REGISTERED NUMBER: 03828334 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

GRACE HOMES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

H F Barney

S T Bateman

P A Hutorka

D H R Browne

R Moys

SECRETARY:

H F Barney

REGISTERED OFFICE:

4 Melbourne House

Corbygate Business Park

Priors Haw Road

Corby

Northamptonshire

NN17 5JG

REGISTERED NUMBER:

03828334 (England and Wales)

AUDITORS:

Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

BANKERS:

National Westminster Bank Plc

41 The Drapery

Northampton

NN1 2EY

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

REVIEW OF BUSINESS

During the year, the business was primarily involved in residential property development.

The company reported a gross profit of £821k with a loss after tax of £432k during the year to 31 December 2024.

This reflects a challenging UK housing market and includes the directors' decision to impair the land value of one construction site.

The housing market improved during the year with growing purchaser confidence. The rate of increase of materials and labour prices has slowed and retaining good quality contractors and tradespeople is key in remaining competitive in the marketplace.

The business continues to work on improving procurement and cost control to maintain project margins and this will be key moving forward.

Planning uncertainty and extended planning timescales are an increasing challenge that needs careful consideration when appraising future opportunities.

The Directors believe the key performance indicators of the business are turnover and gross profit.

Company turnover increased by 73% to £13.5m.

Company gross profit decreased by 38% to £0.8m.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties faced by the company are:

- A downturn in the housing market.

- Availability of development finance.

- Availability of residential mortgages.

- Changes to the base rate of interest.

- Availability of skilled tradespeople.

- Global supply chain factors and price volatility.

- The planning system and any planning delays.

- Ability to maintain a consistent land pipeline.

FUTURE DEVELOPMENTS

The Directors review the financial position and land pipeline on a regular basis to ensure the Group is in the right position to allow the business to grow in a controlled manner.

When appraising each new development, cashflow and profitability are considered along with taking a view on the housing market, economy, inflation, interest rates and future Government policy.

SIGNED BY ORDER OF THE DIRECTORS:

H F Barney - Secretary

18 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of builders and developers.

DIVIDENDS

Dividends of £426,139 were declared and paid during the year ended 31 December 2024 (2023: £437,230).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

H F Barney

S T Bateman

P A Hutorka

D H R Browne

Other changes in directors holding office are as follows:

R Moys - appointed 1 January 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:

H F Barney - Secretary

18 September 2025

Opinion

We have audited the financial statements of Grace Homes Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 December 2024 and of its loss 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 Strategic Report and 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation.

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included:

- enquiries of management about their own identification and assessment of the risks of irregularities;

- reviewing regulatory correspondence and professional fees;

- analytical procedures to identify any unusual or unexpected relationships;

- detailed substantive testing on the completeness of income;

- testing journal entries to identify unusual transactions;

- assessing whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

- investigating the rationale behind significant or unusual transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Nicola Fox (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

18 September 2025

TURNOVER

3

13,530,030

7,827,798

Cost of sales

12,709,072

6,498,281

GROSS PROFIT

820,958

1,329,517

Administrative expenses

1,365,429

1,641,483

(544,471

)

(311,966

)

Other operating income

10,698

12,900

OPERATING LOSS

5

(533,773

)

(299,066

)

Interest receivable and similar income

19,107

979

(514,666

)

(298,087

)

Interest payable and similar expenses

7

5,529

4,383

LOSS BEFORE TAXATION

(520,195

)

(302,470

)

Tax on loss

8

(88,421

)

(245,342

)

LOSS FOR THE FINANCIAL YEAR

(431,774

)

(57,128

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(431,774

)

(57,128

)

FIXED ASSETS

Tangible assets

10

164,091

241,582

CURRENT ASSETS

Stocks

11

28,065,280

22,968,902

Debtors

12

150,750

435,667

Cash at bank

33,578

332,575

28,249,608

23,737,144

CREDITORS

Amounts falling due within one year

13

26,495,610

18,791,334

NET CURRENT ASSETS

1,753,998

4,945,810

TOTAL ASSETS LESS CURRENT LIABILITIES

1,918,089

5,187,392

CREDITORS

Amounts falling due after more than one year

14

(40,771

)

(2,432,789

)

PROVISIONS FOR LIABILITIES

18

(41,023

)

(60,395

)

NET ASSETS

1,836,295

2,694,208

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Share premium

20

39,900

39,900

Retained earnings

20

1,795,395

2,653,308

SHAREHOLDERS' FUNDS

1,836,295

2,694,208

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

H F Barney - Director

S T Bateman - Director

P A Hutorka - Director

D H R Browne - Director

R Moys - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

1,000

3,147,666

39,900

3,188,566

Changes in equity

Dividends

-

(437,230

)

-

(437,230

)

Total comprehensive income

-

(57,128

)

-

(57,128

)

Balance at 31 December 2023

1,000

2,653,308

39,900

2,694,208

Changes in equity

Dividends

-

(426,139

)

-

(426,139

)

Total comprehensive income

-

(431,774

)

-

(431,774

)

Balance at 31 December 2024

1,000

1,795,395

39,900

1,836,295

Cash flows from operating activities

Cash generated from operations

1

(6,057,661

)

(7,975,105

)

Interest paid

-

(1,332

)

Interest element of hire purchase payments paid

(5,529

)

(3,051

)

Tax received/(paid)

310,310

(125,305

)

Net cash from operating activities

(5,752,880

)

(8,104,793

)

Cash flows from investing activities

Purchase of tangible fixed assets

(6,960

)

(223,702

)

Sale of tangible fixed assets

45,500

23,500

Interest received

19,107

979

Net cash from investing activities

57,647

(199,223

)

Cash flows from financing activities

New loans in year

5,856,979

7,947,926

HP new contracts/(repayments) in year

(34,604

)

72,560

Amount withdrawn by directors

-

(6,050

)

Equity dividends paid

(426,139

)

(437,230

)

Net cash from financing activities

5,396,236

7,577,206

Decrease in cash and cash equivalents

(298,997

)

(726,810

)

Cash and cash equivalents at beginning of year

2

332,575

1,059,385

Cash and cash equivalents at end of year

2

33,578

332,575

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Loss before taxation

(520,195

)

(302,470

)

Depreciation charges

83,407

78,403

Profit on disposal of fixed assets

(44,456

)

(23,500

)

Finance costs

5,529

4,383

Finance income

(19,107

)

(979

)

(494,822

)

(244,163

)

Increase in stocks

(5,096,378

)

(11,064,063

)

Decrease in trade and other debtors

43,678

646,413

(Decrease)/increase in trade and other creditors

(510,139

)

2,686,708

Cash generated from operations

(6,057,661

)

(7,975,105

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

33,578

332,575

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

332,575

1,059,385

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

332,575

(298,997

)

33,578

332,575

(298,997

)

33,578

Debt

Finance leases

(101,125

)

34,604

(66,521

)

Debts falling due within 1 year

(5,583,804

)

(8,221,101

)

(13,804,905

)

Debts falling due after 1 year

(2,364,122

)

2,364,122

-

(8,049,051

)

(5,822,375

)

(13,871,426

)

Total

(7,716,476

)

(6,121,372

)

(13,837,848

)

1.	STATUTORY INFORMATION

Grace Homes Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	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.

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Turnover

Turnover is measured at the fair value of consideration receivable and is based on completion date.

Costs of construction are built up in WIP and held on the balance sheet based on the percentage complete. When plots are handed on completion the WIP is released and the revenue is recognised.

All turnover is stated net of VAT.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs

The company contributes to the personal pension schemes of eligible employees. Contributions payable are charged to the profit and loss account in the period to which they relate.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Home Sales

13,509,830

7,812,597

Other income

20,200

15,201

13,530,030

7,827,798

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

13,530,030

7,827,798

13,530,030

7,827,798

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,411,129

1,248,776

Social security costs

164,180

144,742

Other pension costs

55,410

46,938

1,630,719

1,440,456

The average number of employees during the year was as follows:

2024

2023

Office

14

14

Site

11

9

25

23

2024

2023

£

£

Directors' remuneration

367,766

264,118

Directors' pension contributions to money purchase schemes

23,927

18,920

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

2

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

138,076

132,257

Pension contributions to money purchase schemes

9,521

9,765

5.	OPERATING LOSS

The operating loss is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

17,471

20,798

Other operating leases

31,429

31,250

Depreciation - owned assets

52,208

44,343

Depreciation - assets on hire purchase contracts

31,199

34,060

Profit on disposal of fixed assets

(44,456

)

(23,500

)

6.	AUDITORS' REMUNERATION

2024

2023

£

£

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

9,750

9,050

Auditors' remuneration for non audit work

5,113

4,132

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Other interest payable

-

1,332

Hire purchase

5,529

3,051

5,529

4,383

8.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(69,049

)

(64,094

)

Over/under provision in prior

year

-

(217,572

)

Total current tax

(69,049

)

(281,666

)

Deferred tax

(19,372

)

36,324

Tax on loss

(88,421

)

(245,342

)

UK corporation tax has been charged at 25% (2023 - 23.50%).