Registration number:
trading as
for the Year Ended 31 March 2025
Registration number:
trading as
for the Year Ended 31 March 2025
South Cambs Limited
trading as Ermine Street Housing
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
South Cambs Limited
trading as Ermine Street Housing
Company Information
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Directors |
P D Campbell J W D Hobro P D Sandford J M Membery E W Chelton Brown P J Maddock |
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Registered office |
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Auditors |
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South Cambs Limited
trading as Ermine Street Housing
Strategic Report for the Year Ended 31 March 2025
The directors present their report for the year ended 31 March 2025.
Fair review of the business
The Company was incorporated on 19 December 2012 and began trading on 1 April 2014.
In its eleventh year of trading (2024/25), the Company focused on consolidating its core rental portfolio, with particular attention to asset management and stock condition, while also pursuing new investment opportunities. The principal activity during the year remained the management of both purchased and leased properties for the purpose of residential lettings across the eastern region of the UK. A suitable spread of property type is maintained; overriding importance being attached to the standard of construction and suitability for the residential rental market, with upwards only rent reviews. The portfolio is kept under constant review with the object of disposing of any property if growth prospects diminish or appropriate rental returns are not expected to be achievable.
During 2023/24 the Company was presented with the opportunity to purchase additional properties and the Directors agreed that these acquisitions should be presented to the Council as potential new investment opportunities. The Council considered the proposals and agreed a further investment fund of £20 million be made available to the Company during 2024/25. In addition to the investment opportunities identified by the Company, the additional investment by the Council included provision for accommodation in the South Cambs district.
The investment properties were all purchased by August 2024. The single-person properties were purchased using central government provision for homelessness initiatives. The grant together with the residual funds left from the additional £20 million allowed for the acquisition of five single person homes. The acquisitions were leased to Shire Homes Lettings Limited to allocate and manage. Four homes were purchased by March 2025, and the fifth completed in August 2025.
The Company acquires property on the open market, borrowing at an agreed interest rate via South Cambridgeshire District Council. The Company then lets the property at market rents to facilitate a reasonable pay back on the investment.
The profit for the year to 31 March 2025, after taxation, is £528,945 (2024: £3,258,642 Loss).
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2025 |
2024 |
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Turnover |
£ |
9,469,548 |
8,192,513 |
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Profit for the year after taxation |
£ |
528,945 |
(3,258,642) |
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Increase in investment property asset base |
£ |
19,751,419 |
(3,748,832) |
The year of trading returned a increase in operating profit to £4,444,273 (2024: £2,509,620). Rental income increased in the year whilst associated direct costs (including one-off repair costs and bad debts for the year) have decreased resulting in a significant increase in the gross profit of the company as generated from the property portfolio from £3,613k to £5,480k. The administative expenses have also decreased by £67k in the year despite continuing inflationary pressures on costs.
In line with planned expansion in the portfolio, the number of properties held at the year-end date amounts to 527 (2024: 520) properties acquired for rental across Cambridgeshire, Suffolk, Northamptonshire, Leicester, Leeds and Nottingham. No additional properties were added to the leased portfolio from 190 held in 2024.
South Cambs Limited
trading as Ermine Street Housing
Strategic Report for the Year Ended 31 March 2025
Principal risks and uncertainties
Contract Risk:
Contract risk is the risk that a lack of understanding or effective management may lead to the erosion in value of a contract. The Company manages this risk by competitively tendering contracts and periodically reviewing contracts to ensure effective monitoring and adjustment of pricing, terms and conditions relevant. to market conditions and contract and performance expectations.
Interest Rate Risk:
The Company currently secures all its finance from its parent undertaking, South Cambridgeshire District Council. The interest risk combines the risk that the Company is not therefore taking advantage of any potential preferential rates in the marketplace, with the risk that the Council may also need to increase the fixed rates currently offered, depending upon market forces. The Company Business Plan reviews market and PWLB rates available to the Council and recommends changes in the acquisition profile accordingly to mitigate this risk.
Price, Credit, Liquidity and Cash Flow Risk:
Price risk is the risk of fluctuations in the market for freehold property acquired or anticipated to be acquired by the Company. Freehold Investment properties with a current book value of £135,133,200 (2024: £115,329,900) are subject to price risk. The Company Business Plan reviews house price activity regularly with access to Hometrack market intelligence but the impact of this risk is minimal as acquisitions are intended for long-term let and there is no intention to sell any stock in the short to medium term.
Credit risk is the risk that one party to a transaction will cause financial loss for the other party by failing to discharge an obligation. The main exposure to credit risk relates to housing rental income and the Company reduces the risk of losses in this area of the business by undertaking appropriate credit checks on prospective tenants and by collecting, holding in a separate bank account and registering tenant deposits with a third party, to mitigate the potential loss of rental income and any cost of damage to the property by the tenant.
Liquidity risk is the risk that the entity will encounter difficulty in meeting obligations associated with financial liabilities. All trade and other payables are due to be paid in less than one year. By their very nature, properties are less liquid and therefore the investments may not be readily realisable. The Company Business Plan is updated regularly to monitor cashflow and financial operations and the Company can access short-term borrowing from the parent undertaking to manage cash flow needs if required.
Cash flow risk is the risk of exposure to variability in cash flows. The Company includes a predetermined level of property voids within its cash flow expectation and minimises cash flow variations by lease management.
South Cambs Limited
trading as Ermine Street Housing
Strategic Report for the Year Ended 31 March 2025
Future developments
A model of shorter-term lending was retained whilst the Company acquired its original target of 500 homes, with interest rates for loan facilities renewed annually or after 5 years in duration. The Council had advised the Company that it would increase the interest rates to 4.25% from April 2023 for a period of 2 years, which will revert to 3.85% in April 2025.
A longer-term approach to lending by the Council would provide stability for long-term planning for the Company whilst also providing the Council with some certainty over the future revenue stream that it can expect from its lending to the Company.
The Company will continue to focus on asset management over the next year, ensuring the portfolio is well maintained and planned maintenance investment will be considered in line with the asset management action plan.
Approved by the
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South Cambs Limited
trading as Ermine Street Housing
Directors' Report for the Year Ended 31 March 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors' of the company
The directors, who held office during the year, were as follows:
The following director was appointed after the year end:
Principal activity
The principal activity of the company is managing purchased and leased properties for the purpose of residential lettings across the eastern region of the UK.
Information included in the Strategic Report
The Company has chosen, in accordance with Companies Act 2006, s.141C (11), to set out in the Company's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch.7 to be contained in the Directors' Report.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Williamson & Croft Audit Ltd as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved by the
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South Cambs Limited
trading as Ermine Street Housing
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether FRS 101 has 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.
South Cambs Limited
trading as Ermine Street Housing
Independent Auditor's Report to the Members of South Cambs Limited
Opinion
We have audited the financial statements of South Cambs Limited (the 'company') for the year ended 31 March 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework'.
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 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual 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, except to the extent otherwise explicitly stated in our report, 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.
South Cambs Limited
trading as Ermine Street Housing
Independent Auditor's Report to the Members of South Cambs Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where 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. |
Responsibilities of directors
As explained more fully in the [set out on page 6], 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.
Auditor Responsibilities for the audit of the financial statements
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:
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In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have given consideration to the control environment (including management's own process for identifying and assessing risks) as well as the nature of the entity, the industry in which it operates and the underlying performance. Consideration was also given to the attitudes and incentives of management to commit fraud. We determined that the greatest potential for fraud existed in the following areas: timing of recognition of income; value of investment properties; and posting of unusual journals and complex transactions. In line with all audits performed under International Standards on Auditing (UK), we planned and performed specific procedures to respond to the risk of management override of controls. |
South Cambs Limited
trading as Ermine Street Housing
Independent Auditor's Report to the Members of South Cambs Limited
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We also obtained an understanding of the applicable laws and regulations that the company has to abide by, through discussions with management and those charged with governance, as well as commercial knowledge of the sector and statutory legislation. We paid particular focus to those laws and regulations that had the potential to materially impact the amounts and disclosures within the financial statements. The key laws and regulations we identified were the UK Companies Act, health and safety, tax legislation and landlord regulations. |
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After our initial risk assessment, we performed the following procedures to detect material misstatements in respect of irregularities arising due to fraud or error: |
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Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; |
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Reviewing financial statement disclosures and testing these against supporting documentation to assess compliance with applicable laws and regulations; |
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Assessing key accounting estimates within the financial statements in order to assess their reasonableness and determine whether there were any indications of management bias in the estimates; |
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Reviewing minutes of meetings of those charged with governance; |
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Making enquiries of management as to whether they are aware of any alleged, suspected or actual fraud during the year; and |
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Reviewing information provided by managements' experts against available market data. |
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We also performed procedures to satisfy ourselves regarding compliance with applicable laws and regulations, including: |
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Making enquiries of management and those charged with governance if there were any actual and potential litigation and claims; |
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Reviewing legal and professional fees incurred in the year for indicators of any litigation or claims against the company; |
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Reviewing minutes of meetings of those charged with governance; and |
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Reviewing correspondence with relevant legal authorities. |
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All audit team members were made aware of the applicable laws and regulations, as well as potential fraud risks during the planning stage of the audit and this was discussed at the audit team planning meeting. It was therefore determined that team members all had the relevant awareness and competence to identify any instances of non-compliance with relevant laws and regulations or fraud. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.
South Cambs Limited
trading as Ermine Street Housing
Independent Auditor's Report to the Members of South Cambs Limited
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For and on behalf of
20 York Street
Manchester
M2 3BB
South Cambs Limited
trading as Ermine Street Housing
Profit and Loss Account for the Year Ended 31 March 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
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Interest receivable and similar income |
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Interest payable and similar expenses |
( |
( |
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Other gains or losses |
1,854,488 |
(2,097,060) |
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(3,244,204) |
(6,359,804) |
||
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Profit/(loss) before tax |
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( |
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Tax on profit/(loss) |
( |
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Profit/(loss) for the year |
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( |
The above results were derived from continuing operations.
South Cambs Limited
trading as Ermine Street Housing
Statement of Comprehensive Income for the Year Ended 31 March 2025
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2025 |
2024 |
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Profit/(loss) for the year |
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( |
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Total comprehensive income for the year |
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( |
South Cambs Limited
trading as Ermine Street Housing
(Registration number: 08336413)
Balance Sheet as at 31 March 2025
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Note |
31 March |
31 March |
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Fixed assets |
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Tangible assets |
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Investment properties |
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Current assets |
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Trade and other debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
1 |
1 |
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Retained earnings |
11,006,515 |
10,477,570 |
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Shareholders' funds |
11,006,516 |
10,477,571 |
Approved by the
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South Cambs Limited
trading as Ermine Street Housing
Statement of Changes in Equity for the Year Ended 31 March 2025
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Share capital |
Retained earnings |
Total |
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At 1 April 2024 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 March 2025 |
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Share capital |
Retained earnings |
Total |
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At 1 April 2023 |
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Loss for the year |
- |
( |
( |
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Total comprehensive income |
- |
( |
( |
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At 31 March 2024 |
1 |
10,477,570 |
10,477,571 |
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
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General information |
The company is a private company limited by share capital, incorporated and domiciled in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS101) and in accordance with applicable accounting standards.
The financial statements have been prepared on the historical cost basis, except for the revaluation of investment properties. The principal accounting policies adopted are set out below.
The financial statements are presented in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Summary of disclosure exemptions
In these financial statements, the company has taken advantage of the exemptions available under FRS 101 in respect of the following disclosures:
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Paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j)-(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66, B67 of IFRS 3 - ‘Business combinations’. Equivalent disclosures are included in the financial statements of South Cambridgeshire District Council in which the entity is consolidated. |
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Paragraphs 91 to 99 of IFRS 13 - ‘Fair value measurement’ (disclosure of valuation techniques and inputs used for fair value measurement of assets and liabilities). |
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The requirements of paragraphs 10(d), 10(f), 16, 38A - 38D, 39, 40, 111 and 134 - 136 of IAS 1 - ‘Presentation of financial statements’ . |
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IAS 7 - ‘Statement of cash flows’. |
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Paragraphs 30 and 31 of IAS 8 - ‘Accounting policies, changes in accounting estimates and errors’ (requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but is not yet effective). |
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The requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36, 'Impairment of Assets' |
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the company shall not present a statement of compliance with IFRS. |
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Where required, equivalent disclosures are given in the group accounts of South Cambridgeshire District Council. The group accounts of South Cambridgeshire District Council are available to the public and can be obtained as set out in note 23.
Going concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
The Directors of the Company and the parent undertaking, South Cambridgeshire District Council, believe that the Company is well placed to manage its business risks successfully. On-going financing and refinancing arrangements have been agreed with South Cambridgeshire District Council for existing and future loans.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Changes in accounting policy
None of the standards, interpretations and amendments effective for the first time from 1 April 2024 have had a material effect on the financial statements.
Revenue recognition
Recognition
The company earns revenue from the provision of services relating to rental income. Revenue comprises income from the rental of the investment properties and right-of-use property assets of the company as well as associated service charge income and income from recharged services such as property maintenance and represents amounts received or receivable in accordance with the company's principal activity.
Revenue is measured at the fair value of the consideration received or receivable as per contractual lease agreements with tenants of each property.
Revenue is recognised in the financial statements during the period to which each lease payment relates and not simply when cash payments are made or received from tenants.
The principles in IFRS are applied to revenue recognition criteria using the following 5 step model:
1. Identify the contracts with the customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations in the contract
5. Recognise revenue when or as the entity satisfies its performance obligations
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Improvements to leasehold property |
Straight line over the remaining lease term |
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Investment property
A freehold investment property is measured initially at cost. The initial cost comprises the purchase price, transaction costs and any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the Company.
Expenditure on the acquisition, creation or enhancement of property is capitalised on an accruals basis, provided that it is probable that the future economic benefits or service potential associated with the asset will flow to the Company and the cost of the asset can be measured reliably. Expenditure that maintains but does not add to the asset's potential to deliver future economic benefits or service potential, i.e. repairs and maintenance, is charged as an expense when it is incurred.
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment property, is recognised in the income statement in the period of derecognition.
Transfers are made to or from investment property only when there is a change in use.
After initial recognition, a freehold investment property is measured at fair value; that is the price that would be received to sell an asset or to transfer a liability in an orderly transaction between market participants at the measurement date. A gain or loss arising from a change in the fair value of investment property is recognised in the Statement of Comprehensive Income for the period in which it arises. The fair value of investment property reflects market conditions at the balance sheet date. This means that a periodic revaluation approach may only be used where the carrying amount does not differ materially from that which would be determined using the fair value at the balance sheet date. An investment property held at fair value is not depreciated.
Leasehold investment property is measured initially on a right-of-use asset basis.
After initial recognition, a leasehold investment property is measured at its fair value based upon the discounted present value of expected future income. Depreciation is charged against these assets based on individual property lease periods on a straight line basis.
Investment properties. are reviewed annually to determine impairment or other material changes in value.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Fair value measurement
Fair value is defined in terms of a price agreed by a willing buyer and a willing seller in an arm's length transaction. The objective of determining fair value for a financial instrument that is traded in an active market is to arrive at the price at which a transaction would occur at the end of the reporting period in that instrument (i.e; without modifying or repackaging the instrument) in the most advantageous active market to which the entity has immediate access. The existence of published price quotations in an active market is the best evidence of fair value and when they exist they are used to measure the financial asset or financial liability.
If the market for a financial instrument is not active, an entity establishes fair value by using a valuation technique. Valuation techniques include using recent arm's length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same.
Inputs to the valuation techniques in respect of assets and liabilities for which fair value is measured or disclosed in the Company's financial statements are categorised within the fair value hierarchy, as follows:
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the authority can access at the measurement date.
Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - unobservable inputs for the asset or liability.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as fixed assets.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Leases
Definition
A lease is a contract, or a part of a contract, that conveys the right to use an asset or a physically distinct part of an asset (“the underlying asset”) for a period of time in exchange for consideration. Further, the contract must convey the right to the company to control the asset or a physically distinct portion thereof. A contract is deemed to convey the right to control the underlying asset if, throughout the period of use, the company has the right to:
· Obtain substantially all the economic benefits from the use of the underlying asset, and;
· Direct the use of the underlying asset (e.g. direct how and for what purpose the asset is used)
Where contracts contain a lease coupled with an agreement to purchase or sell other goods or services (i.e., non-lease components), the non-lease components are identified and accounted for separately from the lease component. The consideration in the contract is allocated to the lease and non-lease components on a relative standalone price basis using the principles in IFRS15.
Initial recognition and measurement
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
Subsequent measurement
The right-of-use asset is subsequently measured at fair value, as the assets are held as investment properties. Any gains or losses resulting from revaluation are recognised in the Statement of Comprehensive Income in the period in which they arise.
The right-of-use asset is depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Lease modifications
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the le.ase liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short term and low value leases
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
Sub leases
If an underlying asset is re-leased by the company to a third party and the company retains the primary obligation under the original lease, the transaction is deemed to be a sublease. The company continues to account for the original lease (the head lease) as a lessee and accounts for the sublease as a lessor (intermediate lessor). When the head lease is a short term lease, the sublease is classified as an operating lease. Otherwise, the sublease is classified using the classification criteria applicable to Lessor Accounting in IFRS 16 by reference to the right-of-use asset in the head lease (and not the underlying asset of the head lease).
After classification lessor accounting is applied to the sublease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
For defined contribution plans contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Financial instruments
Initial recognition
Financial assets and financial liabilities comprise all assets and liabilities reflected in the balance sheet, although excluding tangible assets, investment properties, intangible assets, deferred tax assets, prepayments, deferred tax liabilities and employee benefits plan.
The company recognises financial assets and financial liabilities in the balance sheet when, and only when, the company becomes party to the contractual provisions of the financial instrument.
Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value, representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable to the financial liability.
All regular way purchases and sales of financial assets and financial liabilities classified as fair value through profit or loss (“FVTPL”) are recognised on the trade date, i.e. the date on which the company commits to purchase or sell the financial assets or financial liabilities. All regular way purchases and sales of other financial assets and financial liabilities are recognised on the settlement date, i.e. the date on which the asset or liability is received from or delivered to the counterparty. Regular way purchases or sales are purchases or sales of financial assets that require delivery within the time frame generally established by regulation or convention in the market place.
Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value.
Classification and measurement
Financial instruments are classified at inception into one of the following categories, which then determine the subsequent measurement methodology:-
Financial assets are classified into one of the following three categories:-
· financial assets at amortised cost;
· financial assets at fair value through other comprehensive income (FVTOCI); or
· financial assets at fair value through the profit or loss (FVTPL).
Financial liabilities are classified into one of the following two categories:-
· financial liabilities at amortised cost; or
· financial liabilities at fair value through the profit or loss (FVTPL).
The classification and the basis for measurement are subject to the company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, as detailed below:-
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Financial assets at amortised cost
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:-
· the assets are held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
· the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
If either of the above two criteria is not met, the financial assets are classified and measured at fair value through the profit or loss (FVTPL).
If a financial asset meets the amortised cost criteria, the company may choose to designate the financial asset at FVTPL. Such an election is irrevocable and applicable only if the FVTPL classification significantly reduces a measurement or recognition inconsistency.
Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI only if it meets both of the following conditions and is not designated as at FVTPL:-
· the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
· the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investments that is not held for trading, the company may irrevocably elect to present subsequent changes in fair value in OCI. This election is made on an investment-by-investment basis.
If an equity investment is designated as FVTOCI, all gains and losses, except for dividend income, are recognised in other comprehensive income and are not subsequently included in the statement of income.
Financial assets at fair value through the profit or loss (FVTPL)
Financial assets not otherwise classified above are classified and measured as FVTPL.
Financial liabilities at amortised cost
All financial liabilities, other than those classified as financial liabilities at FVTPL, are measured at amortised cost using the effective interest rate method.
Financial liabilities at fair value through the profit or loss
Financial liabilities not measured at amortised cost are classified and measured at FVTPL. This classification includes derivative liabilities.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Derecognition
Financial assets
The company derecognises a financial asset when;
- the contractual rights to the cash flows from the financial asset expire,
- it transfers the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred; or
- the company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
On derecognition of a financial asset, the difference between the carrying amount of the asset and the sum of the consideration received is recognised as a gain or loss in the profit or loss.
Any cumulative gain or loss recognised in OCI in respect of equity investment securities designated as FVTOCI is not recognised in profit or loss on derecognition of such securities. Any interest in transferred financial assets that qualify for derecognition that is created or retained by the company is recognised as a separate asset or liability.
The company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of risks and rewards of the transferred assets or a portion of them. In such cases, the transferred assets are not derecognised.
When the company derecognises transferred financial assets in their entirety, but has continuing involvement in them then the entity should disclose for each type of continuing involvement at the reporting date:
(a) The carrying amount of the assets and liabilities that are recognised in the entity’s balance sheet and represent the entity’s continuing involvement in the derecognised financial assets, and the line items in which those assets and liabilities are recognised.
(b) The fair value of the assets and liabilities that represent the entity’s continuing involvement in the derecognised financial assets;
(c) The amount that best represents the entity’s maximum exposure to loss from its continuing involvement in the derecognised financial assets, and how the maximum exposure to loss is determined
(d) The undiscounted cash outflows that would or may be required to repurchase the derecognised financial assets or other amounts payable to the transferee for the transferred assets
Financial liabilities
The company derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Modification of financial assets and financial liabilities
Financial assets
If the terms of a financial asset are modified, the company evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, then the contractual rights to the cash flows from the original financial asset are deemed to expire. In this case the original financial asset is derecognised and a new financial asset is recognised at either amortised cost or fair value.
If the cash flows are not substantially different, then the modification does not result in derecognition of the financial asset. In this case, the company recalculates the gross carrying amount of the financial asset and recognises the amount arising from adjusting the gross carrying amount as a modification gain or loss in the statement of income.
Financial liabilities
If the terms of a financial liabilities are modified, the company evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, then the contractual obligations from the cash flows from the original financial liabilities are deemed to expire. In this case the original financial liabilities are derecognised and new financial liabilities are recognised at either amortised cost or fair value.
If the cash flows are not substantially different, then the modification does not result in derecognition of the financial liabilities. In this case, the company recalculates the gross carrying amount of the financial liabilities and recognises the amount arising from adjusting the gross carrying amount as a modification gain or loss in the statement of income.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Impairment of financial assets
Measurement of Expected Credit Losses
The company recognises loss allowances for expected credit losses (ECL) on financial instruments that are not measured at FVTPL, namely:
- Financial assets that are debt instruments
- Accounts and other receivables
- Financial guarantee contracts issued; and
- Loan commitments issued.
The company classifies its financial instruments into stage 1, stage 2 and stage 3, based on the applied impairment methodology, as described below:
Stage 1: for financial instruments where there has not been a significant increase in credit risk since initial recognition and that are not credit-impaired on origination, the company recognises an allowance based on the 12-month ECL.
Stage 2: for financial instruments where there has been a significant increase in credit risk since initial recognition but they are not credit-impaired, the company recognises an allowance for the lifetime ECL.
Stage 3: for credit-impaired financial instruments, the company recognises the lifetime ECL.
The company measures loss allowances at an amount equal to the lifetime ECL, except for the following, for which they are measured as a 12-month ECL:
- debt securities that are determined to have a low credit risk (equivalent to investment grade rating) at the reporting date; and
- other financial instruments on which the credit risk has not increased significantly since their initial recognition.
The company considers a debt security to have low credit risk when their credit risk rating is equivalent to the globally understood definition of ‘investment grade’.
A 12-month ECL is the portion of the ECL that results from default events on a financial instrument that are probable within 12 months from the reporting date.
Provisions for credit-impairment are recognised in the statement of income and are reflected in accumulated provision balances against each relevant financial instruments balance.
Evidence that the financial asset is credit-impaired include the following;
- Significant financial difficulties of the borrower or issuer;
- A breach of contract such as default or past due event;
- The restructuring of the loan or advance by the company on terms that the company would not consider otherwise;
- It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
- The disappearance of an active market for the security because of financial difficulties; or
- There is other observable data relating to a group of assets such as adverse changes in the payment status of borrowers or issuers in the company, or economic conditions that correlate with defaults in the company.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
For trade debtors, the company applies the simplified approach, which requires expected lifetime losses to be recognised from initial recognition of the debtors.
To measure the expected credit losses, trade debtors and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade debtors for the same types of contracts. The company has therefore concluded that the expected loss rates for trade debtors are a reasonable approximation of the loss rates for the contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 month before 31 March 2025 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the debtors. The company has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
|
Critical accounting judgements and key sources of estimation uncertainty |
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Valuation of Investment Properties
The Investment Properties held by the Company have been revalued to reflect the significant change in value during the year, the movement being recognised in the Income Statement.
The Company engaged independent valuation specialists to determine the fair value of freehold Investment Properties as at 31 March 2025. The carrying amount of freehold Investment Properties at the 31 March 2025 was £135,133,200. As there are a significant number of freehold Investment Properties held, the valuation specialists valued these using a desktop valuation technique in arriving at their fair value, this being defined as the open market value. They used a number of information sources in arriving at their valuation including but not limited to, local industry knowledge and comparable market data.
Leasehold investment properties are valued by the Directors based upon the discounted present value of expected future income, making estimates and assumptions in respect of expected future voids and unavoidable capital costs.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Turnover |
The analysis of the company's turnover for the year by class of business is as follows:
|
2025 |
2024 |
|
|
Rental income |
|
|
|
Other income |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Depreciation on right of use assets - property |
825,020 |
1,624,832 |
|
Interest receivable and similar income |
|
2025 |
2024 |
|
|
Other finance income |
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Other finance costs |
|
|
|
Interest expense on leases - Property |
45,460 |
41,917 |
|
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
|
2025 |
2024 |
|
|
Changes in the fair value of investment properties |
1,649,129 |
(2,176,649) |
|
Changes in the fair value of right-of-use property assets |
205,359 |
79,589 |
|
|
( |
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Administration and support |
|
|
|
|
|
Other staff costs have been incurred by South Cambridgeshire District Council and recharged to the Company. The total recharge for employee related contracted services was £506,856 (2024: £530,311).
2 (2024: 2) Non-Executive Directors were remunerated £7,750 (2024: £6,250) during the year. This is included in the recharge from South Cambridgeshire District Council above.
The remuneration relating to key management personnel is borne by the parent undertaking and amounted to £45,514 (2024: £101,495). This is included in the total recharged amount above.
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other non-audit services |
|
|
|
|
|
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Income tax |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of temporary differences |
|
( |
|
Tax expense/(receipt) in the profit and loss account |
|
( |
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
( |
|
Decrease in current tax from adjustment for prior periods |
( |
- |
|
Increase from effect of capital allowances depreciation |
|
|
|
Increase from effect of expenses not deductible in determining taxable profit (tax loss) |
|
|
|
Increase from transfer pricing adjustments |
|
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
( |
|
Total tax charge/(credit) |
|
( |
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
Net deferred tax |
|
Revaluation of investment property |
- |
|
|
|
- |
|
|
|
2024 |
Asset |
Liability |
Net deferred tax |
|
Revaluation of investment property |
- |
|
|
|
- |
|
|
Deferred tax movement during the year:
|
At 1 April 2024 |
Recognised in income |
At |
|
|
Revaluation of investment property |
|
|
|
|
|
|
|
Deferred tax movement during the prior year:
|
At 1 April 2023 |
Recognised in income |
At |
|
|
Revaluation of investment property |
|
( |
|
|
|
( |
|
Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Tangible assets |
|
Improvements to leasehold property |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2024 |
|
|
|
At 31 March 2025 |
|
|
|
Depreciation |
||
|
At 1 April 2024 |
|
|
|
Charge for the year |
|
|
|
At 31 March 2025 |
|
|
|
Carrying amount |
||
|
At 31 March 2025 |
|
|
|
At 31 March 2024 |
|
|
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Investment properties |
|
31 March |
31 March |
31 March |
31 March |
|
|
Cost |
||||
|
At 1 April |
|
9,263,388 |
|
9,263,388 |
|
Additions |
|
567,780 |
|
- |
|
Disposals |
- |
(1,519,063) |
- |
- |
|
Fair value adjustments |
1,649,129 |
205,359 |
(2,176,649) |
- |
|
At 31 March |
|
8,517,464 |
|
9,263,388 |
|
Depreciation |
||||
|
At 1 April |
- |
7,567,911 |
- |
5,943,079 |
|
Depreciation charge |
- |
825,020 |
- |
1,624,832 |
|
Eliminated on disposal |
- |
(1,519,063) |
- |
- |
|
At 31 March |
- |
6,873,868 |
- |
7,567,911 |
|
Carrying amount |
||||
|
At 31 March |
|
1,643,596 |
|
1,695,477 |
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Investment property comprises properties which have been acquired for the purpose of generating rental income and / or capital appreciation.
The fair value of the freehold investment properties has been arrived at on the basis of a valuation carried out by Mr Guy Harbord, MA, MRICS, IRRV (Hons), a RICS Registered Valuer of Wilks Head and Eve LLP, who are not connected with the company.
The valuation was made on an open market value and in accordance with RICS standards. It was arrived at by reference to market evidence of transactions for similar properties. The valuation performed by the valuer was reviewed internally by Senior Management and other relevant people within the business. This process included discussions of the assumptions used by the valuer, as well as a review of the resulting valuations.
The fair value of leasehold investment properties has been estimated by the Directors based upon the discounted present value of future expected income from these properties as the company has no entitlement to any capital appreciation in respect of these assets.
The historic cost of investment properties as at 31 March 2025 was £120,140,818 (2024: £102,071,629).
During the year £9,445,826 (2024 - £8,098,790) was recognised in income in relation to rental income from investment properties. Direct operating expenses, including repairs and maintenance, arising from investment property that generated rental income and that did not generate rental income amounted to £
|
Trade and other debtors |
|
Trade and other debtors falling due within one year |
31 March |
31 March |
|
Trade debtors |
|
|
|
Provision for impairment of trade debtors |
( |
( |
|
Net trade debtors |
|
|
|
Other debtors |
|
- |
|
|
|
The company's exposure to credit and market risks, including maturity analysis, relating to trade and other debtors is disclosed in note 21 "Financial risk review".
|
Cash at bank and in hand |
|
31 March |
31 March |
|
|
Cash at bank |
|
|
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Creditors: amounts falling due within one year |
|
31 March |
31 March |
|
|
Trade creditors |
|
|
|
Accrued expenses |
|
|
|
Amounts owed to group undertakings |
|
|
|
Other creditors |
|
|
|
Income tax liability |
|
|
|
Current portion of long term lease liabilities |
|
|
|
Deferred income |
|
- |
|
Payments received on account |
694,082 |
647,419 |
|
|
|
The company's exposure to market and liquidity risks, including maturity analysis, relating to trade and other creditors is disclosed in note 21 "Financial risk review".
|
Loans and borrowings |
|
31 March |
31 March |
|
|
Current loans and borrowings |
||
|
Amounts owed to group undertakings |
120,292,852 |
101,534,421 |
Amount owed to group undertakings include loans taken out to purchase investment properties as well as loans granted to the company for working capital purposes. The loans mature over a period from April 2025 to March 2026. £119,603,187 (2024: £100,000,000) represents the current portion of these loans and £Nil (2024: £Nil) is due after more than one year. The loans are unsecured and incur interest at 4.25% (2024: 4.25%).
Borrowings are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows: payable later than one year and no later than five years.
The company's exposure to market and liquidity risks, including maturity analysis, relating to loans and borrowings is disclosed in note 21 "Financial risk review".
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Leases |
Leases included in creditors
|
31 March |
31 March |
|
|
Current portion of long term lease liabilities |
|
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Long term lease liabilities |
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Lease liabilities maturity analysis
A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:
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31 March |
31 March |
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Less than one year |
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In two to five years |
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Total lease liabilities (undiscounted) |
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The company is party to three separate operating leases for residential dwellings at Waterbeach, Bassingbourn and Brampton. The company is responsible for all repairs and improvements required to the properties during the period of each lease. The leases currently expire in April 2029, May 2025 and February 2026 respectively.
The key terms of the leases are as follows:
Waterbeach - Either party can break the lease at any time by giving 12 month's notice.
Bassingbourn - Either party can break the lease at any time by giving 7 month's notice.
Brampton - Either party can break the lease at any time by giving 7 month's notice.
The fair value of the company's lease obligations is approximately equal to their carrying amount.
The total cash outflow for the year in relation to leases in which the company is lessee were £640,044 (2024: £640,043).
The company subleases these properties to individual tenants for residential purposes. The leases are negotiated over terms of 6 months or 3 years. At the end of the lease term, the lease may continue on a monthly rolling basis if agreed by all parties. The 3 year leases include a break clause after 1 year.
At the reporting year end date the company had contracted with tenants for the future minimum lease payments totalling £1,084,952 (2024: £1,081,083).
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
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Share capital |
Allotted, called up and fully paid shares
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31 March |
31 March |
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No. |
£ |
No. |
£ |
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1 |
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1 |
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Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £64,784 (2024 - £69,962).
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Financial risk review |
This note presents information about the company’s exposure to financial risks and the company’s management of capital.
Credit risk
There are no significant concentrations of credit risk within the Company unless otherwise disclosed. The maximum credit risk exposure relating to financial assets is represented by carrying value as at the balance sheet date.
The Company has established procedures to minimise the risk of default by trade debtors including detailed credit checks undertaken before a customer is accepted. Historically, these procedures have proved effective in minimising the level of impaired and past due debtors.. The risk is mitigated by the company by The credit risk on liquid funds is limited as the funds are held at banks with high credit ratings. The risk to the company of trade receivables going bad is regarded as very low based on payments in respect of lease agreements being receivable from tenants quarterly in advance.
No significant receivable balances are impaired at the reporting date..
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
Liquidity risk
Liquidity risk is the risk that the company fails to have sufficient funds to meet its debts as they become due.. The liquidity risk of the company is managed centrally by the Board and the company holds funds in short-term bank deposits so that they are available when required.
The Board believes the current level of financial liabilities to be in line with expectations. The level of cash balances and trade and other receivables is deemed to be sufficient to discharge the company’s financial liabilities as they fall due.
Maturity analysis for financial liabilities and financial assets
All of the company’s financial assets and financial liabilities are all wholly receivable and payable within one year, except in so far as lease liabilities are payable in more than one year as outlined in Note 18 "Leases".
Market risk
Market risk is the risk that the fair value or future cash flows from a financial instrument will fluctuate because of changes in market prices. The principle ways in which the company is exposed to such fluctuations is through interest rate risk.
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Interest rate risk |
The company has an exposure to interest rate risk arising principally on borrowings from the parent undertaking, South Cambridgeshire District Council.
To manage this risk, the loan interest has been agreed at a fixed rate 3.85% for the foreseeable future (from April 2025) to guarantee the cash flow of the business. This enables the company to budget and ensure that the interest payments are met. These interest rates apply to the amounts owed to group undertakings classified within loans and borrowings due in more than one year of £119,603,187.
Sensitivity analysis
A sensitivity analysis has not been performed on the basis that the interest rate is fixed for the foreseeable future.
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Capital risk management |
Capital management
The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the costs of capital.
The capital employed by the company is composed of the total equity disclosed in the statement of financial position.
South Cambs Limited
trading as Ermine Street Housing
Notes to the Financial Statements for the Year Ended 31 March 2025
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Related party transactions |
Key management personnel
Summary of transactions with key management
The remuneration of the directors, who are key management personnel, is set out in Note 6 in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
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Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is