Results and Dividends

The income statement of the group appears on pages 8-9 which shows that the company made a profit for the year. However, the adjusted profit, after the revaluation gain shows a loss of £1m. The company will consider the payment of a dividend in the light of the overall business needs having regard to issues such as the investment requirements for stock, the rent collection, the nominations fee level and the cash position. The forecast budget shows a profitable position for the next three years but it is recognised that the Private Renters Act and Awaabs law is likely to have a bearing on operating costs and therefore this position will need to be kept under review.

Review of Business and Future Developments

Housing Gateway Ltd is continuing to grow its business and deliver innovative solutions to Enfield Council, with a specific focus on the following outcomes:

• Ensure the core operations are efficient and maximise returns (including profits minimising the nominations fee and supporting the release of dividends) to the Shareholder, contributing to the alleviation of the Council’s financial pressures arising from the shortfall in the provision of temporary accommodation, whilst balancing the needs of our residents and condition of housing stock.

• Progress the long leasing of accommodation for TA which provides greater certainty of provision and reduces exposure to cost pressures. Wind down Enfield Let on a phased basis as properties come up for renewal.

• Prepare for changes under the forthcoming Private Renters Act. Deliver demonstrably, good quality housing for residents ensuring the portfolio meets decency standards and aligns with the Council’s Climate Action Plan whilst maximising operating surplus.

• Review HGL's operating model to ensure that residents in the most need and who can afford market rents are prioritised and the number of residents who benefit from HGL's stable, affordable accommodation, are maximised.

• Ensure effective governance through a Board that adopts best practice in governance arrangements and ensuring the retention and renewal of Board members as required.

• Support the Council's need for specialist accommodation by developing innovative housing solutions subject to grant subsidy being available.

Financial Risks and uncertainties

Cash Flow: As with most business HGL is dependent on good cash management to underpin business activities. HGL relies on residents paying rent as the main source of income. In the last year income collection has proved challenging. This is in part due to the impact of resident changes from HB to UC, changes in rent levels and as a result of the cost of living crisis. As a result, a bespoke collection taskforce has been implemented to provide focus and direction. Additionally, HGL will be moving some assets to lease schemes which provide a guaranteed rent, diversifying the risk profile.

Cost of Capital: HGL relies on loans provided by the Council to finance its property portfolio. As with most business HGL has a spread of long and short term loans, refinancing provides both risk and opportunity. HGL has a strong treasury management strategy to minimise the risk that global fluctuations bring. Refinancing the short term loans is a priority going forward,

Volatile private rented market: An increasing share of HGL’s business is in direct competition with the private rented market. Any changes to this market will have a significant impact on HGL. The most likely risk is inflated prices within the market leading to landlords requesting higher lease fees, whilst the rental income does not keep pace. Whilst HGL will endeavour to negotiate costs down, if required the nomination arrangement with the Council will mitigate any risk of increased costs within this business stream.

Property Quality: Increased legislation and regulation in the sector is welcomed, however this has had the impact of increased costs on HGL. HGL strives to ensure delivery against quality, building safety and decarbonisation commitments across its portfolio.

Macro-economic changes: The cost of living increase has placed pressure on the company and residents alike. Cost inflation and high energy costs may have an impact on residents’ ability to pay their rent and in turn HGL’s business model. HGL has been proactive with this regard, creating a hardship fund to assist residents and actively works to find solutions to support them.

HGL’s diverse business model continues to be well placed to mange anticipated risks and take advantage of the opportunities that arise from them.

This report was approved by the Board on 21 July 2025 and signed on its behalf.

On behalf of the board

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

Housing Gateway Limited is wholly owned by Enfield Council and was formed to help assist the Council in reducing its budget pressure, by providing more affordable accommodation in the private rented sector.

The principal activity of the company is the management of a property portfolio. The business has three distinct activities; acquisition of owned stock – currently for market rent, leased private rented accommodation, leased temporary accommodation.

All activities deliver cost savings to the Council and provide residents with a suitable housing solution. The leased accommodation requires a nominations fee to ensure viability from an HGL perspective.

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The auditor, Moore NHC Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 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; 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 Housing Gateway Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

Our approach was as follows:

•    We obtained an understanding of the legal and regulatory requirements applicable to the company and     considered that the most significant are the Companies Act 2006, UK financial reporting standards as     issued by the Financial Reporting Council, and UK taxation legislation

•    We obtained an understanding of how the company complies with these requirements by discussions

with management and those charged with governance.

•    We assessed the risk of material misstatement of the financial statements, including the risk of material     misstatement due to fraud and how it might occur, by holding discussions with management and those     charged with governance.

•    We inquired of management and those charged with governance as to any known instances of non-    compliance or suspected non-compliance with laws and regulations.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

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 member 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 member those matters we are required to state to the member 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 member, 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.

Housing Gateway Limited is a private company limited by shares incorporated in England and Wales. The registered office is Civic Centre, Silver Street, Enfield, EN1 3XA.

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, modified to include investment properties and certain financial instruments at fair value. The principle accounting policies adopted are set out below.

Turnover represents rental income receivable from housing benefit tenants for both owned and leased properties and is recognised on a straight-line basis over the term of the tenancy agreement.

Turnover also includes management income receivable in relation to the company's management of the properties. This income is recognised on an invoice basis.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Tangible fixed assets are stated at cost less accumulated depreciation.

Depreciation is provided to write off the cost of tangible fixed assets as follows:

Investment properties are valued by an external valuer and are shown on the balance sheet at fair value and are not depreciated. The change in fair value of the properties is shown in the profit and loss account in line with FRS 102.

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 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.

Derecognition of financial assets

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.

Derecognition of financial liabilities

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

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gain and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants in respect of capital expenditure are deferred and released to the profit and loss over the estimated useful life of the relevant asset which is between fifty years and seventy five years.

Going concern

The directors have reviewed the company's forecasts and have a reasonable expectation that the company has adequate resources to continue its operations for a period of not less than one year from the date that these financial statements are approved. The company has therefore continued to prepare its accounts on a going concern basis.

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.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

Directors' remuneration represents salaries of non-executive directors, Joanna Embling and Peter Nwosu, for their services.

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

The investment property portfolio was revalued on 31 March 2025 by Sanderson Weatherall, a chartered surveyor firm regulated by RICS. The valuation was performed in line with the requirements of FRS 102.

Included in other debtors and due within one year is £3,979,548 (2024: £1,661,363) owed by the London Borough of Enfield in respect of recharges for goods and services in the year.

Included in creditors due within one year is £14,929,878 (2024: £16,869,763) owed to the London Borough of Enfield in respect of recharges for goods and services in the year as well as other borrowings which consist of loans which are secured against the company's investment properties and are expected to be repaid within the next twelve months.

Included in creditors due after more than one year are loans of £128,567,225 (2024: £119,485,788) which are secured against the company's investment properties and are due after more than one year to The London Borough of Enfield.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability at the year end has been calculated at an effective tax rate of 25% (2024: 25%). This is in line with the proposed increase in the corporation tax rate when these gains will be realised.

The government grant balance of £12.33 million (2024: £12.62 million) relates to various grants received by the company in over the years for the acquisition of investment properties. The grants have been recognised on the balance sheet and are being released to the P/L over the estimated useful life of the investment properties.

Leased rental properties

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The operating leases represent leases to housing tenants and the council.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

The ultimate controlling party is the London Borough of Enfield by virtue of 100% ownership of the company's shares held by The Mayor and Burgesses of the Borough on behalf of the Council.

The company's ultimate parent undertaking is the London Borough of Enfield by virtue of 100% ownership held by The Mayor and Burgesses of the Borough on behalf of the Council. The company has taken advantage of the exemptions available under Financial Reporting Standard 102 not to disclose any transactions or balances with entities that are 100% controlled by the Council.