The directors present the strategic report for the year ended 5 April 2025.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.

Following a restructure of the management team, from a strategic and operational point of view, the Broadgate Builders (Spalding) group and the Broadgate Homes group are being operated as one and the same. As a result management have decided that from 6 April 2024, the Broadgate Builders (Spalding) Group should include the results of the Broadgate Homes group. Comparatives have been updated to reflect this change, in line with merger accounting principles.

As a house builder and developer, the group's activities remain centred on the construction of new homes and development. We consider the key financial performance indicators are those that reflect the strength of the group as a whole, these being turnover, gross margin and net profit.

The turnover of the group was £16,579,294 compared to £11,358,006 in 2024, the increase being due to an increase in properties sold during the year.

The gross margin has decreased from 36.91% to 10.57% owing to increased costs. The cost of raw materials does remain a concern of the group at this time given the increased demand and stretched supply chains. Inflationary pressures have also seen margins tightened on the non-housebuilding segments of the group. Additionally, the group incurred exceptional costs in relation to S106 contributions on plots sold in previous years, further details are included in note 4 of the financial statements.

The profit before tax has decreased to a loss of £1,565,552 from a profit of £1,864,218. This reflects the exceptional one-off costs in the year noted above.

The management of the business and the nature of the Group’s strategy are subject to a number of risks.

The directors have set out below the principal risks facing the business:

National and Regional Economic Conditions

The health of the Housebuilding Industry relies on a wide variety of different factors, the major ones we see as interest rates, unemployment and consumer confidence. Any national or localised deterioration in economic conditions could potentially decrease both the price and demand for new homes, which could have a major effect on revenues, profits and cash balances.

On top of historic factors we are very aware of the possible negative effects the sustained high interest rates and cost of living crisis may have on the economy as a whole and in particularly the housing industry. We remain constantly vigilant around this negative effect.

In order to buffer ourselves as much as possible against downturns in economic conditions all of our land investment decisions are preceded by extensive due diligence which is aimed at capturing best returns. As a local to regional builder we are at heightened risk to the effects of local microeconomic fluctuations. In order to mitigate this we constantly monitor the local economy in the areas in which we operate and have always managed our build rates to ensure we are not over stocked or highly geared should a sudden downturn take the industry by surprise.

The Care Home Industry relies on different factors, the major ones we see as availability of labour, occupancy requirements and notional room rates.

In order to buffer ourselves from adverse downturns in these factors we operate a policy of staff training and apprenticeships, we also ensure we not only cater for the social care market but the private market too so we can reduce policy change risk and we look to manage our overheads well so that we can provide high quality care at a competitive price.

Any change in the ability of home owners to borrow money to buy homes could reduce demand and as such affect profits, revenues and cash flows. The industry needs more support for young and first time buyers, with no help on the horizon we need to ensure that our product is fit for the market.

Whilst we do not have any direct influence on money availability policy decisions, we do keep ourselves aware of commentary on credit conditions and meet regularly with Bank of England local agents to discuss trends in the economy, the house building industry and likely lending availability. We use this information to manage our stock and work in progress levels to mitigate any risk.

Health and Safety

The health and safety of our residents, employees, contractors, home owners and prospective home owners is highly important to us. From a purely financial point of view accidents could lead to financial penalties as well as grave reputational damage and from being a positive member of the communities we build with, people we work with and care for we care about, our belief is the care we would expect for ourselves is the bare minimum we aim to provide others.

We have a comprehensive group of controls which are overseen by our care home management team and our construction department with added expertise from well established outside contractors, we do not take our health and safety obligations lightly.

Materials and Labour

There is an increased shortage of skilled labour and volatility in materials, this can cause costs to increase. Care home management is a labour intensive highly skilled low paid industry, the numbers required to work within the industry as well as the limited social care funding available from central government will always mean it remains difficult to attract the numbers required to work, as the wages are kept to around the National Living Wage.

Build programmes are closely monitored to ensure supply chain pinch points are avoided. We operate in house training programmes for apprenticeships.

We work with local further education providers as well as operate an in house training programme to attract and develop staff from school leaver, as well as offering ‘later learning’ opportunities to those coming back to work in later life. We accept that the industry will always be liable to a turnover of staff but look to grow our work force generically rather than over-subscribe to staff agencies.

Strategy

The Group has adopted a strategy that it believes will add the most sustainable value for shareholders and stakeholders. Whilst this strategy does not always make the most of short term booms in the industries it operates, it looks to maintain consistent growth in balance sheet value as well as continuity of supply for the areas we work within as well as job security for our core employees.

The Group regularly reviews this strategy to ensure it is still relevant to the long term goals of the shareholders as well as being realistic in their aims.

On behalf of the board

The directors present their annual report and financial statements for the year ended 5 April 2025.

The principal activity of the group during the year was development of land and buildings for sale.

There has not been any significant change in this activity during the year.

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

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

Ordinary dividends were paid during the year amounting to £920,000 (2024: £1,588,897).

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

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of Broadgate Builders (Spalding) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 5 April 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 5 April 2025 and of the group's 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of our audit, we directed, supervised and performed the group audit in accordance with International Standards on Auditing (UK). The group audit was conducted entirely by our audit team and no other auditors were involved. We remain responsible for the direction, supervision and performance of the group audit and for the audit opinion expressed on the group 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.

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

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

• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £16,333 (2024 - £1,144,145 profit).

Broadgate Builders (Spalding) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Broadgate House, Broadgate, Weston Hills, Spalding, Lincolnshire, PE12 6DB.

The group consists of Broadgate Builders (Spalding) Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Broadgate Builders (Spalding) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 5 April 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.

The Hayloft (Boston) Limited, The Inchyra (Spalding) Limited, The (Inchyra) Spalding (2018) Limited, The Inchyra (Spalding) (2020) Limited, St John's Circus Management Company Limited, Rosebery North Management Company Limited, Abbey View (Woodhall Spa) Management Company Limited, The Hayloft (Spalding) Limited, The Hayloft (Spalding) (2012) Limited, The Hayloft (Spalding) (2013) Limited, The Hayloft (Coningsby) Limited and Curtis Fields (Coningsby) Management Company Limited are all exempt from the requirements of the Companies Act 2006 relating to the audit of their individual financial statements by virtue of section 479A.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The turnover of the parent company represents rental income and sales of land, building contracts and completed properties. Profit is recognised at the time of legal completion of the sale of property.

Rental income is recognised in the period in which it falls due.

Farm income is recognised when it is received.

Income for the provision of salmon fishing is recognised on the date of the provision of fishing services.

Care home income is recognised in the period of which the cares services are provided.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

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

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 profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Property rented to a group entity is accounted for as tangible fixed assets.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are accounted for at cost less impairment.

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

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

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

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

Land and buildings in the course of development

Land and buildings in the course of development and construction are valued at the lower of cost and net realisable value. Cost represents the cost of acquisition of land and site development expenditure including attributable overheads on both land and buildings.

Completed properties

Completed properties are valued at the lower of cost and net realisable value (as for building work above).

Contract farming

Profit or losses from contract farming are recognised in the period when the farm accounts have been completed and profits distributed. Costs up to that point are included in work in progress.

Other stocks and work in progress

Other stocks and work in progress are valued consistently at the lower of cost (on a first in, first out basis) or net realisable value. Costs, where appropriate, include a proportion of directly attributable overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Retained equity scheme

When a property is sold under this scheme, the company retains a percentage interest in the land and building. In the year of sale the proportion of the total profit relating to the element of the land and buildings sold is recognised. The interest retained by the company in properties sold under the Retained Equity Scheme is included at cost less provision for any permanent diminution in value.

Assisted house purchase scheme

The company has sold properties under a scheme whereby part of the proceeds are converted to a low interest loan which is then repayable at the earlier of the homeowner moving home or ten years. The conversion value has been calculated by way of the present value of the cash inflows expected, in accordance with FRS 102.

Affordable housing scheme

Under this scheme a percentage of equity is retained by the subsidiary company, Broadgate Affordable Limited. Interest is charged to the purchaser at below market rates under a loan agreement. The sale proceeds of this proportion of the house are ultimately received over the term of that agreement and the value is therefore calculated as the present value of the cash inflows expected, in accordance with FRS 102.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Utility and road costs include an estimation of costs to complete and remaining revenues to be received. These are reviewed at regular intervals throughout the year. Site development costs are allocated between those built in the year and those to be completed in future years. Clearly, whilst each of these assessments are produced prudently, by design there is a level of inherent uncertainty when dealing with future profitability and future impairment provisions.

During the year the company reviewed the net realisable value of all of its ongoing sites. No requirement for further write down was considered necessary. The reviews were done on a site by site basis, with local market conditions being used as a guide for future pricing.

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

During the year the company signed a deed of variation to a previous S106 agreement, that crystallised the recognition of S106 contributions that relate retrospectively to plots sold in prior years.

The amount of retrospective contributions were £2,641,212. The profits made on the plots to which this relates were reported in prior periods and so this charge relates to those prior profits. The adjustment is not an error and so has not been treated as a prior year adjustment, as the obligation has only crystallised on the signing of the deed of variation. Nevertheless, the charge included this year does not relate to the transactions carried out in the current year and so does not reflect the underlying profitability of the current year’s developments. It is therefore disclosed as an exceptional cost.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2024 - 1).

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

The carrying value of land and buildings comprises:

The total value of tangible fixed assets is included as security against the borrowings of the company.

Investment property comprises let property. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the director at the year end. The total value of investment property is included as security against the borrowings of the company.

Details of the company's subsidiaries at 5 April 2025 are as follows:

Details of joint ventures at 5 April 2025 are as follows:

Hawthorn Produce Handling and Packing Limited was dissolved on 18 May 2025.

The total carrying amount of stocks is pledged as security for liabilities.

The long term bank loans accrue interest charged at 3.75% over base rate. All bank loans and overdrafts are secured by fixed and floating charges over the assets of the company.

Other provisions for the group relate to government grants received as assistance towards the cost of developing business parks. The grants are released to the profit and loss account as the business parks are sold. The final plot was sold during the year and this provision was released as a result.

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

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The shares of the classes X and Y rank pari passu with the Ordinary shares. The company may declare a dividend in respect of any one or more class as it sees fit.

Group

At 5 April 2025 the group had given performance guarantees to its bankers totaling £2,817,193 (2024 £2,315,957).

Company

At 5 April 2025 the company had given performance guarantees to its bankers totaling £2,624,422 (2024 £2,093,186).

At the year end, the company was party to a cross guarantee arrangement with a fellow group company, Broadgate Homes Limited. Under this arrangement, the company has agreed to guarantee debts owed by Broadgate Homes Limited to a third-party lender. As at the balance sheet date, the total amount guaranteed was £nil.

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

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

Dividends totalling £920,000 (2024 - £1,588,897) were paid in the year in respect of shares held by the Trust of which a director is a beneficiary.

Details of loans issued by directors to the group are provided below. Loans are repayable within 1 year.