The directors present the strategic report for the year ended 31 March 2025.
The incorporation of Gateway 14 Limited and its associated structure was initiated to bring about the development of land, to generate employment and to enable Mid Suffolk District Council (“the Ultimate Shareholder”) to participate in the returns generated by the development of the land. In order to deliver this, Gateway14 Limited was incorporated as a Special Purpose Vehicle (SPV) to acquire the land. The rationale for this investment is:
The site is well-located adjacent to J50 of the A14
The principle of development for employment purpose is established in this location
There is currently strong demand and it is envisaged that this will continue along with sustained rental growth
To generate short/medium term income to support the revenue gap arising from the reduction in central government funding
To bring about the development of the land in the most effective way to deliver economic growth whilst maximising returns to the Council and minimise the risk by the way the project is brought forward
To ensure that investment opportunities taken are ethical and fit with the values of the shareholding Council
The structure is based upon Mid Suffolk District Council setting up its own wholly-owned holding company which then takes a 100% shareholding in the development company limited by shares.
The principal risks and uncertainties impacting the entity are: development is inherently a risk enterprise and there are unknown factors at the outset, there were issues to be resolved on the planning consent, the site requires some re-profiling to maximise the amount of development, rents may fall and yields may rise, the timescale for completion of the project is anticipated to be 6-8 years. A significant risk has been the substantial increase in building costs, brought about to a great extent by the Russian invasion of Ukraine, but also due to Brexit and the pandemic.
The Freeport designation has been very significant in supporting the delivery of the site for advanced manufacturing and innovation uses.
The Board has considered the risk factors inherent in the project and carried out a significant amount of work to evaluate and mitigate risk. This has had a very marked effect in reducing the risks of the project and moving forward to delivery. Key milestones include: -
Completion of debt repayment to the ultimate shareholder MSDC.
Submission of speculative reserve matters application for plot 2000.
Completion of a 1.2m sq ft distribution facility for The Range in November 2023.
Completion of a 44,000 sq ft distribution facility for Bauder in June 2025.
The Sale of land to Turkish sustainable panel manufacturer, Assan Panels in December 2024.
Substantial funding secured from Freeport East for the delivery of a skills and innovation centre on site.
Securing reserved matters planning consent for the delivery of the skills and innovation centre in November 2024 and commencing development in March 2025.
The company’s updated Business Plan, including its goals and strategies were approved by its shareholders in June 2025.
The Directors believe that the Company is making significant progress to achieve its primary target to bring the land forward for development in an effective timescale and with an appropriate risk mitigation strategy.
Introduction
This Section 172 statement is approved by the Board of Directors and is effective for the year ending 31st March 2025.
This document sets out the Section 172 statement of Gateway 14 Ltd. It is published on Gateway 14 website and is publicly available to all stakeholders for the purposes of complying with Section 172(1) of the Companies Act 2006.
Section 172 Statement
The Directors of the Company have acted in accordance with their duties codified in law, in particular their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.
Section 172 considerations are embedded in decision making at Board level and throughout the executive team. Issues, factors, and stakeholders which the Directors considered to be of strategic importance when discharging their duty under section 172(1) are detailed below.
The Directors consider that, during the period to 31st March 2025, they have had regard (amongst other matters) to:
a. the likely consequences of any decision in the long term;
b. the interest of the Company’s employees;
c. the need to foster the Company’s business relationships with suppliers, customers and others.
d. the impact of the Company’s operations on the community and the environment;
e. the desirability of the Company maintaining a reputation for high standards of business conduct; and
f. the need to act fairly between members of the Company.
Further details in relation to each of these matters is set out below.
The desirability of the Company maintaining a reputation for high standards of business conduct
Gateway 14 is a business, innovation, and logistics park. It will provide up to 2.36 million square feet of accommodation for a variety of companies, generating thousands of job opportunities and bringing major investment into the local economy. 25.3 acres of the Gateway 14 site will be designated for landscaping and amenity use, designed to protect the amenity of neighbouring areas, enhance wildlife on site and create pleasant and attractive places for people to work.
Business Goals
The following business goals have been agreed with our shareholders and will be jointly delivered with our development partner, Jaynic:
a) Ensure the development is commercially viable, provides a financial return to the Company’s shareholders and risks are managed appropriately.
b) Create the right conditions for the development of an “innovation cluster” namely a well-developed concentration of related business activities to spur three activities:
i. increased productivity (through specialised inputs, access to information, synergies, and access to public goods)
ii. more rapid innovation (through cooperative research and competitive striving); and
iii. new business formation, working in partnership with education.
c) Create a development which benefits the local community whilst also maximising opportunities for inward investment and maximising job creation opportunities across the whole property; and
d) Maximise sustainable construction opportunities and explore low carbon heat and energy/water sources on the property.
e) To continually explore options for future opportunities to further develop Gateway 14’s offer with the reinvestment of profit or land acquisition options.
Long term decisions should be made in accordance with the business goals and if this cannot be achieved then a justification should be made to the board.
The likely consequences of any decision in the long term
Governance
Gateway 14 has robust corporate governance, reporting quarterly to the MSDC (Suffolk Holdings) Ltd Board, which, in turn reports to the shareholders. The appointment of Jaynic as our development partner strengthened our governance with bi-monthly reports from Jaynic and a clear set of policies and strategies within which to operate. The business plan is revised and updated annually to be approved by the Board of Gateway 14 and the holding company MSDC (Suffolk Holdings) Ltd.
The Board of Gateway 14 Ltd comprises three independent Non-Executive Directors who are appointed by way of service agreements laying out individual obligations. These agreements are aligned to the Company’s adopted Articles. In addition, there is an officer and two councillor directors on the Board.
The Board has adopted a code of conduct, which includes the Nolan principles of public life. All board members receive director training and further training was provided in Summer 2023 with a particular emphasis on new directors joining the board. The chair of the board provides ongoing support to other board members.
Gateway 14 is a founding member of Freeport East Limited which was incorporated on 6th December 2022. The Chair of Gateway 14 sits as a Freeport East board member for Gateway 14 Ltd. The MD and Jaynic meet the Chief Executive of Freeport East and other representatives on a regular basis and the board receives an update from the Chief Executive of Freeport East on a bi-monthly basis.
Jaynic are the development managers for the development of Gateway 14, and work in partnership to deliver our shared goals and objectives. Jaynic are active in their role by attending board meetings and presenting development updates to the board. In between board meetings, Jaynic hold an informal catch-up meeting with the MD and Chair of Gateway 14 and communicate regularly.
Risk Management
The Board has a robust approach to risk assessment and management, at a corporate and project level. The Board has a corporate risk register which it reviews quarterly. The Managing Director also attends a group risk panel each quarter to report risk to the Holding Company Chair and the shareholder’s senior risk officers.
A project risk register is prepared and managed by Jaynic for each phase of development, alongside Pre-contract & Design risk registers provided by AECOM. These are reviewed monthly and reported to Gateway 14 Ltd bi-monthly. Gateway 14 Ltd update the corporate risk registers accordingly and continue to monitor risk alongside market and global events such as the COVID 19 pandemic, the war in Ukraine and inflation.
The development model and the day-to-day management of the site ensures that a robust system of health and safety management is in place and monitored through the Board, the development partner, and our consultants.
Any issues and risks can be reported to Workman as estate managers or Jaynic as the development manager. Issues and risks can also be reported directly to the chair of the board or the managing director to be escalated to the wider board members for further discussion if required.
The interest of the Company’s employees
There are no direct employees of Gateway 14 Ltd. The executive team is provided by the shareholder and the shareholder is reimbursed for their services. The executive team provides support and direction for the development of the project to ensure it meets the business goals and objectives of the business, whilst meeting the needs of the local community and delivering a sustainable business park. Our development partner, Jaynic provides expertise and experience in delivering large scale projects of this nature and work in a collaborative way with the executive team and board members. Both teams are fundamental in the delivery of the development.
The need to foster the Company’s business relationships with suppliers, customers, and others.
Although wholly owned by MSDC (Suffolk Holdings) Ltd which in turn is wholly owned by Mid Suffolk District Council, Gateway 14 Ltd has been established for commercial purposes and is not “a body governed by Public Law”. It is therefore not subject to the Public Contracts Regulations 2015, and it is not bound by the Commissioning and Procurement Manual of the Council.
Gateway 14 Ltd and its partner Jaynic have adopted a procurement policy and honour the principles of public procurement, of non-discrimination, transparency, equality, and fairness and will ensure that the company maintains proper standards of fairness and integrity in its business relationships, whilst still negotiating effectively to gain commercially competitive benefits.
Jaynic will provide professional and qualified procurement expertise for the development of the scheme. All Consultants and Contractors will be procured with high ethical standards focussed on social, economic, and environmental considerations by applying principles of sustainable procurement.
During 2024/2025 the board worked with corporate partners to support its investment activity, The performance of the appointed advisers is monitored on an on-going basis by the Board. Annual reviews are undertaken each year and advisers will be replaced as appropriate in line with the company’s procurement strategy.
The need to act fairly between members of the Company.
The Directors recognise the success of the business depends on its ability to engage effectively, work together constructively, and to take all stakeholder views into account to operate sustainably in the long term. The Board routinely considers the interests of the Company’s board members in the decision-making process to ensure that they are aligned with the Company’s practices, values, and behaviours. A register of interest is maintained by the company and the performance of the board, and directors is evaluated annually.
The impact of the Company’s operations on the community and the environment.
Stakeholder Engagement
The engagement principles that have been created by Gateway 14 since its inception are to ensure engagement is:
• Inclusive and that no-one is excluded
There have been several rounds of previous community and stakeholder engagement activity as part of the Local Plan process, the development brief process and planning applications. Engagement with the key stakeholder groups and the wider local community will continue as the new, hybrid plans for the site are brought forward by Gateway 14. We will also endeavor to engage with residents living within the vicinity of the site as well as any local community groups and/or third parties related either by geography or interest.
• Accessible and convenient
Gateway 14 holds public consultation events, key stakeholder group events, letters, what’s app group updates, website news sections, press releases. This is conducted to help reach a wider audience and keep the community updated. We will provide paper copies of the information posted online to anyone who cannot access the internet. Enquiries and feedback will be invited via the website and by telephone, email, and post. As appropriate, one-to-one voice and/or video calls will be arranged should a discussion prove more useful for any of the stakeholders.
• Genuine and meaningful
Stakeholders will be engaged at an early stage so that feedback can be gathered, and comments can be considered before any plans are finalised. The context, constraints, and opportunities the site presents will be clearly communicated so that feedback is invited on aspects that can readily be influenced. We aim to feedback consultation results to show key themes and how comments have been considered for any of the matters that are consulted on. Where suggestions/requests/aspirations are not feasible, this will be explained. This is largely delivered through regular stakeholder meetings and updates posted on the website.
• Accountable
In line with the Council’s requirement, a full record of feedback will be maintained during periods of community consultation, and a Statement of Community Consultation will be compiled and submitted with the planning application to detail engagement activities, comment on themes and how responses to the engagement process have been considered in the application.
In terms of accountability, we respond to emails, calls, and letters in a timely manner, being as transparent as possible in a commercial landscape.
Place Making
Gateway 14 has commissioned external providers to support the delivery of place-making at Gateway 14. The placemaking initiative on site aims to capture key outputs from engagement, by providing social value, creating community involvement in Stowmarket, and enhancing occupier experience.
The rationale and proposed approach for addressing these three areas are included within the full plan, with recommendations made around establishing working groups focused on Social Value and Local Business interests, introducing a yearly on-site enlivenment calendar for occupiers’ employees (based around the amenity area) and the wider community benefit from Gateway 14 developing a clear CSR policy.
The purpose is to create meaningful stakeholder engagement within commercial spaces that not only brings people together; it helps position assets as worthwhile places providing added value. The placemaking activities aim to bring together the landlord, tenants, and the local community to create a sustainable professionally managed space.
This will be further supplemented with the following, as more tenants move into Gateway 14; Focus groups and online surveys with occupiers, Quarterly community forums and associated working groups, digital communications (social and e-newsletters).
In addition to following good practice from other schemes, the focus has been on engaging with the key community stakeholders located close by to Gateway 14, along with residents and prospective tenants. The focus of these discussions has been on:
emphasising the Board’s commitment to Gateway 14 being a positive local partner
exploring opportunities for collaborative working
encouraging engagement in the long term as the Gateway 14 development transitions into a ‘live’ working site.
The approach of the placemaking activities will be:
consulting with occupiers through a combination of surveys and targeted workshops
creating action plans for introducing employee engagement programmes
managing the roll-out of the events and marketing programme
assessing options for improving amenities and encouraging tenant use
reviewing existing suppliers, providing marketing and event services
developing best practice models of occupier engagement and animation
reviewing existing placemaking activity
creating communication tools to improve occupier experience.
Environment and Sustainability
Gateway 14 Ltd and its development partner Jaynic are committed to the environmental agenda and to environmental excellence balanced with financial returns. Our operations are built upon a strong environmental ethos and an adoption of progressive environmental strategies embedding sustainability into the heart of our development at Gateway 14.
As a developer, Gateway 14 Ltd with its partner Jaynic, recognise that it has a range of roles and interacts with a number of stakeholders. Jointly, with our ultimate shareholders (Mid Suffolk District Council), we are committed to doing as much as possible at a local level to reverse climate change, mitigate impacts, and protect biodiversity. We are committed to achieving environmental excellence and hold strong objectives and KPIs around this within our yearly business plan, which include delivering buildings with a minimum EPC A rating and BREEAM Excellent. Across the park we have a strategy of reducing consumption (through efficiencies and generation), mitigating waste (including mitigating the use of water) and promoting bio-diversity across the site.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £21,600,000. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
On 1 September 2025 our auditors, Ensors Accountants LLP, merged with Azets Audit Services Limited. Accordingly Ensors Accountants LLP formally resigned as the company’s auditors with the directors duly appointing Azets Audit Services Limited, trading as Ensors to fill the vacancy arising. The auditor, Azets Audit Services Limited, trading as Ensors, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
We have audited the financial statements of Gateway14 Limited (the 'company') for the year ended 31 March 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. Through discussion with directors and management, and from our own knowledge of and experience of the sector in which the company operates we identified the following areas where we consider there is a higher risk of fraud: transactions with related parties, revenue recognition, and management override of systems and control. We note that the use of external advisors and service organisations has helped to reduce the susceptibility of the company to material misstatement due to fraud.
We performed audit procedures to address the risks noted above, which included the following:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims
Reviewing minutes of board meetings
Testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions
Review of management estimates and judgements, in particular in relation to the recognition of income and expenses on projects in progress at the accounting year end
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is we would become aware of non-compliance.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Auditor's responsibilities for the audit of the financial statements (continued)
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s member, those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member, for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
Gateway14 Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O B&Msdc Endeavour House, 8 Russell Road, Ipswich, IP1 2BX. The company's principal activities and nature of its operations are disclosed in the directors' report.
The financial statements of Gateway 14 Limited for the year ended 31 March 2025 were authorised for issue by the board of directors on 13 November 2025 and the Statement of Financial Position was signed on the board's behalf by Sir C Haworth.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share based Payment;
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)(ii), B64(p), B64(q)(ii), B66 and B67of IFRS 3 Business Combinations. Equivalent disclosures are included in the consolidated financial statements of Mid Suffolk District Council in which the entity is consolidated;
the requirements of paragraph 33 (c) of IFRS 5 Non current Assets Held for Sale and Discontinued Operations;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets, (iv) paragraphs 76 and 79(d) of IAS 40 Investment Property and (v) paragraph 50 of IAS 41 Agriculture;
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraph 17 of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ; and
the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard in relation to share based payments, financial instruments, capital management, presentation of a cash flow statement, presentation of comparative information in respect of certain assets, standards not yet effective, impairment of assets, business combinations, discontinued operations and related party transactions.
Where required, equivalent disclosures are given in the group accounts of Mid Suffolk District Council. The group accounts of Mid Suffolk District Council are available to the public and can be obtained as set out in note 26.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Gateway14 Limited is a wholly owned subsidiary of MSDC (Suffolk Holdings) Limited and the results of Gateway14 Limited are included in the consolidated financial statements of Mid Suffolk District Council which are available from the address in note 26.
For construction contracts, where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website and emailer database - straight line over 3 years
Amortisation is recognised in profit or loss.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The tax expense represents the sum of the tax currently payable and deferred tax.
While there are a number of standards, amendments and interpretations which have been issued and are not yet effective which have not been adopted by the company, the directors have assessed their impact and are satisfied they will not have a material impact on the company.
Some accounting pronouncements which have become effective from 1 January 2024 and have therefore been adopted do not have a significant impact on the Company’s financial results or position as follows:
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
Non-current Liabilities with Covenants (Amendments to IAS 1)
Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
Lack of Exchangeability (Amendments to IAS 21)
Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Company:
Lack of Exchangeability (Amendments to IAS 21)
Amendments to the SASB standards to enhance their international applicability
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.
Revenue is recognised based on the stage of completion of a contract. Stage of completion is estimated to be costs incurred to date as a proportion of total expected costs to complete a contract. Total anticipated costs to complete a contract are subject to estimation uncertainty and therefore the recognition of revenue is also subject to this uncertainty.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The charge for the year can be reconciled to the profit per the income statement as follows:
The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements is approximate to their fair values.
Borrowing costs totalling £Nil (2024: £186,955) have been recognised in inventories during the period. Inventories include £2,418,868 of borrowing costs at 31 March 2025 (2024: £2,918,789).
During 2025, the company entered into 2 agreements with customers to develop land. Revenue has been recognised on these contracts to the extent that the company's performance obligations under the development agreements have been met. The extent to which the contract has been performed has been estimated by reference to the costs incurred on the contract up to the financial year end and the total expected contract costs.
Gateway14 Limited has no exposure to fluctuations in interest rates as the company has no long term borrowings at the year end.
Other reserves are in respect of an equity contribution to the company from its parent.
During the year, the company issued 1,622,488 £1 ordinary shares via a bonus issue equal to the value in the capital contribution reserve. 1 new ordinary share was issued for every £1 of the capital contribution reserve.
The value of the reserve was 'capitalised' and transferred to share capital within equity.
Following this, each of the Directors signed a solvency statement and Gateway 14 Limited carried out a 'capital reduction' to transfer the same value from share capital, to retained earnings.
Other reserves are in respect of an equity contribution to the company from its parent.
As per the preceding note, the company issued 1,622,488 £1 ordinary shares via a bonus issue equal to the value in the capital contribution reserve. 1 new ordinary share was issued for every £1 of the capital contribution reserve.
The value of the reserve was 'capitalised' and transferred to share capital within equity.
During the year the company entered into the following transactions with related parties:
Interest totalling £nil (2024: £186,955) was payable to the ultimate controlling party during the year and has been initially recognised within work in progress.
Cost of sales includes the release to the Income Statement of interest payable to the ultimate controlling party totalling £492,419 (2024: £nil). £2,426,368 (2024: £2,918,788) of interest remains within work in progress at 31 March 2025.
Cost of sales includes the release to the Income Statement of Mid Suffolk District Council planning and survey fees totalling £26,197 (2024: £nil). £126,681 (2024: £152,879) of these costs remain within work in progress at 31 March 2025.
Administration expenses include £70,000 (2024: £70,000) of management charges payable to Mid Suffolk District Council. At the year end Gateway 14 Limited owed Mid Suffolk District Council £168,000 in respect of management charges.
Planning and survey fees payable to Suffolk County Council during the period totalled £nil (2024: £23,627). These costs are initially recognised in work in progress. Cost of sales includes the release to the Income Statement of Suffolk County Council planning and survey fees totalling £41,020 (2024: £21,275). £98,051 (2024: £139,071) of these costs remain within work in progress at 31 March 2025.
During the year, Gateway 14 Limited incurred expenses totalling £44,996 (2024: £35,768) payable to its subsidiary, Stowmarket Estates Limited.
No guarantees have been given or received.