The directors present the strategic report for the year ended 31 March 2025.

The business closed the year with a strong balance sheet and healthy cash flow position. The business has a healthy pipeline to continue to acquire property and provide quality homes.

The results for the period, and the financial position of the group are shown in the annexed financial statements.

Responsibility for risk rests with the PPHA Board. Oversight of the risk management processes is provided by the Finance, Risk and Audit Committee.

Risks to the achievement of PPHA’s strategic objectives are recorded in the strategic risk register which is maintained by The Group Housing & Support Director.

The register is reviewed and updated by the Senior Management Team before the key risks are reported to, and reviewed by, the Finance, Risk and Audit Committee and Board.

The Finance, Risk and Audit Committee also receives reports on operational risks. The completion of an internal audit programme enhances the internal control process.

Maintaining and monitoring liquidity remained the highest risk for PPHA along with the high cost of third-party debt funding.

Governance Risk

Risk Description:

1. Governance structure is not fit for purpose, therefore oversight, leadership and monitoring is not effective

2. PPHA fails to comply with one of the 7 RSH regulatory standards

3. Failure of internal financial controls lead to breach of operating policies /procedures

4. NEDs do not have the appropriate skills and experience for PPHA's affordable housing model

Response to Key Risks:

• PPHA complete an annual appraisal of governance against the NHF Code of Governance and acquire expert advice where necessary. Additional independent Board Members were appointed in 2024 to ensure a majority of independent members.

• PPHA has set up an effective Board and governance structure with ongoing compliance monitoring, internal audit programme and gap analysis carried out and reported to the Finance, Risk and Audit Committee.

• PPHA adopt financial regulations that clearly set out approval limits and accountabilities, putting in place clear procedures. An internal audit programme is in place, overseen by the Finance, Risk and Audit Committee.

• PPHA maintains a Board skills matrix, linked to PPHA's strategy, and it is used as the basis for Non-Executive Director recruitment. There is an ongoing review of skills and performance, annual appraisal process, training, and induction provided to the board along with service contracts for all board members.

Financial Risk

Risk Description:

1. Capital available is insufficient to fund the PPHA's future acquisitions programme, or the cost of capital is prohibitive

2. Higher than modelled cost inflation increases overheads in PPHA's business plan

3. Tenants fail to pay rent

4. PPHA is subject to fraud

Response to Key Risks:

• The board review the forecast liquidity profile of PPHA at every Board meeting and Finance, Risk and Audit Committee meeting. Sensitivity analysis is presented with key risks and mitigations discussed and actioned where necessary

• The board monitor the financial plan, and management accounts to ensure that costs are being managed appropriately. Where costs are escalating, the board will consider whether activity can reduce, cease or be deferred, or whether a different procurement approach can help to manage costs.

• Capital requirements for the annual budget and financial plan are presented to Board annually

• There is a monthly review of customer accounts to identify rent arrears with recovery actions implemented where necessary. KPIs, including rent arrears, are presented to Senior Management on monthly basis and to the Board quarterly

• Financial regulations and controls are followed, with transactions being monitored and segregation of duties implemented. All payments require dual authorisation to ensure fraud risks are mitigated.

Future developments

The company intends to build on the progress made during this last financial year in future years.

Our specialist team partners with housebuilders, local authorities and registered providers to deliver much needed high-quality developments and provide a superior service to our residents.

We are committed to investing in suitable, long-term housing solutions for the most vulnerable members of society.

The company success is driven by our strength in securing high quality products that can be sold at best value prices to a loyal and growing customer base. Keeping up to date with latest trends and marketing our properties across various platforms allows the business to stay relevant and maintain a profile that facilitates a positive trading performance.

Costs are continually monitored with benchmarking exercises being undertaken on a regular basis to determine best price and best service both in terms of purchases and overhead costs.

Stock management to ensure an efficient cycle is a constant activity, underpinned by strong supplier relationships and internal data analysis which is utilised to inform decision making.

We have continued to develop and strengthen relationships with a number of institutional investment partners, as we look to dispose the properties, once a leaseholder and/or tenant is in the property, ensuring a high-level of customer service.

The company regards the financial KPI's as turnover and profitability. Turnover increased year on year from £36.8m to £46.1m. This is due to an increased volume of portfolio sales, in line with the company's strategic direction. Profit before tax also increased from £0.46m to £0.52m.

The company also monitors a range of operational and customer KPIs, to ensure a high-level of leaseholder and/or tenant satisfaction.

As the Board at Park Properties Housing Association Limited we have a legal responsibility, as set out in section 172(1) (a) to (f) Companies Act 2006, to act in good faith in exercising our duty to promote the success of the company for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board fulfil this responsibility.

Having regard to the likely consequences of any decision in the long term

The company is committed to provide housing solutions to the most vulnerable members of the society.

We make strategic decisions based on long-term objectives. In particular, this has meant significant investments in infrastructure to ensure that we can maintain high quality and evolve together with our customers. Stakeholders are also engaged with to ensure key decisions and strategies are aligned with the best interests of the company.

The directors believe that the success of the company is based on long term relationships with customers and suppliers. These contacts have been nurtured over the years, and have built on business conduct that seeks to enhance our reputation at all times.

The directors continue to pay close attention to the environmental impact on their operations by making sure that the company operate in the most efficient manner, and by investing in renewable sources of energy and energy reduction.

Reputation

The company strives to maintain a reputation for high standards of business conduct with all investors and customers. The company recognises the need to act fairly in all its dealings.

Stakeholder relations

The directors engage regularly with investors as key stakeholders in the success and growth of the business. This engagement involves presentation and scrutiny of financial information in order to inform strategic decision making that is in line with the long term best interests of the company.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

Park Properties Housing Association Ltd (PPHA) has been registered with the Regulator of Social Housing (RSH) as a for-profit Registered Provider since 6th September 2018.

The principal activity of the company, during the year, was the trading of high-quality affordable homes, held as stock, through the acquisition of new-build affordable rent, social rent and shared ownership homes via S106 agreements from property developers, and the subsequent stabilisation, management and disposal of these properties to investment partners, with profits generated from the disposals being re-invested into the sector in order to grow the provision of high-quality affordable homes in the United Kingdom.

The results for the year are set out on page 10.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The Board of PPHA are committed to delivering value for money (‘VFM’) for residents and ensuring efficient and effective use of resources.

As part of PPHA’s compliance with the Value for Money Standard, PPHA focus on achieving economy, efficiency, and effectiveness across all areas of activity. The board are committed to increasing the number of high-quality affordable homes in England and to providing the excellent services to our residents. PPHA’s strategy supports the growth in the provision of high-quality homes, with profits from the disposal of properties being reinvested into the sector, through the acquisition of more new-build affordable rent, social rent and shared ownership homes.

PPHA monitors performance using the nine metrics prescribed by the Regulator of Social Housing:

PPHA properties are held as stock, and therefore are not included within metric 1 and 3, which compares to the value of investment properties.

Rental income received from properties, held as stock, is recorded as Other Operating Income, and is therefore, excluded from metric 6a.

The directors confirm compliance with the Governance and Financial Viability Standard during the course of the year and up to the signing of the accounts.

The directors are responsible for preparing the annual 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of Park Properties Housing Association Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 March 2025 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our 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.

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, 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.

As explained more fully in the directors' responsibilities statement, 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 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 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.

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.

• We obtained an understanding of laws and regulations that affect the entity, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations.

• Where considered necessary we enquired of those charged with governance, reviewed correspondence and reviewed meeting minutes for evidence of non-compliance with relevant laws and regulations.

• We gained an understanding of the controls environment which includes the controls in place to prevent and detect fraud. We enquired of those charged with governance about any incidences of fraud that had taken place during the accounting period.

• The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.

• We reviewed financial statements disclosures to assess compliance with relevant laws and regulations.

• We enquired of those charged with governance about actual and potential litigation and claims.

• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.

• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

Due 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, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Park Properties Housing Association Limited is a private company limited by shares incorporated in England and Wales. The registered office is Reedham House, 31-33 King Street West, Manchester, M3 2PJ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable for rents and services provided in the normal course of business, and income received through sale of properties which is shown net of VAT.

Under FRS102, reduced income derived from rent free periods is spread over the life of the lease.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises property and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows 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 cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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 profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset 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.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 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 interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax. The is recognised in the Income Statement, 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.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 that are 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 only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The exceptional item includes a cost of £501,147 (2024: £1,042,365) which relates to one-off fitting of Air Source Heat Pumps across a number of properties within the year.

There are no amounts outside the normal course of business within the calculation of operating profit.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

No employees were directly employed by the company in the year.

During the year the the company incurred board remuneration costs of £33,880 (2024: £8,333).

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

There were no financial instruments measured at fair value.

Included within other debtors are £7,338,924 (2024: £3,026,358) of exchange funds.

Mortgages and loans are secured by a legal mortgage debenture incorporating a fixed and floating charge over all the properties and undertakings of the company.

Secured debts included within long term creditors are mortgages totalling £16,997,523 (2024: £12,602,260).

The movement shown above from retained earnings is in relation to the revaluation gain of investment properties net of deferred tax.

The capital contribution reserve represents consideration waived on amounts owed to related party and group undertakings.

The movement to non-distributable reserves shown above is in relation to the revaluation gain of investment properties net of deferred tax.

Amounts contracted for but not provided in the financial statements:

There are no other related party transactions that require disclosure.

The company's parent undertaking at the balance sheet date was Hornsearle Property Group Limited, a company registered in England and Wales.

Registered Office:

Reedham House

31 King Street West

Manchester

United Kingdom

M3 2PJ

Historically, the entity held a property portfolio as investment property, consistent with its strategy of holding assets for long-term rental income and capital appreciation. However, in the prior year (FY24), there was a strategic shift whereby properties began to be acquired and held for the purpose of resale in the short term. This does not represent a change to the underlying business objective in providing affordable housing.

Following this change in business model, the Director’s concluded that the properties more appropriately meet the definition of stock under FRS 102, rather than investment property. As such, all properties have been reclassified from investment property to stock. In line with this reclassification, proceeds from property disposals are now presented as turnover, and the corresponding costs are recognised in cost of sales. This replaces the previous presentation where profits or losses on disposal were included within a single line item in the income statement.

This change is a reclassification only and therefore the Net Profit is unchanged.