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Registered number:
FOR THE PERIOD ENDED 31 AUGUST 2025
TWP Accounting LLP
Chartered Accountants & Statutory Auditors
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE
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BIRTLEY HOUSE GROUP LIMITED
COMPANY INFORMATION
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BIRTLEY HOUSE GROUP LIMITED
CONTENTS
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BIRTLEY HOUSE GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2025
Introduction
The Directors present the Strategic Report for the period ended 31 August 2025. The Group’s principal trading subsidiaries are involved in the management of a nursing home, Birtley House, and the development and management of close care apartments. The parent company’s principal activity is that of a holding company.
During the year ended 31 August 2025, Birtley House continued its long-standing tradition as an independent, wholly family owned nursing home business. Celebrating its 93rd year of operation, the Group has maintained its reputation for leadership and innovation within the care sector, working closely with local government bodies, Care England and the Surrey Care Association.
The Group remains committed to environmental sustainability and community engagement. Its green initiatives, including a wood fuelled boiler, home grown produce and other environmentally friendly practices, continue to reduce environmental impact while supporting long term efficiency. The estate’s extensive grounds and facilities remain a core differentiator, enabling strong links with local community and charitable organisations, including on site educational and recreational uses. The safety and privacy of our residents are our top priorities—not just physically, but digitally. That’s why we are proud to hold the Cyber Essentials certification, demonstrating our commitment to robust cyber security practices. This internationally recognised standard ensures that residents’ personal information and health data are protected against common online threats, giving families peace of mind that sensitive data is handled securely. Economic conditions during the period remained challenging, with continued inflationary pressure and elevated interest rates impacting both operating costs and consumer behaviour. These factors, together with a longer term trend of individuals remaining in their own homes for longer, have affected demand and sales within the West Wing Apartments. In response, the Board has identified opportunities to adapt the apartment business model to improve long term profitability, income stability and resilience, and work on these initiatives is ongoing. Demand continues to be supported by a multi channel marketing strategy, including a strong online presence, effective search engine optimisation and excellent independent reviews, with a carehome.co.uk rating of 9.7 out of 10. These channels are complemented by close relationships with local community groups and targeted local advertising, which remain a significant source of enquiries. The Group continued to invest in the maintenance and enhancement of its historic property, including compliance with evolving fire safety and regulatory requirements. Ongoing investment in the facilities remains central to protecting asset values and reinforcing the high quality environment that underpins the Group’s market positioning. Staffing remains a key operational focus. Workforce levels and agency usage are closely monitored to ensure cost effective, high quality care delivery. Birtley House continues to be a supportive and flexible employer, offering a comprehensive training and induction programme alongside a competitive employee benefits package. The Group’s approach to recruitment and retention continues to be recognised within the sector.
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BIRTLEY HOUSE GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
The key performance indicators used by the Board in monitoring the performance of the business are the valuation of the company's properties in relation to the level of bank borrowing; the return on these investments and the level of administrative and financing costs incurred.
The Group showed a pre-tax profit for the year of £100,943 (2024 - £543,493). The Group’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is £301,157 (2024 - £848.092). During the year the company incurred administrative expenses of £805,891 (2024 - £800,253) in connection with the management of the group and the Birtley House property. In addition, the company paid interest of £184,606 (2024 - £228,370) in respect of its borrowings. Overall the company showed a pre-tax loss of £660,483 (2024 - pre-tax loss of £748,386).
The nursing home business, operated by Eyhurst Court Limited, continued to perform well in the year, producing income of £4,151,399 (2024 - £4,549,970) and a pre-tax profit of £751,140 (2024 - £1,317,952).
The company involved in the management of the close care apartments, Birtley Mews Limited, traded in-line with expectations. Turnover was £1,089,467 (2024 - £633,557) as a result of the sale of two apartment during the year (one in 2024), and the company generated a pre-tax profit of £4,818 (2024 - pre-tax loss of £25,579).
The Board recognises that the Group operates in a highly regulated and competitive environment and continues to monitor and manage the principal risks facing the business.
Economic and Financial Risk Ongoing economic uncertainty, including inflation and interest rate movements, presents risks to cost control, consumer affordability and financing costs. These risks are mitigated through regular financial forecasting, close cost management and proactive engagement with the Group’s banking partners. Competition Competition arises primarily from new build care homes in the local area. The Group differentiates itself through the quality of care, the employment of registered nurses, extensive outdoor space and a strong sense of community, all of which are considered to be significant competitive advantages. Regulatory Risk The Group is subject to regulation and inspection by the Care Quality Commission. Compliance risk is mitigated through robust internal controls, regular management reporting, ongoing staff training and direct Board involvement in day to day operations. Cyber Security Increased reliance on IT systems exposes the Group to cyber risk. The Directors continue to invest in systems, controls and awareness training to safeguard data and maintain service continuity and we are proud to be Cyber Essentials certified.
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BIRTLEY HOUSE GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
Financial Risk Management
The Group’s principal financial instruments comprise bank loans, overdrafts and long term loans. It is the Group’s policy not to engage in speculative trading of financial instruments. The main financial risks are interest rate risk and liquidity risk which is managed through careful cash flow planning and the use of overdraft facilities where appropriate. Outlook The Directors remain cautiously optimistic about the Group’s prospects. Demand for high quality care remains strong, and the Group’s reputation, environment and community ethos position it well for the future. While economic and regulatory pressures persist, the Board believes that continued investment, prudent financial management and adaptation of the West Wing apartment offering will support the Group’s long term sustainability.
This report was approved by the board on 21 May 2026 and signed on its behalf.
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BIRTLEY HOUSE GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2025
The directors present their report and the financial statements for the period ended 31 August 2025.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the company and group continued to be that of management of a nursing home at Birtley House, eight independent living apartments on the site of Birtley Nursing Home and the Birtley House property and residential care home.
The profit for the period, after taxation, amounted to £77,196 (2024 - £395,569).
The directors of the Company have declared a dividend of £36,000 (2024: £nil).
The directors who served during the period were:
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BIRTLEY HOUSE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
The auditor, TWP Accounting LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 21 May 2026 and signed on its behalf.
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BIRTLEY HOUSE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED
We have audited the financial statements of Birtley House Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the period ended 31 August 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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BIRTLEY HOUSE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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BIRTLEY HOUSE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED (CONTINUED)
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 Group 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Obtain an understanding of the policies and procedures management has in place to detect and prevent fraud and non-compliance with laws and regulations.
∙Enquire of management any cases of actual or suspected fraud and non-compliance with laws and regulations.
∙Enquire of management and those charged with governance around actual and potential litigation and claims.
∙Reviewing minutes of meetings of those charged with governance.
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
∙Assess the key risk areas within the financial statements which are susceptible to fraud or error and design our audit approach thereon.
∙Perform substantive tests on a sample of transactions throughout the financial statements to ensure that no material errors have been identified.
∙Perform cut off tests on a sample of transactions to ensure income has been accounted for in the correct period.
∙Review of after year end information to ensure expenditure have been accounted for in the correct period.
∙Perform analytical review procedures to identify any irregularities and investigation thereon.
∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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BIRTLEY HOUSE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRTLEY HOUSE GROUP LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants & Statutory Auditors
The Old Rectory
Church Street
Surrey
KT13 8DE
21 May 2026
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BIRTLEY HOUSE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2025
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BIRTLEY HOUSE GROUP LIMITED
REGISTERED NUMBER: 05814316
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 May 2026.
The notes on pages 17 to 41 form part of these financial statements.
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BIRTLEY HOUSE GROUP LIMITED
REGISTERED NUMBER: 05814316
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 May 2026.
The notes on pages 17 to 41 form part of these financial statements.
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BIRTLEY HOUSE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2025
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BIRTLEY HOUSE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
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BIRTLEY HOUSE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2025
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BIRTLEY HOUSE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2025
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Birtley House Group Ltd ("the company'') is a private limited company domiciled and incorporated in England and Wales. The registered office is Birtley House, Birtley Road, Bramley, Guildford, Surrey GU5 OLB.
The group consists of Birtley House Group Ltd and all of its subsidiaries.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Birtley House Group Ltd together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
The Directors have reviewed the Company’s and the Group’s forecasts and projections, taking into account current economic conditions, trading performance and the principal risks and uncertainties facing the business. Based on this assessment, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
In forming this assessment, the Directors have prepared detailed cash flow forecasts and financial projections covering a period of at least twelve months from the date of approval of these financial statements. The forecasts reflect the improved trading performance experienced since the year end, including increased occupancy levels and improved fee income in both the nursing home and independent flats at Birtley Mews. Together with a reduction in significant non-recurring expenditure incurred in the prior year, particularly refurbishment and improvement works. As a result, the forecasts demonstrate an improved liquidity position and increased cash generation over the forecast period. The Directors continue to maintain a constructive and positive relationship with the Group’s bank and have recently received confirmation of its ongoing support for the Group’s facilities, notwithstanding covenant compliance matters arising during the year. The Group continues to engage regularly with its bank regarding trading performance, liquidity and covenant reporting. The Directors continue to closely monitor the Group’s financial performance, cash flows and forecast compliance against budgets and projections, including regular review of occupancy levels, operating costs and available headroom within the Group’s banking facilities. After considering the above matters and current trading, the Directors believe that the Company and Group will continue to have adequate resources to meet their liabilities as they fall due for at least twelve months from the date of approval of these financial statements. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements. Licence fees received on assignment of the West Wing apartments had been held as returnable debentures within liabilities until the year ended 31 August 2009. Following an alteration to the legal contracts agreed with the resident on commencement of occupancy, the directors consider that recognition as income more accurately reflects the nature of the transaction and have treated such fees on this basis within the financial statements for all agreements under the new form of contract. Any sales completed under the old format of legal agreement have continued to be treated on a returnable debenture basis.
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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 leased asset are consumed. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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 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 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.
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Revaluation of fixed assets
Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss. The freehold properties used by it's subsidiaries are recognised in the company as investment properties and any associated gains and losses and deferred taxation thereon are recognised in the profit and loss reserve. The freehold properties used by it's subsidiaries are recognised in the group as tangible fixed assets and any associated gains and losses and deferred taxation thereon are recognised in the revaluation reserve.
Page 21
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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. 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. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Page 22
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
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 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. 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.
Page 23
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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 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 and loans from fellow group, 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 payments 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. Derecognition of financial liabilities Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Page 24
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical judgements/estimates The following judgements/estimates have had the most significant effect on amounts recognised in the financial statements: - Revaluing the properties and the calculation of deferred taxation in this respect. The directors do not believe there are any other key judgements or estimations used in preparing these financial statements.
Page 25
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 26
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 27
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
There were no factors that may affect future tax charges.
Page 28
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the period/year was £
Page 29
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 30
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
12.Tangible fixed assets (continued)
Page 31
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
12.Tangible fixed assets (continued)
Page 32
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
12.Tangible fixed assets (continued)
If the land and buildings had not been included at valuation they would have been included under the historical cost convention in line with the amounts disclosed at group level.
Page 33
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 34
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 35
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Secured Debts
Debenture loans are secured by the group and company by way of floating charge over the group's and company's assets. The bank loans are secured by the bank on the freehold property, together with a fixed and floating charge over the group's and company's assets. The obligations under finance leases are secured on the assets to which they relate.
Page 36
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 37
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 38
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Revaluation reserve (consolidation only)
Capital redemption reserve
Profit and loss account
Page 39
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Birtley Mews Limited ("BML") has given security to Stevens & Bolton Trustees Limited over the proceeds of future sales of apartments by BML up to the value of the amounts received from the sales of apartments by BML to the current residents. The aggregate of these amounts at 31 August 2025 was £3,330,000 (2024: £3,390,000). The security given to Stevens & Bolton Trustees Limited by BML shall be in priority to any other security given by BML to its bankers.
Birtley House Group Limited ("BHGL") has given security in the form of individually registered legal charges over the West Wing apartments sold, excluding amounts held as returnable debentures (within creditors due in more than one year). The potential additional liability to BHGL is limited to the lower of the sum paid by the existing resident, the aggregate of which, at 31 August 2025, amounted to £4,565,000 (2024: £4,540,000), and the sum obtained on resale. However, this is contingent upon the apartment concerned being resold and an equivalent payment received from the purchaser, otherwise no liability to the current resident will arise.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £39,840 (2024 - £41,154). Contributions totalling £9,348 (2024: £17,958) were payable to the fund at the balance sheet date and are included in group other creditors.
Page 40
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BIRTLEY HOUSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
At 31 August 2025, included within debtors is an amount due from Mr F Whalley of £10,400 (2024: £10,400). The loan accrues interest at a rate of 4% per annum until such time as the loan is repaid in full. During the year the company received £400 (2024: £400) in interest in respect of the loan outstanding.
At 31 August 2025, included within debtors is an amount due from Mrs M Whalley of £11,656 (2024: £11,656). The loan accrues interest at a rate of 4% per annum until such time as the loan is repaid in full. During the year, the company received £400 (2024 : £400) in interest in respect of the loan outstanding.
Page 41
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