REGISTERED NUMBER: NI646089 (Northern Ireland)

Deanery Demesne Ltd

Unaudited Financial Statements

for the Year Ended 31 May 2025

Page

Company information

1

Statement of financial position

2

Notes to the financial statements

3

to

7

Directors:

Mrs J Armstrong

Mr E Armstrong

Mr W Armstrong

Mr S Draffin

Mrs C Draffin

Registered office:

Formation Works Suite Y 2

Edenaveys Industrial Estate

Edenaveys Road

Armagh

Co Armagh

BT60 1NF

Registered number:

NI646089 (Northern Ireland)

Accountants:

Wylie Ruddell

Chartered Accountants

Armagh Business Centre

2 Loughgall Road

Armagh

BT61 7NH

Fixed assets

Tangible assets

4

72,786

58,244

Current assets

Inventories

5

4,171,179

4,508,204

Receivables

6

119,333

26,335

Cash at bank

161,190

37,754

4,451,702

4,572,293

Payables

Amounts falling due within one year

7

(3,867,780

)

(4,143,217

)

Net current assets

583,922

429,076

Total assets less current liabilities

656,708

487,320

Payables

Amounts falling due after more than one year

8

(21,791

)

(37,683

)

Provisions for liabilities

9

(18,197

)

(14,561

)

Net assets

616,720

435,076

Capital and reserves

Called up share capital

10

100

100

Retained earnings

616,620

434,976

Shareholders' funds

616,720

435,076

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 5 November 2025 and were signed on its behalf by:

Mrs J J Armstrong - Director

1.	Statutory information

Deanery Demesne Ltd is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Inventories

Work in progress is valued at the lower of cost and net realisable value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Positionstatement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities.

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.

Receivables

Short term receivables are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments:

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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 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 when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

(iii) Offsetting

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.

Payables

Short term payables are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are required when applying accounting policies. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Work in Progress

The company apportions the costs incurred in the land acquisition as well as the development preparation, planning and build across the specific number of properties to which the cost relates. In so doing a build cost per property is established. This specific value is removed from work in progress in line with the relevant property sale and the balance remaining in work in progress relates to the element of the apportioned costs which have been incurred but not invoiced at the reporting date. The carrying amount of closing work in progress at 31 May 2025 was £4,171,179 (2024: £4,508,204).

3.	Employees and directors

The average number of employees during the year was 5 (2024 - 5 ) .

4.	Tangible fixed assets

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

Cost

At 1 June 2024

64,784

-

64,784

Additions

27,837

2,005

29,842

At 31 May 2025

92,621

2,005

94,626

Depreciation

At 1 June 2024

6,540

-

6,540

Charge for year

15,081

219

15,300

At 31 May 2025

21,621

219

21,840

Net book value

At 31 May 2025

71,000

1,786

72,786

At 31 May 2024

58,244

-

58,244

5.	Inventories

2025

2024

£

£

Work-in-progress

4,171,179

4,508,204

A valuation carried out by independent valuers, Avison Young, on 25 February 2025 assessed the market value of the undeveloped lands at £8,370,000 excluding any work in progress.

6.

Receivables: amounts falling due within one year

2025

2024

£

£

Other receivables

119,333

26,335

7.

Payables: amounts falling due within one year

2025

2024

£

£

Bank loans and overdrafts

1,829,889

1,484,766

Hire purchase contracts

6,300

6,300

Trade payables

11,445

32,665

Taxation and social security

132,878

63,663

Other payables

1,887,268

2,555,823

3,867,780

4,143,217

8.

Payables: amounts falling due after more than one year

2025

2024

£

£

Bank loans

8,666

18,258

Hire purchase contracts

13,125

19,425

21,791

37,683

Included within bank loans are three Individual loans. Loan One has a year end balance of £839,578 (2024: £204,753), Loan Two a year end balance of £980,000 (2024: £1,270,000) and Loan Three a balance of £18,976 (2024: £28,271). Loans One and Two are secured by a debenture over the assets and undertakings of Deanery Demesne Limited, a first legal mortgage over the property registered in the company name, a guarantee and indemnity in the sum of £320,000 from the directors, a charge over the building contract, collateral warranties, a first legal charge over deposits in the sum of £250,000 and subordination of the directors loans and/or borrowers equity to the repayment of bank debt.

Repayments are due on Loans One and Two only when houses are sold. It is envisaged that an adequate number of houses will be sold within a period of less than 5 years from the balance sheet date to enable the borrowing to be repaid in full.

Loan Three is repaid in fixed monthly instalments.

9.	Provisions for liabilities

2025

2024

£

£

Deferred tax

Accelerated capital allowances

18,197

14,561

Deferred tax

£

Balance at 1 June 2024

14,561

Charge to Statement of income and retained earnings during year

3,636

Balance at 31 May 2025

18,197

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

100

Ordinary £1 shares

1

100

100

11.	Related party disclosures

During the year directors introduced net funds to the company in the sum of £70,759 (2024: £10,631). At the year end an amount of £90,000 (2024: £19,241) is owed to the directors of the company and is included within other payables. This loan does not bear interest and is repayable on demand.

A company in which one of the directors of Deanery Demesne Limited is a director and shareholder has advanced money to Deanery Demesne Limited to support the working capital requirements of the project. At the year end a net amount of £926,789 (2024: £1,447,956) is owed to the related party and is included within other payables. Interest accrues on this working capital loan at the rate of 5%. The loan is repayable on demand. This related party is also owed a further £111,704 (2024: £111,704) in relation to a share of the cumulative profit generated by Deanery Demesne Limited calculated in line with a joint venture agreement signed off by both parties. This amount is also included within other payables, does not bear interest and is payable on demand.

Demesne Construction Ltd and Deanery Demesne Ltd are companies under common control. In the year to 31 May 2025 Deanery Demesne Ltd received goods and services to the value of £5,441,109 (2024: £2,934,138) from Demesne Construction Ltd. At the year end a liability of £524,325 (2024: £443,621) is outstanding from Deanery Demesne in relation to these services and is included in other payables.

All other transactions with related parties are conducted under normal market conditions