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Registration number: 11646502

Sandway Homes Limited
Annual Report and Financial Statements
for the Year Ended 31 March 2025

Sandway Homes Limited

Contents

Statement of Financial Position | 1
Notes to the Financial Statements | 2 to 6

Sandway Homes Limited

(Registration number: 11646502)
Statement of Financial Position as at 31 March 2025

| Note | 2025 £ | (As restated) 2024 £
Current assets |  |  |
Stocks | 4 | 8,186,950 | 5,601,222
Debtors | 5 | 3,861 | 100
Cash at bank and in hand |  | 515,209 | 2,634,355
|  | 8,706,020 | 8,235,677
Creditors: Amounts falling due within one year | 6 | (10,842,305) | (9,721,813)
Net liabilities |  | (2,136,285) | (1,486,136)
Capital and reserves |  |  |
Called up share capital |  | 100 | 100
Retained earnings |  | (2,136,385) | (1,486,236)
Shareholders' deficit |  | (2,136,285) | (1,486,136)

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income Statement.

Approved and authorised by the director on 5 May 2026

......................................... M Porter Director |  |

Sandway Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Sandway Homes Limited
Magdalen House
Trinity Road
Bootle
L20 3NJ

These financial statements were authorised for issue by the director on 5 May 2026.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime). As noted below the company is not a going concern and therefore the accounts have been prepared on a basis other than a going concern.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. As noted below the company is not a going concern and therefore the accounts have been prepared on a basis other than a going concern.

Going concern

In November 2025 Cabinet approved proposals for a New Local Strategic Partnership to deliver 1,000 new affordable homes in the borough by 2030. They also agreed that no further development sites are proposed for Sandway Homes at this time.
Following the decision, the shareholder has confirmed the company will complete the ongoing developments and meet the obligations as the principal developer towards its current and past developments with a view to the Company becoming dormant thereafter.
The directors acknowledge that, as of March 2025, the Company’s liabilities exceed its assets. Based on current projections, anticipated future income alone may not be sufficient to enable the Company to settle its liabilities to the Council in full; however, the directors are activity engaged in constructive discussions with the Council about how this position can be mitigated as far as possible – with the Council ultimately responsible should the Company be unable to settle all of its liabilities with the Council. The directors are confident all 3rd party liabilities will be settled in full.

Sandway Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

In light of the decision to cease trading upon completion of the ongoing developments and the anticipated position of ongoing net liabilities, the directors have concluded that it is not appropriate to prepare the financial statements on a going concern basis. Accordingly, the financial statements have been prepared on a basis other than going concern.
Under this basis of preparation, normally assets are stated at their net realisable values and liabilities are stated at the amounts expected to be settled and provisions are made for any costs associated with the wind-down of the Company’s activities, where applicable. As the directors anticipate that future property sales will be profitable, no asset restatement is required. Due to the difficulties of estimating future revenues, calculating the anticipated liability settlement to the Council includes significant judgement based on an uncertain position and therefore no restatement has been made.
The Council has confirmed their continued financial support and has undertaken to provide such financial assistance as may be required to enable the Company to settle its third party liabilities in full as they fall due, including those arising during and after the wind-down period. They have also confirmed that there will be no demand for repayment for any amounts owed for a period of 12 months from the date of approval of the financial statements.

Audit report

The Independent Auditor's Report was unqualified. We draw attention to Note 2 to the financial statements which explains that the shareholder has confirmed no further development sites are proposed for Sandway Homes at this time and the company will complete the ongoing developments and meet the obligations as the principal developer towards its current and past developments with a view to the Company becoming dormant thereafter. The Board therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 2. .

The name of the Senior Statutory Auditor who signed the audit report on 5 May 2026 was Mark Bradley BA BTP FCA, who signed for and on behalf of Menzies LLP.

.........................................

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of properties in the ordinary course of the company’s activities. Turnover is shown net of value added tax.
The company recognises revenue on completion of the sale of the property.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Sandway Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods comprises direct materials. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3 | Staff numbers

The average number of persons employed by the company (including the director) during the year, was 5 (2024 - 5).

Sandway Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

4 | Stocks

| 2025 £ | (As restated) 2024 £
Work in progress | 8,186,950 | 5,601,222

5 | Debtors

| 2025 £ | 2024 £
Other debtors | 3,861 | 100
| 3,861 | 100

6 | Creditors

Creditors: amounts falling due within one year

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings |  | 7,950,000 | 7,950,000
Trade creditors |  | 736,188 | 247,780
Taxation and social security |  | - | 117,622
Accruals and deferred income |  | 2,055,000 | 1,130,001
Other creditors |  | 101,117 | 276,410
|  | 10,842,305 | 9,721,813

Creditors include loan amounts due to Sefton MBC. Interest accrues on the loan at the rate of 2.2% above the National Loans Fund interest rate as published by the Public Works Loan Board. The working capital loan is a flexible loan with no fixed repayment and the £2,232,000 was repayable on 31 March 2025. The company has obtained a letter of support from its ultimate parent and funder, Sefton Metropolitan Borough Council to defer repayment on both loans until such time as they reach agreement with the board about them being affordable.

7 | Related party transactions

Included in creditors falling due within one year is an amount of £7,950,000 (2024: £7,950,000) owed to Sefton MBC, who is the ultimate shareholder. Interest accrues on the loan at the rate of 2.2% above the National Loans Fund interest rate as published by the Public Works Loan Board.

Sandway Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

8 | Parent and ultimate parent undertaking

The company's immediate parent is Sefton (ACS) Holding Company Limited, incorporated in England and Wales.
The ultimate parent is Sefton Metropolitan Borough Council, incorporated in England and Wales.

9 | Prior year adjustment

Tangible Assets - Land
During the year, the company identified that Land included within tangible assets in the prior year had incorrectly been accounted for. The Land related to properties that were sold as freehold properties; however, the land had not been expensed to the cost of sales when the related properties were sold and instead remained recorded as a fixed asset.
As the properties were sold as freehold, the land should have formed part of the development cost and should have been recognised as cost of sales of the properties sold and recognised at the time of each sale. The prior year financial statements have therefore been adjusted to reflect the correct treatment.
In order to correct for these errors, the Company has restated the prior year information for 2023/24, through adjustments to the income statement and Balance Sheet - with further details included within the tables below which include the Cost of sales line from the Income statement and the Tangible asset line from the Balance Sheet.

Impact on Balance Sheet | 31/3/24 |  | 31/3/24
| Published | Adjustment | Restated
Tangible Assets - Land | 2,232,000 | (2,232,000) | -
Current Assets - Stock | 5,176,973 | 424,249 | 5,601,222
Impact on Income Statement |  |  |
Cost of sales | 6,253,259 | 1,807,751 | 8,061,010