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Registration number: 05881479

Lioncourt Homes (Development No. 1) Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2025

 

Lioncourt Homes (Development No. 1) Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 10

Profit and Loss Account

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 20

 

Lioncourt Homes (Development No. 1) Limited

Company Information

Directors

D Andrews

C J Cole

S G Hughes

Company secretary

S G Hughes

Registered office

Suite 2 Brook Court
Whittington Road
Worcester
WR5 2RX

Solicitors

Davies and Partners
Latham House
33-34 Paradise Street
Birmingham
B1 2AJ

Bankers

Barclays Bank PLC
UK Trade Services Centre
Camden House East
Summer Row
Birmingham
B1 3PF

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Lioncourt Homes (Development No. 1) Limited

Strategic Report for the Year Ended 31 March 2025

The directors present their strategic report for the year ended 31 March 2025.

Fair review of the business

Despite the challenges and uncertainties of the 2024/25 financial year the Company has achieved an improvement in its overall profitability whilst carefully planning for an increase in the number of outlets for the year ahead.

Turnover for the year increased by 47.4% from £18.9 million to £27.9 million and EBIT increased by 884.4% from £0.07 million to £0.7 million, whilst operating margin improved from 0.4% to 2.4%.

During the year we were also delighted to retain our HBF status as a 5 Star Quality Home Builder, for the eleventh successive year, based on independent customer ratings.

Affordability and low consumer confidence together with the slow and under resourced planning system and persistent high interest rates were key issues for the industry which impacted on the Company’s performance during the year. However, we were able to maximise our sales prices and margins from reduced home sales.

The Company legally completed 60 home sales at an average sales price of £465,000 during the financial year. In the previous financial year, the Company sold 67 new homes at an average sales price of £282,000.

The wider Group continued to be selective with new land acquisitions during the year due to the uncertainties in the market and the high prices being paid for new land. However, with land prices beginning to moderate we are now generating and securing a number of new opportunities.

The Company's key financial and other performance indicators during the year were as follows:

 

Unit

2025

2024

Units sold

60

67

Turnover

£'000

27,895

18,923

Operating profit

£'000

666

68

Profit before tax

£'000

57

31

Net assets

£'000

21,148

21,105

Future developments

The wellbeing of the Company's workforce, customers and local communities remain a key priority for the Company. The Board and Management continue to regularly review trading activity and market conditions in order to adapt as soon as possible to any changing circumstances. Supply chains are closely monitored to ensure adequate stock levels are maintained to enable continued delivery of new homes to customers. The shortages of skilled labour and materials and significant rising costs continue to be key issues for the business and the industry.

The business continued to focus on 3 key areas during the year and for future years.

1. Managing the Balance Sheet and ensuring we balance risk with opportunity.
2. Maintaining control over sales price and cost increases whilst monitoring inflation and interest rates.
3. Carefully selecting land opportunities to ensure targeted returns are maximised.

Whilst there remains uncertainty in the market demand has remained positive, albeit softening in recent times. Customers remain relatively active in the market at the current time but site visitors have reduced and there is increasing pressure on sales volumes, sales prices and incentives. We continue to closely monitor the economy and buyer behaviour in both the housing and land markets and to carefully manage our activities to limit exposure in the slower sales environment.

The key challenges are replacing the land bank at levels that comply with our financial and geographical parameters, minimising timescales to achieve planning consent, controlling labour costs and material price increases and minimising disruption from the increasing lead times.

 

Lioncourt Homes (Development No. 1) Limited

Strategic Report for the Year Ended 31 March 2025

Section 172(1) statement

The directors of the Company must act in accordance with the duties detailed in section 172 of the Companies Act 2006 which is summarised as follows:

A director of a Company must act in the way he considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

a) The likely consequences of any decision in the long term.
Lioncourt Homes is headed by an effective Board of Directors which brings a wide range of commercial, housebuilding and financial experience and is collectively responsible for the long-term success of the wider Group and overall leadership. The wider Group's future strategy is designed to have a long-term beneficial impact on the wider Group and to contribute its success in delivering quality homes for our customers achieved by carefully selecting new sites, delivering high quality workmanship, providing excellent customer service and maintaining the ‘Lioncourt culture’ which is the core to the business. The Group continues to operate in a prudent manner in line with market conditions.

b) The interests of the Company’s employees.
Our employees are a key resource, dedicated to building and selling homes that our customers value. Our employees actively pursue opportunities for personal development and career progression with the support from management; a culture of inclusion and diversity; compensation and benefits; and the ability to make a difference. We undertake various activities and operate many forums to foster participation in company events, invite opinions, questions, and ideas.

c) The need to foster the Company’s business relationships with contractors, suppliers, customers, and others.
Our contractors and suppliers are key stakeholders in the business and facilitate our delivery of the homes that our customers want. They allow us to position and represent our brand in the market. Without the support of our contractors and suppliers we would not be able to create and bring our homes to life. We seek to ensure we engage with all of our contractors and suppliers in a partnership manner and follow various principles in our engagement with them. These include:

- operating tender processes for orders above set limits;
- agreeing an open and transparent commercial basis of operation;
- paying to terms on agreed invoices and agreed certificates; and
- having clear codes of conduct and policies covering the way in which we engage with contractors and suppliers.

We have several valuable long-term contractor and supplier partnerships which have been built by following our culture and values and embedding them in the relationships we build.

The wider Group is committed to maintaining good customer relations and has spent considerable time and effort this year and in previous years to enhance customer satisfaction. This is independently verified and we strive to maintain these high standards. This has helped to support an eleventh consecutive 5-Star Quality Rating from the Home Builders Federation.

d) The impact of the Company’s operations on the community and the environment.
We demonstrate Lioncourt Homes culture and values through the way we engage with our communities. Our aim is always to enhance the locations and communities in which we develop. We take a holistic approach to site planning and focus on delivering public open spaces and amenities to enhance the built environments we deliver. We aim to minimise and mitigate our impact on the environment. We have robust policies in place to address issues around ecology, resource use and biodiversity which see us manage environmental impacts throughout the build environment development life cycle. Furthermore we collaborate actively with contractors and suppliers to adopt the most energy efficient design for our houses covering both the construction fabric, equipment, and appliances. We also support local schemes and charities in the regions where we develop.

e) The desirability of the Company maintaining a reputation for high standards of business conduct.
As a Board of Directors, we strive to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for our business and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation through both the construction and delivery of quality value for money homes.

 

Lioncourt Homes (Development No. 1) Limited

Strategic Report for the Year Ended 31 March 2025

f) The need to act fairly as between members of the Company.
As the Board of Directors, our intention is to behave responsibly toward our shareholders and treat them fairly and equally. Annually a board meeting is held with all shareholders to update them with the Company's results and future plan.

Other major stakeholder groups include the Company’s insurers, suppliers, bankers, advisors, auditors, regulators, contractors and HMRC. With all these stakeholder groups, the directors maintain regular and open dialogue to ensure that all parties are kept informed. The directors believe this is essential to building strong working relationships.

Principal risks and uncertainties

The directors consider that the most significant risks and uncertainties for the Company relate to conditions in the UK economy and the subsequent impact on the housing market. Significant macro-economic headwinds, most notably persistent inflation, and the higher interest rate environment, have impacted UK economic growth, employment, consumer confidence and spending.

Other key risks include the availability and affordability of land, continued delays in the planning system, the impact of skills and material shortages, general price increases, shortage of funding for affordable homes and the impact of delays in sales levels.

The Company aims to mitigate these risks as far as is reasonable with the following actions:

The land market remains highly competitive, however, in recent times prices have started to normalise. The availability of affordable land is key to the future performance of the Company along with timely processing of planning applications. The Company has taken a cautious approach to land acquisition and work closely with local planning authorities to best secure viable land agreements.

The executive directors continue to hold weekly and quarterly operational meetings to review sales activity on each site and review the economic outlook. Individual homes are authorised to be released for build in line with progress on sales. The Directors regularly review the short term cash flow forecast in detail and agree actions to mitigate any shortfall in sales receipts by strict control of work in progress, deferring of expenditure and controlling land expenditure. The Directors consider that the sales income within the cash flow forecasts are prudent, both in the projected rate of sale and the level of sales prices used to reflect the level of customer demand and availability of mortgage funding.

Approved by the Board on 19 August 2025 and signed on its behalf by:


S G Hughes
Director

 

Lioncourt Homes (Development No. 1) Limited

Directors' Report for the Year Ended 31 March 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Principal activity

The principal activity of the company is house building.

Directors of the company

The directors who held office during the year were as follows:

D Andrews

C J Cole

S G Hughes

Matters covered in the Strategic Report
Information on engagement with contractors, suppliers, customers and others is included in the Strategic Report in the S172(1) statement. The Company's business environment and risks, together with details of monitoring undertaken by the Directors and future developments are dealt with elsewhere in the Strategic Report.

Financial instruments

Objectives and policies

The company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

Cash flow risk
Active management of working capital is the key control used by management to manage cash flow risk.

Credit risk
The company has no significant concentration of credit risk. As explained in the statement of accounting policies, turnover is recognised on legal completion for each individual home sold, at which point sale proceeds are received in cash and in full. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually.

Liquidity risk
The wider Group held cash of £3.7 million at the end of the period and debt of £17 million. The Group has a revolving credit facility with Barclays Bank of £35 million. During the year the facility was extended by to December 2027. As such, the directors consider that the Group has sufficient liquid resources to meet its operational requirements.

Interest rate risk
The wider Group’s borrowings bear interest at rates linked to SONIA. The Group does not currently hold any interest rate caps. The directors consider the Group is well placed to cope with current interest rates and continue to explore further interest protection instruments to assist in mitigating interest rate increases.

Going concern

The financial statements have been prepared on the going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

Estimates of future performance based on changes in the economic environment have been prepared. These forecasts indicate that the company will continue to operate within their existing facilities. As of 31 March 2025, £17 million (2024 - £4 million) had been drawn down under the wider groups £35 million (2024 - £25 million) revolving facility. The wider group also has access to cash reserves of £3.7 million (2024 - £3 million), which is accessible to the company.

Based on forecasts prepared and the funds available, sufficient resources are available for the company to conduct business for at least 12 months post signing of the financial statements. As such, the directors believe that it is appropriate for the financial statements to be prepared on the going concern basis.

Directors' liabilities

The Company has indemnified, by means of directors’ and officers’ liability insurance, the Directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act. Such qualifying third party indemnity provision was in force during the year and is in force at the date of approving the Directors’ Report.

 

Lioncourt Homes (Development No. 1) Limited

Directors' Report for the Year Ended 31 March 2025

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Hazlewoods LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 19 August 2025 and signed on its behalf by:


S G Hughes
Director

 

Lioncourt Homes (Development No. 1) Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Lioncourt Homes (Development No. 1) Limited

Independent Auditor's Report to the Members of Lioncourt Homes (Development No. 1) Limited

Opinion

We have audited the financial statements of Lioncourt Homes (Development No. 1) Limited (the 'company') for the year ended 31 March 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of 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:

give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

 

Lioncourt Homes (Development No. 1) Limited

Independent Auditor's Report to the Members of Lioncourt Homes (Development No. 1) Limited

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the 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 Statement of Directors' Responsibilities set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

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

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Lioncourt Homes (Development No. 1) Limited

Independent Auditor's Report to the Members of Lioncourt Homes (Development No. 1) Limited

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

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

Use of this 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.





Rebecca Copping (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

19 August 2025

 

Lioncourt Homes (Development No. 1) Limited

Profit and Loss Account for the Year Ended 31 March 2025

Note

2025
£

2024
£

Turnover

3

27,894,625

18,922,884

Cost of sales

 

(24,024,149)

(16,194,016)

Gross profit

 

3,870,476

2,728,868

Administrative expenses

 

(3,204,526)

(2,882,335)

Other operating income

4

-

221,120

Operating profit

665,950

67,653

Other interest receivable and similar income

5

19,142

-

Interest payable and similar expenses

9

(627,933)

(37,033)

Profit before tax

 

57,159

30,620

Taxation

10

(14,084)

(5,549)

Profit for the financial year

 

43,075

25,071

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Lioncourt Homes (Development No. 1) Limited

(Registration number: 05881479)
Balance Sheet as at 31 March 2025

Note

2025
£

2024
£

Current assets

 

Stocks

11

62,382,673

47,781,842

Debtors

12

1,168,898

841,237

 

63,551,571

48,623,079

Creditors: Amounts falling due within one year

13

(42,379,334)

(27,194,960)

Total assets less current liabilities

 

21,172,237

21,428,119

Provisions for liabilities

14

(24,434)

(323,391)

Net assets

 

21,147,803

21,104,728

Capital and reserves

 

Called up share capital

15

2

2

Profit and loss account

16

21,147,801

21,104,726

Total equity

 

21,147,803

21,104,728

Approved and authorised by the Board on 19 August 2025 and signed on its behalf by:
 


S G Hughes
Director

 

Lioncourt Homes (Development No. 1) Limited

Statement of Changes in Equity for the Year Ended 31 March 2025

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2024

2

21,104,726

21,104,728

Profit for the year

-

43,075

43,075

At 31 March 2025

2

21,147,801

21,147,803

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2023

2

21,079,655

21,079,657

Profit for the year

-

25,071

25,071

At 31 March 2024

2

21,104,726

21,104,728

 

Lioncourt Homes (Development No. 1) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Suite 2 Brook Court
Whittington Road
Worcester
WR5 2RX

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

These financial statements have been prepared using UK £ as the presentational currency and are presented in round pounds.

Summary of disclosure exemptions

Lioncourt Homes (Development No.1) Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to financial instruments and presentation of a cash flow statement.

Name of parent of group

These financial statements are consolidated in the financial statements of Lioncourt Homes Holdings Limited.

The financial statements of may be obtained from Suite 2 Brook Court, Whittington Road, Worcester, WR5 2RX.

Going concern

The financial statements have been prepared on the going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

Estimates of future performance based on changes in the economic environment have been prepared. These forecasts indicate that the company will continue to operate within their existing facilities. As of 31 March 2025, £17 million (2024 - £4 million) had been drawn down under the wider groups £35 million (2024 - £25 million) revolving facility. The wider group also has access to cash reserves of £3.7 million (2024 - £3 million), which is accessible to the company.

Based on forecasts prepared and the funds available, sufficient resources are available for the company to conduct business for at least 12 months post signing of the financial statements. As such, the directors believe that it is appropriate for the financial statements to be prepared on the going concern basis.

Critical accounting judgement 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

Lioncourt Homes (Development No. 1) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Judgements

Management provide for the cost of remedials work required on completed plots. The carrying value of the remedials provision is £24,434 (2024 - £323,391).

Key sources of estimation uncertainty

The group's margin recognition policy is based on the margin forecast for each site. These margins reflect estimated sales prices and costs for each site. This is a method of allocating the total forecast costs, representing both land and build costs, of a site to each individual unit. Sales prices and build costs are inherently uncertain as they are influenced by changes in external market factors, such as, the availability and affordability of mortgages, changes in customer demand or build cost inflation.

Management have implemented internal procedures to assess site acquisition and forecasting to assist financial appraisal processes. Site appraisals are prepared on a regular basis to account for any changes in sales price or forecast build costs, and thus the margin on the site The carrying amount of work in progress is £34,636,394 (2024 - £21,713,338).

Revenue recognition

Revenue is recognised at the fair value of consideration received or receivable, net of incentives.

Private housing sales
Revenue is recognised in the profit and loss account on legal completion for each individual unit sold.

Housing association sales
The company reviews housing association contracts on a contract by contract basis and determines the appropriate revenue recognition based on the specific terms of the contract.

Where the risks and rewards of ownership transfer to a housing association on legal completion (turn key agreement) revenue is recognised on legal completion of the units, similar to revenue recognition on private housing. Where a contract with a housing association transfers legal title at a specific point in the build process, generally once foundations and key utilities have been laid (golden brick agreement), revenue is recognised based on the stage of completion of the unit. Stage of completion is certified by agents of the housing association and revenue is recorded based on this assessment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks which comprise land held for development, work in progress and finished and part exchange houses are stated at the lower of cost and net realisable value. Cost includes materials, direct labour and production overheads appropriate to the relevant stage of production. Net realisable value is based on estimated selling price less all further costs to completion and all relevant marketing, selling and distribution costs.

Land options are valued at historical cost including promotional and other directly attributable expenditure. Net realisable value is based on the ultimate value of the site after consideration of development and other associated costs.

 

Lioncourt Homes (Development No. 1) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction cost. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Tax

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

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Lioncourt Homes (Development No. 1) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Impairment
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2025
£

2024
£

Sale of goods

27,894,625

18,922,884

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2025
£

2024
£

Miscellaneous other operating income

-

221,120

Other income of £nil (2024 - £221,120) comprises a refund of an unutilised community contribution paid in 2014.

 

5

Other interest receivable and similar income

2025
£

2024
£

Interest income on bank deposits

19,142

-

 

6

Auditors' remuneration

The auditor's remuneration is borne by the company's parent company, Lioncourt Homes Limited.

 

Lioncourt Homes (Development No. 1) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

 

7

Staff costs

There are no persons employed by the company during the current or preceding year. Employees are remunerated through the immediate parent company, Lioncourt Homes Limited. A management recharge of £3,190,446 (2024 - £3,001,336) has been received which includes the company’s share of staff costs and directors remuneration.

 

8

Directors' remuneration

The directors did not receive any remuneration from the company during the current or preceding year. The directors are remunerated through the immediate parent company, Lioncourt Homes Limited.

 

9

Interest payable and similar expenses

2025
£

2024
£

Interest on bank overdrafts and borrowings

627,933

-

Bank arrangement and professional fees

-

2,874

Other interest payable

-

34,159

627,933

37,033

 

10

Taxation

Tax charged in the profit and loss account

2025
£

2024
£

Current taxation

UK corporation tax

14,084

5,549

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).

The differences are reconciled below:

2025
£

2024
£

Profit before tax

57,159

30,620

Corporation tax at standard rate

14,290

7,655

Effect of expense not deductible in determining taxable profit (tax loss)

-

8,540

Tax decrease arising from group relief

-

(10,601)

Other tax effects for reconciliation between accounting profit and tax expense/(income)

(206)

(45)

Total tax charge

14,084

5,549

 

Lioncourt Homes (Development No. 1) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

 

11

Stocks

2025
£

2024
£

Land

27,746,279

26,068,504

Work in progress

34,636,394

21,713,338

62,382,673

47,781,842

Approved developments are secured against the groups loan facility.

 

12

Debtors

2025
£

2024
£

Amounts owed by group undertakings

754,637

116,802

Other debtors

31,367

393,617

Prepayments and accrued income

382,894

330,818

1,168,898

841,237

 

13

Creditors

2025
£

2024
£

Due within one year

Trade creditors

3,618,241

3,381,693

Amounts due to parent undertakings

37,663,919

20,356,448

Land vendors

675,404

2,316,600

Other creditors

154,810

426,658

Accrued expenses

252,876

708,012

Corporation tax liability

14,084

5,549

42,379,334

27,194,960

 

14

Provisions for liabilities

Remedials
£

At 1 April 2024

323,391

Increase in existing provisions

6,685

Provisions used

(25,896)

Unused provision reversed

(279,746)

At 31 March 2025

24,434

The remedials provision has been calculated based on management's best estimate of remedials costs to be incurred on a limited number of completed sites.

 

15

Share capital

Allotted, called up and fully paid shares

 

2025

2024

 

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

         
 

Lioncourt Homes (Development No. 1) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

 

16

Reserves


Called up share capital
This represents the nominal value of the issued share capital.

Profit and loss account
This distributable reserve represents the cumulative profits or losses, net of dividends and other adjustments.

 

17

Commitments

Other financial commitments

The bank borrowings of the group headed by Lioncourt Homes Limited, are partly secured on the freehold land and property on current approved developments of the group.

The terms of the group’s loan imposes a negative pledge which prohibits the group from creating any security interests over the assets pledged as security.

 

18

Parent and ultimate parent undertaking

The immediate parent company is Lioncourt Homes Limited, a company incorporated in the United Kingdom. The ultimate parent undertaking is Lioncourt Homes Holdings Limited, a company incorporated in the United Kingdom, into which the results of the company are consolidated. A copy of their financial statements is available from the registered address at Suite 2 Ground Floor, Brook Court, Whittington Hall, Worcester, WR5 2RX. The smallest group into which the company's results are consolidated is Lioncourt Homes Limited. The largest group into which the company’s results are consolidated is Lioncourt Homes Holdings Limited.