REGISTERED NUMBER: 08741560 (England and Wales)

Parc Eirin Development Company Limited

Audited Financial Statements for the Year Ended 31st March 2025

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

A C Crompton

D A Ward

M R Davies

Registered office:

220 The Boulevard

Canton

Cardiff

CF11 8GF

Registered number:

08741560 (England and Wales)

Auditors:

Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

Current assets

Stocks

2,447,619

25,512

Debtors

4

14,849

5,100

Cash at bank

426,322

324,115

2,888,790

354,727

Creditors

Amounts falling due within one year

5

(919,705

)

(6,987

)

Net current assets

1,969,085

347,740

Total assets less current liabilities

1,969,085

347,740

Creditors

Amounts falling due after more than one year

6

(3,295,551

)

(1,264,520

)

Net liabilities

(1,326,466

)

(916,780

)

Capital and reserves

Called up share capital

8

100

100

Retained earnings

9

(1,326,566

)

(916,880

)

Shareholders' funds

(1,326,466

)

(916,780

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss has not been delivered.

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

D A Ward - Director

1.	Statutory information

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

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Work in progress

Work in progress is valued at the lower of cost and estimated selling prices less costs to complete and sell. Impairment in work in progress is considered at each year end and cost reduced if required.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss, 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.

Going concern

The Board is aware that due to the nature of the development project where a significantly large amount of cost is expended ahead of earning any revenue income, the company will report accounting losses until revenue income is generated. The long-term projections show that the scheme will generate a surplus when completed. The Board also receives cash flow projections and updates on funding agreements (short term and long term) as part of periodic financial reporting package.

Based on the above, the Directors consider that the Company is financially viable and can meet its liabilities as they fall due and therefore these financial statements have been prepared on a going concern basis.

Financial instruments

Financial instruments are recognised on the company's balance sheet when the company becomes party to the contractual provision of the instrument.

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cashflows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the assets original interest rate. The impairment loss is recognised in the income statement.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the income statement.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cashflows from the asset expire or are settled, or when the group transfers the financial assets and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities including trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing arrangement, 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 are method.

Trade creditors are obligations to pay for goods are services that have been acquired in the ordinary course of business 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 rate of interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

3.	Employees and directors

The average number of employees during the year was 3 (2024 - 3 ) .

4.

Debtors: amounts falling due within one year

2025

2024

£

£

Amounts owed by group undertakings

5,100

5,100

VAT

9,749

-

14,849

5,100

5.

Creditors: amounts falling due within one year

2025

2024

£

£

Trade creditors

653,873

634

Amounts owed to group undertakings

5,376

878

VAT

-

726

Accrued expenses

260,456

4,749

919,705

6,987

6.

Creditors: amounts falling due after more than one year

2025

2024

£

£

Bank loans - 2-5 years

1,945,803

-

Other loans - 2-5 years

1,349,748

1,264,520

3,295,551

1,264,520

7.	Secured debts

The following secured debts are included within creditors:

2025

2024

£

£

Other loans

1,349,748

1,264,520

Bank loans

1,946,120

-

3,295,868

1,264,520

Bank loans are secured by a fixed and floating charge over freehold land lying to the south-east of Parc Eirin, Tonyrefail, Porth (title number CYM769976). The charge, dated 14 February 2025, is in favour of DBW Investments (11) Limited and was registered at Companies House on 4 March 2025.

The facility, which is subject to a negative pledge, was provided to assist with the development of 114 dwellings in phases 4, 5 and 6 at the aforementioned property. The loan carries a fixed interest rate of 7.75% per annum and is repayable within 37 months from first drawdown.

Other loans are from the Welsh Government and are dated 29 April 2021 and varied by a letter of variation dated 22 July 2024. This loan supersedes both the revised loan agreement dated 30 March 2017 and the original loan agreement dated 30 March 2013. The interest is calculated on a compound basis with reference to the European Reference rates together with a 1% margin. The interest rate together with the 1% margin decreased from 6.65% to 6.35% as at 31 March 2025 (2024: 6.65%).

The repayment of the loan is set by the company reaching key milestone events.

The loan of £1 million plus accrued interest is due for repayment based on the earlier of several different key events but no earlier than 31 December 2027 and therefore this has been classified as falling due for repayment within 2 to 5 years.

The loan is secured on the Parc Eirin site and the cash balances within the company.

8.	Called up share capital

Allotted and issued:

Number:

Class:

Nominal

2025

2024

value:

£

£

100

Ordinary shares

£1

100

100

9.

Reserves

Retained

earnings

£

At 1st April 2024

(916,880

)

Deficit for the year

(409,686

)

At 31st March 2025

(1,326,566

)

10.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Clive Edwards (Senior Statutory Auditor)

for and on behalf of Menzies LLP, Statutory Auditors

Material uncertainty related to going concern

We draw attention to note 2, 'Going Concern', in the financial statements. As at 31 March 2025, the company's total liabilities exceeded its total assets by £1,326,466. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

11.	Ultimate parent company

The ultimate parent company and controlling party is Tirion Group Limited, which prepares group financial statements incorporating the financial statements of the company. A copy of these can be obtained from the registered society's registered office at 220 The Boulevard, Canton, Cardiff, CF11 8GF.