charge in respect of prior periods
204
(207)

Additional deduction for land remediation expenditure
(176)
(176)

Movement in deferred tax not recognised
(32)
-

Additional RPDT at 4%
-
39

Total tax charge for the year
1,942
5,584


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 26

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Dividends

2024
2023
£000
£000


Dividend Issued
4,259
7,689

4,259
7,689

Total dividends issued were £4,259,000 (2023: £7,689,000), of which £NIL (2023: £811,000) was unpaid at the year end.


14.


Intangible assets

Group





Software

£000



Cost


At 1 January 2024
476


Additions
9



At 31 December 2024

485



Amortisation


At 1 January 2024
373


Charge for the year on owned assets
44



At 31 December 2024

417



Net book value



At 31 December 2024
68



At 31 December 2023
103



Page 27

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
           14.Intangible assets (continued)

Company




Software
Goodwill
Total

£000
£000
£000



Cost


At 1 January 2024
63
502
565



At 31 December 2024

63
502
565



Amortisation


At 1 January 2024
63
90
153


Charge for the year
-
13
13



At 31 December 2024

63
103
166



Net book value



At 31 December 2024
-
399
399



At 31 December 2023
-
412
412

Page 28

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Tangible fixed assets

Group






Plant and machinery
Motor vehicles
Office equipment
Total

£000
£000
£000
£000



Cost or valuation


At 1 January 2024
1,705
13
1,205
2,923


Additions
47
-
28
75


Disposals
(12)
-
-
(12)



At 31 December 2024

1,740
13
1,233
2,986



Depreciation


At 1 January 2024
1,255
8
861
2,124


Charge for the year on owned assets
184
-
125
309


Disposals
(7)
-
-
(7)



At 31 December 2024

1,432
8
986
2,426



Net book value



At 31 December 2024
308
5
247
560



At 31 December 2023
450
5
344
799

Page 29

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           15.Tangible fixed assets (continued)


Company






Motor vehicles
Office equipment
Total

£000
£000
£000

Cost or valuation


At 1 January 2024
7
6
13



At 31 December 2024

7
6
13



Depreciation


At 1 January 2024
7
6
13



At 31 December 2024

7
6
13



Net book value



At 31 December 2024
-
-
-



At 31 December 2023
-
-
-







16.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 January 2024
251



At 31 December 2024
251




Page 30

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Harron Homes Limited
Ground Floor, 3 Colton Mill Bullerthorpe Lane, Colton, Leeds, England, LS15 9JN
House Building
Ordinary
100%
Harron Homes (Midlands) Limited
Ground Floor, 3 Colton Mill Bullerthorpe Lane, Colton, Leeds, England, LS15 9JN
Dormant
Ordinary
100%
Harron Homes (North West) Limited
Ground Floor, 3 Colton Mill Bullerthorpe Lane, Colton, Leeds, England, LS15 9JN
Dormant
Ordinary
100%
Harcroft Estates Limited
Ground Floor, 3 Colton Mill Bullerthorpe Lane, Colton, Leeds, England, LS15 9JN
Dormant
Ordinary
100%


17.


Stocks

Group
Group
2024
2023
£000
£000

Work in progress
174,097
190,237

Part exchange properties
10,146
12,671

184,243
202,908


Page 31

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Due after more than one year

Trade debtors
54
54
-
-

54
54
-
-

Due within one year

Trade debtors
200
214
-
-

Amounts owed by group undertakings
-
-
-
239

Other debtors
794
2,263
-
-

Prepayments and accrued income
658
903
180
260

Tax recoverable
1,047
763
-
-

Deferred taxation
67
37
2
3

2,820
4,234
182
502



19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
14,074
3,886
14
8

14,074
3,886
14
8


Page 32

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank facility drawdown
-
11,500
-
-

Trade creditors
23,217
26,532
-
-

Amounts owed to group undertakings
-
-
505
-

Corporation tax
1
-
1
-

Other taxation and social security
702
655
-
-

Other creditors
471
1,307
-
812

Accruals and deferred income
7,366
7,656
13
24

31,757
47,650
519
836


Bank loans are made up of a revolving loan facility and are secured by fixed legal charges on the Group's land assets and by fixed and floating charges over the Group's other assets.
Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.


21.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£000
£000

Trade creditors
4,400
-

4,400
-


Obligations under finance leases and hire purchase contracts are secured on the asses to which they relate.

Page 33

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

22.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Financial assets

Measured at fair value 
- Shared equity debtors
54
54
-
-

Measured at undiscounted amount receivable
- Trade and other debtors
200
214
-
-

- Cash and cash equivalents
14,074
3,886
14
8

14,328
4,154
14
8


Financial liabilities

Measured at undiscounted amount payable
- Trade and other payables
35,455
46,994
14
836

Page 34

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Deferred taxation


Group



2024
2023


£000

£000






At beginning of year
37
37


Charged to profit or loss
(1)
-


Utilised in year
31
-



At end of year
67
37

Company


2024
2023


£000

£000






At beginning of year
3
3


Charged to profit or loss
(1)
-



At end of year
2
3

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Accelerated capital allowances
30
37
-
-

Other short term timing differences
37
-
2
3

67
37
2
3


24.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



202,000 (2023: 202,000) Ordinary shares shares of £1.00 each
202
202

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


Page 35

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

25.


Reserves

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve and has arisen on the redemption of paid up share capital.

Profit and loss account

This reserve includes all current and prior period retained profits and losses.

26.


Analysis of net debt




At 1 January 2024
Cash flows
At 31 December 2024
£000

£000

£000

Cash at bank and in hand

3,886

10,188

14,074

Drawndown facility

(11,500)

11,500

-


(7,614)
21,688
14,074


27.


Pension commitments

The Group operates defined contribution retirement benefit schemes for all qualifying employees. The assets of the schemes are held separately from those of the Group. The Group's only obligation with respect to the schemes is to contribute specified percentages of payroll costs to the schemes to fund the benefits.
The total cost charged to income of £395,000 (2023: £452,000) represents contributions payable to the schemes at rates specified in the rules of the plans. As at 31 December 2024, contributions of £62,000 (2023: £65,000) due in respect of the current reporting period had not been paid over to the schemes.

Page 36

 
HARRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

28.


Commitments under operating leases

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


Group
Group
2024
2023
£000
£000

Land and Buildings

Not later than 1 year
202
289

Later than 1 year and not later than 5 years
291
421

493
710


Group
Group
2024
2023
£000
£000

Motor Vehicles

Not later than 1 year
391
319

Later than 1 year and not later than 5 years
201
349

592
668


29.


Related party transactions

The Company has taken advantage of the exemptions allowed under FRS 102 not to disclose its transactions with its subsidiary companies.
The directors were issued dividends totalling £4,259,000 (2023: £7,689,000) of which, £NIL (2023: £811,000) was unpaid at year end. 
Key management personnel were remunerated £1,014,126 (2023: £1,152,783).


30.


Controlling party

The directors of the Company, Mr P A Harrison and Mr S T Harrison, control 100% of the issued share capital of the Company.

Page 37