Company registration number 03681826 (England and Wales)
HALLIWELL HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
HALLIWELL HOMES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
HALLIWELL HOMES LIMITED
COMPANY INFORMATION
Directors
Mr M Hargreaves
Mr Paul Bliss
Mr Robert McKay
Company number
03681826
Registered office
Pearce House
80 Cawdor Street
Eccles
Manchester
M30 0QF
Auditor
BK Plus Audit Limited
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
HALLIWELL HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
- 1 -

The directors present the strategic report for the year ended 31 August 2025.

Fair review of the business

The Halliwell Group of companies offers "clinically informed practice" through the medium of education, fostering and residential care. Our objective is to enhance the psychological health of children within the care system. Our Restorative Parenting® Recovery Programme is a therapeutic re-parenting programme which focuses on addressing the emotional, behavioural, social, and developmental needs of the child. Our approach sets us apart from standard residential childcare providers in that it is clinically informed in every aspect of the child’s lived therapeutic experience with the specific aim of helping traumatised children achieve psychological wellbeing.

The Restorative Parenting® Recovery Programme operates on an environmental, interpersonal, and individual level. Psychological growth and recovery are facilitated through the applied understanding of childhood trauma and attachment needs, Positive Behaviour Support and a focus on engagement and achievement through active participation in education and a wide range of activities. Our practice is guided by knowledge and experience of the power of the narrative and reframing, solution focused approaches and is responsive, consistent, and attuned to the child’s needs.

The progress of individual children is monitored monthly through the Restorative Parenting Recovery Index and using additional normed psychological scales where appropriate. Detailed discussion of children’s progress takes place at monthly consultations with a psychologist and additional input is provided on a flexible basis by Halliwell’s clinical team, which includes Psychiatry and Clinical Psychology.

We operate 4 homes in the Northwest of England alongside our sister company Halliwell Home (Midlands Division) who operate 3 in the Midlands area. A plan is now in place to open one additional home in the Stoke area in 2027.

Results for the year ended 31 st August 2025

The directors are pleased to report a successful year for the financial year to 31 st August 2025. Halliwell Homes Limited achieved high levels of occupancy, stable staff teams with reducing agency costs and a good, consistent level of service quality. We are also pleased to continue to report successful outcomes for the children placed with us. We have an average programme completion rate of more than 90%, meaning that more than 4 out of five of the children are currently on track to move out of our programme and be ready for a foster family placement, meeting the objectives of our Restorative Parenting Programme.

Key Performance Indicators

Adjusted EBITDA for the period was £2,442k and 21 children made a transition from the programme having sufficiently recovered from childhood trauma whilst placed with Halliwell. 100% Staffing in the homes was also achieved by the end of the period.

HALLIWELL HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 2 -
Principal Risks and Uncertainties

The Board of Directors expect the business to run at >92% total occupancy in the future given the large number of children in the looked after sector that require a specialist placement.

A primary risk for the business in the upcoming period is the ongoing staffing shortage within the sector. In order achieve the expected outcomes for the children on the programme, a stable team of highly qualified and experienced practitioners is required. However, while the sector has historically had a high staff turnover over the last 12 months Halliwell has consistently achieved and maintained full staffing and plans to overstaff during 2026 in preparation for the opening of a new home in the Midlands region.

The Halliwell Group that Halliwell Homes Limited is part of have and will continue to invest significantly in the recruitment, development and retention of the staff team to ensure that full staffing is maintained, and any risk is mitigated. Our in-house clinical and Learning and Development teams provide an extensive and in-depth programme of continuous professional development for our practitioners as well as clinical oversight and support. This has enabled Halliwell to achieve 100% staffing during this period and to support significant positive outcomes for the children in the looked after system. We intend to continue and build on our focus and investment in the development of our practitioners in the coming year, with the goal of achieving and maintaining full staffing and continuing to further improve the length of time that they stay with the company.

The restructuring of Halliwell to become an Employee Ownership Trust during 2022 has had a positive effect on staff recruitment and retention, with Halliwell achieving staffing capacity well above the average in sector which will support achieving and maintaining high occupancy levels in the coming year. It will also enable Halliwell to offer greater engagement opportunities for all employees in the development of the organisation going forward as well as greater benefits and rewards when the business performs well.

This structure allows Halliwell to most closely align the best interests of the children in its care, our local authority customers and our skilled and committed staff team, meaning the business is well placed to deliver its service objectives and perform successfully financially.

All other risks are managed day to day in the normal course of business.

On behalf of the board

Mr Robert McKay
Director
22 May 2026
HALLIWELL HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2025.

Principal activities

The principal activity of the company continued to be that of education, fostering and residential care for children.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £3,400,000. The directors do not recommend payment of a further dividend.

Directors

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

Dr Fenella Quinn
(Resigned 13 March 2026)
Mr M Hargreaves
Mr Paul Bliss
Mr Robert McKay
Auditor

The auditor, BK Plus Audit Limited, formerly Geens Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

On behalf of the board
Mr Robert McKay
Director
22 May 2026
HALLIWELL HOMES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2025
- 4 -

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

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

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

HALLIWELL HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HALLIWELL HOMES LIMITED
- 5 -
Opinion

We have audited the financial statements of Halliwell Homes Limited (the 'company') for the year ended 31 August 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 August 2025 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

HALLIWELL HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HALLIWELL HOMES LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- 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;

- we identified the laws and regulations applicable to the company through discussions with directors and other management and from our knowledge and experience of the client and businesses in similar sectors;

- we assessed the extent of compliance with the laws and regulations identified through making enquiries of management and inspecting any available legal correspondence; and

- the audit team were in regular communication in relation to laws and regulations and potential instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

HALLIWELL HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HALLIWELL HOMES LIMITED (CONTINUED)
- 7 -

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

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias: and

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigations and claims;

- reviewing legal and professional expenses for ongoing litigation work: and

- reviewing correspondence with HMRC.

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

Use of our report

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

Karen Staley BSc (Hons) FCA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
22 May 2026
HALLIWELL HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
11,087,001
10,498,756
Cost of sales
(6,340,234)
(5,901,643)
Gross profit
4,746,767
4,597,113
Administrative expenses
(2,471,409)
(1,823,077)
Operating profit
4
2,275,358
2,774,036
Interest receivable and similar income
28,377
11,670
Fair value gains on tangible fixed assets
-
0
276,987
Profit before taxation
2,303,735
3,062,693
Tax on profit
7
(240,760)
(355,628)
Profit for the financial year
2,062,975
2,707,065

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HALLIWELL HOMES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2025
31 August 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
9
3,271,219
3,276,885
Current assets
Debtors
10
3,529,447
3,481,574
Cash at bank and in hand
2,358,529
1,856,336
5,887,976
5,337,910
Creditors: amounts falling due within one year
11
(5,879,646)
(3,998,221)
Net current assets
8,330
1,339,689
Net assets
3,279,549
4,616,574
Capital and reserves
Called up share capital
13
170
170
Revaluation reserve
504,721
510,756
Capital redemption reserve
30
30
Profit and loss reserves
2,774,628
4,105,618
Total equity
3,279,549
4,616,574

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 22 May 2026 and are signed on its behalf by:
Mr Robert McKay
Director
Company registration number 03681826 (England and Wales)
HALLIWELL HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 September 2023
170
195,110
30
2,664,199
2,859,509
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
2,707,065
2,707,065
Dividends
-
-
-
(950,000)
(950,000)
Other movements
-
315,646
-
-
315,646
Other movements
-
-
-
(315,646)
(315,646)
Balance at 31 August 2024
170
510,756
30
4,105,618
4,616,574
Year ended 31 August 2025:
Profit and total comprehensive income
-
-
-
2,062,975
2,062,975
Dividends
-
-
-
(3,400,000)
(3,400,000)
Other movements
-
(6,035)
-
6,035
-
Balance at 31 August 2025
170
504,721
30
2,774,628
3,279,549
HALLIWELL HOMES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
4,380,409
2,487,334
Income taxes paid
(345,280)
(59,673)
Net cash inflow from operating activities
4,035,129
2,427,661
Investing activities
Purchase of tangible fixed assets
(167,863)
(146,327)
Proceeds from disposal of tangible fixed assets
6,550
620
Interest received
28,377
11,670
Net cash used in investing activities
(132,936)
(134,037)
Financing activities
Dividends paid
(3,400,000)
(950,000)
Net cash used in financing activities
(3,400,000)
(950,000)
Net increase in cash and cash equivalents
502,193
1,343,624
Cash and cash equivalents at beginning of year
1,856,336
512,712
Cash and cash equivalents at end of year
2,358,529
1,856,336
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
- 12 -
1
Accounting policies
Company information

Halliwell Homes Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pearce House, 80 Cawdor Street, Eccles, Manchester, M30 0QF.

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 at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

The company recognises revenue when the amount of revenue can be measured reliably and when it is probable future economic benefits will flow to the entity.

1.4
Intangible fixed assets other than goodwill

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

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

Development costs
33.3% on straight line
1.5
Tangible fixed assets

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

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

Land and buildings
2% straight line
Leasehold improvements
Over the period of the lease
Equipment
25% Reducing Balance
Motor vehicles
25% Reducing Balance
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 13 -

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

1.6
Impairment of fixed assets

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include debtors 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.

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies , 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.

Other financial liabilities

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

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

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
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 company’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.

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1
Accounting policies
(Continued)
- 15 -

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 when the company has 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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

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

1.12
Retirement benefits

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

1.13
Leases
As lessee

Rentals payable under operating leases are charged to profit or loss on a straight line basis over the term of the relevant lease.

2
Judgements and key sources of estimation uncertainty

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

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

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
11,087,001
10,498,756
2025
2024
£
£
Other revenue
Interest income
28,377
11,670
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 16 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,000
13,000
Depreciation of tangible fixed assets
162,286
144,098
Loss on disposal of tangible fixed assets
4,693
4,822
Operating lease charges
32,000
30,000
5
Employees

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

2025
2024
Number
Number
Directors
4
4
Senior management team
6
10
Teaching, care and administration
147
137
Total
157
151

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
6,120,527
5,569,318
Social security costs
713,355
617,204
Pension costs
124,586
118,143
6,958,468
6,304,665

Redundancy benefits paid in the year totalled £131,061, in 2024 this was £33,000 (3 employees).

6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
560,514
277,204
Company pension contributions to defined contribution schemes
3,964
3,832
564,478
281,036

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
278,618
113,046
Company pension contributions to defined contribution schemes
1,321
1,321

Directors' remuneration includes termination benefits paid to a director of £131,061.

7
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
240,760
342,025
Adjustments in respect of prior periods
-
0
13,603
Total current tax
240,760
355,628

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
2,303,735
3,062,693
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
575,934
765,673
Adjustments in respect of prior years
-
0
13,603
Group relief
(347,114)
(444,567)
Depreciation on assets not qualifying for tax allowances
15,200
15,947
Deferred tax adjustments in respect of prior years
(3,260)
4,972
Taxation charge for the year
240,760
355,628
HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 18 -
8
Intangible fixed assets
Development costs
£
Cost
At 1 September 2024 and 31 August 2025
93,611
Amortisation and impairment
At 1 September 2024 and 31 August 2025
93,611
Carrying amount
At 31 August 2025
-
0
At 31 August 2024
-
0
9
Tangible fixed assets
Land and buildings
Leasehold improvements
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 September 2024
3,040,041
42,854
578,199
173,796
3,834,890
Additions
-
0
-
0
76,306
91,557
167,863
Disposals
-
0
-
0
-
0
(21,898)
(21,898)
At 31 August 2025
3,040,041
42,854
654,505
243,455
3,980,855
Depreciation and impairment
At 1 September 2024
4,081
42,854
394,681
116,389
558,005
Depreciation charged in the year
60,800
-
0
64,956
36,530
162,286
Eliminated in respect of disposals
-
0
-
0
-
0
(10,655)
(10,655)
At 31 August 2025
64,881
42,854
459,637
142,264
709,636
Carrying amount
At 31 August 2025
2,975,160
-
0
194,868
101,191
3,271,219
At 31 August 2024
3,035,960
-
0
183,518
57,407
3,276,885

Land and buildings with a carrying amount of £2,975,160 (2024 - £3,035,960) have been pledged to secure borrowings of Halliwell Care Holding Limited. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Land and buildings were last revalued at 24th July 2024 by Christie & Co, who are independent valuers, not connected with the company, on the basis of market value. The valuation was undertaken in accordance with the Royal Institute of Chartered Surveyors Valuation Standards and was based on recent market transactions on arms length terms for similar properties.

If land and buildings had been measured using the cost model the carrying amounts would have been as follows:

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
9
Tangible fixed assets
(Continued)
- 19 -
Land & buildings
2025
2024
£
£
Cost
2,738,212
2,738,212
Accumulated depreciation
(267,772)
(213,007)
Carrying value
2,470,440
2,525,205
10
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,592,807
2,326,703
Amounts owed by group undertakings
644,251
1,005,623
Other debtors
-
0
9,000
Prepayments and accrued income
292,389
140,248
3,529,447
3,481,574
11
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
739,495
454,925
Amounts owed to group undertakings
1,929,379
399,388
Corporation tax
237,505
342,025
Other taxation and social security
167,618
152,734
Other creditors
1,901,610
1,915,464
Accruals and deferred income
904,039
733,685
5,879,646
3,998,221
12
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,586
118,143

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

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 20 -
13
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
170
170
170
170
14
Contingent liability

Bank Loans

The company has charges over its assets in the form of debentures as senior first-ranking security for the bank loans of £12,674,106 (2024 - £9,479,167) held by parent company Halliwell Care Holding Limited. These bank loans are secured on all the assets of Halliwell Homes Limited and fellow group undertaking Halliwell Homes (Midlands Division) Limited, including (without limitation) a legal mortgage of the land and buildings and a floating charge over all other assets.

Deferred consideration

The group undertook a restructuring o n 24th May 2022 whereby t he former shareholders of the Halliwell Homes Group s old their shares to Halliwell Homes Employee Ownership Trust. Halliwell Care Holding Limited made a contribution to the trust to fund the initial consideration. The Halliwell Homes Group companies are committed to funding quarterly contributions to cover deferred consideration and accrued interest to the former shareholders. As at 31 August 202 4 the amount of deferred consideration due was £7.8m (2024 - £1 1.2 m) plus interest accrued.

15
Operating lease commitments
As lessee

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

2025
2024
£
£
Within 1 year
161,614
179,751
Years 2-5
229,670
375,503
391,284
555,254
16
Related party transactions

The group as taken advantage of the exemption provided in Financial Reporting Standards 102. Disclosures need not be given of transactions entered in to between two or members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

17
Directors' transactions

The amounts owed to directors of the company at the year end was £nil (2024 - £nil).

HALLIWELL HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 21 -
18
Ultimate controlling party

The immediate parent company is Halliwell Care Holding Limited, a company registered in England and the ultimate controlling party is Halliwell Homes EOT Trust which owns 51% of the share capital of Halliwell Care Holding Limited.

19
Cash generated from operations
2025
2024
£
£
Profit after taxation
2,062,975
2,707,065
Adjustments for:
Taxation charged
240,760
355,628
Investment income
(28,377)
(11,670)
Loss on disposal of tangible fixed assets
4,693
4,822
Fair value gain on investment properties
-
0
(276,987)
Depreciation and impairment of tangible fixed assets
162,286
144,098
Movements in working capital:
(Increase)/decrease in debtors
(47,873)
527,593
Increase/(decrease) in creditors
1,985,945
(963,215)
Cash generated from operations
4,380,409
2,487,334
20
Analysis of changes in net funds
1 September 2024
Cash flows
31 August 2025
£
£
£
Cash at bank and in hand
1,856,336
502,193
2,358,529
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