Cape Homes Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 03996087

Cape Homes Limited

Financial Statements

31 December 2024

Cape Homes Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Strategic report	1

Director's report	3

Independent auditor's report to the members	5

Consolidated statement of income and retained earnings	9

Company statement of income and retained earnings	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of cash flows	13

Notes to the financial statements	14

Cape Homes Limited

Strategic Report

Year ended 31 December 2024

Business Review Cape Homes Ltd develops and sells high quality residential property. During the financial year the company had a number of development projects in various stages of completion. Turnover has increased to £15.1 million resulting in a slightly improved gross profit of £1.8 million, the gross profit margin has reduced against the previous period due to increases in labour and material costs within the industry generally. The director is confident that 2025 will record another strong performance as development sites continue to reach the market. Work in progress as at 31 December 2024 was £20.6 million vs £17.7 million as at 31 December 2023. The Company's performance has benefitted from a reputation for producing high quality residential accommodation for both the "open" and "social" housing markets, these comprising new build and restoration projects, many of which are "brown field" redevelopment projects. Key Performance Indicators The directors use the following key performance indicators in monitoring the business 2023 2023 £'000 £'000 Turnover 15,117 10,090 Gross profit 1,833 1,678 Profit after tax 529 431 Principal risks and uncertainties The Company operates in the UK housing market which is impacted by external economic factors outside of the Director's control, each development is carefully considered and costed to ensure gross margins remain consistent. The company has a strong relationship with its financial institutions and lenders and has an open line of credit to enable it to act quickly on new site acquisitions. Whilst in a competitive industry the Company monitors and measures such matters as interest rate fluctuations to ensure financial viability. General cash flow is carefully monitored to ensure liquidity and prompt supplier settlement, whilst ensuring the ability for further site procurement as and when required. A primary focus of the business is to keep strong and secure supply chain connections along with maintaining new and historic client relationships.

This report was approved by the board of directors on 20 September 2025 and signed on behalf of the board by:

Mr M Holland
Director

Registered office:

Victoria House

Churchill Road

Leckhampton

Cheltenham

England

GL53 7EG

Cape Homes Limited

Director's Report

Year ended 31 December 2024

The director presents his report and the financial statements of the group for the year ended 31 December 2024 .

Director

The director who served the company during the year was as follows:

Mr M Holland

Dividends

Particulars of recommended dividends are detailed in note 11 to the financial statements.

Disclosure of information in the strategic report

The company has chosen in accordance with section 414C(11) of the Companies Act 2006(Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 The company has chosen in accordance with section 414C(11) of the Companies Act 2006(Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008

Director's responsibilities statement

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 director is 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. He is 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 20 September 2025 and signed on behalf of the board by:

Mr M Holland
Director

Registered office:

Victoria House

Churchill Road

Leckhampton

Cheltenham

England

GL53 7EG

Cape Homes Limited

Independent Auditor's Report to the Members of Cape Homes Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Cape Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows 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 FRS 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 group's and of the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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'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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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.

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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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. 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: Our approach was as follows: We obtained an understanding of the legal and regulatory requirements applicable to the company and considered the most significant are the Companies Act 2006 and International Financial reporting Standards. We obtained an understanding of how the company complies with these regulations by discussions with management. We assessed the risk of material misstatement of the financial statements, including the risk of material missstatement due to fraud and how it might occur, by holding discussions with management. We inquired of management as to any known instances of non-compliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and obtaining corroborative evidence as required. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James Harper

(Senior Statutory Auditor)

For and on behalf of

Harper Sheldon Limited

Chartered accountants & statutory auditor

Midway House

Staverton Technology Park

Herrick Way, Staverton

Cheltenham, Glos.

GL51 6TQ

20 September 2025

Cape Homes Limited

Consolidated Statement of Income and Retained Earnings

Year ended 31 December 2024

			2023Restated
		2024
Note		£	£
Turnover	4	15,116,862	10,089,595

Cost of sales	13,283,621	8,411,698
	-------------	-------------
Gross profit	1,833,241	1,677,897

Administrative expenses		396,949	484,791
Other operating income	5	126,072	86,259
		------------	------------
Operating profit	6	1,562,364	1,279,365

Other interest receivable and similar income	8	–	1
Interest payable and similar expenses	9	1,033,036	848,847
		------------	------------
Profit before taxation		529,328	430,519

Tax on profit	10	168,882	172,767
		---------	---------
Profit for the financial year and total comprehensive income		360,446	257,752
		---------	---------

Dividends paid and payable	11	( 485,000)	( 422,270)

Retained earnings at the start of the year	10,236,732	10,401,250
	-------------	-------------
Retained earnings at the end of the year	10,112,178	10,236,732
	-------------	-------------

All the activities of the group are from continuing operations.

Cape Homes Limited

Company Statement of Income and Retained Earnings

Year ended 31 December 2024

			2023Restated
		2024
Note		£	£
Profit for the financial year and total comprehensive income		294,021	629,842
Dividends paid and payable	11	( 485,000)	( 422,270)

Retained earnings at the start of the year	10,548,984	10,341,413
	-------------	-------------
Retained earnings at the end of the year	10,358,005	10,548,985
	-------------	-------------

Cape Homes Limited

Consolidated Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Intangible assets	12	–	123,456
Tangible assets	13	1,966,907	1,952,298
Investments	14	25,988	68,423
		------------	------------
		1,992,895	2,144,177

Current assets

Stocks	15	20,642,614	17,712,564
Debtors	16	2,902,346	1,487,062
Cash at bank and in hand		923,261	597,736
		-------------	-------------
		24,468,221	19,797,362

Creditors: amounts falling due within one year	17	16,332,111	11,691,633
		-------------	-------------
Net current assets		8,136,110	8,105,729
		-------------	-------------
Total assets less current liabilities		10,129,005	10,249,906

Provisions	18	16,727	13,074
		-------------	-------------
Net assets		10,112,278	10,236,832
		-------------	-------------

Capital and reserves

Called up share capital	21	50	50
Capital redemption reserve	22	50	50
Profit and loss account	22	10,112,178	10,236,732
		-------------	-------------
Shareholders funds		10,112,278	10,236,832
		-------------	-------------

These financial statements were approved by the board of directors and authorised for issue on 20 September 2025 , and are signed on behalf of the board by:

Mr M Holland
Director

Company registration number: 03996087

Cape Homes Limited

Company Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	13	486,907	472,298
Investments	14	267,676	309,908
		---------	---------
		754,583	782,206

Current assets

Stocks	15	5,026,668	8,906,066
Debtors	16	11,337,275	10,521,290
Cash at bank and in hand		874,145	573,423
		-------------	-------------
		17,238,088	20,000,779

Creditors: amounts falling due within one year	17	7,617,839	10,220,826
		-------------	-------------
Net current assets		9,620,249	9,779,953
		-------------	-------------
Total assets less current liabilities		10,374,832	10,562,159

Provisions	18	16,727	13,074
		-------------	-------------
Net assets		10,358,105	10,549,085
		-------------	-------------

Capital and reserves

Called up share capital	21	50	50
Capital redemption reserve	22	50	50
Profit and loss account	22	10,358,005	10,548,985
		-------------	-------------
Shareholders funds		10,358,105	10,549,085
		-------------	-------------

The profit for the financial year of the parent company was £ 294,021 (2023: £ 629,842 ).

These financial statements were approved by the board of directors and authorised for issue on 20 September 2025 , and are signed on behalf of the board by:

Mr M Holland
Director

Company registration number: 03996087

Cape Homes Limited

Consolidated Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
	£	£

Cash flows from operating activities

Profit for the financial year	360,446	257,752

Adjustments for:
Depreciation of tangible assets	22,302	17,433
Amortisation of intangible assets	123,456	181,088
Other interest receivable and similar income	–	( 1)
Interest payable and similar expenses	1,033,036	848,847
Gains on disposal of tangible assets	( 3,444)	–
Tax on profit	168,882	172,767
Accrued expenses/(income)	42,283	( 68,290)

Changes in:
Stocks	( 2,930,050)	( 4,452,311)
Trade and other debtors	( 1,415,284)	307,432
Trade and other creditors	45,379	106,865
	------------	------------
Cash generated from operations	( 2,552,994)	( 2,628,418)

Interest paid	( 1,033,036)	( 848,847)
Interest received	–	1
Tax paid	( 308,017)	( 630,256)
	------------	------------
Net cash used in operating activities	( 3,894,047)	( 4,107,520)
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 44,967)	( 1,900,000)
Proceeds from sale of tangible assets	11,501	–
Acquisition of subsidiaries	–	( 362,176)
Proceeds from sale of other investments	42,435	354,193
	------------	------------
Net cash from/(used in) investing activities	8,969	( 1,907,983)
	------------	------------

Cash flows from financing activities

Proceeds from borrowings	4,695,603	4,739,638
Dividends paid	( 485,000)	( 422,270)
	------------	------------
Net cash from financing activities	4,210,603	4,317,368
	------------	------------

Net increase/(decrease) in cash and cash equivalents	325,525	( 1,698,135)
Cash and cash equivalents at beginning of year	597,736	2,295,871
	---------	------------
Cash and cash equivalents at end of year	923,261	597,736
	---------	------------

Cape Homes Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Victoria House, Churchill Road, Leckhampton, Cheltenham, GL53 7EG, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of the Group and all of its subsidiary undertakings. The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes. The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of comprehensive income. Under section 479A of the Companies Act 2006 Cape Homes Limited has provided a guarantee and therefore the list of subsidiaries included below are not subject to audit.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	50% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	25% reducing balance
Fixtures and fittings	-	25% reducing balance
Motor vehicles	-	25% reducing balance

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Investments in joint ventures

Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Turnover

Turnover arises from:

		2023Restated
	2024
	£	£
Sale of goods	12,485,379	9,978,535
Construction contracts	2,631,483	111,060
	-------------	-------------
	15,116,862	10,089,595
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Other operating income

		2023Restated
	2024
	£	£
Other operating income	126,072	86,259
	---------	--------

6. Operating (loss)/profit

Operating profit or loss is stated after charging/crediting:

		2023Restated
	2024
	£	£
Amortisation of intangible assets	123,456	181,088
Depreciation of tangible assets	22,302	17,433
Gains on disposal of tangible assets	( 3,444)	–
Impairment of trade debtors	(2,559)	5,760
	---------	---------

7. Staff costs

The average number of persons employed by the group during the year, including the director, amounted to:

	2024	2023
	No.	No.
Management staff	1	1
	----	----

8. Other interest receivable and similar income

		2023Restated
	2024
	£	£
Interest on cash and cash equivalents	–	1
	----	----

9. Interest payable and similar expenses

		2023Restated
	2024
	£	£
Interest on banks loans and overdrafts	1,026,222	840,070
Other interest payable and similar charges	6,814	8,777
	------------	---------
	1,033,036	848,847
	------------	---------

10. Tax on profit

Major components of tax (income)/expense

		2023Restated
	2024
	£	£

Current tax:

UK current tax (income)/expense	165,229	159,693

Deferred tax:

Origination and reversal of timing differences	3,653	13,074
	---------	---------
Tax on profit	168,882	172,767
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 23.50 %).

		2023Restated
	2024
	£	£
Profit on ordinary activities before taxation	529,328	430,519
	---------	---------
Profit on ordinary activities by rate of tax	132,332	136,422
Effect of capital allowances and depreciation	32,897	46,652
Effect of revenue exempt from tax	–	( 35,250)
Unused tax losses	–	11,869
Deferred tax	3,653	13,074
	---------	---------
Tax on profit	168,882	172,767
	---------	---------

11. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2024	2023
	£	£
Dividends on equity shares	485,000	422,270
	---------	---------

12. Intangible assets

Group	Goodwill
	£
Cost
At 1 January 2024 and 31 December 2024	246,912
	---------
Amortisation
At 1 January 2024	123,456
Charge for the year	123,456
	---------
At 31 December 2024	246,912
	---------
Carrying amount
At 31 December 2024	–
	---------
At 31 December 2023	123,456
	---------

The company has no intangible assets.

13. Tangible assets

Group	Freehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 January 2024	1,900,000	99,066	1,671	40,200	2,040,937
Additions	–	28,000	16,967	–	44,967
Disposals	–	( 25,464)	–	–	( 25,464)
	------------	---------	--------	--------	------------
At 31 December 2024	1,900,000	101,602	18,638	40,200	2,060,440
	------------	---------	--------	--------	------------
Depreciation
At 1 January 2024	–	70,084	966	17,588	88,638
Charge for the year	–	12,231	4,418	5,653	22,302
Disposals	–	( 17,407)	–	–	( 17,407)
	------------	---------	--------	--------	------------
At 31 December 2024	–	64,908	5,384	23,241	93,533
	------------	---------	--------	--------	------------
Carrying amount
At 31 December 2024	1,900,000	36,694	13,254	16,959	1,966,907
	------------	---------	--------	--------	------------
At 31 December 2023	1,900,000	28,982	705	22,612	1,952,299
	------------	---------	--------	--------	------------

Company	Freehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 January 2024	420,000	99,066	1,671	40,200	560,937
Additions	–	28,000	16,967	–	44,967
Disposals	–	( 25,464)	–	–	( 25,464)
	------------	---------	--------	--------	---------
At 31 December 2024	420,000	101,602	18,638	40,200	580,440
	------------	---------	--------	--------	---------
Depreciation
At 1 January 2024	–	70,084	966	17,588	88,638
Charge for the year	–	12,231	4,418	5,653	22,302
Disposals	–	( 17,407)	–	–	( 17,407)
	------------	---------	--------	--------	---------
At 31 December 2024	–	64,908	5,384	23,241	93,533
	------------	---------	--------	--------	---------
Carrying amount
At 31 December 2024	420,000	36,694	13,254	16,959	486,907
	------------	---------	--------	--------	---------
At 31 December 2023	420,000	28,982	705	22,612	472,299
	------------	---------	--------	--------	---------

Included within the above is investment property as follows:

	Group	Company
	£	£
At 1 January 2024 and 31 December 2024	1,900,000	1,900,000
	------------	------------
At 1 January 2024	1,900,000	1,900,000
	------------	------------

Investment property is initially valued at cost, at each balance sheet date it is subsequently revalued to market value.

14. Investments

Group	Other investments other than loans
	£
Cost
At 1 January 2024	68,423
Disposals	( 42,435)
	--------
At 31 December 2024	25,988
	--------
Impairment
At 1 January 2024 and 31 December 2024	–
	--------

Carrying amount
At 31 December 2024	25,988
	--------
At 31 December 2023	68,423
	--------

Company	Shares in group undertakings	Other investments other than loans	Total
	£	£	£
Cost
At 1 January 2024	241,485	68,423	309,908
Additions	203	–	203
Disposals	–	( 42,435)	( 42,435)
	---------	--------	---------
At 31 December 2024	241,688	25,988	267,676
	---------	--------	---------
Impairment
At 1 January 2024 and 31 December 2024	–	–	–
	---------	--------	---------

Carrying amount
At 31 December 2024	241,688	25,988	267,676
	---------	--------	---------
At 31 December 2023	241,485	68,423	309,908
	---------	--------	---------

Subsidiaries, associates and other investments

Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
Carlton Gate (Cheltenham) limited (12611298)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Moraston Grove Management Limited (11703458)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
109/111 Bath Road Limited (13368151)	Victoria house, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Cape Homes (Leckhampton Road) Limited (13266092)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton	Ordinary	100
	Cheltenham
	GL53 7EG
Cape Homes (Haywards Road) Limited (09322937)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Cape Homes (73/75 New Street) limited (11612276)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
77 Albion Street Limited (11612345)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG

Cape Homes (Horsbere Road) Limited (15484258)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Cape Homes (Hamilton Street) Limited (15384419)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Cape Homes (Becks Orchard) Limited (15541866)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Cape Homes (The Hambletts) Limited (15170073)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Cape Homes (Down Hatherley) Limited (15629227)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	GL53 7EG
Cape Homes (Carlton Gate) Limited (15767454)	Victoria House, Churchill Road	Ordinary	100
	Leckhampton
	Cheltenham
	Gl53 7EG

15. Stocks

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Work in progress	20,205,614	17,237,564	4,589,668	8,431,066
Finished goods and goods for resale	437,000	475,000	437,000	475,000
	-------------	-------------	------------	------------
	20,642,614	17,712,564	5,026,668	8,906,066
	-------------	-------------	------------	------------

16. Debtors

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Trade debtors	38,038	24,236	38,038	24,236
Amounts owed by group undertakings	–	–	9,418,330	9,039,139
Amounts owed by undertakings in which the company has a participating interest	2,773,453	–	1,669,812	–
Prepayments and accrued income	1,785	896	–	–
Corporation tax repayable	–	–	138,569	–
Director's loan account	7,266	–	7,266	–
Other debtors	81,804	1,461,930	65,260	1,457,915
	------------	------------	-------------	-------------
	2,902,346	1,487,062	11,337,275	10,521,290
	------------	------------	-------------	-------------

17. Creditors: amounts falling due within one year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Bank loans	15,147,339	10,397,905	6,546,170	8,937,972
Trade creditors	127,129	211,545	127,116	211,545
Amounts owed to undertakings in which the company has a participating interest	–	–	62,400	–
Accruals and deferred income	642,230	599,947	632,783	591,750
Corporation tax	165,168	307,956	–	305,279
Director loan accounts	–	53,831	–	53,831
Other creditors	250,245	120,449	249,370	120,449
	-------------	-------------	------------	-------------
	16,332,111	11,691,633	7,617,839	10,220,826
	-------------	-------------	------------	-------------

18. Provisions

Group and company	Deferred tax (note 19)
	£
At 1 January 2024	13,074
Additions	3,653
	--------
At 31 December 2024	16,727
	--------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Included in provisions (note 18)	16,727	13,074	16,727	13,074
	--------	--------	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Accelerated capital allowances	16,727	13,074	16,727	13,074
	--------	--------	--------	--------

20. Prior period errors

The 2023 figures have been restated. An intercompany dividend payment of £80,000 was coded to cost of sales and carried forward in work in progress. This resulted in closing reserves being overstated by £80,000 as at 31 December 2023. This was not considered a material error, and has now been corrected.

21. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	10	10	10	10
A Ordinary shares of £ 1 each	28	28	28	28
B Ordinary shares of £ 1 each	1	1	1	1
C Ordinary shares of £ 1 each	1	1	1	1
D Ordinary shares of £ 1 each	5	5	5	5
E Ordinary shares of £1 each	5	5	5	5
	----	----	----	----
	50	50	50	50
	----	----	----	----

22. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses. Capital redemption reserve - This reserve records the value of share capital redeemed.

23. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	597,736	325,525	923,261
Debt due within one year	(10,451,736)	(4,695,603)	(15,147,339)
	-------------	------------	-------------
	( 9,854,000)	( 4,370,078)	( 14,224,078)
	-------------	------------	-------------

24. Director's advances, credits and guarantees

During the year the director entered into the following advances and credits with the company and its subsidiary undertakings:

	2024
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
Mr M Holland	( 53,831)	61,097	–	7,266
	--------	--------	----	-------

	2023
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
Mr M Holland	( 381)	–	( 53,450)	( 53,831)
	----	----	--------	--------