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Registration number: 2757691

Chestnut Homes Limited
Annual Report and Financial Statements
for the Year Ended 31 October 2025

Chestnut Homes Limited

Contents

Strategic Report | 1 to 3
Directors' Report | 4 to 6
Statement of Directors' Responsibilities | 7
Independent Auditor's Report | 8 to 11
Profit and Loss Account | 12
Balance Sheet | 13
Statement of Changes in Equity | 14
Statement of Cash Flows | 15
Notes to the Financial Statements | 16 to 30

Chestnut Homes Limited

Strategic Report for the Year Ended 31 October 2025

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

Principal activity

The principal activity of the company is that of house builders.

Fair review of the business

The company reported turnover of £37.8 million in 2025, a significant increase from £29.2 million in 2024. Growth has been achieved in both private and social housing during the year. The directors are pleased to report the turnover growth in what continues to be a tough trading environment.
Due to the fall in demand for private housing during the 2024 financial year, the company increased the focus on social housing sales where demand remained higher. The finer margins in this sector and the reduced demand has had an impact on the gross profit margin, falling from 17.1% to 14.7%.
The company remains in a strong position with a good variety of ongoing sites in good geographic locations. Ongoing geopolitical tensions are creating uncertainty and inflationary pressures. Whilst the market activity remains depressed due to this, consumer appetite remains robust. This is expected to produce greater sales in the future, as mortgage availability increases and consumer confidence returns.
At the end of the reporting period stock and work in progress levels remained in line with expectations at £26m (2024 - £30.2m). Careful management of cashflow means that net debt levels have reduced at £2.4m.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2025 | 2024
Turnover | £000 | 37,841 | 29,233
Gross profit | £000 | 5,580 | 5,000
Gross profit margin | % | 14.7 | 17
Operating profit | £000 | 2,407 | 1,748
Operating profit margin | % | 6.4 | 6

Chestnut Homes Limited

Strategic Report for the Year Ended 31 October 2025

Principal risks and uncertainties

As with any business, Chestnut Homes Limited faces risks and uncertainties in the course of its day to day operations. The successful management of risk is essential to enable the company to deliver its strategic objectives.
Noted below is a summary of the company’s principal risks and uncertainties. Control of each of these is critical to the ongoing success of the business. As such, their management is primarily the responsibility of the board of directors, supported by the management throughout the company.
Government policy and planning regulations:
Obtaining timely planning permissions and achieving other regulatory requirements and permits is key to starting on site as soon as possible and the delivery of completed homes efficiently. Our management team have technical and planning expertise, focussed on complying with regulations and achieving implementable planning consents which meet required regulations, but are also desirable homes for our customers.
Mortgage availability and demand:
We build homes which are sold to individual purchasers who take on mortgages to finance their purchases. Whilst there is still a shortfall in new homes being built in the UK, the market has experienced a reduction in demand for new purchases, as people lost confidence in the economy due to the elevated levels of inflation. Interest rates have dropped in the period which should help stimulate demand for, and availability of, new mortgages.
Our team selects the locations and home designs that best meet the needs of the local community and customer demand in the present and future. We evaluate new locations on the basis of local market conditions and regularly review the pricing and incentives that we offer. We continue to promote Government backed schemes and our customers demonstrate continued interest in our product.
Material costs and availability of subcontractors:
We aim to commence work on new sites as soon as planning consents and cash flow projections allow, to accelerate build progress and optimise return on capital employed. If the availability of subcontractors or materials is insufficient to meet demand, this could lead to longer build times and increased costs, thereby reducing profitability and return on capital employed. We maintain regular contact with suppliers, negotiating contract volumes, pricing and duration. We provide high level and site-specific programme information to the subcontractor base to aid with demand planning. When selecting our subcontractors, we consider competencies particularly in relation to health and safety, quality, previous performance and financial stability. We are fortunate to have long standing excellent relationships with both suppliers and subcontractors, based on mutual trust.
Land purchasing:
Purchasing poor quality or overpriced land, or incorrectly timing land purchases would have a detrimental impact on our profitability, cashflow and return on capital employed. Acquiring insufficient land would reduce our ability to actively manage our land portfolio and generate profits. Our land team prepares, develops and follows an acquisition strategy to guide their land searches to match the needs of the company. They select and appraise each site, with the appraisal process ensuring that each project is financially viable, consistent with our strategy and appropriately authorised.

Chestnut Homes Limited

Strategic Report for the Year Ended 31 October 2025

Health and safety:
The company has detailed procedures and policies in place to minimise health and safety risks which are inherent due to the nature of the business. The directors takes this responsibility seriously and in order to manage this risk, procedures and policies are constantly being reviewed and extensive training is provided. The company also makes extensive use of external health & safety audits.

Section 172(1) statement

The board understands that its decisions can have an impact on the long term success of the business. At board level the stakeholders of the company have been identified, the key stakeholders for the business are the company employees, suppliers and the communities the company serves. These stakeholders are then considered in all business operations.

Our employees are fundamental to our business. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and wellbeing of our employees is one of our primary considerations in the way we do business.

Chestnut Homes has built up a reputation over 34 years for building quality homes for the residents of Lincolnshire. Close relationships are developed with suppliers and stringent review processes are in place to ensure the finished home is of the highest quality to meet the expectations of our customers.

Chestnut Homes is a local company serving the local communities, so engagement with these stakeholders is important for both the benefit of the local area and the success of the business.

Understanding the local communities’ views and desires is imperative when considering new sites, and it can be seen that the company will consider local views, as plans are submitted and amended.

Approved by the Board on 10 July 2026 and signed on its behalf by:

Mr D S Newton Director |  |

Chestnut Homes Limited

Directors' Report for the Year Ended 31 October 2025

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

Directors of the company

The directors who held office during the year were as follows:

Mr R D Newton

Mr N R Kempster

Mr D S Newton

Mr P C Rennison (appointed 5 September 2025)

Mrs R L Archer (appointed 5 September 2025)

Results and dividend

The results for the year are set out on page 12.
Dividends were paid amounting to £100,000.00. The directors do not recommend payment of a further final dividend.

Financial instruments

Objectives and policies

The directors take the management of risk very seriously and as such have policies and procedures in place which have been authorised by the Board. Managing risk is seen as a key attribute of the company and strict health and safety policies are in place as well as detailed working procedures to minimise the risks out on site. At Board level regular meetings are held where current management accounts and long term forecasts are available to highlight any financial risks to be dealt with.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due, and to make payments promptly to meet agreed payment dates.

Chestnut Homes Limited

Directors' Report for the Year Ended 31 October 2025

Corporate governance

The company does not apply a formal corporate governance code. The need to apply a particular formal code was reviewed and concluded that due to the small number of members of the company board it would not be cost effective. The close direct involvement of the board alleviates a large amount of the extra work to adopt The Wates Corporate Governance Principles.
The board is made up of five directors who are involved in all areas of the daily business activities and therefore have a good understanding and close involvement in each area. The board also represent the shareholders of the company. The expectations of the board are clearly conveyed and all members work to the highest standards.
The board fosters a close relationship with the stakeholders of the business as identified and encourages open dialogue with those parties. Through the close relationships it will ensure the future success of the company.

Engagement with employees

Employees are of strategic importance for the business. The Section 172(1) statement within the Strategic Report gives further detail.

Engagement with suppliers, customers and other relationships

The board of directors have identified the importance of building relationships with the suppliers and customers of the business. The Section 172(1) statement within the Strategic Report gives further detail.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Non-financial and sustainability information

Energy and carbon report

We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Chestnut Homes Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.

Governance

At Chestnut Homes, we believe that each of our employees, suppliers, contractors and stakeholders has a crucial role in the sustainable development of our new homes.
We are committed to manage our environmental impacts and reduce carbon emissions.

Chestnut Homes Limited

Directors' Report for the Year Ended 31 October 2025

Emissions and energy consumption

Energy and carbon reporting follows a financial control approach, consolidating emissions from multiple sources, reporting significant energy consumption and carbon emissions from activities and operations that Chestnut Homes have financial control over.
This includes energy consumption and carbon emissions from our offices (including sales offices and head office), construction sites, plots, show homes and transport under our control.
Gas and electricity totals have been taken from service supplier bills for each office / site with a per kWh average taken over each quarter.
Transport fuel totals for those with company vehicles were taken from the company fuel card invoices in litres and converted accordingly.

Energy and carbon data summary for the year ended 31 October 2025:

Name and description | Unit of measurement | 2025 | 2024
Annual quantity of emissions resulting from activities for which the company is responsible for the purposes of transport | tCO2e | 83.00 | 75.00
Annual quantity of emissions resulting from the purchase of electricity by the company for its own use | tCO2e | 54.00 | 30.00
Aggregate of the annual quantity of energy consumed from activities for which the company is responsible for the purposes of transport and by the company for its own use | kWh | 671,754.00 | 477,151.00

Intensity ratio

CO2 emissions have been reviewed in respect of properties sold with 3,906kWh (2024 - 3,336kWh) emitted per property sold.

Approved by the Board on 10 July 2026 and signed on its behalf by:

Mr D S Newton
Director

Chestnut Homes Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

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

Chestnut Homes Limited

Independent Auditor's Report to the Members of Chestnut Homes Limited

Opinion

We have audited the financial statements of Chestnut Homes Limited (the 'company') for the year ended 31 October 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, 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).

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 31 October 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Chestnut Homes Limited

Independent Auditor's Report to the Members of Chestnut Homes Limited

Opinion on other matter prescribed by the Companies Act 2006

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

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page 7, 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.

Auditors' responsibilities for the audit of the financial statements

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

• | the nature of the industry and sector, control environment and business performance;

Chestnut Homes Limited

Independent Auditor's Report to the Members of Chestnut Homes Limited

• | the company’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
• | results of our enquiries of management about their own identification and assessment of the risks of irregularities;
• | the key laws and regulations under which the business operates and whether management were aware of any instances of non-compliance;
• | whether the management have knowledge of any actual, suspected or alleged fraud;
• | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
• | the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
| As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: work in progress costing and margin recognition and purchase/working capital transactions. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
| We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the health and safety regulations, UK Companies Act, Tax legislation, and Regulations established by regulators in the key markets in which the company operates.
| In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the operating and environmental regulations relevant to the company.
| In addition to the above, our procedures to respond to risks identified included the following:
• | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements;
• | enquiring of management, concerning any actual and potential litigation and claims;
• | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• | in addressing the risk of fraud in revenue recognition, we have vouched sales to completion statements or third party valuations to assess accuracy and completeness of revenue recognised
• | in addressing the risk of fraud in the use of purchase ledger/working capital transactions, we have reviewed the accounting treatments adopted by management against the specific contractual terms and arrangements associated with each individual transaction and reviewed the related disclosures in the financial statements;
• | in addressing the risk of fraud through the work in progress costing and margin recognition, we have tested the calculation of site appraisals, tested WIP additions to the supporting invoices to ensure they are correctly recognised, performed retrospective review of appraisals on both closed and active developments to ensure appraisals are up to date, accurate and appropriate, inquired with management regarding any unusual trends; and

Chestnut Homes Limited

Independent Auditor's Report to the Members of Chestnut Homes Limited

• | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
| We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
| Due to 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 is available on the Financial Reporting Council’s website at: 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.

John Heeney BA(Hons) FCA (Senior Statutory Auditor)
For and on behalf of RNS Chartered Accountants, Statutory Auditor
50-54 Oswald Road
Scunthorpe
North Lincolnshire
DN15 7PQ

10 July 2026

Chestnut Homes Limited

Profit and Loss Account for the Year Ended 31 October 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 37,840,973 | 29,233,433
Cost of sales |  | (32,261,195) | (24,233,011)
Gross profit |  | 5,579,778 | 5,000,422
Administrative expenses |  | (3,200,947) | (3,297,206)
Other operating income | 4 | 28,016 | 44,429
Operating profit | 5 | 2,406,847 | 1,747,645
Interest payable and similar expenses | 7 | (403,885) | (525,781)
Profit before tax |  | 2,002,962 | 1,221,864
Taxation | 11 | (482,448) | (310,920)
Profit for the financial year |  | 1,520,514 | 910,944

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Chestnut Homes Limited

Registration number: 2757691
Balance Sheet as at 31 October 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |  |  |
Tangible assets | 12 |  | 809,939 |  | 416,663
Other financial assets | 13 |  | 25,000 |  | 25,000
|  |  | 834,939 |  | 441,663
Current assets |  |  |  |  |
Stocks | 14 | 26,042,425 |  | 30,219,114 |
Debtors | 15 | 6,894,575 |  | 3,399,395 |
Cash at bank and in hand | 16 | 12,521 |  | 61,093 |
|  | 32,949,521 |  | 33,679,602 |
Creditors: Amounts falling due within one year | 17 | (7,957,837) |  | (10,203,348) |
Net current assets |  |  | 24,991,684 |  | 23,476,254
Total assets less current liabilities |  |  | 25,826,623 |  | 23,917,917
Creditors: Amounts falling due after more than one year | 17 |  | (366,362) |  | -
Provisions for liabilities | 19 |  | (202,483) |  | (80,653)
Net assets |  |  | 25,257,778 |  | 23,837,264
Capital and reserves |  |  |  |  |
Called up share capital | 21 | 100 |  | 100 |
Profit and loss account |  | 25,257,678 |  | 23,837,164 |
Total equity |  |  | 25,257,778 |  | 23,837,264

Approved and authorised by the Board on 10 July 2026 and signed on its behalf by:

Mr D S Newton Director |  |

Chestnut Homes Limited

Statement of Changes in Equity for the Year Ended 31 October 2025

| Share capital £ | Retained earnings £ | Total £
At 1 November 2024 | 100 | 23,837,164 | 23,837,264
Profit for the year | - | 1,520,514 | 1,520,514
Total comprehensive income | - | 1,520,514 | 1,520,514
Dividends | - | (100,000) | (100,000)
At 31 October 2025 | 100 | 25,257,678 | 25,257,778

| Share capital £ | Retained earnings £ | Total £
At 1 November 2023 | 100 | 23,026,220 | 23,026,320
Profit for the year | - | 910,944 | 910,944
Total comprehensive income | - | 910,944 | 910,944
Dividends | - | (100,000) | (100,000)
At 31 October 2024 | 100 | 23,837,164 | 23,837,264

Chestnut Homes Limited

Statement of Cash Flows for the Year Ended 31 October 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 1,520,514 | 910,944
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 118,775 | 124,348
(Profit)/loss on disposal of tangible assets | 5 | (44,154) | 653
Finance costs | 7 | 403,885 | 525,781
Corporation tax expense | 11 | 482,448 | 310,920
|  | 2,481,468 | 1,872,646
Working capital adjustments |  |  |
Decrease/(increase) in stocks |  | 4,176,689 | (931,523)
Increase in debtors |  | (969,180) | (291,850)
Increase in creditors |  | 1,185,209 | 779,099
Cash generated from operations |  | 6,874,186 | 1,428,372
Corporation taxes paid |  | (335,738) | (670,351)
Net cash flow from operating activities |  | 6,538,448 | 758,021
Cash flows from investing activities |  |  |
Acquisitions of tangible assets | 12 | (178,902) | (175,779)
Proceeds from sale of tangible assets |  | 172,505 | -
Loan to parent company |  | (2,526,000) | -
Net cash flows from investing activities |  | (2,532,397) | (175,779)
Cash flows from financing activities |  |  |
Interest paid | 7 | (403,885) | (525,781)
Repayment of other borrowing |  | (18,108) | (3,780)
Payments to finance lease creditors |  | (14,493) | -
Dividends paid | 23 | (100,000) | (100,000)
Net cash flows from financing activities |  | (536,486) | (629,561)
Net increase/(decrease) in cash and cash equivalents |  | 3,469,565 | (47,319)
Cash and cash equivalents at 1 November |  | (5,438,907) | (5,391,588)
Cash and cash equivalents at 31 October | 16 | (1,969,342) | (5,438,907)

Chestnut Homes Limited

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

1 | General information

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

The address of its registered office is:
The Old School
Wragby Road
Langworth
Lincoln
LN3 5BJ
Registration number: 2757691.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The accounts are presented in Sterling, which is the functional currency of the company. The accounts have been rounded to the nearest pound.

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 reviewed where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover is recognised at the legal completion in respect of the total proceeds of building and development. Turnover is measured at the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Chestnut Homes Limited

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

Contract revenue recognition

Turnover is only recognised on a construction contract where the outcome can be estimated reliably. Turnover and costs are recognised by reference to the stage of completion of contract activity at the year end date. This is normally measured by surveys of the work performed to date. Contracts are only treated as construction contracts when they have been specifically negotiated for the construction of a development of property.

Government grants

Government grants are recognised in the profit and loss account so that the income is matched with the costs to which they relate.

Tax

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

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

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Furniture, fittings and equipment | 15% on written down value or 20%, 33% or 50% on cost
Motor vehicles | 25% on written down value

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

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

Chestnut Homes Limited

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

Trade debtors

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

Stocks

Stocks and work in progress, excluding long-term contract work in progress, are valued at the lower of cost and estimated selling price less costs to complete and sell which is equivalent to the net realisable value.
The cost of finished goods and work in progress comprises direct materials, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

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

Borrowings

Interest-bearing borrowings are recorded at fair value, net of transaction costs.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Chestnut Homes Limited

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

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

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Chestnut Homes Limited

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

3 | Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 26,441,054 | 19,681,809
Construction contracts | 11,399,919 | 9,551,624
| 37,840,973 | 29,233,433

The amount of contract revenue recognised in the year was £11,399,919 (2024 - £9,551,624).
Contract revenue is determined based on the stage of completion of the project.
A third party assesses the valuation of the works completed to date.
The gross amount due from customers for contract work was £1,789,167 (2024 - £1,458,951).
The gross amount due to customers for contract work as a liability is £151,203 (2024 - £172,264).

4 | Other operating income

The analysis of the company's other operating income for the year is as follows:

| 2025 £ | 2024 £
Rent receivable | 420 | 10,100
Other income | 27,596 | 34,329
| 28,016 | 44,429

5 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 118,775 | 124,348
Operating lease expense - property | 67,170 | 67,205
(Profit)/loss on disposal of property, plant and equipment | (44,154) | 653

6 | Government grants

Included within turnover is £965,118 (2024 - £Nil) in relation to grants received from the Government under the First Homes Scheme. The grants are recognised on the legal completion of the property.

Chestnut Homes Limited

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

7 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 392,792 | 519,281
Interest expense on other finance liabilities | 11,093 | 6,500
| 403,885 | 525,781

8 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 2,102,443 | 2,148,072
Social security costs | 424,233 | 322,163
Pension costs, defined contribution scheme | 93,431 | 93,094
| 2,620,107 | 2,563,329

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Production | 27 | 28
Administration and support | 30 | 32
Sales | 9 | 9
| 66 | 69

9 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 511,571 | 487,589
Contributions paid to money purchase schemes | 17,057 | 15,898
| 528,628 | 503,487

Chestnut Homes Limited

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

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 4 | 2

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 212,202 | 225,200

10 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 19,610 | 18,435
Other fees to auditors |  |
Taxation compliance services | 1,000 | 750
All other assurance services | 7,841 | 7,729
| 8,841 | 8,479

11 | Taxation

Tax charged in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 360,618 | 321,738
Deferred taxation |  |
Arising from origination and reversal of timing differences | 121,830 | (10,818)
Tax expense in the profit and loss account | 482,448 | 310,920

Chestnut Homes Limited

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

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 2,002,962 | 1,221,864
Corporation tax at standard rate | 500,741 | 305,466
Effect of expense not deductible in determining taxable profit | 6,329 | 5,453
Deferred tax expense/(credit) from unrecognised temporary difference from a prior period | 121,830 | (10,818)
Tax (decrease)/increase from effect of capital allowances and depreciation | (121,832) | 10,819
Tax decrease arising from group relief | (24,620) | -
Total tax charge | 482,448 | 310,920

Deferred tax

Deferred tax assets and liabilities

2025 | Liability £
Differences between accumulated depreciation and capital allowances | 202,483
| 202,483

2024 | Liability £
Differences between accumulated depreciation and capital allowances | 80,653
| 80,653

Chestnut Homes Limited

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

12 | Tangible assets

| Furniture, fittings and equipment £ | Motor vehicles £ | Total £
Cost or valuation
At 1 November 2024 | 1,122,829 | 324,525 | 1,447,354
Additions | 640,402 | - | 640,402
Disposals | (411,302) | (35,595) | (446,897)
At 31 October 2025 | 1,351,929 | 288,930 | 1,640,859
Depreciation
At 1 November 2024 | 873,392 | 157,299 | 1,030,691
Charge for the year | 78,670 | 40,105 | 118,775
Eliminated on disposal | (297,041) | (21,505) | (318,546)
At 31 October 2025 | 655,021 | 175,899 | 830,920
Carrying amount
At 31 October 2025 | 696,908 | 113,031 | 809,939
At 31 October 2024 | 249,437 | 167,226 | 416,663

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Equipment | 595,069 | -

Chestnut Homes Limited

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

13 | Other financial assets (current and non-current)

| Financial assets at cost less impairment £ | Total £
Non-current financial assets
Cost or valuation
At 1 November 2024 | 25,000 | 25,000
At 31 October 2025 | 25,000 | 25,000
Carrying amount
At 31 October 2025 | 25,000 | 25,000
At 31 October 2024 | 25,000 | 25,000

14 | Stocks

| 2025 £ | 2024 £
Work in progress | 26,042,425 | 30,219,114

15 | Debtors

| Note | 2025 £ | 2024 £
Trade debtors |  | 1,700,016 | 1,293,276
Amounts owed by related parties | 25 | 2,526,000 | -
Other debtors |  | 488,242 | 507,959
Prepayments |  | 1,663,804 | 1,259,674
Social security and other taxes |  | 516,513 | 338,486
Total current trade and other debtors |  | 6,894,575 | 3,399,395

Chestnut Homes Limited

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

16 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 12,521 | 9,059
Cash at bank | - | 52,034
| 12,521 | 61,093
Bank overdrafts | (1,981,863) | (5,500,000)
Cash and cash equivalents in statement of cash flows | (1,969,342) | (5,438,907)

17 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 18 | 2,062,508 | 5,500,000
Trade creditors |  | 3,649,971 | 2,582,319
Amounts due to related parties | 25 | - | 18,108
Social security and other taxes |  | 123,975 | 93,615
Accrued expenses |  | 1,960,766 | 1,873,569
Corporation tax liability |  | 160,617 | 135,737
|  | 7,957,837 | 10,203,348
Due after one year |  |  |
Loans and borrowings | 18 | 366,362 | -

Chestnut Homes Limited

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

18 | Loans and borrowings

Current loans and borrowings

| 2025 £ | 2024 £
Bank overdrafts | 1,981,863 | 5,500,000
Hire purchase contracts | 80,645 | -
| 2,062,508 | 5,500,000

Non-current loans and borrowings

| 2025 £ | 2024 £
Hire purchase contracts | 366,362 | -

The bank loans and overdrafts are secured on various assets included in the land bank.
Hire purchase contracts are secured against the assets to which they relate.

19 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 November 2024 | 80,653 | 80,653
Increase in existing provisions | 121,830 | 121,830
At 31 October 2025 | 202,483 | 202,483

20 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £93,431 (2024 - £93,094).

Chestnut Homes Limited

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

21 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 100 | 100 | 100 | 100

Rights, preferences and restrictions

Ordinary shares have full rights in the company regarding voting, dividends and capital distribution.

22 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Later than one year and not later than five years | 65,000 | 65,000
| 65,000 | 65,000

The amount of non-cancellable operating lease payments recognised as an expense during the year was £65,000 (2024 - £65,000).

23 | Dividends

Interim dividends paid

| 2025 £ | 2024 £
Interim dividend of £1,000 per each ordinary share | 100,000 | 100,000

24 | Commitments

The total amount of financial commitments not included in the balance sheet due within one year is £128,945 (2024 - £115,635). The total amount of financial commitments not included in the balance sheet due later than one year and not later than five years is £41,649 (2024 - £121,033). This is in respect of lease hire vehicles.

Chestnut Homes Limited

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

25 | Related party transactions

Transactions with directors

2025 | At 1 November 2024 £ | Advances to director £ | Repayments by director £ | At 31 October 2025 £
Mr D S Newton
Director's loan account | (18,108) | 279,393 | (261,285) | -

2024 | At 1 November 2023 £ | Advances to director £ | Repayments by director £ | At 31 October 2024 £
Mr D S Newton
Director's loan account | (12,539) | 94,431 | (100,000) | (18,108)

No interest is charged in respect of this balance, which is repayable on demand.

Summary of transactions with parent

At the balance sheet date the amount due from the parent was £2,626,000 (2024 - £Nil)

Summary of transactions with all entities with joint control or significant interest

Companies controlled by one of the directors
During the year the company made sales of goods and services to companies under common control of £422,303 (2024 - £175,899) and purchases of goods and services of £888,480 (2024 - £447,212).
At the balance sheet date the amount due from companies under common control was £676,104 (2024 - £649,527).

26 | Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Chestnut Homes Holding Company Limited, incorporated in the UK.

The parent of the largest group in which these financial statements are consolidated is Chestnut Homes Holding Company Limited, incorporated in the UK.

Chestnut Homes Limited

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

The address of Chestnut Homes Holding Company Limited is:
The Old School
Wragby Road
Langworth
United Kingdom
LN3 5BJ