The directors present the strategic report for the year ended 31 March 2025.
The company is the head of the Big Sky group comprising the subsidiaries Big Sky Developments Ltd, Big Sky Property Management Ltd and both Big Sky Living Ltd and Vertical Property Services Ltd which were incorporated during the year. The company is wholly owned by South Norfolk Council.
Big Sky Developments Ltd focuses on the delivery of quality homes and commercial space in the South Norfolk and surrounding areas. With activities including the provision of mixed tenure developments, building and developing homes for open market sale and for social housing. In addition, we provide development management/informed client role in the provision of commercial/leisure space for public sector clients. These activities have not changed in year and are not expected to change in the foreseeable future.
Big Sky Property Management Ltd manages a portfolio of rental properties and takes on some property project management for South Norfolk Council.
Our group strategy is reviewed annually and has remained consistent for the last five years.
The groups results for the year and key performance indicators were as follows:
| Year to 31 March 2025 £ | Year to 31 March 2024 £ as restated |
Turnover | 3,973,652 | 11,091,135 |
Profit/(Loss) before taxation | (1,297,640) | (786,314) |
Gross Profit margin | 9.20% | 5.06% |
Return on Capital Employed | (0.74%) | 1.24% |
Work In Progress | 23,009,627 | 15,548,982 |
In the current year, turnover dropped from £11,091,135 to £3,973,652, which is in line with forecasts and is due to the impacts of the Nutrient Neutrality planning permission moratorium on project delivery. Work In Progress was amortised through the year in line with house sales and land usage.
The results reflect the impact that Nutrient Neutrality has had on turnover. The Balance Sheet remains robust, with the drop in current assets reflected with the corresponding drop in liabilities, as Big Sky Developments Ltd Work In Progress was reduced in line with sales of housing and land usage, and £3,000,000 of arranged borrowings in Big Sky Developments Ltd were repaid as scheduled, which is reflected in the minimal change in the Return on Capital Employed.
Nutrient Neutrality, being the planning permission moratorium on overnight accommodation which came into effect from March 2022 has had a significant impact on our targets. The moratorium requires the approval of mitigation to offset the discharge of additional phosphates and nitrates into specific watercourses via the sewage treatment plants serving developments. The Business Plan has been reviewed and the impact on the remaining housing starts at St Giles Park being delayed has been reflected. Suitable mitigation has been secured to enable works to recommence in the first quarter of 2024/25 but this has had an impact on the timing of sales, which are now anticipated to complete in future financial years.
Sales values continue to remain strong reflecting the quality of homes being delivered.
Big Sky Property Management Ltd has continued to benefit from increasing house values with an uplift in the value of investment properties held of £284,600, which together with new additions, brings the total market value of the investment properties held to £9,416,502 up from £7,714,402 in the previous year.
The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risk and uncertainties affecting the Group are considered to relate to:
Securing land development opportunities,
Delays in the planning environment, impacting on site delivery,
Skills shortages across the key disciplines,
Inflationary impact on the resources (materials and labour),
Housing market confidence
The Group's key performance indicators are described in the business review above. Further indicators are reviewed by the Directors in the Quarterly Board meetings. These include the Group's ambition to achieve a five star builders standard and the gold standard in Big Sky Developments Ltd independent customer satisfaction surveys. No other key performance indicators are deemed necessary to explain the development, performance or position of the Group.
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 9.
The last phase of housing with planning permission not effected by Nutrient Neutrality was completed in June 2023. Work on site was able to recommence in June 2024 and provided plots for sale in quarter 4 of the financial year and in the following financials years. Along side this, progress was made in exploring new development opportunities.
During the year the group has contributed in various means to the ultimate owner South Norfolk Council.
The subsidiary Big Sky Developments Ltd has contributed directly to the ultimate owner a total of £1,366,063. Comprising loan interest payment of £1,022,480, Community infrastructure levy of £291,460, and other sundry payments such as gym membership for its purchasers, building regulation fee, sponsorship, etc.
The subsidiary Big Sky Property Management Ltd has purchased from its owners 6 properties at the value of £1,827,500 to use as resettlement properties. The income in the year for these new properties was approximately 50% of total expected annual income due to them being purchased during the year. The company also paid to the ultimate owner £167,223 of loan interest and other sundry payments such as council tax and sponsorship, totalling £188,687.
Big Sky Ventures Ltd is the parent company of the Big Sky Living Group, consisting of Big Sky Developments Ltd, Big Sky Property Management Ltd and both Big Sky Living Ltd and Vertical Property Services Ltd which were incorporated during the year. The results of these companies have been consolidated into the Big Sky Ventures Group financial statements that follow.
No ordinary dividends were paid.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
With inflation starting to fall and interest rates plateauing out, along with the reduction in new homes availability due to the Nutrient Neutrality moratorium we have found the market interest in our homes remains positive. This has been assisted with the quality and level of specification we offer over our competitors.
We consider materials and labour inflation as a risk; our consultants have indicated a minimum increase of 15% is likely on any new works. With the the increase in costs and risk of sales values reducing due to economic uncertainty this could impact on our profit margins and cash flow. We have reviewed our specification to take into account the materials and labour inflation whilst still maintaining a high level of standards but may need to consider further adjustments on future projects to help reduce any effects further.
The Group's borrowings are all at fixed rates of interest and therefore rising interest rates are not considered a significant risk. However, a new funding model has been incorporated into the future business plan.
Due to the nature of the trade within each subsidiary, the directors consider the exposure to credit risk to be minimal.
We are currently exploring a number of options to develop further sites, including those falling outside the Nutrient Neutrality Zone. These sites would offer the opportunity for the development of a further 100 homes and enable work to commence on site during 2026.
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.
We have audited the financial statements of Big Sky Ventures Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, 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).
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 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
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.
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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known, actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
However, 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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,705,845 (2024 - £3,671 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Big Sky Ventures Ltd (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Horizon Business Centre, Broadland Business Park, Norwich, NR7 0WF.
The group consists of Big Sky Ventures Ltd 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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of South Norfolk Council. The business address for South Norfolk Council is The Horizon Centre, Broadland Business Park, Peachman Way, Norwich, NR7 0WF. The consolidated financial statements for South Norfolk Council are publicly available from https://www.southnorfolkandbroadland.gov.uk/downloads/download/130/south-norfolk-council---statement-of-accounts
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company also has the full financial support of the South Norfolk District Council. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
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.
Interests in subsidiaries 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.
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.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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.
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.
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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
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.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
In assessing the carrying value of stocks, the directors consider whether an impairment is required. The directors review forecasts and make assumptions about the future income and expenses of the ongoing developments in determining an estimated net realisable value for the properties being developed and whether the development as a whole will be profitable or loss making. With the current volatile climate, rising interest rates, and the knock on effect on the property market unknown, the directors consider this a key area of estimation uncertainty.
Investment properties are valued to their fair value at each reporting date. There is a degree of subjectivity involved in estimating the fair value of the properties. In order to mitigate the impact of this subjectivity the investment properties have been valued by Wilks Head & Eve Chartered Surveyors, who are not connected to the company.
The average monthly number of persons employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
The group has elected to not recognise a deferred tax asset of £445,002 (2024: £42,542) in relation to carried forward tax losses.
The carrying value of land and buildings comprises:
Included within land and buildings are two properties with a combined carrying amount of £410,000 that were previously classified as investment property. During the reporting period, these properties were transferred to property, plant and equipment as they ceased to meet the definition of investment property as their fair value is expected to be primarily recovered through future sale. Subsequent to the transfer, the properties are measured using the revaluation model in accordance with Section 17 of FRS 102.
The fair value of the land and buildings has been arrived at on the basis of a valuation carried out at 31 March 2025 by Wilks Head & Eve Chartered Surveyors, who are not connected with the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Investment property comprises residential properties for rental to third parties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 March 2025 by Wilks Head & Eve Chartered Surveyors, who are not connected with the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Assets with a carrying value of £9,172,500 (2024: £6,988,400) have been pledged as security against the loan liabilities to which they relate. At the comparative balance sheet date no security was provided.
Details of the company's subsidiaries at 31 March 2025 are as follows:
*The registered office address of the subsidiary is The Horizon Centre, Peachman Way, Broadland Business Park, Norwich, NR7 0WF.
The above subsidiaries are included within the consolidated figures.
Loans totalling £13,960,000 as at 31 March 2025 (2024: £16,960,000) are secured by land at Cringleford and interest is charged on the outstanding balance at a fixed rate of 6%.
Loans totalling £4,500,000 as at 31 March 2025 (2024: £Nil) are secured by land at Cringleford and interest is charged on the outstanding balance at a fixed rate of 6.75%.
Loans totalling £1,000,000 as at 31 March 2025 (2024: £Nil) are secured by land at Cringleford and interest is charged on the outstanding balance at a fixed rate of 6.5%.
Loans totalling £4,987,300 as at 31 March 2025 (2024: £3,159,800) are secured by way of a fixed chagre. Interest is charged on the outstanding balance at a fixed rate of 4%.
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.
Each share has full rights in the company with respect to voting, dividends and distributions.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
In the post balance sheet period the subsidiary Big Sky Developments Ltd entered into new loan funding with its ultimate parent entity. The new loan funding agreement allows the entity better flexibility regarding borrowing and repayment of capital. The loan carries an authorised limit of £25,000,000 alongside an additional £10,000,000 designated as a bridging loan. The existing loans at the balance sheet date are replaced with this new agreement.
The remuneration of key management personnel is as follows.
During the year, the group incurred expenses of £59,625 (2024: £51,225) from other related parties. At the balance sheet date the group owed £17,535 (2024: £0) to other related parties.
The immediate and ultimate parent of Big Sky Ventures Limited is
A restatement has been made to the carrying value of work in progress following the correction of a calculation error. The taxation impact of the restatement is also included within this adjustment.