The directors present the strategic report for the year ended 31 March 2025.

The Advance Northumberland Group (as defined below) is an incorporated group of companies limited by shares and is wholly owned by, and trades in support of, Northumberland County Council (NCC). The group successfully delivers a unique combination of activities which contribute to the place shaping, regeneration, economic growth and housing aspirations of the Council. The group operates on a commercial basis but is always cognisant of its public ownership and its mission to improve prosperity, quality of life and increase business activity throughout Northumberland.

The priorities of the Advance Northumberland Group are to improve prosperity and quality of life, and to increase business activity throughout Northumberland.

The Advance Northumberland Group consists of five companies all focussed and working towards our mission. The companies within the Group are:

· Advance Northumberland Limited

· Advance Northumberland (Housing) Limited

· Advance Northumberland (Commercial) Limited

· Advance Northumberland (Developments) Limited

· Advance Northumberland (Projects) Limited

In addition, we have one 50/50 Joint Venture, Prudhoe Estates LLP.

Each Company within the Group has its own distinct principal activities, as shown below, which are all aligned to achieve the overall strategic aims of the Advance Northumberland Group.

Advance Northumberland Limited

The company acts as a holding entity for the companies that comprise the Advance Group. Advance Northumberland Limited provides corporate services, which are recharged to the other companies within the Group.

Advance Northumberland (Housing) Limited

The principal activities of the company are:

· to provide good quality, private rented sector (PRS) homes in the private rental market;

· to provide homes at rents that local people can afford.

Advance Northumberland (Commercial) Limited

The principal activities of the company are:

· to own, manage and let quality commercial properties;

· to source strategic employment land, commercial accommodation or services to attract inward investment and economic growth in Northumberland.

Advance Northumberland (Developments) Limited

The principal activities of the company are:

· to design, build and sell good quality homes for sale to the public under the Ascent Homes brand

· to deliver regeneration and development schemes across the Advance Northumberland Group and with other key partners

Advance Northumberland (Projects) Limited

The principal activity of the company is to provide project management services to Northumberland County Council.

The Group has continued to perform and deliver despite challenging market and economic factors. The Housing portfolio continues to provide good homes for rent. The Commercial portfolio continues to support the local economy in a wide range of sectors. Ascent Homes has delivered a significant number of new homes and continues to strengthen its brand. The Projects Team have maintained their strong reputation for high quality delivery.

Turnover has increased from £47.1m in 2023/24 to £70.1m in 2024/25. Gross profit has increased from a loss of £17.4m to a profit of £16.8m. Investment property valuations have further increased by £19.3m (2024: increase of £6.2) and has been charged to the Statement of Comprehensive Income. Profit before taxation is £19.0m (2024: £3.1m)

Fixed assets have increased from £280m at the start of the financial year to £315.8m at the balance sheet date. Current assets amount to £38.3m (2024: £60.2m), whilst short term creditors of £10.5m (2024: £17.3m) exist at the Balance Sheet date. Long term creditors have decreased to £277.1m (2024: £283.6m) using our commercial loan facility with Northumberland County Council and deferred grant income. Cash levels within the Group have decreased to £5.4m (2024: £9.8m).

Shareholders’ funds within the balance sheet now amount to £44.5m, an increase from the previous year level of £25.0m.

Advance Northumberland (Housing) Limited

The company continued to perform strongly, with tangible improvements to income recovery and compliance processes. In-house resources and skills have been further bolstered, facilitating continued financial efficiency improvements and provision of services to the wider Group.

Overall lettings performance has also been strong, with timescales for tenancies being secured on available properties falling for a consecutive year. Occupancy levels fell slightly during the year due to a strategic decision to reduce refurbishment expenditure in Q3 and Q4. Revenue has grown to £6.8m (2024: £6.4m), gross profit has increased to £5.1m (2024: £4.1m). The company made a pre-tax profit of £6.7m (2024: £8.1m), a dividend was also paid to Advance Northumberland Limited amounting to £0.2m (2024: £0.5m).

The total value of the property portfolio has increased in year by £4.2m to £118m (2024: £113.8m). This includes a £5.5m upward movement in valuations (2024: £5.1m).

Advance Northumberland (Commercial) Limited

2024/25 has seen revenue increase slightly to £16.8m (2024: £16.2m). Operating profit has increased to £12.4m (2024: £9.1m). Advance Northumberland (Commercial) Limited made a pre-tax profit of £13.6m (2024: £0.6).

Profit during 2024/25 is again significantly impacted by the accounting treatment of revaluation which positively affects the profit and loss by £13.8m (2024: £1.7m).

Fixed assets values have increased from £152.6m at the start of the financial year to £178.5m at the balance sheet date.

The company undertook a strategic property rationalisation strategy within the year, disposing of cash-inefficient or non-strategic assets within the portfolio. This has assisted in repurposing the portfolio, reducing debt and ensuring the business has a modern fit-for-purpose portfolio for future years. The disposal programme will continue over future years, with future growth to supplement the loss in commercial space through a mix of direct acquisitions and internal development on Advance Northumberland owned land holdings.

Below we list noteworthy property transactions in the year:

• Bassington Industrial Estate, Cramlington

• South Nelson Industrial estate, Cramlington

• Ashington Workspace, Ashington

• Green Lane Offices & Workshops, Ashington

• West Sleekburn Industrial Estate, Choppington

• St Thomas Workshops, Alnwick

• Sawmill Industrial Estate, Alnwick

• Glendale Workshops, Amble

Advance Northumberland (Developments) Limited

2024/25 has been a period of significant progress on numerous regenerative and private sale developments within the county, delivered with ongoing support from both our project management activities and the Ascent Homes construction team. The Company has seen large growth in revenue to £45.7m (2024: £23.6m), cost of sales decreased to £45.8m (2024: £56.2m). This is due to the sale of completed assets set out below and the increase in work through Ascent Homes. Work in progress levels have decreased to £38.0m from £48.0m.

The developments under construction in the year are as follows:

· Wayside Point (Phase 3&4), Ellington, NE61 5HH – 42 units were completed on the development of 150 new-build homes.

· Kingsmead, Wooler, NE71 6AE - 2 units were completed on the development of 72 new high-quality homes.

· Commissioners Quay, Blyth, NE24 3AF - 4 units were completed on the development of 41 high quality, waterfront homes.

· Willow Farm, Choppington, NE62 5RG – 68 units were completed on the development of 275 new-build homes.

· Allerburn Manor, Alnwick, NE66 2NJ – 9 units were completed on the development of 16 high-quality executive homes.

· There are many schemes at various stages of planning/feasibility to continue to deliver homes to the private retail market and to support Northumberland County Council's aim of increasing the number of affordable houses available throughout the county.

Advance Northumberland (Projects) Limited

Throughout the year, the Company has been involved in a broad portfolio of projects across the county, supporting Northumberland County Council and the Advance Group companies. This programme of work – including town centre regeneration, cinema, and retail developments – will continue to be delivered into the next financial year.

The Company has maintained revenue at £0.6m (2024: £0.6m). Cost of sales have reduced to £0.2m (2024: £0.5m). The profit for the financial year is £0.02m (2024: loss £0.1m).

Debtors have increased to £0.2m (2024: £0.03m). Short term creditors have increased to £0.2m (2024: £0.1m). The majority of the balance is owed by group undertakings.

Principal risks and uncertainties

The Advance Northumberland Group takes a proactive approach to risk management.

The overarching strategic approach and risk appetite is set by the Advance Northumberland Group Board. The organisational hierarchy provides for the dynamic escalation and de-escalation of risks between department Project Risk Registers, to an Operational Risk Register and the Corporate Risk Register. All risks are recorded, together with their impacts and controls, and scored, using the 5 x 5 matrix set out in the Risk Management Policy, which was last reviewed and approved by Board on 04 September 2025.

The Executive Risk Management Group (ERMG) is the formal management group created to support the Board manage current and emerging strategic and operational risk. The purpose of the ERMG is to create the functional link between the Board and the operational management teams. The ERMG ensures compliance with our Risk Management Policy and the integration of risk management into our business planning and decision-making processes, supporting the continuous improvement of the organisation. ERMG report their review of risk to all Board meetings, and all Audit Committee meetings receive an assurance report from the Executive Director of Governance on the efficacy of the Risk Management Policy and operational practices.

The most recent review by the ERMG (on 09 December 2025) concluded there were no red risks facing the organisation.

All lower-rated risks identified on the respective risk registers have corresponding controls and action plans agreed by the Executive team. Risk Management within the organisation is also subject to review by Internal Audit, the last audit was completed in FY 2024/25 and reported a positive assurance to the Audit Committee and Board.

Future business performance

The Advance Northumberland Group expects to continue its current operational activities, increasing the number of PRS, affordable, and market sale properties through Advance Northumberland Housing and Ascent Homes, continuing to generate attractive commercial and retail opportunities throughout Northumberland, and leading on regeneration. The Group expects to further enhance its existing performance and bring forward new opportunities in sustainable development activities.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company and group was the provision of rented accommodation, commercial buildings and garages, provide project management services and new build homes for sale through Ascent Homes.

The results for the year are set out on page 13.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

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

We have set out below how we have engaged with and taken into consideration the needs of our stakeholders. These stakeholders continue to represent the key resources and relationships of the Group, as well as being the key to the Group's long-term success.

Customers

We work hard to put customers at the heart of everything we do. We have continued to offer a first-class service to all our customers. Over the past year, the Group established additional rigour with regard to client account management and is continuing this investment in the coming year to enable direct engagement with our customers.

Suppliers

The Group works responsibly with its suppliers. We look to build strong relationships giving us an opportunity to understand better the services we procure and access environmental and social impacts of our supplier chain. We aim to pay our suppliers promptly, within the terms they set out.

SECR 2024/25

This is our third year of reporting against the UK mandatory Streamlined Energy & Carbon Reporting requirement for UK businesses. This section has been prepared in accordance with our regulatory requirement to report greenhouse gas (GHG) emissions pursuant of the Companies (Directors’ Report) and Limited Liability Partnerships (Energy & Carbon Report) Regulations 2018 (“the 2018 regulations), which implements the government’s policy on SECR.

Limitations & Assumptions

There have been several assumptions made in achieving the data for Scope 1. The assumptions relate to the calculation of fuel purchased and used in Advance fleet vehicles and on-site telehandlers. These are listed below:

• That all vehicles using Advance-purchased fuel were diesel vehicles, using the standard UK biofuel blend.

• Fleet vehicles were assumed to be ‘average’ size, and the appropriate EF used, as per the UK government’s GHG Conversion Factors for Company Reporting.

• ‘Average fuel cost’ for the year, was calculated from monthly values extracted from the ONS website (RPI: Low Sulphur Diesel Time Series).

• Data for power generated from diesel consumption was calculated using factor from 2012 Guidelines to Defra/DECC's GHG Conversion Factors for Company Reporting, and Digest of UK Energy Statistics 2011 (DUKES).

Limitations within the data:

• Regarding Scope 2 data, some sites are metered but several sites are not metered. In these cases, bill data has been used to provide activity (kWh) data. Data quality is variable when using bill data due to billing dates and periods, but also some bills are estimated.

Data Summary

Table 1 below shows our Energy Consumption GHG for the financial year 01/04/2024 - 31/03/2025, with comparison against the baseline year of 2022/23. Also included data for financial year 2023/24 to provide a view on annual performance.

The data in Table 1 has been calculated taking into consideration an error in previous reporting, which categorised certain consumption data (and emissions) into the wrong scope. In previous reporting what should have been classified as Business Travel (staff mileage on company business, and therefore, Scope 3 emissions), was classified as Scope 1 fuel use. This has been corrected and presented in Table 1.

Table 2 shows the associated carbon emissions of the data in the consumption table (above). They are classified according to the guidance set out in the GHG Protocol.

Quantification & Reporting Methodology

Carbon emissions data have been calculated as per guidance set out in the GHG Protocol (Corporate Accounting & Reporting Standard). Where available, activity data have been used to calculate emissions; where not available, spend data or other assumptions have been used to achieve emissions data.

Scope 1 Emissions

Emissions from natural gas consumption were determined as per the GHG Protocol, where kWh of consumption are multiplied by the emissions factor for FY2024/25 (that is, the EF for 2024, as this is the majority of the financial year), to give total CO2e emissions. Data was extracted from the Northumberland County Council Energy Manager Live portal. Gas data was uploaded from invoiced bills.

Also in Scope 1 are the emissions associated with the fuel bought and used in Advance’s fleet vehicles, including that used in the hired site telehandlers (under Advance control). Spend data was used as the basis of calculations for fuel use, converted to L fuel consumed, then multiplied by the EF per L fuel to give the TeCO2e emitted. Power generated was calculated from L fuel consumed multiplied by kWh/L fuel factor to give data for annual kWh generated.

Scope 2 Emissions

Emissions from electricity consumption were determined as per the GHG Protocol, where kWh of consumption (activity data) were multiplied by the emissions factor for FY2024/25 (the EF for 2024, as this is the majority of the financial year). Data was extracted from the Northumberland County Council Energy Manager Live portal. Where available, the data collated was metered data; where unavailable, billed invoice data was used. Hence the quality of the data is mixed. Metered data is more accurate and easier to interrogate over specified time intervals. Activity data (kWr consumed) was multiplied by the electricity emissions factor for FY2024/25, to give total CO2e emitted.

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 Advance Northumberland Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 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 31 March 2025 and of the group's profit 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Analytical review and substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. 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, in which the company operates and how the company complies with that legal and regulatory framework

• inquired with 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 with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.

The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 profit for the year was £93,221 (2024 - £231,791 profit).

Advance Northumberland Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Wansbeck Workspace, Rotary Parkway, Ashington, Northumberland, NE63 8QZ.

The group consists of Advance Northumberland 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 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 consolidated group financial statements consist of the financial statements of the parent company Advance Northumberland 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 31 March 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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.

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.

Revenue compromises gross rentals exclusive of VAT for Commercial, Residential, Workspace and Garage Properties. Gross rental income is recognised on a straight line basis over the lease term on an accrual basis. The Group records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognised, which mainly is the timing of when rentals are due.

Development site sales are recognised as follows;

• On sites that are sold outright - when legal completion occurs

• On sites that are developed under a management agreement with a third party the sales are recognised when certain milestones are achieved, those being: legal completion has occurred on a per plot basis and the overall development site profit can be reasonably measured.

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.

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.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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.

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.

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 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.

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.

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

Their aggregate remuneration comprised:

The Company engages staff that are employed by fellow group company, Advance Northumberland (Housing) Limited.

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

The freehold investment properties are valued at investment value on 31 March 2025. The properties were valued by Cluttons LLP (Commercial Investments) and Align Properties (Residential Investments) on the basis of open market value for investment purposes, subject to existing tenancies and leases. We have valued the Properties according to their Market Value with vacant possession. Properties acquired in-year not captured by an external valuation were subject to a Director's valuation based upon an achievable rental value, capitalised at an appropriate rental yield.

Details of the company's subsidiaries at 31 March 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Included within creditors falling due after more than one year is an amount of £267,062,114 (2024: £274,572,252) in relation to related party (Northumberland County Council) in respect of liabilities which fall due for payment after more than five years from the Balance Sheet date. No capital repayments are due until the formal terms end. Interest is accrued and/or paid monthly/quarterly.

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.

Share Premium - This reserve records the amount above the nominal value received for shares issued less transaction costs.

Capital Redemption Reserve - This reserve records the nominal value of shares repurchased by the company.

Non-distributable unrealised revaluation gains - The balance within the profit and loss reserve amounted to £105,028,317 (2024: £85,765,532).

During the year the company had the following arms length transactions with related parties.

During the year payments of £23,539,903 (2024: £14,976,440) were made to Northumberland County Council (ultimate holding company) in respect of Loan Interest, Non Domestic Rates, Council Tax, Planning Applications, Section 278 agreements and other services.

As at 31 March 2025 the Group owed £1,494,427 (2024: £7,832,160) and £267,062,145 (2024: £274,572,252) to Northumberland County Council in respect of Interest and capital due on commercial loan facility respectively, whilst Northumberland County Council owed the Group £57,286 (2024: £536,693).

Accumulative Funding of £42,259,172 (2024 - £42,259,172) was provided by Northumberland County Council to provide working capital towards their capital programme schemes.

Advance Northumberland Limited financial statements represent the consolidated position of the Advance Group, In turn Advance Northumberland Limited is a wholly owned subsidiary of Northumberland County Council and is therefore consolidated in the Whole of Government financial statements.

Northumberland County Council is the immediate and ultimate controlling party. Northumberland County Council, a local authority statutorily constituted in England, prepared consolidated Group financial statements which can be obtained by application to Northumberland County Council, County Hall, Morpeth, Northumberland, NE61 2FF.

During the year the group reviewed the accounting treatment of government grants. Grants were previously recognised using the accruals model and instead the performance model was adopted to align with the accounting policy of the ultimate parent company.

Advance Northumberland (Housing) Limited released £2,609,367 of grants to the statement of comprehensive income in the prior year to reflect when conditions had been met.

Advance Northumberland (Developments) released grant income and work in progress with a net loss to the statement of profit or loss of £374,792, again the conditions of the grant had been met in the prior year.

Through review of the accounting treatment for grants, it was found that grant income had been incorrectly recognised within Advance Northumberland (Commercial) in a previous year, therefore an adjustment was made to reverse the transaction and recognise the grant income in the correct company, being Advance Northumberland (Developments) Limited.