Company registration number: 00753606
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the strategic report for the year ended 31 December 2024.
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. During 2024 the group completed sales of 54 new homes (up from 22 in 2023) from 3 sites ranging from Yorkshire in the North of England to Hampshire in the South. The specification of the homes varied and included detached family homes, luxury apartments and affordable housing. The UK showed signs of an improving housing market in 2024 and demand for properties was steady throughout the year. Sales demand in the first half of 2025 has continued to be fairly consistent and the directors are looking forward to demonstrating increased levels of success with results from forthcoming developments.
Sales reservations at 31 December 2024 were 22 reservations, up from 10 the previous year.
2024 2023
Reservations 1 January 10 4
Sales Reservation in year 66 28
Sales Completions in year 54 22
Reservations 31 December 22 10
Sales were achieved from 3 sites achieving on average a Gross Margin of 24% (excluding affordable housing).
Building work in progress was £34.077m at 31 December 2024 (Last year £27.605m). Land stocks of £48.033m have been reviewed and where necessary adjustments to net realisable value have been made. In the year to 31 December 2024 land stock write downs / write backs were £440,823 (2023 £nil).
Sales reservations at 31 December 2024 were 22 reservations, up from 10 the previous year.
2024 2023
Reservations 1 January 10 4
Sales Reservation in year 66 28
Sales Completions in year 54 22
Reservations 31 December 22 10
Sales were achieved from 3 sites achieving on average a Gross Margin of 24% (excluding affordable housing).
Building work in progress was £34.077m at 31 December 2024 (Last year £27.605m). Land stocks of £48.033m have been reviewed and where necessary adjustments to net realisable value have been made. In the year to 31 December 2024 land stock write downs / write backs were £440,823 (2023 £nil).
The group's operations expose it to a variety of risks which are continually assessed and managed. The principal risks are as set out below.
Business risk
The availability of finance, both to property developers and individual home owners, remains a major risk to the industry. The group has looked to mitigate the risk by reducing reliance on bank borrowings and instead to fund developments through internally generated cash and by reducing the level of stock and work in progress, however bank funding is used where necessary to boost working capital.
The effect of planning changes on the value of the group's land stock remains a high risk area. The group has looked to mitigate the risk through the use of high quality professional advisers, active involvement in public consultation and constant monitoring of all aspects of the planning process.
Credit risk
Upon completion of the sale of a property, the group receives the full proceeds and there is thus no associated credit risk on these sales.
In past years, the group has provided top-up loans to certain home buyers to assist them in the purchase of property from the group. The loans are generally receivable upon the home owners selling their property and the group has a second legal charge over the properties for which the loans were provided. The loans are included in the accounts at fair value and with the benefit of a second legal charge over the properties, the group is confident in obtaining full recovery, particularly if property values continue to increase. There is of course a risk that the fair value of the loans as reflected in the accounts will not be recovered, particularly if residential property values decreased substantially.
Business risk
The availability of finance, both to property developers and individual home owners, remains a major risk to the industry. The group has looked to mitigate the risk by reducing reliance on bank borrowings and instead to fund developments through internally generated cash and by reducing the level of stock and work in progress, however bank funding is used where necessary to boost working capital.
The effect of planning changes on the value of the group's land stock remains a high risk area. The group has looked to mitigate the risk through the use of high quality professional advisers, active involvement in public consultation and constant monitoring of all aspects of the planning process.
Credit risk
Upon completion of the sale of a property, the group receives the full proceeds and there is thus no associated credit risk on these sales.
In past years, the group has provided top-up loans to certain home buyers to assist them in the purchase of property from the group. The loans are generally receivable upon the home owners selling their property and the group has a second legal charge over the properties for which the loans were provided. The loans are included in the accounts at fair value and with the benefit of a second legal charge over the properties, the group is confident in obtaining full recovery, particularly if property values continue to increase. There is of course a risk that the fair value of the loans as reflected in the accounts will not be recovered, particularly if residential property values decreased substantially.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Cyber fraud risk
Risk from Cyber fraud is a real threat to most modern businesses, the most common being:
Risk from Cyber fraud is a real threat to most modern businesses, the most common being:
∙Invoice redirection whereby criminals pose as a new creditor or supplier seeking to redirect payments in to a fraudulent bank account
∙Email compromise whereby criminals impersonate Directors, Shareholders or key personnel hoping to redirect funds in to a fraudulent bank account
∙Ransomware encrypts the files on a device causing them to become inaccessible. The attacker will contact the victim, and demand payment to restore access.
∙Telephone Fraud. This is contact made by phone, which encourages you to give out PINs, passwords, or digital banking codes. These calls often involve fraudsters claiming they’re from the bank, the police, or another official organisation or company that you trust.
The group makes every effort to educate staff to be vigilant against cyber crime and has implemented policies to help mitigate potential attacks.
The group operates a defined benefit pension scheme. At 31 December 2024, the Scheme showed a surplus of £6,445,000 before tax, compared to a surplus at 31 December 2023 of £5,448,000 before tax. The Scheme was closed to new members in 2008.
The results of the years trading and the financial position of the group are shown in the annexed accounts.
Key performance indicators for the group are as follows:-
2024 2023
£ £
Turnover for the year 20,501,459 17,492,540
Profit/(Loss) for the year before tax (2,737,423) (2,897,538)
Shareholders funds at the year end 72,235,986 73,721,773
Cash at bank and in hand at the year end 1,983,051 997,991
Stock at the year end 82,385,407 77,949,224
Key performance indicators for the group are as follows:-
2024 2023
£ £
Turnover for the year 20,501,459 17,492,540
Profit/(Loss) for the year before tax (2,737,423) (2,897,538)
Shareholders funds at the year end 72,235,986 73,721,773
Cash at bank and in hand at the year end 1,983,051 997,991
Stock at the year end 82,385,407 77,949,224
The group is long established with substantial reserves, good cash flows and further bank borrowing facilities if necessary. As a consequence, the directors believe that the group is well placed to continue as a going concern.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors who served during the year were:
The loss for the year, after taxation, amounted to £2,144,126 (2023 - loss £2,199,455).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KEBBELL HOLDINGS LIMITED
We have audited the financial statements of Kebbell Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KEBBELL HOLDINGS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KEBBELL HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙UK Employment Legislation;
∙UK Health and Safety Legislation; and
∙General Data Protection Regulations.
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Group are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgements made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
∙Revenue cut off; and
∙The use of management override of controls to manipulate results.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KEBBELL HOLDINGS LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 37 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 37 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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