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Strata Homes Yorkshire Limited Registered number: 01596961 Annual report and financial statements For the period ended 28 June 2025
STRATA HOMES YORKSHIRE LIMITED COMPANY INFORMATION
Directors | A Weaver
| G Smith
| M Leaf
| M Strong
Registered number | 01596961
Registered office | Quay Point
| Lakeside Boulevard
| Doncaster
| DN4 5PL
Independent auditor | Grant Thornton UK LLP
| City Square House
| 11 Wellington Street
| Leeds
| LS1 4DL
Banker | Lloyds Bank
| 14 Church Street
| Sheffield
| S1 1HP
STRATA HOMES YORKSHIRE LIMITED CONTENTS
| Page
Strategic Report | 1 - 10
Directors' Report | 11 - 15
Independent Auditor's Report | 16 - 20
Statement of Comprehensive Income | 21
Statement of Financial Position | 22
Statement of Changes in Equity | 23
Notes to the Financial Statements | 24 - 43
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT FOR THE PERIOD ENDED 28 JUNE 2025
Principal activity
The principal activity of the Company is housebuilding. The Company has continued its housebuilding operations in Yorkshire and the East Midlands. The Company is the main operating company of the Strata Homes Group Limited group of companies (registered number: 13132559). The Company’s immediate parent is Strata Homes Limited (registered number: 01709069). The Company is part of a Strata Homes Group Limited debt facility with Lloyds Bank Plc and provides a cross guarantee as a result. The Company is 100% owned by Strata Homes Limited (registered number: 01709069) and the financial statements of Strata Homes Group Limited contain the consolidated results of the Strata Homes Group and the financial statements of the Company as consolidated. Readers of these financial statements, the Company, should also read the financial statements of the ultimate UK parent company, Strata Homes Group Limited.
Business review
The commentary below relates to the business of the Strata Homes Yorkshire Limited (or “Company”), unless it specifically states it relates to its ultimate UK parent, Strata Homes Group. In this case, it will refer to “Group”. A reference to the Company’s immediate parent company, Strata Homes Limited will be defined as “SHL”.
Strategic direction and progress made
The Company has gone through a period of both change in the strategic nature of the business and financial performance over the financial years 2023 to 2025. The Company has followed a strategy to reduce its exposure to open market sales (“OMS”) business stream and at the same time to increase its exposure to Pre-Sold (Partnership) business stream. The OMS business stream requires debt funding, carries a sales risk as to timing and value and build cost risk. All of which are exposed to macro-economic conditions, such as interest rates and inflation. The Pre-Sold business stream requires minimal or no debt funding once a contract is executed. There is no material sales value or receipt timing risk (the contractual counterparty is of a nature that a potential default during the contract build phase, is a remote event). The risk of build cost inflation is well mitigated due to pre-contract price testing which then forms part of the build contract value along with cost increase clauses. It is important to understand that the two business streams create different financial returns driven by their different risk profiles. OMS business stream should deliver a greater gross profit financial value, a higher gross margin percentage, but a lower return on capital compared to Pre-Sold, due to debt required for working capital funding. There are also the funding risk parameters to consider for an OMS business stream, which requires either shareholder capital or third-party debt to grow and manage. The intention of the Company is to ensure a balanced portfolio of annual home completions in the range of 40% to 60% for OMS and Pre-Sold. In the period under review, OMS represented 59% and Pre-Sold represented 41%. The board is delighted with this achievement in the current period. This compares to a 83% and 17% in the period to June 2023. Not only has the mix changed, but the number of OMS completions has decreased from 486 in the period to June 2023 to 344 in the period under review. This is a decrease of 29% in OMS and an increase in Pre-Sold for the same periods of review of 220%. - 1 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025 Strategic direction and progress made (continued) The Company has successfully built up a range of key Pre-Sold customers who have the need to engage a housebuilder to deliver homes for their own needs. The Company is engaged in three sub-sectors of the Pre-Sold market. These are as follows: ∙housing associations on the building of homes beyond that required under section 106 planning consents for OMS schemes. This activity has traditionally meant that the Group finds the land on behalf of the housing association and ensures appropriate planning permission is obtained. There is then the sale of the land to the housing association, either through the disposal of land from the Company’s land bank or back-to-back deal between the landowner and the housing association. The Company then builds the agreed homes for a contracted price. In the year ended 28 June 2025 the Group completed on 70 of these plots compared to 32 in the prior year, a 119% increase. ∙private equity entities that are developing their own housing stock, known as build-to-rent. The model is like that described above. In December 2024, the Group executed such a transaction to build 128 homes to be completed by June 2027 which is executed via the Company. The Group also took an equity stake in the JV that is funding the building of the homes, which when rented, will be sold to a third party. This is forecast to create a profit/cash balloon payment back to the Group in FY 2027/28. This is done through SHL. A second such contract was entered into post the end of the period under review. Further development opportunities via this JV structure are being explored for the benefit of the Company for the build contract and SHL for the equity returns. ∙land-owners who remediate land but have no build capability. The model is like that described above, except the landowner supplies the land to the end customer and the Group ensures planning and building are executed. The Company is already in the process of carrying out such agreements. As a result of the various streams of Pre-Sold, the Company targets a return on sale of between 10-12% for Pre-Sold, depending on the exact nature of the proposal. The tables below demonstrate the strategic direction of the Company over the last three financial years. OMS plots (homes) and turnover are based on legal plot (homes) completion, while Pre-Sold plots and turnover are based on equivalent unit methodology. The rebalancing of the risk profile of the Company over the last three years is obvious to see.
Plot (home) numbers | FY 2025 | FY 2024 | FY 2023
OMS (1) | 344 | 434 | 486
Affordable (section 106) | 70 | 32 | 58
Part exchange | 24 | 33 | 4
Total OMS business stream | 438 | 499 | 548
Pre-Sold business stream (2) | 240 | 93 | 105
Total plots | 678 | 592 | 653
Percentage (%) split |  |  |
OMS only (1) | 59 | 84 | 83
Pre-Sold business stream (2) | 41 | 16 | 17
1 & 2 shows the calculation of those two business streams only - 2 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025 Strategic direction and progress made (continued)
Turnover £m | FY 2025 | FY 2024 | FY 2023
OMS (1) | 96.0 | 116.7 | 114.7
Affordable (section 106) | 5.3 | 3.6 | 6.2
Part exchange | 4.3 | 5.9 | 0.8
Total OMS business stream | 105.6 | 126.2 | 121.7
Pre-Sold business stream (2) | 61.1 | 20.1 | 11.5
OMS and Pre-Sold total turnover | 166.7 | 146.3 | 133.2
Land turnover | - | - | 16.0
Other turnover | 0.2 | - | (0.1)
Total turnover | 166.9 | 146.3 | 149.1
Percentage (%) split |  |  |
OMS only (1) | 61 | 85 | 91
Pre-Sold business stream (1) | 39 | 15 | 9
The Company is provided funding by SHL via inter-company funding. SHL is defined as the contractual Borrower from the third party working capital debt funder, Lloyds Bank Plc. The Group has made excellent progress regarding debt management and rebuilding confidence with Lloyds. On the 24 February 2025, the Group and Lloyds entered a one-year extension of the debt facility, with a maturity date of 29 June 2026. During the period under review, Lloyds gross drawn debt decreased from £39.0m to £18.0m and net debt (Lloyds drawn debt offset by cash held) decreased from £20.4m on 29 June 2024 to a net cash position of £0.5m on 28 June 2025. This net debt decrease of £20.9m arises from operational trading of £16.8m and related party cash investment of £4.1m executed 31 July 2024. All financial covenants up to the end of the period under review were positively achieved. Post the end of the period under review, the Group and Lloyds concluded a new facility on 17 December 2025. See below for details. The Company cash position on 28 June 2025 was £18.4m (2024: £18.4m). - 3 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025
Current year trading performance
In the period to 28 June 2025, the Company made an operating profit including exceptional items of £3,625k (2024: £881k). The board are pleased with the business performance. The underlying operating performance, excluding exceptional items, is noted in the table below. The three-year period detailed below, along with the above noted executed strategic change in mix of business, OMS and Pre-Sold, demonstrates the material shift in the nature of the business, its lowering of risk profile and improvement in performance, which has now set the platform for continued positive recovery over the immediate future.
£m | FY 2025 | FY 2024 | FY 2023
Operating profit as reported | 3.6 | 0.9 | 9.3
Land impairments | 4.0 | 1.3 | -
Land sale profit | - | - | (6.7)
Restructuring costs | 0.1 | 0.6 | -
Underlying operating profit | 7.7 | 2.8 | 2.6
As noted in the priors year Group Business Review, the focus of the Company, which is the only material entity in the Group (and therefore the Group) was to materially deliver a change that would decrease the OMS plots (homes) completed over the period financial years 2023 to 2025 with this decrease in business activity being replaced by Pre-Sold plots (homes) completed. In addition, the Group dealt with its highly geared net debt position in January 2024 of £55.8m, with net cash on 28 June 2025 of £0.5m, an overall cash generation of £56.3m. This was executed by the above noted strategic shift in the Group’s and Company’s business model but also by focusing on cash generation as the key priority above gross margin percentage achieved. The Company made a commitment to improve the gross margin percentage over the medium to long-term. It was not possible to materially do this short-term, as the Company was already on site or about to start on site with planning approved consents. The Company has been working on house-types, housing density and supply chain issues for future sites to come on stream in future years. The Company is confident that the future overall gross margin percentage will improve in each of the next three years as a result and future financial results will reflect the SME housebuilding sector average for a blended business model of OMS and Pre-Sold. The table below shows the reported and underlying gross margin percentage (which excludes all land impairments and one-off land sales included within turnover and cost of sales) trend from financial years 2023 to 2025.
Percentage % | FY 2025 | FY 2024 | FY 2023
As reported | 7.0% | 6.6% | 11.7%
Underlying | 9.4% | 7.5% | 7.9%
Interest - financing costs
As noted previously, the Company is funded by SHL via non-interest inter-company transactions, with the Company paying cash dividends in return. Therefore, the Company only incurs accounting treatment interest on deferred land creditors, which is an accounting treatment item. 2025: £0.7m (2024: £0.6m).
Taxation
The Company is part of the Group for corporation tax purposes. The net overall tax charge for the year is £650k, split between corporation tax £644k and deferred tax £6k. - 4 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025
Debt facilities
The Group has two types of debt. The two sections below deal with each type of debt. Lloyds Lloyds provide a working capital facility for the Group via SHL, which then acts as internal lender to the Company. On 28 June 2025, the Group had a revolving credit facility (“RCF”) of £30.9m and an overdraft facility of £5.0m. This will mature on 29 June 2026. On the 28 June 2025, the Group was £18.0m (2024: £39.0m) gross drawn on the RCF and held cash of £18.5m (2024: £18.6m). Net cash was therefore £0.5m (2024: net debt £20.4m). The reduction in net debt of £20.9m was due to the Group generating cash of £16.8m plus the related party cash investment of £4.1m. Up until the new facility noted below, the RCF decreased to £25.9m on 30 June 2025. The overdraft remained at £5m over the period. A total facility of £30.9m. On the 17 December 2025, Lloyds and the Group entered a new facility. The terms of the facilities are: ∙Commencing to June 2028 ∙an RCF facility of £31.4m ∙an overdraft facility of £5.0m The facility is lower than the original facility pre-31 December 2023. The reduction in the facility reflects the strategic debt needs of the business, which has moved from purely OMS to a business split between OMS and Pre-Sold.
Land Pipeline - OMS
On 28 June 2025, the Group had the following OMS land pipeline by financial year:
| FY 2026 | FY 2027 | FY 2028
Site outlets controlled | 10 | 7 | 5
Site outlets uncontrolled | 0 | 1 | 3
Controlled plots (Homes) | 301 | 190 | 194
Uncontrolled plots (Homes) | 0 | 12 | 119
Total | 301 | 202 | 313
% controlled plots (Homes) | 100% | 94% | 62%
Plots with planning (Homes) | 301 | 187 | 156
Plots without planning (Homes) | 0 | 15 | 157
Total | 301 | 202 | 313
% of plots with planning (Homes) | 100% | 93% | 50%
Strata Homes Group already controls land that could deliver 816 open market home sales over the three financial years to June 2028. This does not mean that all these homes will be built, as this will depend on market conditions and the growth of Pre-Sold (Partnership) homes business. Encouragingly, all open market homes sales for financial year 2026 have full planning consent and financial year 2027: 93%. Strata Homes Group is therefore in an excellent position to determine how many open market homes sales it builds and sells for the next 3-5 years. - 5 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025
Land Pipeline - Pre-Sold
On 28 June 2025, the Group had the following Pre-Sold pipeline by financial year;
| FY 2026 | FY 2027 | FY 2028
Controlled plots (Homes) | 317 | 218 | 89
Uncontrolled plots (Homes) | 19 | 111 | 243
Total | 336 | 329 | 332
% controlled plots (Homes) | 94% | 66% | 27%
Plots with planning (Homes) | 317 | 218 | 89
Plots without planning (Homes) | 19 | 111 | 243
Total | 336 | 329 | 332
% of plots with planning (Homes) | 94% | 66% | 27%
Controlled means contracts exchanged, optioned or owned. Strata Homes Group controls land that could deliver 997 Pre-Sold (Partnership) home sales over the three financial years to June 2028. This does not mean that all these homes will be built, as this will depend on market conditions and the growth of Pre-Sold (Partnership) homes business with contracts to be executed. Encouragingly, 94% Pre-Sold homes sales for financial year 2026 have full planning consent and financial year 2027: 66%. Strata Homes Group is therefore in an excellent position to determine how many Pre-Sold (Partnership) homes sales it builds and sells for the next 3-5 years, subject to further contractual agreement with housing association and for profit private rental sector.
Key Elements Of The Statement Of Financial Position
| 2025 | 2024
| £m | £m
Investments (subsidiaries) | 0.5 | 0.5
Stock | 85.1 | 116.2
Trading Debtors | 19.4 | 11.3
Trading Creditors | (32.1) | (26.8)
Deferred land Creditors | (15.8) | (18.0)
Sub-total | 57.1 | 83.2
Cash | 18.4 | 18.4
Inter-group balances due | (15.8) | (34.1)
Inter-group balances owed | - | 3.3
Taxes | (1.9) | (0.3)
Net worth | 57.8 | 70.5
As noted in strategic report the business has gone through a stage of cash generation and the stock element of working capital has been materially reduced. Inter-group balances reflect the monies lent to the Company for development funding by SHL, who in turn borrows from Lloyds Bank Plc. Periodically, the Company repays this balance via surplus cash generated. The decrease in net worth is made up of £15m of dividends paid during the year to SHL less retained profits for the period under review. - 6 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025
Key performance indicators
| 2025 | 2024
| £000 | £000
Turnover | 166,873 | 146,262
Gross profit | 11,709 | 9,654
Gross margin | 7.0% | 6.6%
Gross margin excluding one-off items (1) | 9.4% | 7.7%
Operating profit | 3,625 | 881
Operating margin | 2.2% | 0.6%
Operating margin excluding one-off items (1) | 4.6% | 1.7%
Net profit before taxation | 2,942 | 323
(1) 2025 excludes £4.0m of land impairment. 2024 excludes £1.3m of land impairment and £0.3m of restructuring costs.
Risks and uncertainties
Economic impact of global events Over the last few years in particular, the UK economy and crucially, the housebuilding sector, has had to consider and navigate the impact of conflicts around the world and the long-term impact of BREXIT. As a result, interest rates have increased impacting both the cost of build and customer affordability; supply chain and labour shortage issues. The Company has also been affected by changes to Stamp Duty that came into effect from 1 April 2025 where the nil-rate band has been reduced to £300k. The changes have increased the upfront transaction costs for buyers in our main price market. As the directors look ahead with acceptance of the new norm of such factors, the future is perhaps a little more stable. Interest rates have started to decrease, and inflation has moved to parameters that within which Bank of England wish to see the economy operate, although this is not the same as deflation. The UK government has made a clear commitment to increasing housing supply across all tenures. How and when that objective starts to be physically seen in the increase in output of new housing is probably less optimistic, given the many inter-related elements that are required to be addressed from those that are short-term in nature and those that are long-term. Net overall, the housebuilding sector is more optimistic about the future than that it was. The directors have taken account of these potential impacts in their going concern assessment. The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide. Climate change and increases in the frequency of extreme weather events represent a risk to the Company through disruption in on site activities and potential weather-related damages to sites and other assets. Where possible this risk is mitigated through the careful selection of sites where risks such as flooding are avoided. Climate and wider sustainability considerations are becoming increasingly important for the construction sector in general as the focus on these areas intensifies by the customers, the media, regulators, government bodes and other stakeholders. - 7 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025 Economic impact of global events (continued) The Company has acknowledged the importance of sustainability and wider ESG considerations through the investment in a sustainability team. This team, along with the Sustainability Committee, are focused on the key risks to the business from both an operational and reporting perspective. The policies, processes and procedures within the Company will continue to develop to minimise the risks in this area. This is a long term investment recognising that sustainability and ESG will continue to develop over the next few years but also its importance to the values and culture within the Company. Land Developing and maintaining a robust land purchase programme is essential to ensure that the Company is able to deliver its short and long-term strategies. A significant delay in the land programme would have an adverse impact on the progress made by the Company in recent years. All land opportunities are subject to rigorous appraisals and their progress through the planning system is closely monitored and adequate time for this process has been included in the overall land programme. To identify as many land opportunities as possible the Company looks for available land across a broad geographic area and places a great emphasis on longer term strategic sites. Sales and economic environment factors Despite the more challenging economic environment during the period and in particular the challenges the Company faced and addressed, sales performance during the financial period was satisfactory. The decision by the Company to realign open market home selling prices to create a faster rate of sale at the expense of profit, created an increase in sales in the second half of the period. The Company remains aware of customer affordability against the backdrop of a higher labour and material cost of build driven by the surge in inflation over the last two years, the level of interest rates, cost of living and Stamp Duty. This position continues to be monitored closely by reviewing sales performance data both for the Company and the wider housing market. There are however early signs that customers are beginning to accept the higher cost of home ownership by purchasing smaller, less expensive homes. In addition, falling inflation and interest rates are expected to increase demand for homes, along with the early announcements of the newly elected UK Government regarding housing supply to feed into the sector over the medium to long-term. It is important that the Company can maintain the current level of sales on its existing sites and carefully manages the transition from completed to new sites to ensure sales rates across the Company are maintained. The Company makes significant investment to ensure that the physical appearance of the developments and individual properties are as desirable as possible and selling prices are closely monitored to ensure the best presentation of our products. Quality control and customer service are key focus areas throughout the customers purchase from enquiry to post completion. - 8 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025 Financial support for homebuyers The Government's Help to Buy scheme helped the market overcome affordability issues in the new build market. The scheme ended in 2023 and there is currently no similar scheme in operation at the date of approval of these financial statements. However, the new UK Government has made clear its objective of ensuring that the economic and financial framework is in place to increase the supply of new build across all tenure types. The Company is well positioned to both continue within the open market homes sales arena and its growing Pre-Sold (Partnership) business activity, both of which align strongly with Government policy. Availability of labour and materials The pressure on the labour and material supply chain during prior years has eased as the housing market slowed, it does however remain a risk area, as the UK Government attempts to increase new build supply of homes over the next five years of its term of office. One of the issues facing the housebuilding sector is material supply and labour, with the governments output aspirations recognised to be above the capacity of the industry from a labour perspective. The Company continues to work closely with its business partners to manage through a period of supply pressure. The strong relationships with the Company’s business partners have enabled the business to mitigate much of the delivery risk but the position continues to be closely monitored and managed. Planning The current planning application process can lead to delays in planning permission being granted at individual sites. Delays in planning approvals represent a risk to the Company's ability to deliver its future land acquisition programme. This continues to be an area of frustration and has resulted in a small number of schemes being delayed due to issues with the performance of the local authority planning teams in some areas. The Company does however mitigate these risks as far as possible through regular dialogue with local authorities to ensure that any delays are minimised. The UK Government have recognised the not fit of purpose planning system, but how it improves that process and over what period it will improve are yet to be understood. Any actions taken now will not be felt immediately. Future developments The Company continues to develop its Pre-Sold (Partnership) opportunity. Pre-Sold (Partnership) involves the locating of land suitable for the development of rental stock for the private and regulated housing association marketplace. The Company would locate the land and offer the land to the potential landlord for a back-to-back land transaction, thereby removing the upfront debt funded cost of acquiring land (although some opportunities do require an approach that does require short-term investment in land). The Company would then enter a build contract to develop the housing for the landlord on a pre-sold basis, thereby removing the open market sales risk. This business model requires less debt funding and deliver a lower return on capital due to the risk of open market sales being removed. - 9 -
STRATA HOMES YORKSHIRE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025 Section 172 update The directors consider the requirements of key stakeholders with a focus on the developments of long term relationships in all areas of the business. The directors endeavour to develop and maintain strong long term suppliers relationships with its key business partners by contracting on standard business terms and prompt payment in line with agreed terms. There are long standing relationships with key suppliers that ensure the quality of products and services provided and the continuity of the supply chain. Through direct feedback from the Home Builders Federation surveys and other sources such as Trust Pilot, combined with regular updates from operational teams, the directors are always aware of the strength of relationship with customers. This allows the directors to make decisions that consider the commercial and service requirements of its customer base. The directors recognise that the Company has to maintain the highest standards of integrity in the conduct of its operations across the region in which the Company operates. Consequently, the directors focus on contributing as far as practical to the local communities in which it operates through both design of the housing developments and the way in which the business interacts with local residents. The directors recognise the importance of maintaining high standards of business conduct and operates according to a full suite of policies. These include Health & Safety, environmental considerations, sustainability, maintaining the high quality of service plus the wellbeing and development of all our people. The directors of the Company act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: ∙the likely consequences of any decision in the long term; ∙the interest of the Company's employees; ∙the need to foster the Company's business relationships with suppliers and customers; ∙the impact of the Company’s operations on the community and environment; ∙maintaining the Company’s reputation for high standards of business conduct; and ∙the need to act fairly between members of the Company. The directors consider its employees, customers, suppliers, bank and shareholders to be its major stakeholders. When taking decisions for the long term future of the Company, the directors informally take into consideration the interests of all these stakeholders in its decision making processes. The directors of the Company have a responsibility to ensure good relationships are maintained with employees, customers and suppliers which are recognised as being vital for the long term. The directors consider that the appropriate remuneration, benefits and employment procedures are in place which fairly rewards its employees in relation to the local communities in which they operate and identify opportunities for employee development where practical. This report was approved by the board on 4 February 2026 and signed on its behalf.
A Weaver Director
- 10 -
STRATA HOMES YORKSHIRE LIMITED DIRECTORS' REPORT FOR THE PERIOD ENDED 28 JUNE 2025 The directors present their report and the financial statements for the period ended 28 June 2025. As permitted under s414C(11) of the Companies Act 2006, disclosures otherwise required to be disclosed in the Directors' Report under s416(4) of the Act but which are of strategic importance to the Company have been included in the strategic report. This includes future developments.
Statement of directors’ responsibilities in respect of the Strategic Report, the Directors’ Report and the financial statements
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments 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; and ∙prepare the financial statements on the going concern basis unless it is inappropriate to do so. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 11 -
STRATA HOMES YORKSHIRE LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025
Financial risk management
The Company’s operations expose it to a variety of financial risks, including price risk, credit risk, liquidity risk, and cash flow risk. The Directors have established policies to monitor and mitigate these exposures to ensure the long-term viability of the business. The Company does not enter into complex financial instruments or speculative derivative contracts. Furthermore, the Company does not currently apply hedge accounting for forecasted transactions. ∙The Company operates a model whereby a large portion of sales comes our pre-sold revenue stream. Through this we are contractually entitled to regular cash payments based on specific stages of completion, providing more regular cash flow. We also manage our risk through the carful selection and monitoring of sites ∙Credit risk is mitigated by the contractual nature of the instalment payments and the security of the underlying assets. Open market sales risk is inherently low as legal completion and receipt of funds occur simultaneously. ∙The Company manages its liquidity risk through our RCF facility and overdraft with Lloyds Bank PLC, ensuring sufficient headroom to meet our working capital requirements.
Results and dividends
The profit for the period, after taxation, amounted to £2,292 k (2024 - £331 k). During the period the Company paid dividends of £15,000k (2024 - £26,000k) to Strata Homes Limited, holder of the issued Ordinary share capital. No further dividends were proposed.
Directors
The directors who served during the period were:
A Weaver
G Smith
M Leaf
M Strong
- 12 -
STRATA HOMES YORKSHIRE LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025
Going concern
The Company is part of the Strata Homes Group of companies. Strata Homes Limited is the Borrower under a facility provided by Lloyds Bank Plc as Lender that matures on 29 June 2026, as was the position on the balance sheet date. Please see below for the post balance sheet date changes to the facility. The Company is a party to this facility and accordingly has entered an unlimited guarantee supported by a debenture creating a fixed and floating charge to secure the borrowing under the facility. Accordingly, the Company is dependent upon the Strata Homes Group remaining a going concern for the Company to also state that it is a going concern. Noted below, is the wording contained within the Strata Homes Group Limited that allows the Company to state that the directors believe that the Company is a going concern. As noted within the Strata Homes Group Limited Strategic Report, Financing section, the Strata Homes Group is supported by a debt facility between Strata Homes Limited as Borrower and Lloyds Bank Plc as Lender. See note 18. Post the balance sheet date, the Strata Homes Group and Lloyds Bank Plc have entered into a new lending facility which runs to 30 June 2028. The facility comprises an overdraft facility of £5m and revolving credit facility of £31.4m, total facility of £36.4m. The revolving credit facility decreases to £28m on 01 June 2026 and to £25.9m on 01 October 2026. The overdraft remains at £5m. The Strata Homes Group Limited also has other debt owed to connected parties. The debt comprises loan notes, preference shares and a short-term loan. The loan notes and preference shares were subject to a post balance sheet debt amendment agreement executed 31 October 2025. Please refer to the Strata Homes Group Limited annual report and financial statements for the period to 28 June 2025 for further detail. No payments will be made by the Strata Homes Group to any of the related party debt holders during the going concern period. The directors of the Company and therefore the Strata Homes Group have considered the following factors in relation to concluding their going concern assumption up to 27 March 2027: ∙A new facility has been executed on 17 December 2025 between Lloyds Bank Plc and the Strata Homes Group. Please see details of facility value and terms above. ∙The Strata Homes Group maintains a rolling business plan that is updated quarterly and is reviewed by the board of the Strata Homes Group. ∙The Strata Homes Group maintains a rolling weekly cash flow report that forecasts for six months in advance and is reviewed by the Executive weekly and the board of Strata Homes Group monthly. ∙A monthly review is undertaken of all live and completed sites from a build cost and sales rate, mix and value perspective. This ensures consistent lifetime margin recognition. ∙The business now operates a two-income stream with differing investment and return profiles. Open Market Sales (“OMS”) requires Lloyds Bank Plc debt funding while Pre-Sold does not. The change in the business model has decreased the overall debt requirements and lessened the debt financing needs and liquidity risks of the business. ∙The OMS forecast for completions in the year to June 2026 is 293 homes to be completed. As at 31 January 2026, 43% are complete, 12% are exchanged, 28% are sold awaiting exchange and 17% are still to be sold, with 5 months of selling period still available. ∙The Pre-Sold profit and net cash expected to be obtained in the year to June 2025 is all on site and under contract. The Company has stress tested various single and multiple plausible but severe scenarios and on a severe and implausible scenario against the Strata Homes Group’s forecasts that reflect the above plans, with a particular focus on sales rates and timing of open market completions, these being the most likely risk for the business. Based on these forecasts, sensitivities and financing these agreements, the directors have concluded the Strata Homes Group has sufficient funds to continue in operational existence for the foreseeable future. - 13 -
STRATA HOMES YORKSHIRE LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025
Carbon and Energy reporting
The Company’s energy consumption included electricity, natural gas and fuel for transport directly purchased by the Company within the UK. Carbon footprint was introduced as a KPI, calculated through measuring kgCO2e (Kg of carbon dioxide equivalent) which is widely recognised as a reliable indicator of an organisation’s environmental impact. The kgCO2e are from a number of emission sources: - Head Office gas and electricity - Electricity usage at developments - Motor vehicle fuels usage, both cars and vans Usages have been calculated using raw data (mileage, fuel use, kWh etc) and converted to CO2e using the government published conversion factors (Greenhouse gas reporting: conversion factors 2021).
|  | 2025 | 2025 | 2024 | 2024
Category | Measure | Total | Total | Total Restated | Total Restated
|  | (tonnes CO2e) | (kWh) | (tonnes CO2e) | (kWh)
Head office | Gas | 7 | 32,751 | 7 | 33,489
| Electricity | 42 | 218,746 | 52 | 250,685
Site consumption | Gas | 287 | 1,569,898 | 154 | 841,041
| Electricity | 51 | 285,800 | 112 | 540,946
| Diesel | 568 | 2,413,908 | 447 | 1,938,805
Transport | Company owned/leased | 86 | 378,696 | 106 | 472,864
| Expensed | 237 | 1,056,377 | 300 | 1,347,273
Total |  | 1,278 | 5,956,176 | 1,178 | 5,425,103
Energy intensity ratio 7.7 8.1 Energy intensity ratio is calculated as the quantity of CO2e for each £1m of revenue. The transition of the car fleet to a greater mix of EV and hybrid vehicles has reduced the overall CO2e for cars, despite the increase in the size of the fleet. During the current year, management has reviewed and improved the methods used to collect and calculate energy consumption and emissions data. As a result, the figures for the prior year have been restated to reflect more accurate measurement and estimation techniques. - 14 -
STRATA HOMES YORKSHIRE LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE PERIOD ENDED 28 JUNE 2025 The restatement does not impact the overall trends in energy efficiency or the Group’s approach to carbon reduction but provides a more reliable basis for comparison and ongoing monitoring.
Directors' indemnities
Directors' and officers' insurance is in place for all directors to provide appropriate cover for their reasonable actions on behalf of the Company. No further directors' indemnities are in place.
Post balance sheet events
Since 28 June 2025 and up to the date of approving the financial statements, the following transactions have been concluded. As detailed in the Strata Homes Group Strategic report, the Group has successfully entered into a new lending facility with Lloyds Bank Plc, providing committed funding through to 30 June 2028. On 31 October 2025, the Group executed a post balance sheet debt amendment agreement regarding its liabilities to connected parties. This agreement affects the terms of the Group’s existing loan notes and preference shares (further details of which are disclosed in Strata Homes Group Limited’s annual report and financial statements for the period ended 28 June 2025). The debt amendment has been determined to be a substantial modification. As the lenders involved are related parties acting in their capacity as shareholders the transaction has been treated as a capital contribution. The resulting gain has been credited directly to equity rather than through the Group’s profit or loss. See the Strata Homes Group Limited annual accounts for more detail on these events.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Auditor
The auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 4 February 2026 and signed on its behalf.
A Weaver Director
Quay Point
Lakeside Boulevard
Doncaster
DN4 5PL
- 15 -
STRATA HOMES YORKSHIRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STRATA HOMES YORKSHIRE LIMITED
Opinion
We have audited the financial statements of Strata Homes Yorkshire Limited (the 'Company') for the period from 30 June 2024 to 28 June 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including a summary of 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 Company's affairs as at 28 June 2025 and of its profit for the period then ended; ∙the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙the financial statements 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 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 related to going concern
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern. In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as inflation and the continued cost of living crisis, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period. 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. - 16 -
STRATA HOMES YORKSHIRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STRATA HOMES YORKSHIRE LIMITED (CONTINUED) Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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 the audit: ∙the information given in the Strategic Report and the Directors' Report for the financial period 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.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us; or ∙the 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. - 17 -
STRATA HOMES YORKSHIRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STRATA HOMES YORKSHIRE LIMITED (CONTINUED)
Responsibilities of directors for the financial statements
As explained more fully in the Directors' Responsibilities Statement set out on page 11, 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 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 Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ∙We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are financial reporting legislation being FRS 102, Companies Act 2006, and relevant UK tax legislation. ∙We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through review of meeting minutes and legal and professional fee expenditure. - 18 -
STRATA HOMES YORKSHIRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STRATA HOMES YORKSHIRE LIMITED (CONTINUED) Auditor's responsibilities for the audit of the financial statements (continued) ∙We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. ∙In assessing the potential risks of material misstatement, we obtained an understanding of: −the company’s operations, including the nature of their revenue and of their objectives and strategies to understand the classes of transactions, account balances, expected financial disclosures and business risks that may result in material misstatement; −the company’s control environment, including the adequacy of the training to inform staff of the relevant legislation, the adequacy of procedures for authorisation of transactions, and procedures to ensure that possible breaches of requirements are appropriately resolved. ∙Audit procedures performed by the engagement team included: −identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud; −identifying and testing journal entries, in particular journal postings that had material effect on the financial statements and those determined to be large or relating to unusual transactions based on our understanding of the business; −challenging assumptions and judgements made by management in its significant accounting estimates; and −completion of audit procedures to conclude on the compliance of disclosures in the annual report and accounts with applicable financial reporting requirements. ∙These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it; ∙The engagement partner’s assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s: −Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation −Knowledge of the industry in which the client operates; and −Understanding of the legal and regulatory requirements specific to the entity ∙We communicated relevant laws and regulations and potential risks to all engagement team members and remained alert to indications of fraud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report. - 19 -
STRATA HOMES YORKSHIRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STRATA HOMES YORKSHIRE LIMITED (CONTINUED)
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. Victoria McLoughlin Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Leeds 4 February 2026 - 20 -
STRATA HOMES YORKSHIRE LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 28 JUNE 2025
| 28 June | 29 June
| 2025 | 2024
Note | £000 | £000
Turnover | 4 | 166,873 | 146,262
Cost of sales |  | (151,199) | (135,308)
Exceptional cost of sales | 5 | (3,965) | (1,300)
Gross profit |  | 11,709 | 9,654
Administrative expenses |  | (8,583) | (9,272)
Exceptional administrative expenses | 5 | (47) | (257)
Other operating income | 6 | 546 | 756
Operating profit | 7 | 3,625 | 881
Income from shares in group undertakings |  | 2 | -
Interest receivable and similar income | 11 | 36 | 24
Interest payable and similar expenses | 12 | (721) | (582)
Profit before tax |  | 2,942 | 323
Tax on profit | 13 | (650) | 8
Profit for the financial period |  | 2,292 | 331
There were no recognised gains and losses for 2025 or 2024 other than those included in the Statement of Comprehensive Income.
There was no other comprehensive income for 2025 (2024: £NIL).
The notes on pages 24 to 43 form part of these financial statements.
- 21 -
STRATA HOMES YORKSHIRE LIMITED REGISTERED NUMBER: 01596961 STATEMENT OF FINANCIAL POSITION AS AT 28 JUNE 2025
|  | 28 June |  | 29 June
|  | 2025 |  | 2024
Note |  | £000 |  | £000
Fixed assets |  |  |  |  |
Investments | 15 |  | 464 |  | 464
|  |  | 464 |  | 464
Current assets |  |  |  |  |
Stocks | 16 | 85,136 |  | 116,158 |
Debtors: amounts falling due within one year | 17 | 19,863 |  | 14,683 |
Cash at bank and in hand | 18 | 18,435 |  | 18,397 |
|  | 123,434 |  | 149,238 |
Creditors: amounts falling due within one year | 19 | (60,736) |  | (68,682) |
Net current assets |  |  | 62,698 |  | 80,556
Total assets less current liabilities |  |  | 63,162 |  | 81,020
Creditors: amounts falling due after more than one year | 20 |  | (5,359) |  | (10,509)
Net assets |  |  | 57,803 |  | 70,511
Capital and reserves |  |  |  |  |
Called up share capital | 21 |  | - |  | -
Profit and loss account | 22 |  | 57,803 |  | 70,511
|  |  | 57,803 |  | 70,511
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 February 2026.
A Weaver
Director
The notes on pages 24 to 43 form part of these financial statements. - 22 -
STRATA HOMES YORKSHIRE LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 28 JUNE 2025
| Called up share capital | Profit and loss account | Total equity
| £000 | £000 | £000
At 2 July 2023 | - | 96,180 | 96,180
Comprehensive income for the period |  |  |
Profit for the period | - | 331 | 331
Total comprehensive income for the period | - | 331 | 331
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (26,000) | (26,000)
Total transactions with owners | - | (26,000) | (26,000)
At 29 June 2024 | - | 70,511 | 70,511
Comprehensive income for the period |  |  |
Profit for the period | - | 2,292 | 2,292
Total comprehensive income for the period | - | 2,292 | 2,292
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (15,000) | (15,000)
Total transactions with owners | - | (15,000) | (15,000)
At 28 June 2025 | - | 57,803 | 57,803
| The notes on pages 24 to 43 form part of these financial statements.
- 23 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
1. | General information
Strata Homes Yorkshire Limited (the “Company”) is a private company, limited by shares and registered in England and Wales, registered number 01596961. The registered office is Quay Point, Lakeside Boulevard, Doncaster, DN4 5PL. The principal activity of Strata Homes Yorkshire Limited is housebuilding. The Company has continued its housebuilding operations in Yorkshire and the East Midlands. The Company's accounting reference date is 30 June. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepared group financial statements. These financial statements present information about the Company as an individual undertaking and not about its group. These financial statements have been presented in pound sterling which is the functional currency of the Company, and rounded to the nearest £'000. The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Strata Homes Group Limited as at 28 June 2025 and these financial statements may be obtained from Quay Point, Lakeside Boulevard, Doncaster, DN4 5PL. - 24 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued)
| 2.3 | Going concern
The Company is part of the Strata Homes Group of companies. Strata Homes Limited is the Borrower under a facility provided by Lloyds Bank Plc as Lender that matures on 29 June 2026, as was the position on the balance sheet date. Please see below for the post balance sheet date changes to the facility. The Company is a party to this facility and accordingly has entered an unlimited guarantee supported by a debenture creating a fixed and floating charge to secure the borrowing under the facility. Accordingly, the Company is dependent upon the Strata Homes Group remaining a going concern for the Company to also state that it is a going concern. Noted below, is the wording contained within the Strata Homes Group Limited that allows the Company to state that the directors believe that the Company is a going concern. As noted within the Strata Homes Group Limited Strategic Report, Financing section, the Strata Homes Group is supported by a debt facility between Strata Homes Limited as Borrower and Lloyds Bank Plc as Lender. See note 19. Post the balance sheet date, the Strata Homes Group and Lloyds Bank Plc have entered into a new lending facility which runs to 30 June 2028. The facility comprises an overdraft facility of £5m and revolving credit facility of £31.4m, total facility of £36.4m. The revolving credit facility decreases to £28m on 01 June 2026 and to £25.9m on 01 October 2026. The overdraft remains at £5m. The Strata Homes Group Limited also has other debt owed to connected parties. The debt comprises loan notes, preference shares and a short-term loan. The loan notes and preference shares were subject to a post balance sheet debt amendment agreement executed 31 October 2025. Please refer to the Strata Homes Group Limited annual report and financial statements for the period to 28 June 2025 for further detail. No payments will be made by the Strata Homes Group to any of the related party debt holders during the going concern period. The directors of the Company and therefore the Strata Homes Group have considered the following factors in relation to concluding their going concern assumption up to 27 March 2027: ∙A new facility has been executed on 17 December 2025 between Lloyds Bank Plc and the Strata Homes Group. Please see details of facility value and terms above. ∙The Strata Homes Group maintains a rolling business plan that is updated quarterly and is reviewed by the board of the Strata Homes Group. ∙The Strata Homes Group maintains a rolling weekly cash flow report that forecasts for six months in advance and is reviewed by the Executive weekly and the board of Strata Homes Group monthly. ∙A monthly review is undertaken of all live and completed sites from a build cost and sales rate, mix and value perspective. This ensures consistent lifetime margin recognition. ∙The business now operates a two-income stream with differing investment and return profiles. Open Market Sales (“OMS”) requires Lloyds Bank Plc debt funding while Pre-Sold does not. The change in the business model has decreased the overall debt requirements and lessened the debt financing needs and liquidity risks of the business. - 25 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued)
| 2.3 | Going concern (continued)
∙The OMS forecast for completions in the year to June 2026 is 293 homes to be completed. As at 31 January 2026, 43% are complete, 12% are exchanged, 28% are sold awaiting exchange and 17% are still to be sold, with 5 months of selling period still available. ∙The Pre-Sold profit and net cash expected to be obtained in the year to June 2025 is all on site and under contract. The Company has stress tested various single and multiple plausible but severe scenarios and on a severe and implausible scenario against the Strata Homes Group’s forecasts that reflect the above plans, with a particular focus on sales rates and timing of open market completions, these being the most likely risk for the business. Based on these forecasts, sensitivities and financing these agreements, the directors have concluded the Strata Homes Group has sufficient funds to continue in operational existence for the foreseeable future.
| 2.4 | Turnover
Turnover represents the fair value of the consideration received or receivable, net of value added tax and any cash incentives of new and part exchange residential properties. Turnover is recognised based on the transfer of control to the customer in accordance with the performance obligations set out in each contract, in line with FRS 102 Section 23. This may occur either at a point in time or over time, depending on the nature of the transaction. Where the outcome of a construction contract can be estimated reliably, turnover and associated costs are recognised by reference to the stage of completion at the balance sheet date. Where a loss is expected to arise on a contract, the full amount of the loss is recognised immediately in the profit and loss account. Open market turnover Open market turnover comprises income from sales of residential properties to private customers. Turnover and profit from sales to private customers are recognised at a point in time, when the legal title to the property transfers to the customer. - 26 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued) In certain cases, the Company may accept part exchange properties as part consideration for a sale. The turnover from the new property sale is recognised in accordance with the above principles, with consideration measured at the fair value of the exchanged property plus any cash received or receivable. Part exchange properties are recorded within inventories at net realisable value, adjusted for estimated costs to legally complete. Income and costs associated with the subsequent resale of part exchange properties are presented in the residential property turnover in the period to which it relates. Contract turnover ("Pre-Sold") The Company enters into contracts for the construction and sale of affordable housing to Registered Providers and for development services to partners. These contracts are typically entered into prior to commencement of construction. Under such contracts, the Company is typically restricted from redirecting the properties or development works to another customer and has an enforceable right to payment for performance completed to date. Turnover is therefore, recognised over time, based on the stage of completion at the reporting date, determined using an input method that reflects the proportion of total estimated costs incurred to date relative to the total forecast cost. The Directors consider this method to represent an appropriate measure of progress toward complete satisfaction of performance obligations under FRS 102. The provision of land and completed dwellings under these arrangements is treated as a single performance obligation. At each reporting date, the Company assesses the stage of completion of ongoing developments and recognises accrued income for work performed but not yet invoiced, and deferred income for amounts invoiced in advance of performance, to ensure revenue is matched to the period in which the related work is undertaken. Where land is sold as part of a pre-sold contract the revenue is recognised in line with the policy below and included within the contract revenue disclosure. Sale of land As a housebuilder, the Company will occasionally enter into agreements for the sale of land either on a standalone basis or as part of a wider development agreement. Turnover and associated profits are recognised at a point in time when the transfer of legal title and control of the land has been satisfied. The turnover is recorded at the agreed purchase price with all costs held for the land and ancillary costs of disposal being treated as part of the cost of sale. Land can be sold as either a full disposal of land or a part disposal. When a part disposal, a calculation is required to determine appropriate proportion of the accumulated land cost is allocated to the sale based on the relative value or net developable acre, taking into account the specific terms and key commercial terms agreed with the purchaser. Any deferred consideration is held as a debtor and discounted for time value of money when applicable. - 27 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued)
| 2.5 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | Government grants
Grants that become receivable as compensation for expenses or losses already incurred for the purpose of giving immediate financial support with no future related costs are recognised in other operating income in the period in which it becomes receivable. Where future performance is required following receipt of grants, the benefit of the grant is recognised over either the period of delivery of the grant obligations or the grant backstop date (accruals method).
| 2.7 | Interest income
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
| 2.8 | Finance costs
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.9 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds. - 28 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued)
| 2.10 | Current and deferred taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
| 2.11 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
| 2.12 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.13 | Associates and joint ventures
Associates and joint ventures are held at cost less impairment.
| 2.14 | Land, work in progress and part exchange properties
Land, work in progress and part exchange dwellings are valued at the lower of cost and net realisable value. Work in progress includes direct production costs, site overheads and professional charges. If deferred payment terms for land are applicable, the land is held at discounted cost. Therefore, the carrying value will differ from the amount that will be ultimately paid in settling the liability. The difference between discounted cost and settlement value is charged to finance cost in the Statement of Comprehensive Income over the period of settlement. - 29 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued)
| 2.15 | Debtors
Short-term debtors 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.
| 2.16 | 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.
| 2.17 | Creditors
Short-term creditors 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. Please see note 2.14 above in relation to land creditors and deferred payment terms.
| 2.18 | 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 Comprehensive Income in the period that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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. - 30 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued)
| 2.19 | Financial instruments
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with 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 Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through the Statement of Comprehensive Income) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Impairment of financial assets 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. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities 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 Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through the Statement of Comprehensive Income). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. - 31 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025 2.Accounting policies (continued)
| 2.19 | Financial instruments (continued)
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
| 2.20 | 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. - 32 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
Critical judgments in applying the Company's accounting policies The critical judgments that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the statutory financial statements are discussed below. Revenue recognition The Group recognises revenue over time based on or "pre-sold" contracts. This is a key source of estimation uncertainty as it is based on the stage of completion of individual contracts. Management estimates this progress using an "input method," typically based on costs incurred to date relative to total estimated costs. Assessing indicators of impairment of land, work in progress and investments In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been indicators of impairments identified during the current financial period due to the highest offers from independent third parties being lower than the current carrying value of some land. Consequently, the directors have performed an impairment review and written the carrying value of land down to its estimated recoverable amount, being its fair value less costs of disposal. See note 16. Key sources of estimation uncertainty (i) Profit/loss recognition The Company recognises profits based a stage of completion on construction contracts but losses are recognised in full when anticipated. The forecast margins and stages of completion are continually monitored to ensure the profit or losses recognised are correctly stated. (ii) Valuations of work in progress The carrying value of work in progress is impacted by total site expenditure, both historic and forecast, and the estimated overall site margins. The valuation of work in progress requires management to exercise judgment in assessing the expected costs to complete each development and the estimated net sales price based on current market conditions. The key sources of estimation uncertainty relate to the accuracy of forecasts for construction costs, but these estimates are reviewed regularly to ensure they reflect the most up-to-date information available. If actual costs to complete are higher than forecast or if expected selling prices or margins reduce, the carrying amount of work in progress may exceed its net realisable value. If this occurs the work in progress is written down to its recoverable amount. (iii) Recoverability of debtors The Company establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability, the directors have considered factors such as the aging of the debtors, past experience of recoverability, and the credit profile of individual or groups of customers. See note 17. 2025: £Nil (2024: £Nil). - 33 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Residential property sales | 105,534 | 124,019
| Contract revenue (Pre-sold) | 61,151 | 22,003
| Other income | 188 | 240
|  | 166,873 | 146,262
| All turnover arose within the United Kingdom. Residential property sales includes the turnover of open market sales, affordable homes and part-exchanged properties.
5. | Exceptional items
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Land impairment charge | 3,965 | 1,300
| Re-organisation costs | 47 | 257
|  | 4,012 | 1,557
| The Company incurred a total exceptional cost of £4.0m (2024: £1.6m), split between a land impairment of £3,965k (2024: £1,300k) (included in cost of sales) and re-organisation costs of £47k (2024: £257k) (included in administrative expenses).
6. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Government grants receivable | 546 | 756
- 34 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
7. | Operating profit
| The operating profit is stated after charging/(crediting):
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Hire of plant and vehicles - short term leases | 1,936 | 2,532
| Other operating lease rentals | 282 | 347
8. | Auditor's remuneration
| The auditor's remuneration and other services relating to tax have been paid on the Company's behalf by another company in the Strata Homes Group Limited group of companies. If the Company had paid its proportion of the total group audit fees, the charge for the would have been £50k (2024: £50k).
9. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Wages and salaries | 10,089 | 10,285
| Social security costs | 1,205 | 1,126
| Cost of defined contribution scheme | 572 | 577
|  | 11,866 | 11,988
| The average monthly number of employees, including the directors, during the period was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Housebuilding | 126 | 139
|  | Administrative | 62 | 74
|  |  | 188 | 213
| All employees were involved in housebuilding activities. The Company incurs all the staff and directors remuneration for the Strata Homes Group.
- 35 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
10. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Directors' emoluments | 638 | 667
| Company contributions to defined contribution pension schemes | 36 | 42
|  | 674 | 709
| During the period retirement benefits were accruing to 3 directors (2024 - 5) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £262 k (2024 - £314 k).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £13 k (2024 - £17 k).
| Key management personnel emoluments in the year totalled £1,230k (2024: £1,084k). Key management personnel include the directors of the Company, plus two Executive members, namely J Platt and P Wallwork.
11. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Other interest receivable | 36 | 24
12. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Discounted interest on land creditor | 694 | 582
| Other interest payable | 27 | -
|  | 721 | 582
- 36 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
13. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Corporation tax |  |
| Current tax on profits for the period | 736 | 102
| Adjustments in respect of previous periods | (92) | (104)
| Total current tax | 644 | (2)
| Deferred tax |  |
| Origination and reversal of timing differences | 6 | (6)
| Total deferred tax | 6 | (6)
| Taxation on profit on ordinary activities | 650 | (8)
| Factors affecting tax charge for the period
| The tax assessed for the period is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 -25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Profit on ordinary activities before tax | 2,942 | 323
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 736 | 81
| Effects of: |  |
| Expenses not deductible for tax purposes | - | 5
| Adjustments to tax charge in respect of prior periods | (86) | (6)
| Group relief surrendered/(claimed) | - | (63)
| Other differences leading to a decrease in the tax charge | - | (25)
| Total tax charge/(credit) for the period | 650 | (8)
- 37 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
14. | Dividends
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Dividends paid | 15,000 | 26,000
15. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £000
| Cost |
| At 30 June 2024 | 464
| Disposals | -
| At 28 June 2025 | 464
- 38 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
| Subsidiary undertakings
| The cost of investments in subsidiary undertakings and joint ventures is £464,336 (2024: £464,378).
| The following were subsidiary or joint venture undertakings of the Company:
| Name | Principal activity | Class of shares | Holding
| Strata Homes (Guiseley) | Dormant | Ordinary | - %
| Strata Homes (Wath) | Dormant | Ordinary | - %
| Stampearth Limited | Dormant | Ordinary | - %
| Jam Regeneration Limited* | Non trading | Ordinary | - %
| Hornthorpe Developments Limited | Non trading | Ordinary | 67%
| The registered office for the above is Quay Point, Lakeside, Doncaster, DN4 5PL. *Jam Regeneration Limited is a joint venture entity. All subsidiaries have an accounting reference date of 30 June with the exception of Hornthorpe Developments Limited that has an accounting reference date of 31 July. During the year, the Company disposed of its investments in the following subsidiaries by way of dissolution; Strata Homes (Guiseley); Strata Homes (Wath); Stampearth Limited. During the year, the Company disposed of its investment in the joint venture Jam Regeneration Limited by way of dissolution.
16. | Stocks
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Part exchange properties | 1,842 | 1,262
| Work in progress | 39,555 | 61,028
| Land | 43,739 | 53,868
|  | 85,136 | 116,158
| Raw material, consumables and changes in finished goods and work in progress recognised as cost of sales in the period amounted to £149,142k (2024: £136,608k). There have been write downs of £3,965k to stocks to net realisable value during the period (2024: £1,300k).
- 39 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
17. | Debtors
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Trade debtors | 6,434 | 5,330
| Amounts owed by group undertakings | - | 3,323
| Other debtors | 1,674 | -
| Prepayments and accrued income | 11,744 | 6,013
| Deferred taxation | 11 | 17
|  | 19,863 | 14,683
| Amounts owed by group undertakings are interest free, unsecured and repayable on demand. There are no provisions for potential bad debts in the current period or previous financial year.
18. | Cash and cash equivalents
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Cash at bank and in hand | 18,435 | 18,397
- 40 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
19. | Creditors: Amounts falling due within one year
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Land creditors | 10,396 | 7,522
| Trade creditors | 18,424 | 23,601
| Amounts owed to group undertakings | 16,328 | 34,073
| Corporation tax | 1,858 | 277
| Other taxation and social security | 499 | 535
| Accruals and deferred income | 13,231 | 2,674
|  | 60,736 | 68,682
| The Company is funded by bank loans and overdrafts held in Strata Homes Limited, which are secured by fixed and floating charges over the assets of the group, of which the Company is a subsidiary. Interest is charged on the gross drawn down debt at a margin based on quarterly calculated gearing levels above SONIA interest rates. Strata Homes Limited on-lends to subsidiaries via inter-group accounts. Amounts owed to group undertakings are unsecured and repayable on demand. No interest is charged on outstanding balances.
20. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Land creditors | 5,359 | 10,509
21. | Share capital
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100 (2024 - 100) Ordinary shares of £1.00 each | 100 | 100
22. | Reserves
Profit & loss account This reserve includes the cumulative profits or losses made by the Company less any dividends declared. - 41 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
23. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £572k (2024: £577k). Contributions totalling £75k (2024: £69k) were payable to the fund at the Statement of Financial Position date and are included in creditors.
24. | Contingent liabilities
| As part of the banking arrangements of the Strata Group, Strata Homes Group Limited, Strata Homes Holdings Limited, Strata Homes Limited, Strata Homes Yorkshire Limited, Strata Homes Midlands Limited, Ignite Homes Limited, Strata Developments Barnsley West Limited and Strata Sterling Barnsley West Limited have given unlimited guarantees supported by a debenture creating a fixed and floating charge to secure their bank borrowings. Given the nature of the business there are potential claims which could arise against the Group. The directors have made provisions for any known claims based on their assessment of the likely outcome. At 28 June 2025 the following companies had bank loans outstanding:
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Strata Homes Limited | 18,000 | 39,000
25. | Commitments under operating leases
| At 28 June 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 28 June | 29 June
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Not later than 1 year | 347 | 29
| Later than 1 year and not later than 5 years | 58 | 711
|  | 405 | 740
| During the period £452k (2024: £522k) was charged to the Statement of Comprehensive Income in respect of non-cancellable operating leases. Operating lease costs under short term, cancellable leases were £1,936k (2024: £2,532k).
- 42 -
STRATA HOMES YORKSHIRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 28 JUNE 2025
26. | Related party transactions
| The Company has taken advantage of the exemption, under the terms of FRS 102, not to disclose related party transactions with wholly owned subsidiaries within the Group. In the year Strata Homes Yorkshire Limited sold land and traded with Aura Real Estates Investments Limited who are a 10% Associate of Strata Homes Limited. The total consideration for the land sale and contract sale was £10,874k
27. | Post balance sheet events
Since 28 June 2025 and up to the date of approving the financial statements, the following transactions have been concluded. As detailed in the Strata Homes Group Strategic report, the Group has successfully entered into a new lending facility with Lloyds Bank Plc, providing committed funding through to 30 June 2028. On 31 October 2025, the Group executed a post balance sheet debt amendment agreement regarding its liabilities to connected parties. This agreement affects the terms of the Group’s existing loan notes and preference shares (further details of which are disclosed in Strata Homes Group Limited’s annual report and financial statements for the period ended 28 June 2025). The debt amendment has been determined to be a substantial modification. As the lenders involved are related parties acting in their capacity as shareholders the transaction has been treated as a capital contribution. The resulting gain has been credited directly to equity rather than through the Group’s profit or loss. See the Strata Homes Group Limited annual accounts for more detail on these events.
28. | Controlling party
The Company is wholly owned by Strata Homes Limited. At 28 June 2025, the ultimate Parent Company was Strata Homes Group Limited. The smallest and largest group in which the Company is consolidated is Strata Homes Group Limited. Copies of the Strata Homes Group Limited accounts can be obtained from the Company Secretary, Quay Point, Lakeside Boulevard, Doncaster, DN4 5PL. As at 28 June 2025 the persons with Significant Control were AR Weaver, RI Weaver and G Smith as trustees for the Irving Weaver 2018 A Discretionary Settlement trust.
- 43 -