Company registration number 05892469 (England and Wales)
HIGHWOOD GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
HIGHWOOD GROUP LIMITED
COMPANY INFORMATION
Directors
M Hawthorne
S Beech
S Matthews
P Prosser
N Brown
Company number
05892469
Registered office
The Hay Barn
Upper Ashfield Farm
Hoe Lane
Romsey
Hampshire
SO51 9NJ
Auditor
Fiander Tovell Limited
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
HIGHWOOD GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 8
Independent auditor's report
9 - 11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 35
HIGHWOOD GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the period ended 31 December 2024.

Review of the business

The group’s results for the 18 month period comprised turnover of £105.8m (2023 - £76.5m), a gross profit of £11.0m (2023 - £5.5m), operating loss of £0.8m (2023 – profit of £1.3m) and loss on ordinary activities before taxation of £0.8m (2023 - profit of £0.2m).

 

The group’s performance for the period under review is based on 18 months trading compared to the prior financial period which covered 12 months.

The past 18 months has been a period of significant transition for the Highwood Group. At the beginning of the period, the business underwent a change in leadership following a period marked by strategic decisions that, in hindsight, did not align with the long-term needs of the business. While these choices presented operational and financial challenges, the company responded with focus and determination. Through disciplined execution, stronger forecasting practices, and a realignment of strategic priorities, we have not only stabilised performance but also laid the foundation for sustainable growth.

As a result, the Board approved an extension of the financial period end to December 2024. This allowed the group time to embed structural and cultural changes, aimed at improving long-term resilience and performance. The new leadership team has focused on stabilising operations, addressing legacy issues, and laying the groundwork to restore stability across the group. During the period, group profitability was adversely impacted by ongoing legacy projects, which are scheduled for completion in Q1 2025. Their completion will mark a natural point of transition, enabling the business to enter a new phase of strategic delivery in the next financial period.

Performance in the period continued to be challenged by inflationary pressures and subcontractor insolvencies. Many project prices were fixed prior to the outbreak of conflict in Ukraine, leaving the business exposed to significant increases in energy, material, and labour costs. The market remained turbulent throughout the period, with procurement often occurring at higher costs than originally tendered.

The planning environment has remained challenging, with negative rhetoric and policy signals from the Government earlier in the period, contributing to delays in converting our pipeline into deliverable sites. However, there has been a noticeable shift in tone and direction following the incoming government in September 2024. This has been further supported by recent changes to the National Planning Policy Framework (NPPF), prompting local authorities to reassess their positions. Encouragingly, we are already seeing the benefits of this change, most notably in the recent consent granted for the Rowlands Castle Road site in the last quarter.

Despite the unique challenges faced, the Group remained committed to investing in our people and ongoing development. As a result, we successfully secured 4 land transactions with trusted clients for delivery in 2025. During the 18-month period, the group completed or was in the contractual process for a total of 445 beds across a variety of sites, and commenced construction of 4 care and 1 retirement sites with a healthy flow of land deals progressing through planning for 2025.

Principal risks and uncertainties

The key risks and uncertainties expected to impact the group in the future include:

Housing incentives and supply chain implications

Government-led housing incentives, whether in the form of subsidies, planning reforms, or new-build targets have the potential to increase demand sharply. While this presents growth opportunities, it also places strain on a supply chain already under pressure. Increased demand for materials and labour could inflate costs and elongate delivery timelines, challenging our ability to meet client expectations efficiently. Strategic partnerships and long-term supplier agreements are increasingly essential.

 

Demographic challenges in the construction workforce

The construction sector continues to face a critical shortage of new talent entering the workforce, compounded by an aging demographic among skilled tradespeople. This talent gap threatens future capacity and raises concerns about knowledge transfer, continuity, and project resilience. The group is prioritising engagement with apprenticeships, training initiatives, and strategic recruitment to address this systemic issue and secure a sustainable talent pipeline.

HIGHWOOD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 2 -

Geopolitical risk

Ongoing global instability heightens uncertainty in supply chains, financing, and investor confidence. These factors can also affect energy prices and material availability. The group is incorporating scenario-based forecasting to prepare for potential disruptions and maintain business continuity under a variety of global risk conditions.

 

Building safety act

The UK Government’s evolving stance on building safety, particularly post-Grenfell reforms, continues to reshape compliance expectations across the industry. The implementation of the Building Safety Act introduces stricter requirements on accountability, documentation, and oversight, especially for high-risk buildings. The group supports these reforms and is investing in internal systems and training to ensure full compliance and to contribute meaningfully to safer, more transparent construction practices.

 

Natural England mandates

The growing imposition of moratoriums in place in certain regions for water neutrality and nutrient neutralities is affecting the viability and approval process for new developments. These directives often necessitate additional mitigation strategies and infrastructure investment, adding complexity, delay and cost to projects. We are working closely with planning authorities, engineers, and environmental consultants to overcome neutrality from the earliest design stages and minimise downstream risks.

 

Performance bond availability

The tightening of availability and terms for performance bonds poses a significant constraint on our ability to bid for and deliver larger projects. As insurers adopt more cautious risk appetites, it becomes more difficult for SMEs to secure bond cover without offering onerous terms. We are engaging with clients and insurers to explore alternatives to support our continued growth without undue exposure.

Strategies and future outlook

Our strategy and core strengths remain aligned with our long-established approach: delivering successful partnership-led developments by securing land, expertly managing the planning process, and building out in close collaboration with housing associations, local authorities, and private sector partners. This end-to-end capability has continued to underpin our reputation for reliability, agility, and value creation.

 

In this period and looking ahead, we have made a strategic pivot to prioritise operational efficiency over headline turnover. This deliberate shift enables us to strengthen margins, reduce exposure to market volatility, and invest in the long-term value of our relationships. Our focus has been on forming deeper, more purposeful partnerships in the care, retirement living, and general housing sectors. By maintaining a diverse delivery pipeline across these subsectors, we not only mitigate risk but also position ourselves to selectively capitalise on the most promising opportunities.

 

With the new Labour government in place, alongside recent amendments to the National Planning Policy Framework (NPPF) and an uplift in national housing targets, the group is well positioned to capitalise on its strategic land portfolio. These changes are expected to support a strong and sustainable pipeline of activity in the years ahead, reinforcing our long-term growth prospects.

 

While our contracting business encountered notable challenges during the period, resulting in a negative profit position, it nonetheless achieved meaningful delivery milestones, contributing £90.9m in revenue and securing £29.5m in forward work for the next financial year. The contracting arm remains a vital component of our integrated model, particularly where it supports the group’s land-led developments for key clients. We have taken swift action to strengthen governance and cost control in this area, and we remain confident in its future contribution to group performance.

 

The business has made adequate provisions for a small number of legacy sites, which have now been completed, reflecting our commitment to acting responsibly and maintaining high standards of corporate governance. As directors, we are taking a prudent and proactive approach to managing historical liabilities, ensuring the business remains on a stable and sustainable footing for the future.

HIGHWOOD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 3 -

The diversity within our business model has been a source of resilience and differentiation. Our ability to operate across the value chain, from land acquisition to delivery, gives us both flexibility and control in a market where certainty is at a premium. This adaptability will be crucial as we continue to navigate a changing economic and regulatory landscape.

Looking forward, we are optimistic about the opportunities ahead. Our land pipeline is strong, our client partnerships are deepening, and we have a team that is both experienced and energised. With a sharpened focus, a balanced portfolio, and a clear commitment to quality and trust, the group is well positioned to thrive in the next phase of its journey.

Key performance indicators

Management consider key performance indicators to include: turnover, gross profit, profit on ordinary activities before taxation, number of land transactions, number of beds completed or in contractual process and number of commenced constructions contracts. The values of these key performance indicators can be found in the 'Review of the business' section.

Section 172 statement

The group operates as a consolidated entity, bringing together both contracting and development activities under the unified oversight of the Board. This central Board provides strategic leadership and governance, overseeing and evaluating major decisions made by the subsidiary company boards. This structure ensures that all key decisions are thoroughly reviewed and consistently aligned with the group’s high standards, long-term strategy, and core values.

The Directors of Highwood Group Holdings Limited acknowledge their duty under Section 172 of the Companies Act 2006 to act in a way that promotes the success of the group for the benefit of its members as a whole. In doing so, the Board considers a wide range of stakeholders and balances long-term sustainability with short-term objectives. Our strategic decisions take into account the impact on employees, suppliers, clients, the environment, and the communities in which we operate.

Long-term decision making

Our business model is built around long-term value creation, both commercially and socially. We continue to focus on land-led development in partnership with housing associations, care providers, and private sector clients, ensuring each project is viable, sustainable, and aligned with our stakeholders’ expectations. Recent strategic decisions, such as shifting focus toward efficiency and margin rather than turnover, were made to strengthen the group’s foundations for future resilience.

 

Employees

Our people are at the core of everything we do. The Directors are committed to creating a safe, inclusive, and empowering workplace that fosters loyalty and professional growth. Regular communication, clear career pathways, and ongoing training initiatives ensure that staff remain engaged and equipped to meet evolving industry standards. During the period we provided 284 apprenticeship weeks. We also place strong emphasis on employee wellbeing, recognising that a healthy and motivated workforce is essential to delivering high-quality outcomes for our clients and partners. We continue to investing in the wellbeing of our people by providing digital health service with cash plan including tailored wellbeing and mental health support as part of our benefits offering.

Suppliers and subcontractors

Our supply chain relationships are vital to the quality, reliability, and integrity of our delivery. We work closely with a trusted network of subcontractors, consultants, and material suppliers, and we view them as valued partners. In an increasingly constrained market, we prioritise fairness, prompt payment practices, and collaboration, which strengthens our ability to secure reliable delivery and long-term commitment. The Board regularly reviews procurement strategies to ensure they reflect ethical practices, commercial fairness, and environmental standards.

Clients and partners

The group is built on deep-rooted partnerships with registered providers, local authorities, care providers, and private clients. We take pride in maintaining open, transparent communication, and tailoring our services to meet their long-term needs. By fostering mutual trust and alignment of values, we are able to create sustainable developments that serve the public good while supporting our commercial objectives.

HIGHWOOD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 4 -

Environment and sustainability

As a responsible developer, the group is committed to minimising our environmental impact and supporting the transition to a low-carbon, climate-resilient economy. We incorporate sustainability principles across all project phases, from land acquisition and planning to construction and aftercare. Our approach includes prioritising biodiversity, meeting or exceeding energy efficiency targets, and responding proactively to emerging policy frameworks such as water neutrality. The Board considers environmental performance a key pillar of risk management and long-term success.

Community and social value

The developments we deliver directly impact local communities, and we take that responsibility seriously. For each new project undertaken, the group commits a financial contribution to support community-led initiatives in the local area, ranging from outdoor classrooms for schools to charitable funds and social infrastructure. We engage early and meaningfully with residents, local authorities, and other stakeholders to understand local needs and aspirations. Wherever possible, we aim to generate wider social value through placemaking, employment opportunities, and community investment.

 

Governance and stakeholder engagement

The Board maintains strong governance practices and ensures that stakeholder perspectives inform key decisions. Structured engagement with clients, staff, supply chain partners, and professional advisors ensures that diverse viewpoints are considered. This inclusive approach allows us to anticipate challenges early, adapt confidently, and remain accountable to those we serve.

 

On behalf of the board

N Brown
Director
16 July 2025
HIGHWOOD GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 5 -

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

Principal activities

The principal activity of the company is that of a holding company.

 

The principal activity of the group continued to be that of property development, building and construction services.

Results and dividends

The results for the period are set out on page 12.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors

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

N Meek
(Resigned 9 August 2023)
M O Baskerville
(Resigned 19 February 2024)
M Hawthorne
S Beech
E Lord
(Resigned 28 March 2025)
S Matthews
P Prosser
S Stevenson
(Resigned 31 October 2023)
N Brown
Financial instruments
Treasury operations and financial instruments

The group operates a centralised treasury function which is responsible for managing the liquidity and interest risks associated with the group's activities.

 

The group's principal financial instruments include bank balances, trade debtors and trade creditors arising directly from its operations.

Liquidity risk

The group manages its cash and borrowing requirements centrally in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Credit risk

Investments of cash surpluses and borrowings are made through financial institutions which must fulfil credit rating criteria approved by the board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Pricing risk

The directors consider that the group faces the usual pricing risk of any other company operating in a competitive, commercial environment.

Business relationships

The S172(1) statement in the strategic report provides details of how the directors have had regard to the need to foster business relationships with suppliers, customers and other stakeholders during the period.

HIGHWOOD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 6 -
Auditor

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

Energy and carbon report

 

UK energy use and associated greenhouse gas emissions

Current UK based annual energy usage and associated annual greenhouse gas (“GHG”) emissions are reported pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (“the 2018 Regulations”) that came into force 1 April 2019.

 

Organisational boundary

In accordance with the 2018 Regulations, the energy use and associated GHG emissions are for those assets owned or controlled within the UK only as defined by the operational control boundary, with the mandatory inclusion of scope 3 business travel in employee-owned vehicles (grey fleet). Emissions associated with rented equipment used in onsite operations is reported but considered voluntary according to the 2018 Regulations, as it is not considered transport or gas.

 

Reporting period

The reporting period is 1 July 2023 to 31 December 2024 and 1 July 2022 to 30 June 2023 for the comparative period. The energy and carbon emissions are aligned to the periods stated above.

 

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the period
- Gas combustion
409,524
70,343
- Electricity purchased
470,226
244,585
- Fuel consumed for transport
786,792
492,572
1,666,542
807,500
2024
2023
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Gas combustion
75.00
12.90
- Fuel consumed for owned transport
24.00
14.50
99.00
27.40
Scope 2 - indirect emissions
- Electricity purchased
97.00
52.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
172.00
105.60
Total gross emissions
368.00
185.00
Intensity ratio
Tonnes of CO2e per million-pound turnover
3.6
2.3
HIGHWOOD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 7 -
Quantification and reporting methodology

The 2019 UK Government Environmental Reporting Guidelines and the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) were followed. The 2024 UK Government GHG Conversion Factors for Company Reporting were used in emission calculations as these relate to the majority of the reporting period. The report has been reviewed independently by Zenergi Limited (trading as Briar Consulting Engineers Limited).

 

Electricity and gas consumption were based on meter reads and invoice records. Where usage did not cover the whole reporting period, consumption was apportioned using the pro-rata estimation technique. Invoice records were used to calculate diesel consumption for onsite equipment. Mileage was used to calculate energy and emissions from fleet vehicles and grey fleet. Gross calorific values were used except for mileage energy calculations as per Government GHG Conversion Factors.

 

The emissions are divided into mandatory and voluntary emissions according to the 2018 Regulations, then further divided into the direct combustion of fuels and the operation of facilities (scope 1), indirect emissions from purchased electricity (scope 2) and further indirect emissions that occur as a consequence of company activities but occur from sources not owned or controlled by the organisation (scope 3).

Intensity measurement

Three intensity ratios are recorded internally showing emissions (tCO2e) per total million-pound (£m) turnover, per total million-pound (£m) cost of sales and per employee. The ratio activity data relates to UK operations only to align with the energy and emission reporting boundary. The turnover financial metric is considered the most relevant to the group’s energy consuming activities and provides a good comparison of performance over time and across different organisations and sectors, this has been disclosed in the table above. Emissions per million-pound cost of sales and per employee provide other relevant comparable and performance metrics for the business.

Measures taken to improve energy efficiency

Within the period, the group has begun steps in developing a net zero strategy, with emission saving opportunities being reviewed across the owned buildings and development sites. As a result of this, plans are now in place for all new development sites to feature a more energy efficient portacabin(s) for use as site offices. These consist of PIR and LED lighting, insulated walls, programmable wall heaters and door closers to improve electrical and heating efficiency.

 

At the head office, most of the light fittings have now been converted to LED lighting and work is beginning to investigate the feasibility of roof top solar panels. The use of electric vehicles is also encouraged via an electric vehicle salary sacrifice scheme (available to all employees) along with the installation of 2 electric vehicle charging points at head office. The EV charge points are used daily by both employees and customers.

 

Nature based carbon capture solutions also form part of the group's decarbonisation strategy on development sites through the protection of as many trees as possible and the additional planting of new trees.

HIGHWOOD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 8 -
Statement of directors' responsibilities

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

 

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

 

 

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

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.

Disclosure in strategic report or directors' report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of strategies and future outlook.

On behalf of the board
N Brown
Director
16 July 2025
HIGHWOOD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HIGHWOOD GROUP LIMITED
- 9 -
Opinion

We have audited the financial statements of Highwood Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 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 and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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 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:

HIGHWOOD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHWOOD GROUP LIMITED
- 10 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

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

HIGHWOOD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHWOOD GROUP LIMITED
- 11 -
Audit response to risks identified

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Mark Gregory ACA (Senior Statutory Auditor)
For and on behalf of Fiander Tovell Limited
16 July 2025
Chartered Accountants
Statutory Auditor
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
HIGHWOOD GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 12 -
Period
Year
ended
ended
31 December
30 June
2024
2023
Notes
£'000
£'000
Turnover
3
105,835
76,520
Cost of sales
(94,863)
(70,984)
Gross profit
10,972
5,536
Administrative expenses
(11,835)
(2,532)
Other operating income/(expenses)
78
(1,753)
Operating (loss)/profit
4
(785)
1,251
Interest receivable and similar income
8
-
0
15
Interest payable and similar expenses
9
(59)
(18)
Investment and loan write off
10
29
(1,012)
(Loss)/profit before taxation
(815)
236
Tax on (loss)/profit
11
117
(16)
(Loss)/profit for the financial period
(698)
220
(Loss)/profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HIGHWOOD GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 13 -
31 December 2024
30 June 2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
13
37
73
Tangible assets
14
122
221
159
294
Current assets
Stocks
17
4,163
4,641
Debtors falling due after more than one year
19
1,279
1,295
Debtors falling due within one year
19
22,985
19,427
Cash at bank and in hand
4,881
8,548
33,308
33,911
Creditors: amounts falling due within one year
20
(25,482)
(25,950)
Net current assets
7,826
7,961
Total assets less current liabilities
7,985
8,255
Creditors: amounts falling due after more than one year
21
(1,708)
(1,280)
Net assets
6,277
6,975
Capital and reserves
Called up share capital
24
30
30
Share premium account
180
180
Profit and loss reserves
6,067
6,765
Total equity
6,277
6,975
The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
16 July 2025
N Brown
Director
Company registration number 05892469 (England and Wales)
HIGHWOOD GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 14 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
13
8
14
Tangible assets
14
53
102
Investments
15
467
467
528
583
Current assets
Debtors
19
6,852
3,566
Cash at bank and in hand
33
32
6,885
3,598
Creditors: amounts falling due within one year
20
(7,383)
(4,151)
Net current liabilities
(498)
(553)
Total assets less current liabilities
30
30
Capital and reserves
Called up share capital
24
30
30

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £nil (2023 - £2,000,000).

The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
16 July 2025
N Brown
Director
Company Registration No. 05892469
HIGHWOOD GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
Balance at 1 July 2022
30
180
8,545
8,755
Period ended 30 June 2023:
Profit and total comprehensive income for the period
-
-
220
220
Dividends
12
-
-
(2,000)
(2,000)
Balance at 30 June 2023
30
180
6,765
6,975
Period ended 31 December 2024:
Loss and total comprehensive income for the period
-
-
(698)
(698)
Balance at 31 December 2024
30
180
6,067
6,277
HIGHWOOD GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 1 July 2022
30
-
0
30
Period ended 30 June 2023:
Profit and total comprehensive income for the period
-
2,000
2,000
Dividends
12
-
(2,000)
(2,000)
Balance at 30 June 2023
30
-
0
30
Period ended 31 December 2024:
Profit and total comprehensive income for the period
-
-
-
0
Balance at 31 December 2024
30
-
0
30
HIGHWOOD GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 17 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(3,591)
1,277
Interest paid
(59)
(18)
Income taxes paid
(6)
(945)
Net cash (outflow)/inflow from operating activities
(3,656)
314
Investing activities
Purchase of tangible fixed assets
(13)
(63)
Proceeds on disposal of tangible fixed assets
2
-
Interest received
-
0
15
Net cash used in investing activities
(11)
(48)
Financing activities
Repayment of borrowings
-
(1,232)
Dividends paid to equity shareholders
-
(2,000)
Net cash used in financing activities
-
(3,232)
Net decrease in cash and cash equivalents
(3,667)
(2,966)
Cash and cash equivalents at beginning of period
8,548
11,514
Cash and cash equivalents at end of period
4,881
8,548
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 18 -
1
Accounting policies
Company information

Highwood Group Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is The Hay Barn, Upper Ashfield Farm, Hoe Lane, Romsey, Hampshire, SO51 9NJ.

 

The group consists of Highwood Group 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 £'000.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the group are consolidated in the financial statements of Highwood Holdings Limited. These consolidated financial statements are available from its registered office,The Hay Barn, Upper Ashfield Farm, Romsey, Hampshire, SO51 9NJ.

1.2
Basis of consolidation

Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -

The consolidated group financial statements consist of the financial statements of the parent company Highwood Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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

 

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

 

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

1.3
Going concern

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

 

1.4
Reporting period

The financial statements cover the 18 month period ended 31 December 2024, the prior period covers the year ending 30 June 2023. The group has decided to change it's reporting period to better reflect it's business cycle. As a result, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. The group recognises turnover on an accruals basis, where the amount of turnover can be reliably measured and it is probable that the future economic benefits will flow to the group.

Revenue from construction contracts is recognised by reference to the value of certified work at the year end.

 

Land sales are recognised upon exchange of ownership, when the rewards and responsibilities are transferred

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:

Software
20% straight line
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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:

Leasehold improvements
10% straight line
Plant and equipment
20% - 25% straight line
Fixtures and fittings
20% straight line
Computers
25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

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

 

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

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

1.9
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.

1.10
Work in progress

Work in progress is stated at the lower of cost and estimated selling price less costs to complete and sell.

1.11
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.12
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.

1.13
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.

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.

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.

HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

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

1.14
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.

1.15
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.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

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

HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Accounting for construction contracts

Recognition of revenue and profit is based on judgements made in respect of the ultimate profitability of a contract. Such judgements are arrived at through the use of estimation in relation to costs and value of work performed to date and to be performed in bringing contracts to completion. These estimates are made by reference to recovery of pre-contract costs, variations in work scopes, claim recoveries and expected contract costs to complete. The group has appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to review and authorisation. The amount included in cost accruals which has been estimated based on the expected profit margin is £14,270,372 (2023: £13,543,231).

3
Turnover and other revenue

The total turnover of the group for the period has been derived from its principal activities wholly undertaken in the United Kingdom.

2024
2023
£'000
£'000
Turnover analysed by class of business
Property development, building and construction
90,335
76,520
Land Sales
15,500
-
105,835
76,520
2024
2023
£'000
£'000
Other revenue
Interest income
-
15
4
Operating (loss)/profit
2024
2023
£'000
£'000
Operating (loss)/profit for the period is stated after charging:
Depreciation of owned tangible fixed assets
108
69
Loss on disposal of tangible fixed assets
2
-
Amortisation of intangible assets
36
24
Operating lease charges
275
135
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 24 -
5
Auditor's remuneration
2024
2023
Fees payable to the group's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
3
2
Audit of the financial statements of the company's subsidiaries
28
39
31
41
For other services
Taxation compliance services
8
7
All other non-audit services
21
21
29
28
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
7
9
7
9
Administration
9
15
-
-
Operation
66
66
-
-
Total
82
90
7
9

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Wages and salaries
6,814
4,815
-
0
-
0
Social security costs
755
553
-
-
Pension costs
220
154
-
0
-
0
7,789
5,522
-
0
-
0
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 25 -
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
1,586
1,349
Group pension contributions to defined contribution schemes
78
55
1,664
1,404
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
240
190
Group pension contributions to defined contribution schemes
12
9

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023: 9).

 

The amounts included for employee and directors' remuneration cover the 18 months period ending 31 December 2024.

8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Other interest income
-
15
9
Interest payable and similar expenses
2024
2023
£'000
£'000
Other interest on financial liabilities
2
16
Other interest
57
2
Total finance costs
59
18
10
Amounts written off investments and loans
2024
2023
£'000
£'000
Amounts written back to financial liabilities
29
-
Other gains and losses
-
(1,012)
29
(1,012)
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 26 -
11
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
-
0
215
Adjustments in respect of prior periods
65
4
Total current tax
65
219
Deferred tax
Origination and reversal of timing differences
(182)
(203)
Total tax (credit)/charge
(117)
16

With effect from the 1 April 2023, UK Corporation tax rates changed in line with the enacted tax rate from 19% to 25%.

The actual charge for the period 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
£'000
£'000
(Loss)/profit before taxation
(815)
236
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(204)
48
Tax effect of expenses that are not deductible in determining taxable profit
10
-
Tax effect of income not taxable in determining taxable profit
(6)
-
0
Change in unrecognised deferred tax assets
18
-
0
Adjustments in respect of prior years
65
4
Group relief
-
0
6
Other non-reversing timing differences
-
0
(42)
Taxation (credit)/charge
(117)
16
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£'000
£'000
Final paid
-
2,000
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 27 -
13
Intangible fixed assets
Group
Software
£'000
Cost
At 1 July 2023 and 31 December 2024
120
Amortisation and impairment
At 1 July 2023
47
Amortisation charged for the period
36
At 31 December 2024
83
Carrying amount
At 31 December 2024
37
At 30 June 2023
73
Company
Software
£'000
Cost
At 1 July 2023 and 31 December 2024
21
Amortisation and impairment
At 1 July 2023
7
Amortisation charged for the period
6
At 31 December 2024
13
Carrying amount
At 31 December 2024
8
At 30 June 2023
14
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 28 -
14
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 July 2023
263
255
54
102
17
691
Additions
-
0
-
0
-
0
13
-
0
13
Disposals
-
0
(197)
-
0
(8)
-
0
(205)
At 31 December 2024
263
58
54
107
17
499
Depreciation and impairment
At 1 July 2023
186
219
15
39
11
470
Depreciation charged in the period
29
13
20
41
5
108
Eliminated in respect of disposals
-
0
(194)
-
0
(7)
-
0
(201)
At 31 December 2024
215
38
35
73
16
377
Carrying amount
At 31 December 2024
48
20
19
34
1
122
At 30 June 2023
77
36
39
63
6
221
Company
Fixtures and fittings
Computers
Total
£'000
£'000
£'000
Cost
At 1 July 2023
54
102
156
Additions
-
0
13
13
Disposals
-
0
(8)
(8)
At 31 December 2024
54
107
161
Depreciation and impairment
At 1 July 2023
15
39
54
Depreciation charged in the period
20
41
61
Eliminated in respect of disposals
-
0
(7)
(7)
At 31 December 2024
35
73
108
Carrying amount
At 31 December 2024
19
34
53
At 30 June 2023
39
63
102
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 29 -
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
16
-
0
-
0
467
467
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 July 2023 and 31 December 2024
467
Carrying amount
At 31 December 2024
467
At 30 June 2023
467
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 30 -
16
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Highwood Construction Limited
England & Wales
Ordinary
100.00
-
Highwood Homes Limited
England & Wales
Ordinary
100.00
-
Highwood Residential Limited
England & Wales
Ordinary
100.00
-
Highwood Resources Limited
England & Wales
Ordinary
100.00
-
Highwood Land (Horndean) Limited
England & Wales
Ordinary
0
100.00
North Stoneham Developments Limited
England & Wales
Ordinary
0
100.00
Highwood Land (South Allington) Limited
England & Wales
Ordinary
0
100.00
Highwood (Botley) Limited
England & Wales
Ordinary
0
100.00
Highwood Ventures Limited
England & Wales
Ordinary
0
100.00
Highwood Ventures 2 Limited
England & Wales
Ordinary
0
100.00
Highwood Ventures 1 Limited
England & Wales
Ordinary
0
100.00

During the period ended 31 December 2024, the group acquired the 100% shareholdings in Highwood Ventures 1 Limited.

 

This is to recognise the transfer of Highwood Ventures 1 Limited from being direct a subsidiary of the ultimate parent holding company, Highwood Group Holdings Limited, to being a subsidiary of Highwood Homes Limited (and so within this group and this consolidation).

 

This transfer is a group reconstruction and as such is accounted for under merger accounting. This requires the transfer to be treated as if it was always in place. Therefore the transactions relating to the subsidiary have been brought into the comparative and opening positions.

The registered offices for all of the above entities are the same as for Highwood Group Limited.

17
Stocks
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Work in progress
4,163
4,641
-
-
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 31 -
18
Construction contracts

The revenue disclosed for both the current and comparative periods, relates to construction contracts. All trade debtors, work in progress and trade creditors at the period end are related to these ongoing contracts.

 

The balance sheet also includes accrued income of £5,735,569 (2023 - £5,228,649) and accrued costs of £14,270,372 (2023 - £13,543,231) in respect of these contracts.

19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
3,987
2,296
-
0
-
0
Corporation tax recoverable
2
66
-
0
-
0
Amounts owed by group undertakings
12,371
12,005
6,714
3,464
Other debtors
1,599
2,833
12
10
Prepayments
4,844
2,227
126
92
22,803
19,427
6,852
3,566
Deferred tax asset (note 22)
182
-
0
-
0
-
0
22,985
19,427
6,852
3,566
Amounts falling due after more than one year:
Trade debtors
1,279
1,295
-
0
-
0
Total debtors
24,264
20,722
6,852
3,566
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Trade creditors
2,940
5,899
137
126
Amounts owed to group undertakings
5,317
5,420
5,544
3,783
Corporation tax payable
-
0
5
-
0
-
0
Other taxation and social security
1,756
387
1,630
232
Other creditors
583
93
-
0
-
0
Accruals and deferred income
14,886
14,146
72
10
25,482
25,950
7,383
4,151
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 32 -
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Trade creditors
1,708
1,280
-
0
-
0
22
Deferred taxation

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

Assets
Assets
2024
2023
Group
£'000
£'000
Tax losses
182
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the period:
£'000
£'000
Asset at 1 July 2023
-
-
Credit to profit or loss
(182)
-
Asset at 31 December 2024
(182)
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
220
232

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.

 

There were outstanding contributions at the period end of £53,024 (2023: £39,260).

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
30,000
30,000
30
30
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
24
Share capital
(Continued)
- 33 -
25
Operating lease commitments
Lessee

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
£'000
£'000
£'000
£'000
Within one year
169
205
159
182
Between two and five years
270
427
270
411
439
632
429
593
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£'000
£'000
Aggregate compensation
1,961
1,047
HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
26
Related party transactions
(Continued)
- 34 -

The group has taken advantage of the exemptions contained within section 33.1A of FRS102 to not disclose transactions with other group entities that are 100% owned members of the group.

 

During the period the group made sales of £760,000 (2023: £nil) to Littlemeads Investments Limited, a company that shares key management personnel. There was no balance outstanding at the period end in relation to this transaction.

 

During the period the group also operated loan accounts with other entities under the control of the directors. These loan accounts were interest free and repayable on demand.

 

At the balance sheet date, the following amounts were owed to the group by:

 

CKS Investment Properties Limited - £nil (2023: £687,000).

Highwood Care Group Limited - £nil (2023: £10,880).

Highwood Strategic Land Limited - £518,987 (2023: £527,000).

Highwood Land 2 LLP - £nil (2023: £7,400).

Upper Ashfield Management Company Limited - £1,025 (2023: £9,000).

Hoe Lane Investments Limited - £252,339 (2023: £252,000).

 

At the balance sheet date, the following amounts were owed by the group to:

 

Ashfield Property Developments (Fordingbridge) Limited - £nil (2023: £3,717)

CKS Investment Properties Limited - £500,000 (2023: £nil).

 

The group also had transactions with Granthorne Holdings Limited which included purchases of £40,000 during the period. There was no amount outstanding as at the period end relating to these transactions.

 

The group was charged interest on the loan from CKS Investment Properties Limited during the period totalling £54,795 (2023 - £nil).

HIGHWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 35 -
27
Controlling party

The immediate parent company is Highwood Holdings Limited, a company incorporated in England and Wales. The registered office is The Hay Barn, Upper Ashfield Farm, Romsey, Hampshire, SO51 9NJ. Copies of the consolidated accounts can be obtained from Companies House.

 

The ultimate parent is Highwood Group Holdings Limited. The registered office is The Hay Barn, Upper Ashfield Farm, Romsey, Hampshire, SO51 9NJ. Copies of the consolidated accounts can be obtained from Companies House.

28
Cash (absorbed by)/generated from group operations
2024
2023
£'000
£'000
(Loss)/profit for the period after tax
(698)
220
Adjustments for:
Taxation (credited)/charged
(117)
16
Finance costs
59
18
Investment income
-
0
(15)
Loss on disposal of tangible fixed assets
2
-
Amortisation and impairment of intangible assets
36
24
Depreciation and impairment of tangible fixed assets
108
69
Other gains and losses
(29)
1,012
Movements in working capital:
Decrease in stocks
478
1,115
Increase in debtors
(3,424)
(2,853)
(Decrease)/increase in creditors
(6)
1,671
Cash (absorbed by)/generated from operations
(3,591)
1,277
29
Analysis of changes in net funds - group
1 July 2023
Cash flows
31 December 2024
£'000
£'000
£'000
Cash at bank and in hand
8,548
(3,667)
4,881
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