Company Registration No. 11653413 (England and Wales)
Hayfield Homes Construction Limited
Annual report and financial statements
for the year ended 31 December 2024
Hayfield Homes Construction Limited
Company information
Directors
James O'Shea
Patrick Shovlin
Mark Booth
Secretary
James Thompson
Company number
11653413
Registered office
Hayfield House
Arleston Way
Shirley
Solihull
West Midlands
England
B90 4LH
Independent auditor
Saffery LLP
10 Wellington Place
Leeds
LS1 4AP
Hayfield Homes Construction Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Income statement
10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 26
Hayfield Homes Construction Limited
Strategic report
For the year ended 31 December 2024
1

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

Trading Review

The UK housing market continued to be constrained during 2024 as a result of a combination of an ineffective planning system, continual increases in construction costs and uncertainty from consumers, together with a hold on planning decisions as a result of the UK General Election in July.

Interest rates continued to fall slowly during 2024 from the highs of the previous year however this had little effect on a stagnant housing market as consumers were still in the midst of the ongoing cost of living crisis and mortgage rate uncertainties.

Outlook

2025 has seen a continuation of a difficult housing market with Hayfield selling 71% of production for the year.

We continue to refine our presentation, in both brand and product, ensuring we have our team trained and ready to reach out to every opportunity. We are confident that we will lead the way with our competitors.

Customer Care continues to be a key objective of the business, and we pride ourselves on our commitment of giving our customer one point of contact throughout their entire journey with us. We have created a quality focused environment within Customer Care which will ensure quality is maintained throughout the build process and ensure all contractors fully understand “The Hayfield Way”. We are pleased to report that Hayfield is once again recognised and certified as a HBF 5-star rating.

Hayfield Homes Construction Limited
Strategic report (continued)
For the year ended 31 December 2024
2
Principal risks and uncertainties

Risk management

Risk management is a high priority, and we have processes in place designed to identify, mitigate and manage risk. These are reviewed regularly by the Board and the key risks and mitigations are set out below.

Risks | Mitigants
Build cost | Due to continuation of the Ukrainian war, build cost inflation remains forefront in our analysis albeit it is back to low single digits and so remains a focus of the business. Our dedicated Procurement and Supply Chain Department continue to review our supply chain, giving us access to preferential terms and distribution agreements. In line with the parameters of our ESG strategy, we are cultivating new relationships with companies that can offer the quality, sustainability credentials, and supply the certainty that Hayfield requires. To further mitigate this risk, as mentioned above, we constantly review our build inflation estimates in our land appraisals to ensure that costs are covered from day one.
Liquidity and cash flow | Trading and cash flow forecasting are seen as a key part of the reporting within the company. Working capital and capital investments are regularly monitored and reported to the board of directors. Key to the mitigation of this risk is a close working relationship with the company’s key debt provider, Oaknorth PLC. All schemes are monitored by a third-party monitoring surveyor with cash requirements reviewed monthly.
Health and safety | The safety of our employees and sub-contractors is a core Hayfield principle. The company has a constantly evolving health and safety management system that reflects the growth of the business and the changing regulatory requirements. To facilitate this, we have our own internal health and safety team, and their success continues to be recognised with a RoSPA Gold award for the third year in a row.
Mortgage availability | Mortgage constraints, applied through appropriate regulation and sensible lending criteria, provide a sustainable base for the UK housing market. The housing market is however sensitive to macro-economic conditions such as changes in interest rates, employment levels and consumer confidence.

Key performance indicators

The directors use KPIs to measure monthly performance against historical data and budgets. The KPIs used are as follows:

2024 2023 Change %Change

Turnover £44.9m £70.6m ↓£25.7m ↓36%

Gross margin 13.0% 13.3% ↓0.3ppt

Hayfield Homes Construction Limited
Strategic report (continued)
For the year ended 31 December 2024
3

On behalf of the board

Mark Booth
Director
18 March 2026
Hayfield Homes Construction Limited
Directors' report
For the year ended 31 December 2024
4

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of the construction of domestic buildings.

Results and dividends

The results for the year are set out on page 10.

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

Directors

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

James O'Shea
Patrick Shovlin
Mark Booth
Statement of disclosure to auditor

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

Hayfield Homes Construction Limited
Directors' report (continued)
For the year ended 31 December 2024
5
Going concern

Hayfield began operations in 2018 with a view of building housing developments over a finite number of years. Hayfield has prided itself in building eco-efficient houses, winning national awards year on year and becoming a well-known name in the industry.

2025 sees the Group enter it’s eighth year of trading and the latter stages of the scheme’s timeframe, so in line with forecasts, the Group will begin to reduce the number of housing developments it builds. The Group continues to hold a substantial land bank of plots and will look for future opportunities to sell the land.

Hayfield continues to have a strong relationship with its key debt provider, Oaknorth PLC who have assisted the business through a difficult 2025 providing injection of funds as and when required, with continued commitment through 2026 and beyond. With the continued support of other stakeholders as well, the Group will continue to trade, meeting all of its operational obligations.

The Group’s Board of Directors remain focused on taking the actions necessary to safeguard the operational strength of the Hayfield brand. The directors consider monthly management accounts and forecasts to enable them to make the appropriate decisions to ensure the operational existence of the business. Given the ongoing instability of the housing market, Hayfield continues to prepare sensitised forecasts which show the ability of the Group to work within the facilities provided by Oaknorth PLC for a period of at least 12 months from post approval of these financial statements.

At the same time, Hayfield prioritises the health and safety of our employees and sub-contractors, whilst providing customers with an enjoyable journey towards their Hayfield home.is in a position to continue to trade through what is a difficult period for housebuilders.

Forecasts

The directors consider monthly management accounts and forecasts to enable them to make the appropriate decisions to ensure the operational existence of the business going forward.

The pressure of a downturn in the housing market has led to Hayfield preparing sensitised forecasts which show the ability of the Group to work within the facilities provided by Oaknorth PLC for a period of at least 12 months from post approval of these financial statements. The forecasts have been sensitised to take into account the Board’s worst-case scenario but with reasonable levels of completions over the going concern period. The current performance of the Group and the sales pipeline for Q1 2026 remain favourable against this downside position.

Conclusion

The directors have a reasonable expectation that the company will have adequate resources available to continue in operational existence for the foreseeable future.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mark Booth
Director
18 March 2026
Hayfield Homes Construction Limited
Directors' responsibilities statement
For the year ended 31 December 2024
6

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and then apply them consistently;

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

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 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.

Hayfield Homes Construction Limited
Independent auditor's report
To the members of Hayfield Homes Construction Limited
7
Opinion

We have audited the financial statements of Hayfield Homes Construction Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Hayfield Homes Construction Limited
Independent auditor's report
To the members of Hayfield Homes Construction Limited (continued)
8

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Hayfield Homes Construction Limited
Independent auditor's report
To the members of Hayfield Homes Construction Limited (continued)
9

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Davis
Senior Statutory Auditor
For and on behalf of Saffery LLP
18 March 2026
Statutory Auditors
10 Wellington Place
Leeds
LS1 4AP
Hayfield Homes Construction Limited
Income statement
For the year ended 31 December 2024
10
2024
2023
Notes
£
£
Turnover
3
44,861,829
70,609,601
Cost of sales
(39,035,955)
(61,235,512)
Gross profit
5,825,874
9,374,089
Administrative expenses
(8,368,608)
(7,751,627)
Exceptional item
4
(170,550)
(5,599,871)
Operating loss
5
(2,713,284)
(3,977,409)
Interest payable and similar expenses
8
(915,918)
(10,035)
Loss before taxation
(3,629,202)
(3,987,444)
Tax on loss
9
-
0
-
0
Loss for the financial year
(3,629,202)
(3,987,444)

The income statement has been prepared on the basis that all operations are continuing operations.

Hayfield Homes Construction Limited
Statement of comprehensive income
For the year ended 31 December 2024
11
2024
2023
£
£
Loss for the year
(3,629,202)
(3,987,444)
Other comprehensive income
-
-
Total comprehensive income for the year
(3,629,202)
(3,987,444)
Hayfield Homes Construction Limited
Statement of financial position
As at 31 December 2024
12
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
326
5,628
Tangible assets
11
579,981
793,270
580,307
798,898
Current assets
Debtors
12
16,211,990
13,035,517
Cash at bank and in hand
244,026
711,522
16,456,016
13,747,039
Creditors: amounts falling due within one year
13
(21,460,720)
(15,341,132)
Net current liabilities
(5,004,704)
(1,594,093)
Net liabilities
(4,424,397)
(795,195)
Capital and reserves
Called up share capital
16
1
1
Profit and loss reserves
(4,424,398)
(795,196)
Total equity
(4,424,397)
(795,195)
The financial statements were approved by the board of directors and authorised for issue on 18 March 2026 and are signed on its behalf by:
Mark Booth
Director
Company Registration No. 11653413
Hayfield Homes Construction Limited
Statement of changes in equity
For the year ended 31 December 2024
13
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
3,192,248
3,192,249
Year ended 31 December 2023:
Loss and total comprehensive income
-
(3,987,444)
(3,987,444)
Balance at 31 December 2023
1
(795,196)
(795,195)
Year ended 31 December 2024:
Loss and total comprehensive income
-
(3,629,202)
(3,629,202)
Balance at 31 December 2024
1
(4,424,398)
(4,424,397)
Hayfield Homes Construction Limited
Notes to the financial statements
For the year ended 31 December 2024
14
1
Accounting policies
Company information

Hayfield Homes Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hayfield House, Arleston Way, Shirley, Solihull, West Midlands, England, B90 4LH.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Hayfield Homes Development Group Limited. These consolidated financial statements are available from its registered office, Hayfield House, Arleston Way, Shirley, Solihull, West Midlands, B90 4LH.

1.2
Going concern

The directors note the current year loss of £3,629,202 and the net liability position of £4,424,397. In addition to the net current assets of the group, the directors have considered monthly management accounts and forecast information on a group basis, and have a reasonable expectation that the group and therefore the company will have adequate resources available to continue in operational existence for the foreseeable future. This is further explained within the directors' report. true

Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
15
1.3
Turnover

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

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recover ed.

1.4
Intangible fixed assets other than goodwill

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

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

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
1.5
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
3 years straight line
Computers
3 years straight line
Motor vehicles
3 years straight line
Show home furniture
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
16
1.6
Impairment of fixed assets

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

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

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

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

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

Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
17
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

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

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

Derecognition of financial assets

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

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

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

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

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

Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
18
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Employee benefits

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

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

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

1.11
Retirement benefits

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

1.12
Leases

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

Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
19
2
Critical accounting judgements and key sources of estimation uncertainty

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

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

Warranty Provision

A provision for an aftercare warranty has been included within the accounts in relation to corrective issues relating to property sales. This is an estimate based on historical data and properties remaining under warranty for two years from date of sale.

Bad Debt Provision

Bad debt is recognised for trade debtors that are deemed unable to pay either the full amount or a proportion of the debt they owe to the company. Therefore, at each year end there is judgement surrounding the recoverability of trade debtors. Hayfield Homes Construction expect all debtors to be recoverable at year end.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Management services
44,861,829
70,609,601
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
44,861,829
70,609,601
4
Exceptional item
2024
2023
£
£
Expenditure
Release and discharge of loan instruments
170,550
5,599,871
Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
4
Exceptional item (continued)
20

During the year, a balance owed from Living Space Housing Ltd of £254,399 was written off, a company under common control.

A balance of £124,057 owed from Hayfield Homes Ltd was written off in the year, a company under common control.

Balances owed to various subsidiaries totalling £207,906 were written off in the year.

In the prior year, various balances owed to and from fellow group entities were written off totalling £4,055,885.

In the prior year, a balance owed to Living Space Housing Ltd of £2,548,010, a balance of £205,198 owed to Main Street (Silsoe) Ltd, and a balance of £1,209,222 owed from Hayfield Homes Limited were written off, .

5
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
47,000
47,000
Depreciation of owned tangible fixed assets
308,616
404,211
(Profit)/loss on disposal of tangible fixed assets
-
14,820
Amortisation of intangible assets
5,302
25,849
Operating lease charges
146,990
237,844
6
Employees

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

2024
2023
Number
Number
Production
25
28
Sales
12
13
Administration
72
82
Total
109
123
Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
6
Employees (continued)
21

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,991,184
7,711,753
Social security costs
771,075
858,565
Pension costs
159,878
165,747
7,922,137
8,736,065
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
6,000
6,000
8
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
915,918
10,035
Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
22
9
Taxation

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

2024
2023
£
£
Loss before taxation
(3,629,202)
(3,987,444)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(907,301)
(937,847)
Tax effect of expenses that are not deductible in determining taxable profit
368,055
2,014,459
Tax effect of income not taxable in determining taxable profit
(51,977)
(683,190)
Group relief
494,568
(486,431)
Other permanent differences
326
-
0
Deferred tax adjustments in respect of prior years
(89,524)
-
0
Fixed asset differences
405
45,734
Remeasurement of deferred tax for changes in tax rates
-
0
(2,973)
Movement in deferred tax not recognised
185,448
50,248
Taxation charge for the year
-
-
10
Intangible fixed assets
Software
£
Cost
At 1 January 2024 and 31 December 2024
113,690
Amortisation and impairment
At 1 January 2024
108,062
Amortisation charged for the year
5,302
At 31 December 2024
113,364
Carrying amount
At 31 December 2024
326
At 31 December 2023
5,628
Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
23
11
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Show home furniture
Total
£
£
£
£
£
Cost
At 1 January 2024
528,885
256,822
110,938
648,123
1,544,768
Additions
-
0
19,105
-
0
76,222
95,327
At 31 December 2024
528,885
275,927
110,938
724,345
1,640,095
Depreciation and impairment
At 1 January 2024
243,653
207,206
107,301
193,338
751,498
Depreciation charged in the year
142,128
36,017
3,637
126,834
308,616
At 31 December 2024
385,781
243,223
110,938
320,172
1,060,114
Carrying amount
At 31 December 2024
143,104
32,704
-
0
404,173
579,981
At 31 December 2023
285,232
49,616
3,637
454,785
793,270
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
553,146
1,112,505
Amounts owed by group undertakings
14,014,999
7,920,473
Other debtors
1,372,480
3,607,518
Prepayments and accrued income
271,365
395,021
16,211,990
13,035,517
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
7,629,052
-
0
Trade creditors
10,024,854
11,511,329
Taxation and social security
191,558
233,807
Other creditors
2,445,392
1,543,525
Accruals and deferred income
1,169,864
2,052,471
21,460,720
15,341,132
Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
24
14
Loans and overdrafts
2024
2023
£
£
Bank loans
7,629,052
-
0
Payable within one year
7,629,052
-
0

The loans above totalling £7,629,052 are payable to multiple different lenders for three separate loans.

Loan 1 has a balance of £263,442, secured, with interest of 18% per annum. Loan 2 has a balance of £2,590,174, secured, with interest of 24% per annum. Loan 3 has a balance of £4,719,153, secured, with interest of 24% per annum.

15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
159,878
165,747

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
1 A Ordinary share of £1 each
1
1
1
1

A class shares are entitled to voting rights, a right to a distribution, on a return of capital of assets, upon liquidation or otherwise. A shares are not redeemable.

17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
86,959
165,026
Between two and five years
-
0
26,514
86,959
191,540
Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
25
18
Related party transactions
Transactions with related parties

Hayfield Homes Development Group Limited has elected to use the exemption from reporting intragroup transactions with 100% owned companies during the year.

At year end £196,600 (2023: £nil) was owed by CSL Strategic to Hayfield Homes Construction Limited, a wholly owned subsidiary of Hayfield Homes Development Group Limited. During the year there were cost recharges to CSL Strategic of £28,100 (2023: £9,704), Cost recharges of £209,986 (2023: £8,087) were paid to CSL Strategic Limited during the year from Hayfield Homes Construction Limited. This is a related party as it shares the same directors as Hayfield Homes Developments Limited,

At year end £nil (2023: £nil) was owed by Hayfield Homes Limited to Hayfield Homes Construction Limited, a wholly owned subsidiary of Hayfield Homes Development Group Limited. A balance of £124,057 (2023: £1,209,222) was written off in the year. During the year there were cost recharges to Hayfield Homes Limited of £5,057 (2023: (£254)). During the year there were cost recharges paid to Hayfield Homes Limited of £nil (2023: £38,773). This is a related party as it shares the same directors as Hayfield Homes Developments Limited,

At year end £nil (2023: £nil) was owed by Living Space Housing to Hayfield Homes Construction Limited, a wholly owned subsidiary of Hayfield Homes Development Group Limited. A balance of £254,399 (2023: £917,649) was written off in the year. During the year there were cost recharges to Living Space Housing of £268,368 (2023: £795,364). During the year there were cost recharges paid to Living Space Housing of £6,413 (2023: £42,859). This is a related party as it shares the same directors as Hayfield Homes Developments Limited.

At year end £159,938 (2023: £919,453) was owed to Real Estate Capital Holdings by Hayfield Homes Construction Limited, a wholly owned subsidiary of Hayfield Homes Development Group Limited. During the year there were management fees paid to Real Estate Capital Partners of £474,310 (2023: £720,000). This is a related party as it shares the same directors as Hayfield Homes Developments Limited,

At year end £nil (2023: £nil) was owed to Real Estate Capital Partners by Hayfield Homes Construction Limited, a wholly owned subsidiary of Hayfield Homes Development Group Limited. During the year there were management fees paid to Real Estate Capital Partners of £497,840 (2023: £830,005). This is a related party as it shares the same directors as Hayfield Homes Developments Limited,

At year end £10,500,000 of loan notes (2023: £10,500,000) was owed to Abaca Limited by Hayfield Homes Construction Limited, a wholly owned subsidiary of Hayfield Homes Development Group Limited. The loan notes are non-interest bearing and are repayable December 2028. This is a related party due to shareholdings of Hayfield Homes Development Group Limited.

At year end £5,468,209 (2023: £4,755,885) was owed to Abaca Limited by Hayfield Homes Construction Limited, a wholly owned subsidiary of Hayfield Homes Development Group Limited. The loan bears interest at 14% per annum and is repayable November 2026. This is a related party due to shareholdings of Hayfield Homes Development Group Limited.

A balance of £nil(2023: £205,201) with Main Street Silsoe Limited was written off in the year. This is a related party as it shares the same directors as Hayfield Homes Development Group Limited.

The nature of the above balances are loans which are repayable on demand and do not attract interest.

M.Booth received a salary of £6,000 (2023: £6,000) during the year.

Hayfield Homes Construction Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
26
19
Ultimate controlling party

The parent company of Hayfield Homes Construction Limited is Hayfield Homes Development Group Limited and its registered office is Hayfield House, Arleston Way, Shirley, Solihull, B90 4LH.

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