REGISTERED NUMBER: 03919214 (England and Wales)

HILLS RESIDENTIAL CONSTRUCTION LTD

STRATEGIC REPORT,

DIRECTORS' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

to

3

Directors' Report

4

to

5

Report of the Independent Auditors

6

to

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

to

15

Notes to the Financial Statements

16

to

30

DIRECTORS:

Mr J A Hills

Mrs T A Hills

Mr J R Mann

Mr J E C Cox

Mr S Williams

SECRETARY:

Mr J A Hills

REGISTERED OFFICE:

Bridge Mill House

Brook Street

Colchester

Essex

CO1 2UZ

REGISTERED NUMBER:

03919214 (England and Wales)

AUDITORS:

TC Group

Town Wall House

Balkerne Hill

Colchester

Essex

CO3 3AD

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

PRINCIPAL ACTIVITY

The principal activity of the company continued to be that of property development.

REVIEW OF BUSINESS

During the period under review, the housing market continued to face the challenge of high interest rates and general economic uncertainty. This has resulted in consumer confidence remaining low and suppressing the demand for properties in the period.

The directors continue with the strategy of providing high quality, value for money homes backed up with excellent customer service. This has resulted in gross margins being maintained and putting the Company in a very strong position to start the next financial year with an exceptionally high number of reservations that moved to completions in the first quarter of 2025.

The Hills sites at St James' Place in East Bergholt, Asterwood in Elmstead Market and Admirals Green in Great Bentley all reached build complete in 2025, which has contributed to an outstanding level of sales in 2025.

KEY PERFORMANCE INDICATORS

The key financial performance indicators during the year were as follows -

2024

2023

£

£

Turnover

14,768,924

16,866,932

Profit Before Tax

569,159

784,651

Shareholder's Funds

12,794,692

12,552,152

PRINCIPAL RISKS AND UNCERTAINTIES

The company has monthly management meetings during which they evaluate the company's risk appetite. The principal risks and uncertainties facing the group are broadly grouped as - legislative risk, exposure to price, liquidity and cash flow risk and economic risk.

-

Legislative risk:

-

Exposure to health and safety regulations. The company is a member of Eastern Builders Safety Group who regularly inspect sites to ensure compliance with health and safety regulations. The company also holds regular health and safety committee meetings to ensure current health and safety best practices are implemented and adhered to.

-

Exposure to price and liquidity risk:

-

Price risk arises on financial instruments because of changes in prices in materials or subcontract labour prices. Hills Residential Construction Limited mitigate these risks by monitoring requirements to ensure sufficient supply and by engaging early and working closely with builders merchants and subcontractors.

PRINCIPAL RISKS AND UNCERTAINTIES - continued

-

Liquidity risk is the risk that the company will encounter difficulties in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by closely monitoring cash requirements on a monthly basis and looking for alternative funding opportunities outside of the company's bankers.

-

Economic risk centres on macroeconomic circumstances that may result in a significant reduction in trading activity for the company such as a potential housing market crash. The company manages this by developing sites in the local area where local knowledge and insight into the market highlights the demand for certain properties of specific design and price. Each development has a unique blend of houses containing differing designs and pricing in desirable locations.

FUTURE DEVELOPMENTS

The Company continues to concentrate on quality local sites, providing a wide range of desirable properties.

The Company builds on the excellent reputation associated with the Hills brand and has built an established and professional team that it continues to invest in.

ON BEHALF OF THE BOARD:

Mr J A Hills - Director

29 September 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

Mr J A Hills

Mrs T A Hills

Mr J R Mann

Mr J E C Cox

Mr S Williams

Other changes in directors holding office are as follows:

Mr P Perfect-Brown ceased to be a director on 1st March 2025.

DISCLOSURE IN THE STRATEGIC REPORT

The business review, principal risks and uncertainties and details of financial instruments are located within the Strategic Report in accordance with s.414C(11) CA 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, TC Group, are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr J A Hills - Director

29 September 2025

Opinion

We have audited the financial statements of Hills Residential Construction Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of 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 Directors' Report.

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

-	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 four, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

-

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

-

We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

-

We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

-

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

-

We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls;

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Melinda Simpson (Senior Statutory Auditor)

for and on behalf of TC Group

Town Wall House

Balkerne Hill

Colchester

Essex

CO3 3AD

30 September 2025

TURNOVER

3

14,768,924

16,866,932

Cost of sales

(10,019,456

)

(12,553,641

)

GROSS PROFIT

4,749,468

4,313,291

Administrative expenses

(2,129,570

)

(2,084,553

)

2,619,898

2,228,738

Other operating income

1,041

-

OPERATING PROFIT

6

2,620,939

2,228,738

Interest receivable and similar income

535,788

54,906

3,156,727

2,283,644

Interest payable and similar expenses

7

(2,587,568

)

(1,498,993

)

PROFIT BEFORE TAXATION

569,159

784,651

Tax on profit

8

(146,619

)

(265,484

)

PROFIT FOR THE FINANCIAL YEAR

422,540

519,167

OTHER COMPREHENSIVE INCOME

Revaluation of fixed asset investments

(150,000

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(150,000

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

272,540

519,167

FIXED ASSETS

Property, plant and equipment

9

1,506,587

1,378,689

Investments

10

1,650,000

1,800,000

3,156,587

3,178,689

CURRENT ASSETS

Stocks

11

26,925,375

18,826,296

Debtors

12

15,747,010

13,102,416

Cash at bank

3,036,222

3,713,115

45,708,607

35,641,827

CREDITORS

Amounts falling due within one year

13

(33,681,076

)

(25,604,449

)

NET CURRENT ASSETS

12,027,531

10,037,378

TOTAL ASSETS LESS CURRENT LIABILITIES

15,184,118

13,216,067

CREDITORS

Amounts falling due after more than one year

14

(2,059,347

)

(388,114

)

PROVISIONS FOR LIABILITIES

18

(330,079

)

(305,801

)

NET ASSETS

12,794,692

12,522,152

CAPITAL AND RESERVES

Called up share capital

19

100

100

Fair value reserve

20

1,649,900

1,799,900

Retained earnings

20

11,144,692

10,722,152

SHAREHOLDERS' FUNDS

12,794,692

12,522,152

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mr J A Hills - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100

10,202,985

1,799,900

12,002,985

Changes in equity

Total comprehensive income

-

519,167

-

519,167

Balance at 31 December 2023

100

10,722,152

1,799,900

12,522,152

Changes in equity

Total comprehensive income

-

422,540

(150,000

)

272,540

Balance at 31 December 2024

100

11,144,692

1,649,900

12,794,692

Cash flows from operating activities

Cash generated from operations

1

(3,802,091

)

(2,426,784

)

Interest paid

(2,528,417

)

(1,426,875

)

Interest element of hire purchase payments paid

(59,151

)

(30,228

)

Tax paid

(270,202

)

(906,607

)

Net cash from operating activities

(6,659,861

)

(4,790,494

)

Cash flows from investing activities

Purchase of tangible fixed assets

(518,675

)

(250,674

)

Sale of tangible fixed assets

120,000

118,295

Interest received

535,788

54,906

Net cash from investing activities

137,113

(77,473

)

Cash flows from financing activities

New loans in year

17,044,321

13,491,090

Loan repayments in year

(8,764,536

)

(7,346,454

)

Capital repayments in year

(213,333

)

(283,348

)

Amount introduced by directors

757,000

1,200,000

Amount withdrawn by directors

(963,233

)

(851,776

)

Assets financed in year

432,418

121,231

Loans repaid to related undertakings

(52,031

)

-

Loans given to related undertakings

(3,225,578

)

(4,983,707

)

Loans repaid by related undertakings

265,827

2,251,814

Loans received from related undertakings

565,000

116,231

Net cash from financing activities

5,845,855

3,715,081

Decrease in cash and cash equivalents

(676,893

)

(1,152,886

)

Cash and cash equivalents at beginning of year

2

3,713,115

4,866,001

Cash and cash equivalents at end of year

2

3,036,222

3,713,115

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

2024

2023

£

£

Profit before taxation

569,159

784,651

Depreciation charges

322,476

356,809

Profit on disposal of fixed assets

(51,698

)

(51,888

)

Finance costs

2,587,568

1,498,993

Finance income

(535,788

)

(54,906

)

2,891,717

2,533,659

Increase in stocks

(8,099,079

)

(4,817,558

)

Decrease in trade and other debtors

293,438

2,030,945

Increase/(decrease) in trade and other creditors

1,111,833

(2,173,830

)

Cash generated from operations

(3,802,091

)

(2,426,784

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,036,222

3,713,115

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

3,713,115

4,866,001

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

3,713,115

(676,893

)

3,036,222

3,713,115

(676,893

)

3,036,222

Debt

Finance leases

(561,079

)

(219,085

)

(780,164

)

Debts falling due within 1 year

(11,740,215

)

(8,289,784

)

(20,029,999

)

Debts falling due after 1 year

(14,167

)

10,000

(4,167

)

(12,315,461

)

(8,498,869

)

(20,814,330

)

Total

(8,602,346

)

(9,175,762

)

(17,778,108

)

1.	STATUTORY INFORMATION

Hills Residential Construction Limited is a Private Limited Company, limited by shares, registered in England and Wales. The company's registered number and registered office can be found on the Company Information page.

The presentation currency of the financial statements is in Pound Sterling (£) and the financial statements are rounded to the nearest Pound.

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 Acts 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added taxed and other sales taxes.

Turnover represents the total sales value of legally completed properties, the value of contracting work executed and the invoiced value of other work during the year.

Property, plant and equipment

All property, plant and equipment is initially recorded at cost.

Depreciation

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

Improvements to Property

-

10% straight line

Plant and Machinery

-

5% to 33% straight line and reducing balance

Motor Vehicles

-

10% to 25% reducing balance

Stocks

Land and buildings in the course of development and construction are valued at the lower of cost and net realisable value. Costs represent the purchase of land and site and development expenditure accumulated to date.

Land held in stock, where development has not yet started, is valued at the lower of cost and net realisable value in the current market. The net realisable value in the current market is based on selling in an open market to a third-party.

Financial instruments

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

De-recognition of financial liabilities

Financial liabilities are de-recognised when the Company's contractual obligations expire or are discharged or cancelled.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase agreements

Assets held under hire purchase agreements are capitalised and disclosed under property, plant and equipment at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the income statement using the effective interest rate.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the income statement.

Deferred consideration

Deferred consideration is payable in connection with the Company's purchase of land for development sites, which is held in stock at the end of the reporting year. Since there are finance elements included in these transactions, an effective interest of 4% above the Bank of England base rate has been used to discount the amounts payable. This rate has been used as it represents the interest rates of third-party borrowings with similar lending periods and security terms at the time of completion of the respective acquisitions.

Investments

Investments in joint ventures are initially measured at cost and subsequently measured at fair value with the changes being recognised within other comprehensive income. The valuations are based on the most recent management information available at the year end date.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. The Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Significant judgements and estimates

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions relating to the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, where the revision affects current and future periods.

The key estimates and judgements made by the director are:

Carrying value of land and work in progress

The Company's developments are built on a speculative basis under the assumption that the net realisable value will exceed the costs of the development. The key judgements in estimating the realisable value of the development includes an assessment of forecast sales rates, expected sales prices and estimated costs to complete.

Estimated costs to complete

In determining the profits that the Company is able to recognise on its developments in a specific period, site-wide development costs are allocated between units sold in the current period and in future periods. Estimates of costs to complete are also made on these developments. Therefore, in making these estimates, there is an inherent degree of uncertainty.

Effective interest rate of deferred consideration

As noted within the accounting policies set out above, deferred consideration payable has been recognised in relation to the Company's purchase of development sites held in stock. Given that these transactions are classified as financing arrangements under FRS 102, effective interest rates of 4% above Bank of England Base Rate have been used to discount the amounts payable. This rate is deemed to represent the interest rates of third-party borrowings with similar lending periods and security terms.

3.

TURNOVER

The turnover and operating profit for the year was derived from the company's principal activity and was carried out wholly in the UK.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

658,487

587,285

Social security costs

74,917

63,730

Other pension costs

144,104

106,987

877,508

758,002