Company Registration Number: 05369404
31 DECEMBER 2024
DERE STREET HOMES LIMITED
COMPANY INFORMATION
DERE STREET HOMES LIMITED
CONTENTS
DERE STREET HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
The principal activity of the company is a housebuilder operating in the North East of England.
Dere Street Homes Limited maintains its reputation for building high-quality well-designed homes.
Our Wynyard Rise development whilst now complete still provides a positive platform for the business to showcase what it’s capable off as a signature development.
Our Bridleway development has continued in 2024 to demonstrate that our standard product satisfies the requirements of the regional homebuyers, with the development completing in March 25.
Investment in the company website has had the desired effect seeing our Coppice development gathering steady momentum with sales now generally hitting the forecast sales rate.
In 2024 the business was able to deliver 30 plots across all sites (2023: 31 plots) with a turnover of £8,838,683 (2023: £10,789,192).
As planning continues to prove a challenging environment, we have maintained our shift towards a more focussed approach to land acquisition, progressing sites & options that mesh seamlessly with our standard product first and foremost, providing a good foundation to support solid sales rates. Our newest development which we hope will break ground in the 1st quarter of 2026 demonstrates this as it’s a continuation phase of a previously successful development delivered by DSH. This delivery will see the business aligned with its model for the foreseeable future.
Notwithstanding the difficulties in obtaining planning consents, we continue to have positive working relationships with many of the regional LA’s.
The team, alongside external stakeholders has developed our existing portfolio of house types in line with customer feedback and everchanging trends to include completely new products as well as imaginative revisions to existing house types.
To keep ahead of the curve Dere Street Homes Limited continually monitor market trends and update not only the product range but also the product spread across all active developments. The size of the business goes hand in hand with this approach and allows it to react quickly in the best interests of its shareholders.
Our Wynyard Rise development whilst now complete still provides a positive platform for the business to showcase what it’s capable off as a signature development.
Our Bridleway development has continued in 2024 to demonstrate that our standard product satisfies the requirements of the regional homebuyers, with the development completing in March 25.
Investment in the company website has had the desired effect seeing our Coppice development gathering steady momentum with sales now generally hitting the forecast sales rate.
In 2024 the business was able to deliver 30 plots across all sites (2023: 31 plots) with a turnover of £8,838,683 (2023: £10,789,192).
As planning continues to prove a challenging environment, we have maintained our shift towards a more focussed approach to land acquisition, progressing sites & options that mesh seamlessly with our standard product first and foremost, providing a good foundation to support solid sales rates. Our newest development which we hope will break ground in the 1st quarter of 2026 demonstrates this as it’s a continuation phase of a previously successful development delivered by DSH. This delivery will see the business aligned with its model for the foreseeable future.
Notwithstanding the difficulties in obtaining planning consents, we continue to have positive working relationships with many of the regional LA’s.
The team, alongside external stakeholders has developed our existing portfolio of house types in line with customer feedback and everchanging trends to include completely new products as well as imaginative revisions to existing house types.
To keep ahead of the curve Dere Street Homes Limited continually monitor market trends and update not only the product range but also the product spread across all active developments. The size of the business goes hand in hand with this approach and allows it to react quickly in the best interests of its shareholders.
Page 1
DERE STREET HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors have identified the following principal risks and mitigating factors:
•Market for houses remained steady in the region due to the impact of the recent cost of living fluctuations. (CPI) - monitored closely.
• Sustained stubbornly high base rates affect mortgages and impacting consumers perception of value - Close liaison maintained with mortgage advisors.
• Availability of sufficient materials and skilled labour - Improved focus on proactive planning well ahead of site requirements.
• Increased costs on changes to building regulations; part L and part F - Contractual negotiations with suppliers and offset through incremental house market rises from more energy efficient homes.
• Achieve & maintain a sustainable land bank - The proven track record of the land delivery team for delivering high quality developments.
• Obtaining planning permissions - The land delivery team continue to review new planning policy and work proactively with LA’s to achieve mutually agreeable schemes.
• Health and Safety - Developments are monitored by our H&S consultant for compliance with HSE regulations as well as continual training for staff.
• People - We continually review the needs of all the staff to ensure they have the tools and skills to deliver in line with the business model.
• Sustained stubbornly high base rates affect mortgages and impacting consumers perception of value - Close liaison maintained with mortgage advisors.
• Availability of sufficient materials and skilled labour - Improved focus on proactive planning well ahead of site requirements.
• Increased costs on changes to building regulations; part L and part F - Contractual negotiations with suppliers and offset through incremental house market rises from more energy efficient homes.
• Achieve & maintain a sustainable land bank - The proven track record of the land delivery team for delivering high quality developments.
• Obtaining planning permissions - The land delivery team continue to review new planning policy and work proactively with LA’s to achieve mutually agreeable schemes.
• Health and Safety - Developments are monitored by our H&S consultant for compliance with HSE regulations as well as continual training for staff.
• People - We continually review the needs of all the staff to ensure they have the tools and skills to deliver in line with the business model.
This report was approved by the board and signed on its behalf.
Page 2
DERE STREET HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors who served during the year were as follows:
Page 3
DERE STREET HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Objectives and policies
The company finances its activities with a combination of cash and intercompany funding arrangements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk, Foreign Exchange risk
Price risk
Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the company. The company does not consider that it is materially exposed to price risk.
Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company also utilises insurance policies to protect against non-payment of debt. The company does not consider that it is materially exposed to credit risk.
Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the Company is deemed sufficient to minimise the Company's exposure to cash flow and liquidity risk.
Foreign Exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Company policies are aimed at minimising this risk. The company does not consider that it is materially exposed to foreign exchange risk.
The company finances its activities with a combination of cash and intercompany funding arrangements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk, Foreign Exchange risk
Price risk
Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the company. The company does not consider that it is materially exposed to price risk.
Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company also utilises insurance policies to protect against non-payment of debt. The company does not consider that it is materially exposed to credit risk.
Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the Company is deemed sufficient to minimise the Company's exposure to cash flow and liquidity risk.
Foreign Exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Company policies are aimed at minimising this risk. The company does not consider that it is materially exposed to foreign exchange risk.
See disclosures within the Strategic Report regarding future developments of the Company.
The financial statements have been prepared on a going concern basis.
The company meets its day to day working capital requirements through cash generated from operations and group and intercompany borrowings.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account possible changes in trading performance.
Having considered the current cash forecasts of the company the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.
The company meets its day to day working capital requirements through cash generated from operations and group and intercompany borrowings.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account possible changes in trading performance.
Having considered the current cash forecasts of the company the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Page 4
DERE STREET HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 5
DERE STREET HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERE STREET HOMES LIMITED
We have audited the financial statements of Dere Street Homes Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 6
DERE STREET HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERE STREET HOMES LIMITED (CONTINUED)
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.
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.
Page 7
DERE STREET HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERE STREET HOMES LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussions with directors and
other management;
• We assessed the extent of compliance with the laws and regulations identified above through making
enquiries of management; and
• Identified laws and regulations were communicated within the audit team regularly and the team remained
alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement,
includingobtaining 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.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures as a risk assessment tool to identify any unusual or unexpected
relationships;
• Tested journal entries to identify unusual transactions;
• Tested the operating effectiveness of key controls over purchase cycles on a sample basis; and
• Reviewed the application of accounting policies including the application of capitalisation of intangible
assets.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed
procedureswhich included, but were not limited to:
• Agreeing financial statement disclosures to underlying supporting documentation; and
• Enquiring of management as to actual and potential litigation and claims.
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 Auditors' Report.
Page 8
DERE STREET HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERE STREET HOMES LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors & Chartered Accountants
NE1 4BX
Page 9
DERE STREET HOMES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 10
DERE STREET HOMES LIMITED
REGISTERED NUMBER: 05369404
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 24 form part of these financial statements.
Page 11
DERE STREET HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 12
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is Dere Street House, Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF.
The address of its registered office is Dere Street House, Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Vestbrown (Newco) Limited as at 31 December 2024 and these financial statements may be obtained from Dere Street House, Bowburn North Industrial Estate, Bowburn, Durham, United Kingdom, DH6 5PF.
Turnover on property sales is recognised upon legal completion of legal title to the customer. The sales prices are reflective of the area, specification and current market conditions. The company offers part exchange on selected plots.
Page 13
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Page 14
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 15
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The provision for future costs of £1,130,448 represents the directors' best estimate of the present value of the cost to the company remaining on housing plots already sold. The estimate takes into account the expected timing of costs and the number of plots sold which are still to incur costs. The provision for future costs is included within other creditors.
Page 16
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 17
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 18
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
Page 19
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
Page 20
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
14.Debtors (continued)
Included within other debtors due within one year are loans to the following directors:
£1,454 (2023: £1,454) to M McQuaid and £394 (2023: £394) to M C Hogan
£1,454 (2023: £1,454) to M McQuaid and £394 (2023: £394) to M C Hogan
Page 21
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 22
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £17,552 (2023 - £22,817 ).
Contributions totalling £2,831 (2023 - £4,412 ) were payable to the scheme at the year end and are included in creditors.
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £2,831 (2023 - £
Page 23
DERE STREET HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company's immediate parent is VB Turnbull Limited , incorporated in England.
The ultimate parent isVestbrown (Newco) Limited , incorporated in England.
The parent of the largest group producing publicly available financial statements is Vestbrown (Newco) Limited. These financial statements are available upon request from Dere Street House Bowburn North Industrial Estate, Bowburn, Durham, United Kingdom, DH6 SPF.
The ultimate parent is
The parent of the largest group producing publicly available financial statements is Vestbrown (Newco) Limited. These financial statements are available upon request from Dere Street House Bowburn North Industrial Estate, Bowburn, Durham, United Kingdom, DH6 SPF.
Page 24