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

The Limited Liability Partnership was registered as a profit-making private registered provider of Social Housing with the Regulator of Social Housing (registered number 5169) with effect from 6 October 2022. The Limited Liability Partnership commenced trading in the year ended 31 March 2024 with the principal activity being the provision of affordable housing in Cornwall.

Overview

The Designated Members are delighted to provide the second Members' report for Perran Housing LLP (Perran). Perran was registered with the Regulator of Social Housing (RSH) in October 2022.

Perran was set up to acquire the s106 properties developed by Treveth Development LLP. Treveth Holdings LLP, who is a 99% member of both Treveth Development and Perran has a very specific aim in mind with respect of Perran.

Treveth Holdings was set-up in 2019 by Cornwall Council to provide new residential development in Cornwall (there are geographical restrictions to where Treveth can operate). On every Treveth development, Treveth will seek to retain over 50% of the scheme for Open Market Rental to help to challenge the chronic shortage of these properties in Cornwall. By also retaining the s106 properties within Perran, around 80% of a Treveth scheme will have a Treveth entity as a landlord.

Treveth is committed to the following areas on its residential schemes:

• Challenge the quality of properties developed in Cornwall

• Create homes where the costs of living in the home are minimised as far as possible through building thermally efficient homes and providing appropriate renewable technology

• Long-term stewardship of the schemes once completed. Treveth will set up an estate management function for each scheme so that the enduring quality of the scheme is preserved for the long-term

• Creating schemes where the tenure of a property is not immediately obvious

For Perran this provides an excellent opportunity to acquire new, quality homes within schemes where its tenants will want to live. Overall Perran, like Treveth, aspires to be the landlord tenants would prefer to rent from.

We acquired our first properties in August 2023. The first tranche of shared ownership sales completions was in December 2023. At 31 March 2025 the portfolio stands at 25 shared ownership and 34 affordable rent properties. This is forecast to increase to 34 shared ownership and 75 affordable rent by 31 March 2026.

Perran employs Pinnacle Ltd as its managing agent providing tenancy and leasehold housing management services. The Management Agreement was finalised in August 2023.

Future reports will chart the development of Perran and compliance with all aspects of governance, close financial control, maintenance of high-quality homes and the building up of a focus on meeting the needs of our tenants and customers.

Principal Risks and uncertainties

Perran has both a Strategic and Operating Risk register that is reviewed by the Project Committee (PC) on a regular basis. This section looks at strategic risks.

Performance Highlights    

As at 31 March 2025 the property portfolio was as follows:

These properties are across four schemes:

In the prior year the property portfolio comprised 19 shared ownership and 6 affordable rent properties held across three schemes.

Financial highlights

The table below provides a summary of the financial performance of Perran

Value for Money

Perran defines value for money (VFM) as achieving our corporate objectives in the most economical, efficient and effective way.

Perran has developed a full suite of VFM measures against the RSH’s VFM standard. The results for the year ended March 31,2025 are provided in the table below with a comparison to the sector’s median.

As this financial year was Perran’s first full year in business, a true comparative comparison is not feasible. Also, when looking at the sector and at our peers, Perran only owns 59 units which is 95% less than the smallest companies in the peer group. So again, a comparison against our peers is not a fair representation.

Looking at the above table, it shows a 40% decline in reinvestment, which is down to 23/24 being the first year of business. In comparison to the sector’s median, we are up by 52%, as Perran was set up to deliver to new homes and will continue to do so until the end of financial year 2031-32.

The new social housing supply delivered percentage has significantly dropped from 100% to 61%, but again, this is down to 23/24 being the first year of business. It is, however, still much higher than the sector median of 1.4%. It remains well above the sector’s performance, suggesting strong commitment to growth compared to industry standards.

Our gearing ratio has decreased from 126% in 23/24 to 96% in 24/25, however we still have a relatively high gearing ratio compared to the sector median of 45.6%. While we are delivering new homes and our peers are more established, our gearing against the sector will be relatively high, due to new investment.

The interest cover is 68% higher than the sector’s median, showing we have a stronger margin compared to industry peers. The decrease from 23/24 will again be due to the first year of business and having minimal costs, with a lot of our units in 23/24 completing at the end of the financial year so our interest cover was very low in comparison.

Looking at our operating margins, we can see that the cost per unit has increased from £663 in 23/24 to £1,349 in 24/25. However, it remains well below the sector median of £5,136, suggesting that the organization is still more cost-efficient than most in the sector. The result from 24/25 shows a true cost per unit, compared to 23/24, however as we are still building our portfolio and units are being delivered throughout the year, so the cost per unit may still fluctuate in future years. Our overall operating margin is 23% compared to the sectors median of 18.5%, which suggests we are operating more efficiently than our peers. However, a lot of our peers have older portfolios so may have higher costs to maintain them. Finally, our return on capital employed has increased from 2.9% to 5.34% and is 2.5% higher than the median. This shows that we are utilising our capital efficiently and we are managing our returns more than the sector’s expectations.

As our portfolio continues to grow and mature, we remain committed to improving performance while ensuring value for money is embedded in all aspects of our operations.

Future deliverables:

Capital Structure and treasury

All funding is provided by Cornwall Council through Treveth Holdings LLP and passed down to Perran.

All Perran properties are charged as security for a long-term fixed rate. The rate is dependent on the rate agreed on the whole Treveth scheme at the time that the scheme was approved by Cornwall Council as the funders to Treveth Holdings LLP. In addition, Treveth Holdings LLP provides working capital to fund any operating capital requirements.

Due to the funding arrangement in place all loans are repayable on demand by Perran but not by Treveth Holdings LLP. Treveth Holdings LLP has confirmed these facilities will not be required to be repaid until Parran has sufficient available funds.

Funding rates

Funding rates for property assets have remained unchanged during the year at 3.69%, as no new Term Loans were completed. Perran expects rates to increase going forward which will increase the challenge of maintaining net margins.

Governance

Current membership

The Perran Project Committee is composed of 6 members which includes a representative from each of the two Designated Members of Perran Housing LLP (Treveth Holdings LLP and Corserv Limited). There are no members who are executives of Perran.

The chair of Perran’s Project Committee is an independent member.

The Project Committee controls Perran’s strategic direction and reviews its operating and financial position. It is supplied with timely and relevant information to enable it to discharge its duties. Board papers are distributed in advance of meetings and are sufficiently detailed to enable the Project Committee members to understand Perran’s performance.

The Project Committee has a comprehensive set of Terms of Reference to guide and focus the work undertaken.

A regular assessment of individual and collective skills is undertaken, and relevant training is provided to ensure the Project Committee has the skills to discharge its duties.

Code of Governance

Perran has adopted the ecoDA code of governance (2010) and is fully compliant with the code. This was reviewed by the Project Committee in March 2024.

Perran is very conscious of the need to maintain excellent governance at all times. Altair were commissioned in this financial year to review the governance arrangements and their effectiveness. This review has been concluded and Perran is addressing the recommended actions.

Employees

Perran does not have any direct employees. Services and support are provided through a Service Level Agreement (SLA) with Treveth Holdings LLP.

Internal Controls and Risk Management

The Project Committee has overall responsibility for the system of internal control and risk management and for reviewing its effectiveness. The Project Committee also takes steps to ensure Perran adheres to the regulators Governance and Financial Viability Standard. The Project Committee can confirm that Perran complied with the requirements of the Governance and Financial Viability Standard during the financial year and up to the date of approval of the financial statements.

Risk management

The Project Committee recognises the importance of sound risk management in delivering the business plan.

Perran introduced a new Risk Management Policy and Framework in the year. The policy and framework help the business to identify and mitigate significant risks that may compromise the delivery of Perran’s strategic objectives. Strategic risks are assessed in terms of their impact and likelihood, with internal controls identified to mitigate key risk causes. Risks of greatest significance to Perran, are reported to the Project Committee quarterly in a strategic risk heat map, while other risks are included in Perran’s operational risk register. Perran’s approach to risk is not intended to eliminate risk but to identify, prioritise and manage key risks to support strategic objectives.

Under the new framework, Perran's risk appetite will continue to be reviewed and approved by the Project Committee. The most significant risks are also outlined and reviewed as part of the business planning cycle.

Fraud and Significant Control Failings

Perran complies with the Regulator's requirements with respect to fraud and has a policy requiring a register to be maintained of all actual and attempted fraud. All cases noted will be reported to the Project Committee and submitted to the Regulator.

The Project Committee has received an Internal Controls Assurance report. No significant control failings or fraud have been identified during the year.

Overall Assessment

The Project Committee is satisfied that Perran's risk management and internal control systems were designed adequately and operating effectively as at 31 March 2025 and at the date of approval of these financial statements.

No significant weaknesses in internal controls which resulted in material misstatement or loss have been identified that would have required disclosure in the financial statements.

Members' drawings, contributions and repayments

There is currently no intention for members to make any drawings or for any distributions to be made to members.

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

In accordance with the limited liability partnership's membership agreement, a notice proposing that Azets Audit Services be reappointed as auditor of the limited liability partnership will be put at a general meeting.

The designated members of the LLP who held office at the date of approval of this annual report confirm that:

• so far as they are aware, there is no relevant audit information needed by the LLP's auditors in connection with preparing their report of which the LLP's auditors are unware; and

• they have all taken the steps that they ought to have taken as a designated member in order to make themselves aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.

Directors and Officers Liability Insurance

Perran has maintained Directors and Officers Liability Insurance throughout the year. This service is provided as part of the SLA with Treveth Holdings LLP.

Charitable and Political donations

No political or charitable donations were made during the year (2024: £nil).

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Specifically Treveth Holdings LLP has provided a letter of support confirming that it will provide financial support as necessary, including, but not limited to, provision of working capital funding and ongoing and further provision of intercompany loans, to enable the limited liability partnership to settle in full all valid creditors or claims and ensure the limited liability partnership remains a going concern for a period of at least 18 months from 22 September 2025. In addition, existing facilities provided by Treveth Holdings LLP are not required to be repaid until the limited liability partnership has sufficient available funds. Accordingly, the members continue to adopt the going concern basis of accounting in preparing the financial statements.

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members 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 limited liability partnership will continue in business.

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Perran Housing LLP (the 'limited liability partnership') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the statement of financial position, the reconciliation of members' interests and notes 1 to 15 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the limited liability partnership'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 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.

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 limited liability partnership 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 members' 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 limited liability partnership’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 members with respect to going concern are described in the relevant sections of this report.

Other information

The members are responsible for the other information. The other information comprises the information included in the members' report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships 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

• we have not received all the information and explanations we require for our audit.

As explained more fully in the members' responsibilities statement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership 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.

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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership'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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

Perran Housing LLP is a limited liability partnership incorporated in England and Wales under the Limited Liability Partnerships Act 2000 and is a registered provider of social housing. The registered office is 5a Pydar House, Pydar Street, Truro, Cornwall, United Kingdom, TR1 1XU.

The limited liability partnership's principal activities are disclosed in the Members' Report.

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2022, together 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 limited liability partnership is a public benefit entity in accordance with FRS102.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest pound.

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

This limited liability partnership is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this limited liability partnership, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The limited liability partnership has therefore taken advantage of exemptions from the following disclosure requirements:

• Cash flow statement and related notes;

The financial statements of the limited liability partnership are consolidated in the financial statements of Cornwall Council. These consolidated financial statements are available from its registered office, County Hall, Treyew Road, Truro, TR1 3AY.

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Specifically Treveth Holdings LLP has provided a letter of support confirming that it will provide financial support as necessary, including, but not limited to, provision of working capital funding and ongoing and further provision of intercompany loans, to enable the limited liability partnership to settle in full all valid creditors or claims and ensure the limited liability partnership remains a going concern for a period of at least 18 months from 22 September 2025. In addition existing facilities provided by Treveth Holdings LLP are not required to be repaid until the limited liability partnership has sufficient available funds. Accordingly, the members continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover comprises rental and service charge income receivable (net of void losses), fees receivable and income from shared ownership first tranche sales.

Rental income is recognised on a straight-line basis over the rental period commencing on the execution of tenancy agreements. Service charge income is recognised when service charge expenditure is incurred as this is the point at which the services have been performed. Income from first tranche sales is recognised at the point of legal completion of the sale. Other income is recognised as receivable on the delivery of services provided.

Operating costs represents the direct and administrative costs derived from social housing activities, including cost of the first tranche sales, direct overheads, marketing, and other incidental costs incurred in the sale of the properties.

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings.

Housing Properties

Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are principally properties available for rent or shared ownership. Housing properties are initially measured at cost. Subsequent to initial recognition they are measured at cost less subsequent accumulated depreciation and accumulated impairment losses.

Expenditure on shared ownership properties is split proportionally between current and fixed assets based on the element relating to expected first tranche sales. The first tranche proportion is classified as a current asset and related sales proceeds included in turnover, and the remaining element is classified as a fixed asset and included in housing properties at valuation, less any provisions needed for depreciation or impairment.

Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each component part of housing properties. Depreciation will start the year after the date of acquisition. Land is not depreciated. The estimated useful lives are as follows:

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset’s future economic benefits.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in profit or loss.

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Shared ownership first tranche sales are valued at the lower of cost and estimated selling price less costs to complete and sell.

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.

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions 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, which include debtors, 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.

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 limited liability partnership 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 limited liability partnership 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.

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

Void losses were £20,923 (2024: £620).

28 (2024: 6) affordable rent and 6 (2024: 19) shared ownership properties were purchased during the year from Treveth Development LLP.

The LLP does not have any employees (2024: Nil). All employment costs are borne by Treveth Holdings LLP. The LLP does not pay any remuneration to key management personnel or non executive board members.

Recharges of payroll related costs by Treveth Holdings LLP are disclosed in note 13.

Amounts owed to members of £7,469,768 (2024: £3,886,558) comprise a term loan and revolving credit facility provided by Treveth Holdings LLP. The loans are subject to interest at 3.69% (2024: 3.69%) and are repayable on demand.

Cornwall Council holds a legal mortgage and fixed charge over the freehold and leasehold properties of the limited liability partnership. In the event of a winding up the unsecured amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

At 31 March 2025 the limited liability partnership had capital commitments as follows:

The above commitments will be financed through borrowings that are available under existing loan arrangements with Treveth Holdings LLP.

The Members of the LLP are Treveth Holdings LLP and Corserv Limited.

Treveth Holdings LLP employs all management and staff who perform services for the company. There were management fees and recharges of payroll expenses of £10,400 and £84,981 respectfully during the year (2024: £Nil). During the year Treveth Holdings LLP advanced loans (net of repayments) of £3,583,210 (2024: £3,857,991) to the LLP and charged interest of £218,557 (2024: £28,567) that has been accrued on the loan and included in the amounts owed to members at the balance sheet date (refer note 12).

Treveth Holdings LLP recharged insurance costs of £4,395 (2024: £nil) and other expenditure of £703 (2024: £nil) to the LLP. At the year end, an amount of £26,088 (2024: £nil) was owed to Treveth Holdings LLP, included in Creditors: Amounts falling due within one year.

During the year the LLP acquired residential properties from Treveth Development LLP (a fellow subsidiary of Treveth Holdings LLP) for £5,053,562 (2024: £3,356,456).

Treveth Development LLP recharged insurance costs of £nil (2024: £2,909) to the LLP.

During the year, Treveth Tranche A LLP recharged legal fees of £750 (2024: £nil) to the LLP.

During the year, Cornwall Council recharged council tax and other administrative expenditure of £21,571 (2024: £nil) to the LLP.

The immediate parent undertaking is Treveth Holdings LLP.

The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is Cornwall Council, whose address is County Hall, Treyew Road, Truro, Cornwall, United Kingdom, TR1 3AY.