REGISTERED NUMBER: 07624898 (England and Wales)

HEMCO DEVELOPMENTS LIMITED

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 DECEMBER 2024

Page

Report of the Directors

1

Report of the Independent Auditors

2

Statement of Comprehensive Income

5

Balance Sheet

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

The directors present their report with the financial statements of the company for the year ended 30 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 31 December 2023 to the date of this report.

T J Regis

A M Duguid

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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 then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Dexter & Sharpe Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

T J Regis - Director

4 September 2025

Opinion

We have audited the financial statements of Hemco Developments Limited (the 'company') for the year ended 30 December 2024 which comprise the Statement of Comprehensive Income, 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 30 December 2024 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 Auditors' 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 financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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:

-	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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page one, 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 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.

Auditors' 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 a Report of the Auditors 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:

We have enquired of those charged with governance around actual and potential litigation and claims.

We have reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Enquired of staff engaged in the completion of V A T, tax and compliance work to identify any instances of non-compliance with laws and regulations.

Audited the risk of management override of controls including review of journal entries and large or unusual transactions, evaluating the business rationale of any significant transactions outside the course of business.

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

Mrs Nicola Michelle Lenton FCCA (Senior Statutory Auditor)

for and on behalf of Dexter & Sharpe Audit Services Ltd

(Statutory Auditor)

Rollestone House

Bridge Street

Horncastle

Lincolnshire

LN9 5HZ

5 September 2025

TURNOVER

289,000

289,000

Administrative expenses

(25,439

)

(18,610

)

263,561

270,390

Other operating income

12,995

15,782

OPERATING PROFIT

2

276,556

286,172

Gain/loss on revaluation of assets

350,000

-

626,556

286,172

Interest payable and similar expenses

4

(37,054

)

(59,134

)

PROFIT BEFORE TAXATION

589,502

227,038

Tax on profit

5

(60,248

)

(53,016

)

PROFIT FOR THE FINANCIAL YEAR

529,254

174,022

OTHER COMPREHENSIVE LOSS

Interest on directors loan

Interest on inter-group loan

(45,300

)

(40,206

)

Income tax relating to other comprehensive loss

-

-

OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF INCOME TAX

(45,300

)

(40,206

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

483,954

133,816

FIXED ASSETS

Tangible assets

6

5,120

-

Investment property

7

2,350,000

2,000,000

2,355,120

2,000,000

CURRENT ASSETS

Debtors

8

20,000

5,000

Cash at bank

83,088

38,421

103,088

43,421

CREDITORS

Amounts falling due within one year

9

290,247

226,323

NET CURRENT LIABILITIES

(187,159

)

(182,902

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,167,961

1,817,098

CREDITORS

Amounts falling due after more than one year

10

(1,179,131

)

(1,315,993

)

PROVISIONS FOR LIABILITIES

14

(100,742

)

(96,971

)

NET ASSETS

888,088

404,134

CAPITAL AND RESERVES

Called up share capital

15

200

200

Other reserves

16

533,830

533,830

Other reserves

16

99,637

99,637

Retained earnings

16

254,421

(229,533

)

SHAREHOLDERS' FUNDS

888,088

404,134

The financial statements were approved by the Board of Directors and authorised for issue on 4 September 2025 and were signed on its behalf by:

T J Regis - Director

Called up

share

Retained

Other

Other

Total

capital

earnings

reserves

reserves

equity

£

£

£

£

£

Balance at 31 December 2022

200

(363,349

)

533,830

99,637

270,318

Changes in equity

Total comprehensive income

-

133,816

-

-

133,816

Balance at 30 December 2023

200

(229,533

)

533,830

99,637

404,134

Changes in equity

Total comprehensive income

-

483,954

-

-

483,954

Balance at 30 December 2024

200

254,421

533,830

99,637

888,088

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Computer equipment

-

33% on cost

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including 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.

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 company 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 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.

2.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Other operating leases

12,995

13,097

Depreciation - owned assets

903

-

3.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

4,025

3,850

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Corporation tax interest

745

835

Interest payable

36,309

58,299

37,054

59,134

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

56,106

50,479

Under / (Overprovision) in

previous year

371

(155

)

Total current tax

56,477

50,324

Deferred tax

3,771

2,692

Tax on profit

60,248

53,016

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

£

£

Interest on directors loan

Interest on inter-group loan

(45,300

)

-

(45,300

)

(45,300

)

-

(45,300

)

2023

Gross

Tax

Net

£

£

£

Interest on directors loan

Interest on inter-group loan

(40,206

)

-

(40,206

)

(40,206

)

-

(40,206

)

6.	TANGIBLE FIXED ASSETS

Plant and

Computer

machinery

equipment

Totals

£

£

£

COST

At 31 December 2023

-

1,413

1,413

Additions

6,023

-

6,023

At 30 December 2024

6,023

1,413

7,436

DEPRECIATION

At 31 December 2023

-

1,413

1,413

Charge for year

903

-

903

At 30 December 2024

903

1,413

2,316

NET BOOK VALUE

At 30 December 2024

5,120

-

5,120

At 30 December 2023

-

-

-

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 31 December 2023

2,000,000

Revaluations

350,000

At 30 December 2024

2,350,000

NET BOOK VALUE

At 30 December 2024

2,350,000

At 30 December 2023

2,000,000

Fair value at 30 December 2024 is represented by:

£

Valuation in 2018

2,000,000

Valuation in 2025

350,000

2,350,000

As at 30 December 2024, the fair value of the investment property was based on a valuation performed by an independent valuer, who holds a professional qualification with the Royal Institute of Chartered Surveyors and has experience in the locations and classes of the investment property valued. The valuation was carried out in August 2025 with the valuation date being 31 December 2024.

The investment property is valued by adopting the fair value method of valuation.

Factors taken into account in the valuation include the location and condition of the property, the plot size of the land, tenant, covenant, market rent and the tenure and terms of the lease.

The original cost of the investment property was £3,864,835.

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Directors' current accounts

20,000

5,000

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts (see note 11)

10,168

131,833

Other loans (see note 11)

155,819

-

Corporation Tax

81,447

50,479

VAT

11,693

13,294

Accrued expenses

31,120

30,717

290,247

226,323

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans (see note 11)

8,894

518,105

Other loans (see note 11)

336,444

-

Amounts owed to group undertakings

833,793

797,888

1,179,131

1,315,993

11.

LOANS

An analysis of the maturity of loans is given below:

2024

2023

£

£

Amounts falling due within one year or on demand:

Bank loans

10,168

131,833

Other loans

155,819

-

165,987

131,833

Amounts falling due between one and two years:

Bank loans - 1-2 years

8,894

143,445

Other loans - 1-2 years

163,947

-

172,841

143,445

Amounts falling due between two and five years:

Bank loans - 2-5 years

-

374,660

Other loans - 2-5 years

172,497

-

172,497

374,660

12.	LEASING AGREEMENTS

Lessee

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

2024

2023

£

£

Within one year

6,171

12,995

Between two and five years

-

6,171

Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024

2023

£

£

Within one year

289,000

289,000

Between two and five years

240,833

529,833

13.	FINANCIAL INSTRUMENTS

2024

2023

£

£

Carrying amount of financial liabilities

Measured at amortised cost

813,793

792,888

14.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

100,742

96,971

Deferred

tax

£

Balance at 31 December 2023

96,971

Charge to Statement of Comprehensive Income during year

3,771

Balance at 30 December 2024

100,742

15.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

200

Ordinary

£1

200

200

16.

RESERVES

Retained

Other

Other

earnings

reserves

reserves

Totals

£

£

£

£

At 31 December 2023

(229,533

)

533,830

99,637

403,934

Profit for the year

483,954

483,954

At 30 December 2024

254,421

533,830

99,637

887,888

17.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 December 2024 and 30 December 2023:

2024

2023

£

£

T J Regis

Balance outstanding at start of year

5,000

6,470

Amounts advanced

90,000

58,730

Amounts repaid

(75,000

)

(60,200

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

20,000

5,000

18.	ULTIMATE CONTROLLING PARTY

The controlling party is Hemswell Estates Limited.

Throughout the year, the Company was controlled by Hemswell Estates Limited by virtue of its 75% holding of the issued share capital.

One of the directors, A Duguid is also a director of Hemswell Estates Limited. At the year end, the Company was due £1,326,056 (2023 - £797,888) to Hemswell Estates Limited.

There are guarantees in favour of the bank from Hemswell Estates Limited of £300,000 plus interest and costs and from one of the directors, A Duguid for £100,000 plus interest and costs.

Hemswell Estates Limited and T Regis also have a fixed and floating charge over the assets of the Company.