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Registered Number:10847988 HFL HOMES LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
HFL HOMES LIMITED
COMPANY INFORMATION
Directors | Dorian Leatham (resigned 31 March 2025)
| Andrea Sherene Parker (resigned 31 March 2025)
| Paul Stuart Wickens (resigned 31 October 2024)
| Timothy David Windle
| Judith Clare Page (appointed 1 April 2024)
| Terence William Fuller (appointed 1 April 2025)
| Peter James Hesketh (appointed 26 April 2025)
| Cagdas Canbolat (appointed 7 November 2024, resigned 25 April 2025)
Registered number | 10847988
Registered office | Lambeth Town Hall
| Brixton Hill
| London
| SW2 1RW
Independent auditor | Sumer Auditco Limited
| Statutory Auditor
| 820 The Crescent
| Colchester Business Park
| Colchester
| Essex
| CO4 9YQ
Regulator of Social Housing registration number | 5064
HFL HOMES LIMITED
CONTENTS
| Page
Directors' Report | 1 - 7
Independent Auditor's Report | 8 - 11
Statement of Comprehensive Income | 12
Statement of Financial Position | 13
Statement of Changes in Equity | 14
Statement of Cash Flows | 15
Notes to the Financial Statements | 16 - 30
HFL HOMES LIMITED
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Board present their annual report and the financial statements for the year ended 31 March 2025.
Principal activity
HFL Homes Limited ("HFL Homes") is a "not for profit" company, limited by shares, and is registered with Companies House. It is part of the Homes for Lambeth Group ("HFL Group") based in Lambeth. The HFL Group was set up by the London Borough of Lambeth ("the Council") to build new homes.
Governance and regulation
Governance HFL Homes is a Registered Provider (RP) (5064) registered with the Regulator of Social Housing (RSH), the Regulator. It is part of the HFL group of companies, which includes HFL Group Limited (the parent company), HFL Build Limited and HFL Living Limited. The HFL Group is wholly owned by The London Borough of Lambeth ("the Council"). The Council is the Group's sole shareholder. HFL Group is the sole shareholder of HFL Homes. HFL Homes Board is comprised/comprises independent and Council nominated Non-Executive Directors. A formal agreement is in place between the Council and HFL Group known as the "Shareholders’ Agreement" (SHA). This sets out the governance arrangements between the parties. HFL Group Standing Orders and Group Financial Regulations are in place to support the effective and legal operation of the companies and Boards. The Group Standing Orders are periodically reviewed, taking into account the downsizing of the groups activities. Group Financial Regulations were approved by the Group Board in July 2025. HFL works under a group risk management and control framework and Risk Management Policy. HFL Homes Board receives regular reports on the top risks affecting the business and reviews the controls, mitigations and actions in relation to each risk. One independent Board member and one council nominated member were appointed after the year end, (April 2025). One independent Board member resigned after the year end. One council nominated member and one independent Member resigned at the year end. Regulation As an RP registered with the Regulator of Social Housing, HFL Homes is accountable to the Regulator. HFL Homes operates in accordance with all applicable law and regulations and with the Regulatory Framework laid down by the Regulator. Governance and financial viability standard Compliance with the Regulatory Framework is subject to an annual self-assessment. Having received an appropriate assurance report at its meeting on 2 July 2025, the Board certifies that HFL Homes is compliant with the Governance and Financial Viability Standard and with the other Regulatory Standards. NHF Code of Governance 2020 The Board has adopted the NHF Code of Governance 2020. This Code applied to the Board's functions and activities in the year ending 31 March 2025. The Board assessed compliance with the Code of Governance 2020 at its meeting held on 2 July 2025. The Board is satisfied that it complies with the spirit of the code and the principles set out in it. The Board adopted the NHF Code of Conduct 2022 in the year 2024/25. - 1 -
HFL HOMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Value for money HFL Homes is subject to the Regulator's Value for Money Standard 2018 as they apply to Registered Providers with less than 1,000 units. Compliance with the Standard is demonstrated through the Regulator's seven key metrics and our group wide strategic approach to efficiency. Performance standards are set with reference to those prevailing in the social housing sector and benchmarking information is used to assess performance against comparable organisations. The Key Performance Indicators and Local Performance Indicators agreed for 2024-25 reflect the importance of VFM. These include rent collection, arrears, void loss as a percentage of potential overall revenue, repairs performance against timescales set out in the repairs policy. A robust financial monitoring arrangement is also in place to ensure that expenditure against budget is tracked. Value For Money Metrics Actual Actual Actual Budget (Revised) (Reported) 24-25 23-24 23-24 25-26 1. % Reinvestment 27.64% 0.00% 0.00% 34.70% 2a. New supply delivered – Social (%) 10.24% 0.00% 0.00% 22.05% 2b. New supply delivered – Non- social (%) 0.00% 0.00% 0.00% 0.00% 3. Gearing (%) 81% 87% 83% 71% 4. EBITDA MRI % 20% 24% 40% 63% 5. Headline social housing cost per unit (£). (6.080) (8.122) (7.931) (5.895) 6a. Operating Margin (Social)% (11.0%) (13.1%) (9.2%) 5.7% 6b. Operating Margin (Overall) % 2.6% (7.4%) (9.2%) 1.7% 7. Return on capital employed (ROCE) %. 0.2% (0.6%) (0.6%) 0.3% The prior year figures have been restated due to an incorrect interpretation of what detailed elements should be included within each calculation. All metrics other than 4 have shown an improvement over the prior year. In the coming year 25-26, all Metrics are forecast to improve other than 6b. Metric 6b Operating Margin Overall is forecast to fall, in part due to a budget policy not to forecast a surplus on shared ownership sales. As reported in previous years, due to the fixed cost base and the low number of units, the headline social housing cost per unit is higher than sector average. - 2 -
HFL HOMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
The Board
During the year, the Board comprised of Non-Executive Directors, two of whom are independent Directors and two are nominee Directors from the London Borough of Lambeth. There are no executive Board Directors on HFL Homes Board. There have been changes to the Board within and after the year end. See below for detail.. Notwithstanding the Council's right to appoint Directors to the Board, the Board Directors are selected in accordance with the skills, competencies and expertise identified as required to meet the Board's obligations, and in accordance with HFL's Equality, Diversity & Inclusion Policy. The Board Members who served during the year were:
Dorian Leatham (resigned 31 March 2025)
Andrea Sherene Parker (resigned 31 March 2025)
Paul Stuart Wickens (resigned 31 October 2024)
Timothy David Windle
Judith Clare Page (appointed 1 April 2024)
Cagdas Canbolat (appointed 7 November 2024, resigned 25 April 2025)
Terence William Fuller and Peter James Hesketh were appointed after the year end. The independent Board Members are remunerated. Council nominated Board Members are not remunerated. The Board's work is conducted in accordance with Homes for Lambeth's values of equity, ambition, kindness and accountability. Key among the Board's strategy and management functions are: • Responsibility for the overall leadership of the company, setting the company's values and standards. • Development and approval of the company's strategic aims and objectives. • Ensuring legal and regulatory compliance, including an emphasis on health and safety for tenants in their homes and communities, and monitoring fire safety. • Upholding and promoting the principles of equality, diversity, and inclusion. • Supporting the principles of tenant involvement and empowerment. The Board met three times in the year. The Board operates under Terms of Reference and is responsible for deciding strategy, overseeing the control framework, risk management and sound management of the company. Insurance policies are in place to indemnify Board Directors and Officers against liability when acting for HFL Homes. The executive team The Executive team consists of the MD and individuals with expertise in property development, estate management and finance and company management. The MD and the head of development are employees of LBL, (the ultimate shareholder), with part time responsibility for matters relating to HFL Homes and other group companies. All other members of the executive team are interims. The Executives hold no interest in the share capital of the company and work under delegated authorities through the Shareholders' Agreement and the Board. The MD is an employee of LBL, the ultimate shareholder. - 3 -
HFL HOMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The company's MD, Kathryn Eames Livermore, is the HFL Group MD. LBL are responsible for approving any changes in the MD's compensation or contract. The MD does not receive any remuneration or benefits from any HFL group companies. Health, safety and wellbeing A Health & Safety Policy is in place and was reviewed and is updated annually. Regular reports are received by the Board providing key performance information against statutory compliance and other measures, including fire, legionella, electrical, and lift workings. HFL stock does not have asbestos material. Equality, diversity and inclusion (EDI) HFL has an adopted policy and action plan to deliver EDI related activities. The Council is HFL’s contractor and follows the London Borough of Lambeth EDI polices and practice. Modern slavery and human trafficking HFL Group has an approved Modern Slavery policy. Risk management HFL Homes recognise the importance of identifying, actively monitoring and managing risks. The HFL Homes takes a proactive approach to managing risks and regularly reviews internal and external factors to identify any threats that could impact the business and the safety of residents. The company works in the context of the wider HFL Group and is aware of the potential impact of risks crystalising elsewhere in the Group. Principal risks and uncertainties The HFL Homes main income is the rent from newly built or previously acquired social rent homes. The main risks to this income are limitations to the permitted social rent increases that may be set by the government relative to inflation and growth in arrears and bad debts due to the rising cost of living and current or future welfare reforms. The company’s social rents for each financial year are normally set by reference to the inflation rate (CPI) on 30 September in the prior year, plus 1%, under the government’s rent settlement with social housing providers (housing associations and local councils). The Council’s housing management team provides an arrears and bad debt management service. This proactive service helps residents manage their affairs as effectively as possible, including accessing the full range of benefits and advice, to enable rents to be paid on time, reduce arrears, and sustain tenancies.
- 4 -
HFL HOMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Internal control and effectiveness of internal control Through its Terms of Reference, the Board holds ultimate responsibility for establishing and overseeing a risk and control framework. The Board acknowledges that no system of internal controls provides absolute assurance nor eliminates all risk. The control framework in place is designed to reduce the risk of failing to achieve business or strategic objectives and to provide reasonable assurance to the Board. HFL's internal control framework includes but is not limited to: • HFL Governance framework, including the Shareholders Agreement operating between the Council and the HFL companies. • Scheme of delegated authorities set out within the Shareholders' Agreement and Group Standing. • Strategic business planning process and LBL approval of HFL's Business Plan. • Council oversight via the Ownership & Stewardship Panel. • The Board Members of all Companies and Board Terms of Reference. • Executive Team, HFL Staff recruited for specific skills/competencies, establishments and required competencies. • Board review of performance KPls through regular reporting. • Regular financial reporting to Boards, including management accounts, budgets, forecasts and cashflows. • Internal Audit Programme and Audit and Group oversight of internal controls and risk management. • Risk management policy, updated annually, and regular risk reporting to Boards. • Monitoring of regulatory compliance and compliance with relevant law. • Strategy, Policy and procedure framework in place and subject to review. • Overarching Probity policy in place with relevant procedures. • Annual external statutory audit any material findings or actions from the audit are reported to the Board and would be laid out in the auditor's letter to management. • Fraud monitoring and reporting. • MD annual review of effectiveness of internal controls to Boards. The MD has assessed the effectiveness of the internal controls in place during 2024-25, reporting to the Board on 2 July 2025. Following consideration of the MD's report and receiving appropriate assurance from the MD and the Executive Team, the Board were assured on the overall effectiveness of the framework. There have been no significant control weaknesses or breakdowns in internal controls resulting in material losses, contingencies or uncertainties that would require disclosure in the financial statements during the year. Going concern As reported on pages 12 and 13 the company incurred a loss in the year of £833,687 (2024 - £821,880) and has net liabilities of £3,251,729 (2024 - £2,418,042). The Company's ultimate controlling party has agreed with the Board that the assets and operations of the Company will be transferred to the London Borough of Lambeth ("LBL"), at an unspecified future date and at a value and on terms to be jointly agreed. The company will cease operations after this transfer. After making enquiries and receiving an appropriate Letter of Support from LBL, the Board has assessed the forecast cash flows and the funds available to the company. The Board has a reasonable expectation that the company has adequate resources and liquidity to continue in operational existence for the foreseeable future In light of the intention to cease operations, the company does not meet the definition of ‘going concern’, which is the usual basis adopted in the preparation of the financial statements. However, having reviewed the carrying value of the assets and liabilities of the company at the year end the Board does not consider that any further adjustments are necessary to the values disclosed. The full impact of the transaction will be accounted for when it takes place. - 5 -
HFL HOMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Statement of the Board's responsibilities
The Companies Act 2006 Act and registered social housing legislation require the Board of Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the income and expenditure for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Board of Directors is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006, The Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. It has general responsibility for taking reasonable steps to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
Disclosure of information to auditor
We, the Board of Directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware that: ∙there is no relevant audit information of which the Company's auditor is unaware, and ∙the Board of directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Auditor
The auditor Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Small companies note
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. - 6 -
HFL HOMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The Directors' Report was approved by the Board and was signed by the director on behalf of the Board.
T Fuller Director
Date: 13 November 2025
- 7 -
HFL HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HFL HOMES LIMITED
Opinion
We have audited the financial statements of HFL Homes Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law, the Statement of Recommended Practice for Registered Social Housing providers 2018 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 loss 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 United Kingdom, including the Financial Reporting Council'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.
Emphasis of matter - not a going concern
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in note 2.2 to the financial statements regarding the company's ability to continue as a going concern and the basis on which the financial statements have been prepared. As the directors intend to cease the company's operations, the financial statements have not been prepared on a going concern basis. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. - 8 -
HFL HOMES LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HFL HOMES LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Directors' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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 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; or ∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report. - 9 -
HFL HOMES LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HFL HOMES LIMITED (CONTINUED)
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement 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's 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors (as required by auditing standards), inspection of the company's regulatory and legal correspondence and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the company is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Housing Act 1998, Landlord and Tenant Act 1985, Building safety Act 2022 and the Social Housing (Regulation) Act 2023, and GDPR. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. - 10 -
HFL HOMES LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HFL HOMES LIMITED (CONTINUED) Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing the appropriateness of journal entries and the performance of analytical review procedures to identify any unexpected movements in account balances which may be indicative of fraud. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). A further description of our responsibilities for the audit of the financial statements is located 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. Piers Harrison (Senior Statutory Auditor) for and on behalf of Sumer Auditco Limited Statutory Auditor 820 The Crescent Colchester Business Park Colchester Essex CO4 9YQ 14 November 2025 - 11 -
HFL HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 1,775,754 | 1,677,606
Operating expenditure | 4 | (1,706,201) | (1,830,807)
Operating surplus/(deficit) | 5 | 69,553 | (153,201)
Interest payable and similar expenses | 8 | (903,240) | (668,679)
Deficit before tax |  | (833,687) | (821,880)
Deficit for the financial year |  | (833,687) | (821,880)
There was no other comprehensive income for 2025 (2024:£NIL).
The notes on pages 16 to 30 form part of these financial statements.
- 12 -
HFL HOMES LIMITED REGISTERED NUMBER:10847988
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2025
|  | 2025 |  | As restated 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 10 |  | - |  | 11,957
Housing properties | 11 |  | 33,395,412 |  | 25,532,807
|  |  | 33,395,412 |  | 25,544,764
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 12 | 883,677 |  | 519,013 |
Cash at bank and in hand |  | 1,254,333 |  | 1,357,281 |
|  | 2,138,010 |  | 1,876,294 |
Creditors: amounts falling due within one year | 13 | (5,192,960) |  | (3,177,615) |
Net current liabilities |  |  | (3,054,950) |  | (1,301,321)
Total assets less current liabilities |  |  | 30,340,462 |  | 24,243,443
Creditors: amounts falling due after more than one year | 14 |  | (33,592,191) |  | (26,661,485)
Net liabilities |  |  | (3,251,729) |  | (2,418,042)
Capital and reserves |  |  |  |  |
Called up share capital | 18 |  | 10 |  | 10
Revenue reserves |  |  | (3,251,739) |  | (2,418,052)
|  |  | (3,251,729) |  | (2,418,042)
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 November 2025.
T Fuller
Director
The notes on pages 16 to 30 form part of these financial statements. - 13 -
HFL HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 April 2023 | 10 | (1,596,172) | (1,596,162)
Comprehensive income for the year |  |  |
Deficit for the year | - | (821,880) | (821,880)
At 1 April 2024 | 10 | (2,418,052) | (2,418,042)
Comprehensive income for the year |  |  |
Deficit for the year | - | (833,687) | (833,687)
At 31 March 2025 | 10 | (3,251,739) | (3,251,729)
| The notes on pages 16 to 30 form part of these financial statements.
- 14 -
HFL HOMES LIMITED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Deficit for the financial year | (833,687) | (821,880)
Adjustments for: |  |
Amortisation of intangible assets | 11,957 | 11,958
Depreciation of tangible assets | 407,289 | 410,198
Impairments of fixed assets | 274,518 | -
(Profit) on disposal of tangible assets | (266,316) | (65,169)
Amortisation of government grants | (41,558) | (41,558)
Interest payable and similar expenses | 903,240 | 668,677
(Increase) in debtors | (364,664) | (102,594)
Increase in creditors | 316,001 | 409,219
Net cash generated from operating activities | 406,780 | 468,851
Cash flows from investing activities |  |
Purchase of housing properties | (9,229,596) | -
Sale of housing properties | 951,500 | 392,973
Government grants received | 3,199,596 | -
Net cash from investing activities | (5,078,500) | 392,973
Cash flows from financing activities |  |
New loans from group companies | 6,050,000 | -
Loans from group companies repaid | (1,419,473) | -
Interest paid | (61,755) | -
Net cash used in financing activities | 4,568,772 | -
Net (decrease)/increase in cash and cash equivalents | (102,948) | 861,824
Cash and cash equivalents at beginning of year | 1,357,281 | 495,457
Cash and cash equivalents at the end of year | 1,254,333 | 1,357,281
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 1,254,333 | 1,357,281
| 1,254,333 | 1,357,281
- 15 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1. | General information
HFL Homes Limited is a private company limited by shares incorporated in England and Wales and is a Private Registered Provider (PRP) of Social Housing. The registered office is Lambeth Town Hall, Brixton Hill, London, SW2 1RW. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Statement of Recommended Practice for Registered Social Housing providers 2018 ("the SORP") and comply with the Accounting Direction for Private Registered Providers of Social Housing 2022. The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in the financial statements are rounded to the nearest £. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The comparatives for creditors have been restated to show rental payments payable but not yet repaid of £796,408, in relation to finance leases, as payable within one year. The following principal accounting policies have been applied:
| 2.2 | Going concern
As reported on pages 12 and 13 the Company incurred a loss in the year of £833,687 (2024: £821,880) and has net liabilities of £3,251,729 (2024: £2,418,042). The Company's ultimate controlling party has agreed with the Board that the assets and operations of the Company will be transferred to the London Borough of Lambeth ("LBL"), at an unspecified future date and at a value and on terms to be jointly agreed. The company will cease operations after this transfer. After making enquiries and receiving an appropriate Letter of Support from LBL, the Board has assessed the forecast cash flows and the funds available to the Company. The Board has a reasonable expectation that the Company has adequate resources and liquidity to continue in operational existence for the foreseeable future. In light of the intention to cease operations, the Company does not meet the definition of 'going concern', which is the usual basis adopted in the preperation of the financial statements. However, having reviewed the carrying value of the assets and liabilities of the Company at the year end the Board does not consider that any further adjustments are necessary to the values disclosed. The full impact of the transaction will be accounted for when it takes place.
| 2.3 | Turnover
Turnover represents rental income and service charge income receivable from tenants and is recognised on a straight-line basis over the term of the tenancy agreement. - 16 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.4 | Impairment of fixed assets
At each reporting period end date, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the estimates is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risk specific to the asset for which the estimates for future cash flows have not been adjusted. Social housing property is held for its service potential and not solely for cash inflows generated. Value in use for housing properties which are able to be let in their current condition and which are fulfilling the social purpose for which they are required is based on the depreciated replacement cost of the asset. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. - 17 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.5 | Leases
Leases are classified as finance leases where the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the asset from the lessor to the lessee. All other leases are classified as operating leases. Housing property, plant and equipment held by the Company under finance leases is recognised on the Statement of Financial Position at the commencement of the lease at its fair value measured at the lease's inception (or the present value of the minimum lease payments, if lower). The asset recognised is matched by a liability for the obligation to pay the lessor. Premiums paid on entry into a lease are applied to writing down the lease liability. Subsequent payments are apportioned between: - a charge for the acquisition of the interest in the housing property, plant or equipment - applied to write down the lease liability. - financing charges and contingent rents Housing property, plant and equipment recognised under finance leases is accounted for using the policies applied generally to such assets, subject to depreciation being charged over the lease term if this is shorter than the asset's estimated useful life (where ownership of the asset does not transfer to the Company at the end of the lease period).
| 2.6 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | Computer software | - | 3 | years
| 2.7 | Tangible fixed assets
Housing Properties Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are principally properties available for rent and stated at cost less accumulated depreciation and any recognised impairment losses. The cost of properties is their purchase price plus any incidental costs of acquisition. - 18 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.7 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Housing properties | - | 100 years
|  |  |  | Roof | - | 60 years
|  |  |  | Windows and doors | - | 30 years
|  |  |  | Bathrooms | - | 30 years
|  |  |  | Kitchens | - | 20 years
|  |  |  | Electrical | - | 40 years
|  |  |  | Lifts | - | 20 years
Assets purchased during the year are not depreciated in the year of acquisition. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.8 | Government grants
Government grants include grants receivable from Homes England, the Greater London Authority (GLA), local authorities, and other government organisations. Government grants received for housing properties are recognised in income over the useful life of the housing property structure (excluding land), on a pro rata basis under the accrual model of accounting. The unamortised element of the government grant is recognised as deferred income in creditors due within one year or due after more than one year as appropriate in the Statement of Financial Position. Where a component is replaced the amount of any unamortised government grant associated with this component is taken to income. Government grant received in respect of revenue expenditure is recognised within income in the same period as the related expenditure, provided that the conditions for its receipt have been satisfied and there is reasonable assurance that the grant will be received using the performance model of grant accounting.
| 2.9 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management. - 19 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.10 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Where terms of debt instruments are modified, an assessment is performed on whether the change represents a substantial modification to the terms of the debt instrument. The Company considers both quantitative and qualitative factors in making this assessment. Where a modification is considered substantial then this is accounted for as an extinguishment of the original debt instrument and the recognition of a new one. The difference between the carrying amount of the debt instrument extinguished or transferred and the new debt instrument is recognised in profit or loss. Where the modification is not substantial the estimate of payments or receipts on debt instruments are revised and the carrying amount of the financial liability is adjusted to reflect the actual and revised cashflows. The carrying amount is recalculated by computing the present value of estimated future cashflows at the instruments original effective interest rate and any resulting difference is recognised in profit or loss, if material. - 20 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.11 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. 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.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the Company's accounting policies, the Board of 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. Key sources of estimation and uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: Impairments of social housing properties held for their service potential The cost of purchasing an equivalent property on the open market is estimated based on the sale prices for similar properties in or near the same location. The rebuilding cost of structures and components is based on the current build costs, based on either current building contracts or market data (being primarily construction indices) applied to the relevant building size and type. The accumulated impariment provision at 31 March 2025 was £274,518 (2024 - £Nil). - 21 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
4. | Turnover and operating expenditure from social housing activities
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Rent receivable net of voids | 1,504,392 | 1,432,034
| Service charge receivable | 229,804 | 204,014
| Other income | 41,558 | 41,558
|  | 1,775,754 | 1,677,606
| Expenditure from social housing activities | (1,706,201) | (1,830,807)
| Operating surplus/(deficit) from social housing activities | 69,553 | (153,201)
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Memorandum |  |
| Rent losses from voids | 7,912 | 4,076
5. | Operating surplus/(deficit)
| The operating surplus/(deficit) is stated after charging/(crediting):
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' remuneration | 6,356 | 9,294
| Auditors remuneration for the audit of the Company's financial statements | 16,475 | 15,500
| Auditors remuneration from other services | 8,500 | 8,000
| Depreciation | 407,289 | 410,198
| Surplus on disposal | (266,316) | (65,169)
| Impairment of housing properties | 274,518 | -
6. | Employees
| There were no employees during the year. All staff and wages costs incurred during the year related to staff seconded from a fellow group undertaking. The staff and wages cost amounted to £146,584 (2024 - £284,655).
- 22 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
7. | Key management personnel
|  | 2025 | 2024
|  | £ | £
| Non-executive directors | 6,356 | 9,294
| Executive team | 2,300 | 58,423
|  | 8,656 | 67,717
8. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Loans from group undertakings | 560,330 | 504,551
| Finance lease arrangements with group undertakings | 342,910 | 164,128
|  | 903,240 | 668,679
9. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Total current tax | - | -
| Deferred tax |  |
| Total deferred tax | - | -
| Tax on loss | - | -
- 23 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 9.Taxation (continued)
| Factors affecting tax charge for the year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Loss on ordinary activities before tax | (833,687) | (821,880)
| Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | (208,422) | (205,470)
| Effects of: |  |
| Capital allowances for year in excess of depreciation | 101,822 | 102,550
| Deferred tax not recognised | 106,600 | 102,920
| Total tax charge for the year | - | -
- 24 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
10. | Intangible assets
|  | Computer software
|  | £
| Cost |
| At 1 April 2024 | 35,873
| At 31 March 2025 | 35,873
| Amortisation |
| At 1 April 2024 | 23,916
| Charge for the year | 11,957
| At 31 March 2025 | 35,873
| Net book value |
| At 31 March 2025 | -
| At 31 March 2024 | 11,957
- 25 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
11. | Housing properties
|  | Housing properties held for letting
|  | £
| Cost |
| At 1 April 2024 | 26,396,958
| Additions | 9,229,596
| Disposals | (699,167)
| At 31 March 2025 | 34,927,387
| Depreciation |
| At 1 April 2024 | 864,151
| Charge for the year | 407,289
| Disposals | (13,983)
| Impairment charge | 274,518
| At 31 March 2025 | 1,531,975
| Net book value |
| At 31 March 2025 | 33,395,412
| At 31 March 2024 | 25,532,807
| Included under the net book value of housing properties as at 31 March 2025 is £324,494 (2024 - £1,347,786) relating to shared ownership properties. The Company owned and managed 196 units under general needs accomodation (2024 - 179).
- 26 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
12. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 205,655 | 181,727
| Amounts owed by group undertakings | 659,388 | 332,998
| Other debtors | 18,634 | 4,288
|  | 883,677 | 519,013
| Rent and service charge arrears comprise of gross rent and service charge arrears of £510,317 (2024 - £228,908) less provision for bad debts of £90,860 (2024 - £47,181).
13. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | As restated 2024
|  |  |  |  | £ | £
| Trade creditors | 22,119 | 6,359
| Government grant - deferred income (Note 16) | 41,558 | 41,558
| Loans owed to group undertakings | 939,015 | 75,000
| Other taxation and social security | 258 | -
| Obligations under finance lease and hire purchase contracts | 5,132 | 3,810
| Amounts owed to group undertakings | 1,205,513 | 1,481,063
| Accruals and deferred income | 2,979,365 | 1,569,825
|  | 5,192,960 | 3,177,615
| The Company had a loan facility of £500,000 with HFL Group Ltd, a fellow group undertaking. As of 31 March 2024 a total of £75,000 had been borrowed from the facility. The loan carried an interest rate of 6.2% per annum and was repaid in full on 31 May 2024. Included within accruals and deferred income is accrued interest payable on loans from group companies and unpaid rent payable to group companies of £1,680,684 (2024: £960,367).
- 27 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
14. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Net obligations under finance leases and hire purchase contracts | 8,019,558 | 8,013,402
| Loans from group undertakings (Note 17) | 18,351,512 | 14,585,000
| Government grant - deferred income (Note 16) | 7,221,121 | 4,063,083
|  | 33,592,191 | 26,661,485
15. | Finance lease obligations
| Minimum lease payments under hire purchase fall due as follows:
|  |  |  |  | 2025 | As restated 2024
|  |  |  |  | £ | £
| Within one year | 5,132 | 3,810
| Between 1-5 years | 5,552 | 5,444
| Over 5 years | 8,014,006 | 8,007,958
|  | 8,024,690 | 8,017,212
| The finance lease represents a commitment payable to HFL Group Ltd, a fellow group undertaking, as a repayment of a sub-lease of £8,000,000 plus interest at 1.99%, loaned in April 2019 by HFL Group Ltd. The sub-lease was created following the London Borough of Lambeth stipulating a finance lease with HFL Group Ltd to manage a portfolio of 70 flats located in the London Borough of Lambeth. The sub-lease between HFL Homes and HFL Group is due to be repaid yearly, in quarterly instalments of £40,000, over the term of the lease which is 250 years. The ownership of the assets remains with the London Borough of Lambeth during and upon termination of the lease. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
- 28 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
16. | Government grants
|  | Held as deferred income | Recognised in profit or loss | 2025 | 2024
|  | £ | £ | £ | £
| At 1 April 2024 | 4,104,641 | - | 4,104,641 | 4,104,641
| Additions | 3,199,596 | - | 3,199,596 | -
| Grant amortised | - | (41,558) | (41,558) | -
|  | 7,304,237 | (41,558) | 7,262,679 | 4,104,641
| Deferred income - Government grant
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Amounts due to be released within one year | 41,558 | 41,558
| Amount due to be released in more than one year | 7,221,121 | 4,063,083
|  | 7,262,679 | 4,104,641
| All Government grants shown above have been provided to acquire social housing stock.
17. | Loans
| Analysis of the maturity of loans is given below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Amounts falling due after more than 5 years |  |
| Loans from group undertakings | 18,040,704 | 14,585,000
|  | 18,040,704 | 14,585,000
| The balance comprises loans due for repayment between 26th May 2071 and 19th December 2074. The loans carry a fixed interest rate of 3.2% per annum and are secured against the properties and assets of the Company.
- 29 -
HFL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
18. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100 Ordinary shares of £0.10 each | 10 | 10
19. | Analysis of net debt
|  | At 1 April 2024 | Cash flows | Non-cash items | At 31 March 2025
|  | £ | £ | £ | £
| Cash at bank and in hand | 1,357,281 | (102,948) | - | 1,254,333
| Loans and other borrowings | (14,660,000) | (4,630,527) | - | (19,290,527)
| Finance leases | (8,017,212) | - | (167,478) | (8,184,690)
|  | (21,319,931) | (4,733,475) | (167,478) | (26,220,884)
20. | Related party transactions
The Company's ultimate parent undertaking is the London Borough of Lambeth by virtue of 100% ownership of its parent company HFL Group Limited by the Mayor and Burgesses of the Borough on behalf of the Council. The Company has taken advantage of exemptions available under Financial Reporting Standard 102 not to disclose any transactions or balances with entities that are 100% controlled by the council.
21. | Post balance sheet events
On 4th April 2025, the sub-lease payable to HFL Group Limited was subject to a rent review in which the annual rent increased to £290,927. Due to this rent review the value of the right of use asset and finance lease liability both increased by £6.6m. On 15th April 2025, HFL Homes Limited purchased housing properties from a fellow group company, HFL Build Limited, for the sum of £10.6m.
22. | Controlling party
The Company's ultimate parent undertaking is the London Borough of Lambeth by virtue of 100% ownership of its parent company HFL Group Limited by the Mayor and Burgesses of the Borough on behalf of the Council.
- 30 -