The directors present the strategic report for the year ended 30 June 2025.

The principal activity of the company and group continued to be that of residential property development and housebuilding within the Yorkshire and Lancashire regions.

Turnover for the year was £29.4m (2024 - £19.9m), reflecting continued activity across the group’s development sites.

The Company recorded a loss of £1.7 million for the year (2024 - Loss £2.1m). The loss primarily arose as a result of margin pressure driven by build cost inflation, extended programme durations on certain sites, and softer market conditions in parts of the year. In addition, the Company continued to incur fixed overhead costs in advance of anticipated future completions.

Despite the reported loss, the underlying development pipeline remains strong. The Company maintains a controlled land bank and continues to progress a number of active sites, with completions scheduled across the next financial period.

Starting during the year and continuing post year end the Directors implemented a number of measures to protect margins and strengthen financial performance, including:

•    Enhanced cost control and tighter procurement processes;

•    Reforecasting of development appraisals to reflect current market conditions;

•    Selective price adjustments across new phases; and

•    Careful management of overhead expenditure and working capital.

The Directors remain focused on restoring profitability through disciplined site acquisition, cost management and delivery of high-quality homes aligned to local demand.

Financial position

At the year end the Group had net assets of £8.3m (2024 - £10.1m). The Company continues to be funded through a combination of a revolving credit facility and shareholder support. Funding arrangements remain in place and are operating within agreed terms.

Going Concern

The financial statements have been prepared on a going concern basis.

The Directors have prepared detailed cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts reflect expected site completions, projected sales rates, committed development expenditure and financing obligations.

The Company’s existing banking facilities remain in place, however they are due to expire in March 2027. The Directors are actively in negotiations, not only with its existing funders but also new ones to secure a new longer term facility before the expiry date (see Note 1.3 for further details on Going Concern). Based on this and the forecasts, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future.

The Board recognises that effective risk management is critical to the long-term success of the business. The principal risks and uncertainties facing the Company are set out below.

Market risk

Demand for residential property is influenced by interest rates, mortgage availability, consumer confidence and broader economic conditions. A downturn in the housing market could adversely affect sales rates and pricing. The Company maintains a diversified site portfolio, closely monitors local market conditions and phases developments to manage exposure.

Build cost and supply chain risk

The Company is exposed to fluctuations in material and labour costs, as well as potential supply chain disruption. Active supplier management, competitive tendering, forward procurement where appropriate and regular cost reviews are undertaken.

Planning and regulatory risk

Delays in obtaining planning consent or changes in building regulations and environmental requirements could impact project viability and timelines. Engagement with experienced planning consultants, early authority engagement and ongoing monitoring of regulatory developments.

Liquidity and funding risk

Housebuilding is capital intensive and dependent on development finance and shareholder funding. Failure to maintain adequate funding could restrict operations. The Company maintains regular dialogue with funders, monitors covenant compliance and prepares rolling cash flow forecasts. Shareholders have confirmed their ongoing financial support.

Operational risk

Delivery delays, contractor performance issues or health and safety incidents may impact profitability and reputation. The Company employs experienced project management personnel, uses established contractors and maintains strict health and safety procedures and oversight.

The Directors monitor performance using a range of financial and operational KPIs, including:

•    Turnover and gross margin;

•    Operating profit/(loss);

•    Cash flow and liquidity levels;

•    Sales rates and forward order book

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2025.

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

Ordinary dividends were paid amounting to £56,000. The directors do not recommend payment of a further dividend.

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

The company and group finances its operations through a mixture of retained profits, bank borrowings and other loans.

The management's objectives are to:-

• retain sufficient liquid funds to enable them to meet its day to day obligations as they fall due whilst maximising returns on any surplus funds;-

• minimise the company and group exposure to fluctuating interest rates; and

• match the repayment schedule of any external borrowings or overdrafts with the expected future cash flows expected to arise from the and company's and group's trading activities.

Hedge accounting is not used by the company and group.

The company's and group's borrowings are in both fixed and variable interest loans. The directors believe this allows them to take advantage of changing conditions in the finance markets as they arise.

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

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

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 group and company, and of the profit or loss of the group 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;

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

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

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

We have audited the financial statements of Verity & Co Homes UK Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2025 and of the group's loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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' report 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.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

There are no recognised gains and losses other than those passing through the profit and loss account.

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

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,638,766 (2024 - £2,033,081 loss).

Verity & Co Homes UK Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Skipton House, Riparian Way, Cross Hills, Keighley, West Yorkshire, United Kingdom, BD20 7BW.

The group consists of Verity & Co Homes UK Ltd and all of its subsidiaries.

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 amounts in these financial statements are rounded to the nearest £.

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

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

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

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

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

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

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company Verity & Co Homes UK Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 30 June 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the 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.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of the financial statements.

Despite challenging trading conditions for housebuilders, the group's financial position is robust and the group retains ongoing support of its bankers. The group signed an extension to the existing facility in March 2026 to extend the facility to March 2027. The group are in detailed discussions, not only with their existing funders, but also new ones to secure a new 3 year funding package. The Directors are confident of securing this before the current facility expires.

Furthermore the group retains unwavering support from its shareholders with further working capital available should the group need it.

Thus, based on the above, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Turnover is recognised upon the legal completion of the sale of property. Deposits received in advance of the sale are held in the balance sheet pending transfer to the profit and loss account upon legal completion of the sale.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

Tangible fixed assets are measured at cost less 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:

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

In the parent company financial statements, investments in subsidiaries are measured at cost less any accumulated impairment losses.

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

At each reporting period end date, the group 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.

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.

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of work in progress comprises materials, direct labour, a proportion of initial site development costs and finance costs directly attributable to site development.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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, which include debtors and cash and bank balances are measured at transaction price.

Trade debtors are recognised at transaction price 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 terms of the receivables.

Financial assets 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 company will not be able to collect all amounts due according to the original terms of the transaction.

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.

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, including creditors, bank loans and other loans are recognised at transaction price.

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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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

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

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.

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

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

In order to assess the appropriateness of the carrying value of stocks and work in progress, the directors are required to make estimations of sales prices, costs and margins on sites in order to determine whether any write downs are required to ensure that stocks and work in progress is stated at the lower of cost and net realisable value. The directors have undertaken a detailed review on a site by site basis of the net realisable value of its land and work in progress. The net realisable value exercise is highly sensitive to the assumptions used and the directors consider both market conditions and the wider economic environment existing at balance sheet date. Identification of costs which should be included in stock and work in progress and the allocation of these costs across sites and plots is an area of judgement. The directors undertake regular reviews of stock and work in progress to ensure correct allocation.

Cost of sales includes an estimate of site costs not yet incurred which have been apportioned to plots sold in the year in order to reflect the actual expected final cost of developing each plot. This is based on the directors' estimate of the total cost of completing a site, which is subject to estimation uncertainty. These estimates materially impact work in progress and the group's gross profit margin. Costs to complete a site are based on professional valuations and updated to reflect the progress of ongoing sites periodically, which reduces the extent of the estimation uncertainty.

In order to assess the appropriateness of the carrying value of certain trade debtors, the directors are required to make estimations as to the future market value of properties, as this determines the amount ultimately recoverable by the company. This exercise is highly sensitive to the assumptions used.

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

After the balance sheet date an ongoing legal claim was settled with the owners of a property adjacent to a development. The total claim, costs and interest amounted to £476,000 of which £100,000 was provided for in the previous year and included in Administrative Expenses. The total liability at the balance sheet date has been included in Other Creditors.

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

Their aggregate remuneration comprised:

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

There is no difference between key management remuneration and directors' remuneration.

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

The group has £43,896 (2024 - £43,896) of capital losses available to carry forward and offset against any future gains it may earn.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Obligations under finance leases and hire purchase contracts are secured upon the asset to which they relate.

With the exception of Skipton Properties Crosshills Limited, none of the above subsidiaries’ results are consolidated within these financial statements. This is on the basis the results of these companies are wholly immaterial to the group. It is also considered that whilst Verity & Co Homes UK Limited (“VHU”) is the 100% shareholder of these companies, once they begin operations as site management companies, VHU no longer retains day to day involvement or control, as would be expected of a typical subsidiary. Under their Articles of Association, these companies are unable to declare dividends to VHU and any gains or losses made by the companies are not attributable to the shareholders of VHU.

The registered office of The School House Barnoldswick Management Company Limited; The Bridge Haworth Management Company Limited; The Green Development Management Company Limited; Crag Road Management Company Limited; The Rise Harden Management Company Limited; Victoria Fold Sabden Management Company Limited; Mill Lane Settle Management Company Limited; The Sycamores Management Company Limited; St Stephen's Skipton (Leasehold) Management Company Limited; St Stephen's Skipton Management Company Limited; The Bridge Haworth (Leasehold) Management Company Limited is Close House, Giggleswick, Settle, BD24 0EA.

The registered office of all other subsidiary companies is Skipton House, Riparian Court, Riparian Way, Crosshills, West Yorkshire BD20 7BW.

The carrying amount of stocks includes £2,131,000 (2024 - £1,757,500) pledged as security for liabilities.

Work in progress includes £795,450 (2024 - £899,750) of finance costs. These costs are directly attributable to site development.

Trade debtors includes an amount of £94,944 (2024 - £115,869) from the sale of residential property. These debtors are secured by way of legal charge over the property to which they relate and are repayable within 15 or 25 years from the original date of purchase. The directors are of the opinion that, as the sale agreement allows for early redemption of the debtor, these balances should be disclosed within debtors falling due within one year. The amount repayable is based on the market value of the property at the repayment date. The directors consider the carrying value to be fairly stated.

The bank loan is denominated in sterling with a nominal interest rate of 3.75% over base. The bank loan is secured by a debenture dated 23 May 2001, legal charges over land held by the group and the company and second charges on the company's shared equity debtors. Repayments are structured to ensure that loans are repaid on maturity.

The company has a series of loans, denominated in sterling, with The Skipton Properties Limited Pension Scheme of £1,586,678 (2024 - £1,076,681), included within other loans. These loans are repayable over the period with the final instalment due in May 2027. The interest rate on these loans is 6% per annum. These loans are secured on the company's properties held for resale (see note 15).

Other loans include an amount of £110,000 (2024 - £150,000), which is denominated in sterling and bears interest at 5.00% per annum.

Other loans include an amount of £100,000 (2024 - £100,000), which is denominated in sterling and bears interest at 3.75% per annum. The loan is unsecured and is repayable on demand.

Other loans include an amount of £1,661,491 (2024 - £3,012,673) due to directors, their family members and a connected family trust. These loans are repayable on demand.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

At the balance sheet date, the group has a deferred tax asset of £276,000 (2024 - £85,600 liability) that has not been recognised as it is not yet certain when the asset will crystalise.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions totalling £7,117 (2024 - £7,838) were payable to the scheme at the end of the year and are included in creditors.

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

Dividends totalling £0 (2024 - £172,000) were paid in the year in respect of shares held by the company's directors.

Midgeham Cliff End Quarry Limited

Mrs L Verity, a director of the company, is the ultimate controlling party of Midgeham Cliff End Quarry Limited.

During the year, the group and the company, have recharged costs of £330,045 (2024 - £349,803) to Midgeham Cliff End Quarry Limited. Midgeham Cliff End Quarry Limited has charged the group and the company £54,592 (2024 - £95,440) for goods and services supplied.

At the balance sheet date the amount owed to Midgeham Cliff End Quarry Limited was £303,820 (2024 - £181,750).

J B M&E Limited

Mrs S L Barraclough is a common director of J B M&E Limited and Verity & Co Homes UK Limited.

During the year the group and the company acquired services to the value of £1,333,230 (2024 - £1,856,391) from J B M&E Limited.

At the balance sheet date the amount due to J B M&E Limited was £39,235 (2024 - £178,390).

Other transactions

Included within other creditors are amounts of £16,467 (2024 - £33,089) due to the company's directors.

The group and the company continue to receive funding from related parties as disclosed in note 18.

During the year the there was no single ultimate controlling party of the group. The majority of the company's shares are held by its directors.