Company registration number 15794221 (England and Wales)
HOUSING ACTION HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
HOUSING ACTION HOLDINGS LTD
COMPANY INFORMATION
Director
K Mitchell
(Appointed 22 June 2024)
Company number
15794221
Registered office
73 Cornhill
London
EC3V 3QQ
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
HOUSING ACTION HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 36
HOUSING ACTION HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The director presents the strategic report for the year ended 31 March 2025.

Principal activities

The principal activity of the company and group continues to be that of property management, property investment and holding companies.

Review of the business

The Group’s turnover increased from £22.4 million in the year ended 31 March 2024 to £33.2 million for the year under review. The gross profit increased to £9.5 million from £5.4 million. The Group's profit before tax increased from £3.3 million to £5.4 million largely as a result of increase in turnover.

The Group’s total assets increased from £10.3 million to £18.7 million. Net assets increased from £6.7 million to £10.6 million.

Principal risks and uncertainties

The management and the nature of the business are subject to risks that are considered significant.

The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of risks identified below. Where possible, processes are in place to monitor and mitigate such risks.

Competition

The market in which the business operates is highly competitive, however because of the group's ability to take on its highly skilled workforce, the company can compete in the sector and achieve improved margins year on year.

Liquidity risk

Housing Action Holdings Ltd and subsidiaries seek to manage financial risk to ensure sufficient liquidity is available to meet its needs for the foreseeable future. Cashflow forecasting is performed to identify challenging periods in advance.

Credit risk

All customers who trade with the Group are subject to credit checks and must follow the company policy on payment terms. Strict credit control systems are in place to monitor customer accounts to lower the risk of potential bad debts.

Key performance indicators

It is considered that turnover and Net Profit before tax are the financial key performance indicators to enable a consistent method of analysing performance, year on year and these are as follows:

202 5 202 4

Turnover (£m) £33.2m £22.4m

Net Profit before tax (£m) £5.4m £3.3m

Administrative expenses rose from £3.1m to £4m. This increase is primarily due to the increase in employment cost during the year.

Other information and explanations

Future developments

The directors are not aware of any major future developments likely to affect the Group’s operations other than the continuation of its current activities.

HOUSING ACTION HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

On behalf of the board

K Mitchell
Director
31 March 2026
HOUSING ACTION HOLDINGS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The director presents her annual report and financial statements for the year ended 31 March 2025.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

K Mitchell
(Appointed 22 June 2024)
Auditor

Gerald Edelman LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law, the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going concern

The financial statements have been prepared on the assumption that the group is a going concern.

T he directors have reviewed the forecast for the group for at least 12 months from the date of approval of the financial statements. The directors have therefore concluded that the group has adequate resources to continue in operational existence for the foreseeable future and thus, the going concern basis to be appropriate for the preparation of the financial statements for the period ended 31 March 2025.

HOUSING ACTION HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
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
K Mitchell
Director
31 March 2026
HOUSING ACTION HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HOUSING ACTION HOLDINGS LTD
- 5 -
Opinion

We have audited the financial statements of Housing Action Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors is responsible for the other information. The other information comprises the information included in

the annual report, other than the financial statements and our auditors' report thereon. 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.

In connection with our audit of the financial statements, 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 or a material misstatement of the other information. 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

HOUSING ACTION HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOUSING ACTION HOLDINGS LTD
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the director's 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 director's 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 group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the director's 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 parent company financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.

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

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

HOUSING ACTION HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOUSING ACTION HOLDINGS LTD
- 7 -

The extent to which the audit was considered capable of detecting irregularities including fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

- Enquiring of management of whether they are aware of any non-compliance with laws and regulations.

- Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.

- Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.

- Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journals; fraudulent expenses.

- Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation, employment law, health and safety and Money Laundering Act.

Audit response to risks identified Fraud due to management override

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships.

- Audited the risk of management override of controls, including through testing journal entries for appropriateness

- Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- Investigated the rationale behind significant or unusual transactions.

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:

- Agreeing financial statements disclosures to underlying supporting documentation.

- Reviewing minutes of meetings of those charged with governance.

- Enquiring of management as to actual and potential litigation claims.

- Reviewing relevant profit and loss account items for evidence of litigation.

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance. Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.

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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

HOUSING ACTION HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOUSING ACTION HOLDINGS LTD
- 8 -
Rowan Lindsay (Senior Statutory Auditor)
For and on behalf of Gerald Edelman LLP, Statutory Auditor
73 Cornhill
London
EC3V 3QQ
31 March 2026
HOUSING ACTION HOLDINGS LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
33,153,680
22,411,180
Cost of sales
(23,669,240)
(16,978,401)
Gross profit
9,484,440
5,432,779
Administrative expenses
(4,013,441)
(3,084,090)
Other operating income
28,405
398,089
Operating profit
4
5,499,404
2,746,778
Interest receivable and similar income
8
39,287
17,835
Interest payable and similar expenses
9
(216,208)
(126,910)
Amounts written off investments
10
(54,502)
11,047
Fair value gains and losses on investment properties
14
155,920
663,143
Profit before taxation
5,423,901
3,311,893
Tax on profit
11
(1,414,427)
(1,118,291)
Profit for the financial year
25
4,009,474
2,193,602
Profit for the financial year is all attributable to the owner of the parent company.
HOUSING ACTION HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
£
£
Profit for the year
4,009,474
2,193,602
Other comprehensive income
Revaluation of tangible fixed assets
-
0
692,469
Tax relating to other comprehensive income
-
0
(159,555)
Other comprehensive income for the year
-
0
532,914
Total comprehensive income for the year
4,009,474
2,726,516
Total comprehensive income for the year is all attributable to the owner of the parent company.
HOUSING ACTION HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,508,452
2,401,384
Investment property
14
1,370,420
1,214,500
Investments
15
297,000
209,400
4,175,872
3,825,284
Current assets
Debtors
17
7,534,445
3,493,902
Cash at bank and in hand
6,982,405
2,963,991
14,516,850
6,457,893
Creditors: amounts falling due within one year
18
(8,063,488)
(3,596,304)
Net current assets
6,453,362
2,861,589
Total assets less current liabilities
10,629,234
6,686,873
Creditors: amounts falling due after more than one year
19
(583,545)
(705,695)
Provisions for liabilities
Deferred tax liability
22
486,547
452,185
(486,547)
(452,185)
Net assets
9,559,142
5,528,993
Capital and reserves
Called up share capital
24
302
302
Revaluation reserve
25
532,914
532,914
Other reserves
25
2,673,357
2,673,357
Profit and loss reserves
25
6,352,569
2,322,420
Total equity
9,559,142
5,528,993
The financial statements were approved and signed by the director and authorised for issue on 31 March 2026
31 March 2026
K Mitchell
Director
Company registration number 15794221 (England and Wales)
HOUSING ACTION HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
15
102
-
0
Current assets
Cash at bank and in hand
30,200
-
0
Creditors: amounts falling due within one year
18
(40,806)
-
Net current liabilities
(10,606)
-
0
Net liabilities
(10,504)
-
0
Capital and reserves
Called up share capital
24
302
-
0
Profit and loss reserves
25
(10,806)
-
0
Total equity
(10,504)
-
0

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s loss for the year was £10,806 (2024 - £0 profit).

The financial statements were approved and signed by the director and authorised for issue on 31 March 2026
31 March 2026
K Mitchell
Director
Company registration number 15794221 (England and Wales)
HOUSING ACTION HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
Share capital
Revaluation reserve
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2023
302
-
0
-
141,712
142,014
Year ended 31 March 2024:
Profit for the year
-
-
-
2,193,602
2,193,602
Other comprehensive income:
Revaluation of tangible fixed assets
-
692,469
-
-
692,469
Tax relating to other comprehensive income
-
(159,555)
-
-
0
(159,555)
Total comprehensive income
-
532,914
-
2,193,602
2,726,516
Dividends
-
-
-
(12,894)
(12,894)
Transfers
-
-
2,673,357
-
2,673,357
Balance at 31 March 2024
302
532,914
2,673,357
2,322,420
5,528,993
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
-
4,009,474
4,009,474
Issue of share capital
24
302
-
-
-
302
Balance at 31 March 2025
302
532,914
2,673,357
6,352,569
9,559,142
HOUSING ACTION HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2023
-
0
-
0
-
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 March 2024
-
0
-
0
-
0
Year ended 31 March 2025:
Profit and total comprehensive income
-
(10,806)
(10,806)
Issue of share capital
24
302
-
302
Balance at 31 March 2025
302
(10,806)
(10,504)
HOUSING ACTION HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
5,339,677
2,511,860
Interest paid
(216,208)
(126,910)
Income taxes paid
(673,418)
(553,623)
Net cash inflow from operating activities
4,450,051
1,831,327
Investing activities
Purchase of tangible fixed assets
(493,116)
(573,391)
Proceeds from disposal of tangible fixed assets
47,995
133,888
Interest received
39,287
17,835
Net cash used in investing activities
(405,834)
(421,668)
Financing activities
Proceeds from issue of shares
302
-
Repayment of bank loans
(244,529)
14,395
Payment of finance leases obligations
218,424
246,808
Dividends paid to equity shareholders
-
0
(12,894)
Net cash (used in)/generated from financing activities
(25,803)
248,309
Net increase in cash and cash equivalents
4,018,414
1,657,968
Cash and cash equivalents at beginning of year
2,963,991
1,306,023
Cash and cash equivalents at end of year
6,982,405
2,963,991
HOUSING ACTION HOLDINGS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
30,000
-
0
Investing activities
Purchase of subsidiaries
(102)
-
0
Net cash used in investing activities
(102)
-
Financing activities
Proceeds from issue of shares
302
-
Net cash generated from financing activities
302
-
Net increase in cash and cash equivalents
30,200
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
30,200
-
0
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
1
Accounting policies
Company information

Housing Action Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 73 Cornhill, London, United Kingdom, EC3v 3QQ. The companies place of business is 22 Barrack Street, Colchester, Essex, CO1 2LJ.

The group consists of Housing Action Holdings Ltd and all of its subsidiaries.

1.1
Basis of preparation

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

The Group has accounted for this group reorganisation involving entities under common control using the predecessor accounting method. The assets and liabilities of the acquired entity are recognised at their carrying amounts. Any difference between consideration given and the carrying amounts of net assets acquired is recognised in equity within a merger reserve. The results of the combining entities are presented as if the entities had always been combined

The Group has applied the predecessor accounting method to account for the group reorganisation that took place during the year.

Under this method:

- The assets and liabilities of the transferred entity are recognised at their existing carrying amounts as recorded in the consolidated financial statements of the ultimate parent.

- No goodwill is recognised.

- Any difference between the consideration given and the carrying amounts of the net assets acquired is recorded in equity within a merger reserve.

- Retained earnings are carried forward without adjustment.

- The consolidated financial statements are presented as if the group had always been in its current form.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Housing Action Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -

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

During the year, the company became the new holding company of the group through a share-for-share exchange. This reorganisation has been accounted for using merger accounting in accordance with paragraph 19.27 of FRS 102, as the shareholders and their relative rights remain the same before and after the transaction.

Consequently, the consolidated financial statements present the results and financial position of the group as if the new parent company had always been the parent. The comparative figures therefore include the results of the subsidiary for the prior year.

The parent company financial statements, however, cover the period from the company’s incorporation to the reporting date only, reflecting the legal form of the transaction.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

Revenue comprises sales of services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the services are transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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 are recover able.

1.6
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:

Freehold land and buildings
No depreciation provided
Fixtures and fittings
15% reducing balance
Computers
15% straight line
Motor vehicles
25% reducing balance
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -

Freehold properties are measured at fair value, determined annually by reference to market prices. As the properties have indefinite useful lives and residual values approximate market value, no depreciation is charged.

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

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

Fixed asset investments are investments in physical assets recognised initially at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Borrowing costs related to fixed assets

Borrowing costs are interest and other costs that an entity incurs in connection with the borrowing of fund s. A ll borrowing costs are recognised as an expense in profit or loss in the period in which they are incurred.

1.10
Impairment of fixed assets

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

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -

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.

1.11
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.

1.12
Financial instruments

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

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest m ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 21 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group 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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 d asset are consumed.

1.18

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of freehold property and investment property

The key estimates in preparing these financial statements relate to the carrying value of the freehold property which is stated at fair value. The directors use market data as well as their long‑term knowledge of the property market in determining the basis for estimating the fair value of the freehold properties. However, the valuation of the company’s freehold property is inherently subjective, as it is made on the basis of valuation assumptions which may in future not prove to be accurate. Additionally, one of the freehold properties has been valued by independent external Chartered Surveyors and this valuation forms the basis of the amounts recognised in the financial statements for that property.

Th e group's investment property, which is held to earn capital appreciation, is measured using the fair value model and stated at their fair value as at the reporting date. The Director has used her experience of the property market and with reference to formal advice from suitably qualified chartered surveyors and market evidence of transaction prices of similar properties, have assessed an appropriate value as at the reporting date, which they feel is reliable and on a conservative basis.

Deferred taxation

Deferred tax liabilities are assessed on the basis of assumptions regarding the future, the likelihood that assets will be realised and liabilities will be settled, and estimates as to the timing of those future events and as to the future tax rates that will be applicable.

Deprecation and impairment

The calculation of depreciation requires the company to make estimates regarding the useful economic lives and residual values of its tangible fixed assets. These estimates are based on historical experience and the directors’ assessment of expected future use, technological developments, and market conditions. Changes in these assumptions could result in adjustments to depreciation charges in future periods.

The directors are required to exercise judgement in determining whether there are indicators of impairment of the Company’s tangible assets. This assessment includes consideration of the economic viability of the assets and their expected future financial performance, and, where the assets form part of a larger cash-generating unit, the viability and expected future performance of that unit.

Lease classification

The directors are required to exercise judgement in determining whether leases entered into by the company, either as lessor or lessee, are classified as operating or finance leases. This assessment involves evaluating whether the risks and rewards of ownership have been substantially transferred from the lessor to the lessee on a lease-by-lease basis.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Provisions against trade debtors

Trade debtors are initially measured at transaction price and then subsequently recorded net of any impairment. Management consider each debtor individually and make a provision where there is objective evidence that the full value of trade debtor will not be recovered. Factors taken into consideration when determining whether a provision for impairment is required include the contractual credit terms, the payment history of the customer, any correspondence with customers and their advisors regarding outstanding debts and managements experience of similar customers.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Services rendered
33,153,680
22,411,180
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
33,153,680
22,411,180
2025
2024
£
£
Other revenue
Interest income
39,287
17,835
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging:
Exchange losses
697
265
Depreciation of owned tangible fixed assets
192,801
187,925
Impairment of owned tangible fixed assets
-
54,250
Operating lease charges
31,893
69,164
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,474
-
Audit of the financial statements of the company's subsidiaries
71,420
7,200
79,894
7,200
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 25 -
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
46
38
0
0

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
2,292,699
1,684,680
-
0
-
0
Social security costs
299,640
176,002
-
-
Pension costs
23,967
15,307
-
0
-
0
2,616,306
1,875,989
-
0
-
0
7
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
310,953
230,657
Directors social security costs
39,602
-
Company pension contributions to defined contribution schemes
2,038
2,023
352,593
232,680
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
208,961
201,678
Company pension contributions to defined contribution schemes
1,321
1,341

No remuneration was paid through the Parent Company during the year.

Throughout the year, the directors of the Group and its subsidiaries fulfilled the role of key management personnel.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 26 -
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
38,776
17,835
Other interest income
511
-
Total income
39,287
17,835
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
38,776
17,835
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
71,135
83,508
Other finance costs:
Interest on finance leases and hire purchase contracts
43,576
11,075
Other interest
101,497
32,327
Total finance costs
216,208
126,910
10
Amounts written off investments
2025
2024
£
£
(Loss)/gain on disposal of financial assets held at cost
(54,502)
11,047
11
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
1,380,065
661,579
Adjustments in respect of prior periods
-
0
4,527
Total current tax
1,380,065
666,106
Deferred tax
Origination and reversal of timing differences
34,362
452,185
Total tax charge
1,414,427
1,118,291
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11
Taxation
(Continued)
- 27 -

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

2025
2024
£
£
Profit before taxation
5,423,901
3,311,893
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
1,355,975
827,973
Tax effect of expenses that are not deductible in determining taxable profit
56,892
33,043
Tax effect of income not taxable in determining taxable profit
(38,980)
(194,910)
Deferred tax adjustments in respect of prior years
40,540
452,185
Taxation charge
1,414,427
1,118,291

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2025
2024
£
£
Deferred tax arising on:
Revaluation of property
-
159,555
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2025
2024
Notes
£
£
In respect of:
Property, plant and equipment
13
-
54,250
Recognised in:
Administrative expenses
-
54,250

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 28 -
13
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2024
1,809,250
303,767
2,428
847,583
2,963,028
Additions
-
0
24,089
-
0
381,427
405,516
Disposals
-
0
(180,775)
-
0
(82,522)
(263,297)
At 31 March 2025
1,809,250
147,081
2,428
1,146,488
3,105,247
Depreciation and impairment
At 1 April 2024
54,250
137,415
364
372,764
564,793
Depreciation charged in the year
-
0
26,812
546
165,443
192,801
Eliminated in respect of disposals
-
0
(118,312)
-
0
(42,487)
(160,799)
At 31 March 2025
54,250
45,915
910
495,720
596,795
Carrying amount
At 31 March 2025
1,755,000
101,166
1,518
650,768
2,508,452
At 31 March 2024
1,755,000
166,352
2,064
474,819
2,401,384
The company had no tangible fixed assets at 31 March 2025 or 31 March 2024.

More information on impairment movements in the year is given in note 12.

The properties have been pledged as security for short term bank loans to the company.

The net book value of motor vehicles held under hire purchase agreements at the year end was £510,298 (prior year: £411,396).

The company’s residential property was valued on 20 April 2023 by Kemisey LLP, an independent RICS‑registered external valuer, using the market value basis. The company’s offices were valued by the directors in April 2023 based on market information and comparable evidence. The directors have reviewed the fair values at the reporting date and consider that the carrying amounts do not differ materially from fair value.

The following asse t s are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2025
2024
£
£
Group
Cost
1,116,781
1,116,781
Accumulated depreciation
(188,251)
(165,931)
Carrying value
928,530
950,850
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 29 -
14
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 April 2024 and 31 March 2025
1,214,500
-
Net gains or losses through fair value adjustments
155,920
-
At 31 March 2025
1,370,420
-

Investment property comprises freehold land and buildings. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

15
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
102
-
0
Unlisted investments
297,000
209,400
-
0
-
0
297,000
209,400
102
-
0
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2024
209,400
Additions
87,600
At 31 March 2025
297,000
Carrying amount
At 31 March 2025
297,000
At 31 March 2024
209,400
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
15
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2024
-
Additions
102
At 31 March 2025
102
Carrying amount
At 31 March 2025
102
At 31 March 2024
-
16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Housing Action Management Ltd
England & Wales
Property management
Ordinary
100.00
KWMM Investments Ltd
England & Wales
Buying & selling of real estate
Ordinary
100.00
City Pad Escapes Ltd
England & Wales
Property investment
Ordinary
100.00
17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
507,991
611,219
-
0
-
0
Other debtors
4,003,951
520,404
-
0
-
0
Prepayments and accrued income
3,022,503
2,362,279
-
0
-
0
7,534,445
3,493,902
-
-
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 31 -
18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
20
246,240
226,128
-
0
-
0
Obligations under finance leases
21
157,914
81,981
-
0
-
0
Trade creditors
447,284
429,430
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
30,000
-
0
Corporation tax payable
1,059,587
352,941
-
0
-
0
Other taxation and social security
4,271,172
918,477
-
-
Other creditors
846,083
897,488
-
0
-
0
Accruals and deferred income
1,035,208
689,859
10,806
-
0
8,063,488
3,596,304
40,806
-
0
19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
20
175,363
440,004
-
0
-
0
Obligations under finance leases
21
408,182
265,691
-
0
-
0
583,545
705,695
-
-
20
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
421,603
666,132
-
0
-
0
Payable within one year
246,240
226,128
-
0
-
0
Payable after one year
175,363
440,004
-
0
-
0

The bank lo an is secured by a fixed and floating charge over the assets of the Group. The loan is secured by way of legal charge on the properties at 73 East Hill, CO1 2QW and on Blue Barns Farm, CO7 7QL. The loan is subject to annual interest at 3.29% over the Bank of England base rate and is repayable on 23 November 2026.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 32 -
21
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
157,914
81,981
-
0
-
0
In two to five years
408,182
265,691
-
0
-
0
566,096
347,672
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
122,226
126,844
Revaluations
364,321
325,341
486,547
452,185
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 April 2024
452,185
-
Charge to profit or loss
34,362
-
Liability at 31 March 2025
486,547
-
23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,967
15,307
HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
23
Retirement benefit schemes
(Continued)
- 33 -

The company operates a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the company. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £8,939 (2024: £2,937).

24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.302p each
100,000
100,000
302
302

The company was incorporated on 22 June 2024 with an issued share capital of 100,000 ordinary share of £0.00302p.The ordinary share carries equal rights in respect of dividends, capital distributions and voting.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 34 -
25
Reserves
Profit and loss reserves

The retained earnings reserve represents the cumulative profits and losses of the Group and its subsidiaries that have been retained in the business and not distributed as dividends.

In the year, the Group undertook a reorganisation involving entities under common control. Under the predecessor accounting method, the retained earnings of the transferred entities were carried forward at their existing carrying amounts. No adjustment was made to these retained earnings on transfer, and no gain or loss was recognised in the profit and loss account as a result of the reorganisation.

Revaluation reserve

The revaluation reserve represents the fair value gains recognised in respect of the Group's freehold property.

Merger r eserve s

The other reserves on the balance sheet is the merger reserve that arose on the reorganisation of entities under common control. Under the predecessor accounting method, the assets and liabilities of the transferred entities were recognised at their existing carrying amounts.

The difference between the consideration given and the carrying amounts of the net assets acquired was recorded in the merger reserve, within equity. No goodwill was recognised on the reorganisation, and retained earnings of the transferred entities were carried forward in full.

26
Operating lease commitments
Lessee

The Group holds operating leases for a large portfolio of properties, which are required for it's operations. The company holds no operating leases.

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

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
8,825,600
7,480,351
-
-
Between two and five years
9,598,603
10,134,036
-
-
18,424,203
17,614,387
-
-
27
Related party transactions

The group has entered into transactions with its directors, who are considered related parties under FRS 102.

O verdrawn directors loan account of £44,184 (2024: £nil) bears interest at 2.25% per annum and is repayable on demand. Interest charged during the year amounted to £314.

In aggregate, the directors were reimbursed for expenses incurred wholly and exclusively on behalf of the group totalling £45,583 (2024: £41,951)

During the year the directors were paid £65,020 (2024: £54,857) for rent of private properties made available to the group.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
27
Related party transactions
(Continued)
- 35 -

Included within other debtors is an amount of £107,000 (2024: £nil) due from close family members of one of the directors.

During the year the company paid close family members of the directors £15,000 (2024: £15,000) for rent of a private property.

At the year end included in other debtors is a balance of £605,921 (2024:£nil) owed by Housing Action Homes Ltd a company fully controlled by a director.

At the year end included in other debtors is a balance of £262,348 (2024: £262,348) owed by City Pad Estates Ltd a company fully controlled by close family members of the directors.

At the year end included in other debtors is a balance of £15,043 (2024: £19,808) owed by MMS London Ltd a company fully controlled by one of the directors. The loan is interest free and repayable on demand.

The company also paid MMS London Ltd £nil (2024: £800) for expenses incurred on behalf of the company and received £nil (2024: £108) reimbursing expenses Housing Action Management paid on MMS London Ltd’s behalf.

At the year end included in other debtors is a balance of £360 (2024: £3,080) owed by Housing Action Management Nationwide Limited, a group fully controlled by the directors. The loan is interest free and repayable on demand.

At the year end included in other creditors is a balance of £nil (2024: £109,995) owed to Housing Action UK Limited a company fully controlled by the directors.

During the year the group received rental income of £206,737 (2024: £224,542) from Housing Action UK Limited, a company controlled by the directors.

Housing Action Management Limited also paid Housing Action UK Limited £nil (2024: £5,539) for expenses incurred on its behalf.

During the year the group paid rent of £84,211 (2024: £104,855) to Livein Management LTD, a company controlled by the directors.

28
Controlling party

At 31 March 20 25 the company was controlled by K Mitchell.

HOUSING ACTION HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 36 -
29
Cash generated from group operations
2025
2024
£
£
Profit after taxation
4,009,474
2,193,602
Adjustments for:
Taxation charged
1,414,427
1,118,291
Finance costs
216,208
126,910
Investment income
(39,287)
(17,835)
Fair value gain on investment properties
(155,920)
(663,143)
Depreciation and impairment of tangible fixed assets
192,801
242,175
Other gains and losses
54,502
(11,047)
Movements in working capital:
Increase in debtors
(4,103,391)
(1,605,457)
Increase in creditors
3,750,863
1,128,364
Cash generated from operations
5,339,677
2,511,860
30
Analysis of changes in net funds - group
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
2,963,991
4,018,414
6,982,405
Borrowings excluding overdrafts
(666,132)
244,529
(421,603)
Obligations under finance leases
(347,672)
(218,424)
(566,096)
1,950,187
4,044,519
5,994,706
31
Cash generated from operations - company
2025
2024
£
£
Loss after taxation
(10,806)
-
Movements in working capital:
Increase in creditors
40,806
-
Cash generated from operations
30,000
-
32
Analysis of changes in net funds - company
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
-
30,200
30,200
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