The directors present the strategic report for the year ended 31 October 2025.
The Group delivered another year of strong growth, reporting turnover of £19,967,169 (2024: £13,597,944), operating profit of £1,072,706 (2024: £649,235) and profit before taxation of £303,491 (2024: £150,028). Net assets increased to £12,198,358 (2024: £12,007,765), reflecting the continued strengthening of the Group's financial position and the successful execution of its long-term growth strategy.
The Group's principal strength lies in its integrated business model, combining property development and construction activities within a single group structure. This approach enables the Group to identify, acquire, finance, develop and construct projects using its own in-house expertise, providing greater control over quality, programme delivery, cost and risk while maximising value throughout the lifecycle of each development.
The integration of the development and construction businesses provides a sustainable competitive advantage. The Group's development activities generate a secure pipeline of work for its construction division, reducing reliance on external contracts while creating opportunities for long-term capital growth through retained development assets. At the same time, the construction business continues to deliver projects for public and private sector clients, generating strong cash flows that support ongoing investment in strategic land acquisition and future developments.
A key element of the Group's strategy is the development of long-term partnerships with Registered Social Landlords, Housing Associations, local authorities and other public sector organisations. By combining its land acquisition expertise with its construction capability, the Group is able to provide a complete development solution, from site identification and planning through to construction and handover. This integrated approach provides partners with certainty of delivery, quality and cost whilst enabling the efficient delivery of much-needed housing and community infrastructure.
These strategic partnerships have become an increasingly important driver of the Group's growth, supporting the delivery of affordable, mixed-tenure and specialist housing whilst creating long-term development opportunities and delivering positive social value across the communities in which the Group operates.
Operating through specialist subsidiary companies enables the Group to manage risk effectively whilst maintaining operational focus across its diverse activities. This structure supports disciplined investment decisions and allows profits generated across the Group to be reinvested into land acquisition, development opportunities and continued business growth.
The Directors are pleased with the performance achieved during the year and remain encouraged by the continued quality of opportunities being presented. The combination of a growing land portfolio, strategic partnerships, a substantial construction order book and the Group's reputation for delivering complex projects positions the business strongly for continued sustainable growth.
Within the contracting arm of the business, the principal risk facing the Group remains client stability, particularly during the tendering process. This risk is mitigated through a team of qualified estimators and robust internal controls, with all tenders subject to review by senior management. The Group’s client base includes public bodies and housing associations, which reduces exposure to credit risk.
The Group continues to develop sites through its subsidiary companies to diversify operations and mitigate risk. However, property development carries inherent uncertainties, including:
•Planning and Regulatory Risk: Delays or refusals in obtaining planning permission can impact project timelines and viability. This is mitigated through early engagement with planning authorities and strong relationships with local councils.
•Market Demand and Valuation Risk: Fluctuations in property market conditions may affect the saleability and valuation of developed units. The Group monitors market trends closely and focuses on developments in prime locations with proven demand.
•Construction Cost Inflation: Increases in material and labour costs can erode margins.
•Funding and Liquidity Risk: Property development is capital-intensive. The Group maintains strong relationships with its funders and has access to overdraft and development loan facilities to support its project pipeline.
•Site Acquisition and Due Diligence Risk: Acquiring land without full visibility of constraints, such as contamination, access, or legal title, can lead to unforeseen costs. The Group undertakes thorough due diligence and engages specialist advisors to assess site viability.
•Programme and Delivery Risk: Delays in construction arising from weather, supply chain disruption, or contractor performance can affect revenue recognition. This is mitigated through robust project management and contingency planning.
These risks are actively monitored and managed through the Group’s governance framework, with oversight from senior management and input from external advisors where appropriate.
Cash flow management remains a key focus given the scale of operations. The Group maintains strong relationships with its banking partners, who continue to provide support through overdraft facilities and development loans.
Health and safety remains a priority, supported by a dedicated officer and ISO-certified processes (ISO 9001:2015, ISO 14001:2015, ISO 45001:2018) to manage operational risks.
The Group continues to strengthen its market position through the acquisition and development of strategically located residential, commercial and mixed-use sites. Its integrated development and construction model enables the business to maximise value from land acquisition through to project delivery, maintaining greater control over quality, programme and cost than would otherwise be achievable through separate development and contracting businesses.
The Directors believe that the combination of strategic land acquisition, in-house construction capability and long-standing partnerships with Housing Associations, Registered Social Landlords, healthcare providers and public sector organisations provides the Group with a sustainable competitive advantage. By aligning its development strategy with identified regional housing, healthcare and economic priorities, the Group is helping to deliver homes, employment space, healthcare infrastructure and specialist accommodation that support the long-term needs of North Wales.
Supported by a growing strategic land bank, a substantial construction order book, strong funding relationships and an expanding portfolio of development partnerships, the Group is well positioned to continue delivering sustainable long-term growth while creating lasting value for its shareholders, partners and the communities it serves.
Future Developments
The Group will continue to expand its activities across the residential, commercial, refurbishment and maintenance sectors, maintaining a balanced portfolio of contracting and development projects.
The construction division has secured positions on a number of significant public sector frameworks, including the North & Mid Wales Residential Framework and the North Wales Construction Partnership, alongside existing framework appointments. These framework awards provide excellent visibility of future workload, strengthening the Group's order book and supporting its long-term objective of sustainable and controlled growth.
The Directors expect strategic partnerships with Housing Associations, Registered Social Landlords and local authorities to remain a significant driver of future growth. Increasing demand for high-quality affordable housing continues to create opportunities for organisations capable of delivering both development expertise and construction excellence. The Group's integrated operating model positions it to support partners through every stage of the development process, enabling the efficient delivery of homes that directly respond to identified local housing need.
In addition to its residential and commercial development programme, the Group has continued to identify strategic development opportunities aligned with emerging demographic trends and public sector priorities across North Wales. Through careful land acquisition and planning, the Group has secured development opportunities capable of supporting the future requirements of healthcare providers and local communities.
Recognising the increasing pressures on healthcare infrastructure and workforce recruitment, the Group has strategically aligned elements of its development portfolio with the priorities of Betsi Cadwaladr University Health Board. This includes sites with planning consent or development potential for key worker accommodation, healthcare facilities and specialist elderly care provision in strategically located areas that support existing and planned healthcare services. The Directors believe these developments represent an important opportunity to deliver lasting social value whilst creating sustainable commercial returns through collaboration with healthcare providers, Housing Associations and public sector partners.
The Group's integrated model continues to create significant strategic value. As the development business expands its land holdings, it provides a consistent pipeline of work for the construction division, improving operational planning, enhancing resource utilisation and creating efficiencies that would not be available to standalone construction or development businesses. This enables the Group to respond quickly to changing market demands while maintaining control over programme delivery, quality and cost.
The Directors continue to monitor market conditions closely. Demand remains strong for high-quality residential housing, commercial accommodation and specialist developments that support regional economic growth. Research undertaken by the Group continues to identify a shortage of commercial accommodation suitable for small and medium-sized enterprises, alongside increasing demand for affordable housing, healthcare-related developments and specialist accommodation. The Group's land portfolio and development expertise place it in a strong position to respond to these market requirements efficiently.
As part of its long-term growth strategy, the Group continues to acquire strategically located development land. During 2025, further acquisitions significantly expanded the Group's land bank, securing a development pipeline expected to provide in excess of five years of construction activity. The Group exceeded its land acquisition targets during the year and continues to benefit from the strong support of its funding partners, providing the financial capacity to pursue further strategic opportunities as they arise.
The construction division has also secured contracts with a combined value of approximately £92 million. A number of these projects commenced during 2026, with further schemes scheduled to begin later in the year. This substantial order book provides excellent revenue visibility and is expected to support significant growth in turnover over the coming years while complementing the Group's expanding development programme.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 October 2025.
The results for the year are set out on page 9.
No ordinary dividends were paid. 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 auditor, DSG Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 parent 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 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 group and parent 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 parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of K & C Group (NW) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, 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).
Basis for 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
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:
· Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
· Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, trades description act and employment legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; reviewing post year end payments for evidence of claims pay outs and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,047,131 (2024 - £75,048 profit).
K & C Group (NW) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is New Vision House, New Vision Business Park, Glascoed Road, St Asaph, Denbighshire, LL17 0LP.
The group consists of K & C Group (NW) Limited 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, modified to include investment properties and certain financial instruments at fair value. 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.
The consolidated group financial statements consist of the financial statements of the parent company K & C Group (NW) Limited 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 31 October 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The directors have prepared cash flow forecasts for the Group which demonstrate that it will continue to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements.
The forecasts reflect the Group’s principal sources of funding and liquidity, including the continued support of its lenders, the availability of development finance facilities and the expected generation of cash flows from construction contracts and property sales in the normal course of business. The directors have also considered the nature and timing of development activity across the Group and the associated working capital requirements.
The Group maintains strong relationships with its funding partners and has a track record of securing and renewing facilities as required. The directors have also confirmed their continued support for the Group and its operations.
Having considered the forecasts, funding arrangements and the level of available support, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Revenue comprises the fair value of consideration received or receivable for the supply of goods and services in the ordinary course of the Group’s activities, net of value added tax, trade discounts and rebates.
Revenue is recognised when the Group satisfies a performance obligation by transferring control of goods or services to a customer.
Revenue from construction contracts is recognised over time by reference to the stage of completion of the contract activity at the reporting date, measured using the proportion of costs incurred to date compared to the total estimated contract costs. Variations, claims and incentive payments are included where the amount can be measured reliably and recovery is considered probable. Where it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately.
Revenue from the sale of properties is recognised at the point of legal completion, when control and title of the property transfers to the buyer.
Rental income from investment properties is recognised on a straight-line basis over the lease term.
Where payment terms give rise to a financing element, revenue is measured at the present value of future receipts and the financing element is recognised separately as interest income over time.
Construction contracts are accounted for using the percentage of completion method.
The stage of completion is measured by reference to costs incurred to date as a proportion of total estimated contract costs.
Costs relating to future activity are excluded from contract costs in determining the stage of completion and are recognised as stocks, prepayments or other assets as appropriate, provided they are expected to be recovered.
Amounts recoverable on contracts and payments received on account are presented within debtors and creditors respectively.
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.
Investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently 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. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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 initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred, except when they are directly attributable to the acquisition, construction, or production of qualifying assets. In these cases, the costs are capitalised as part of the asset’s cost.
Management exercises judgement in determining which borrowing costs are directly attributable to development activity. Where appropriate, these costs are included in work in progress, reflecting the matching of costs with the economic benefits expected from the sale of completed units.
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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Management exercises judgement in determining which borrowing costs are directly attributable to the development of qualifying assets. This includes assessing the nature of the financing arrangements and the stage of development. Borrowing costs that meet these criteria are included in work in progress. The estimation approach is reviewed periodically to ensure it reflects the underlying economics of the development activity.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Investment property comprises Chatsworth House and HM Stanley (Livingston).
At 31 October 2025, the investment property portfolio had a fair value of £2,270,000 (2024: £2,624,137).
During the year, the group disposed of its interest in Tir Llwyd Enterprise Park for total consideration of £710,000. The property comprised both investment property and owner-occupied elements. The disposal has been accounted for in accordance with the classification of the underlying assets, with any resulting gain or loss recognised within the profit and loss account.
Following the disposal, Tir Llwyd is no longer included within investment property at the year end.
The fair value of the remaining investment properties has been determined based on a valuation carried out at 31 October 2023 by independent Chartered Surveyors, who are not connected with the company. The valuation was prepared on an open market value basis by reference to market evidence of transaction prices for similar properties.
The directors have considered the carrying value of the remaining properties at 31 October 2025 and are satisfied that there has been no material change in value since the date of the external valuation.
Details of the company's subsidiaries at 31 October 2025 are as follows:
The Group’s borrowings comprise a mixture of development finance facilities and term loans used to fund property development activities, land acquisitions and working capital requirements across the Group.
The facilities are secured by fixed and floating charges over certain development properties, land holdings and other assets of the Group. The development finance facilities are linked to specific development projects and are expected to be repaid from property sales and site realisations as those developments progress. Management monitors compliance with facility terms and maintains regular dialogue with funding partners regarding existing and future funding requirements.
At 31 October 2025, total borrowings amounted to £14,356,825 (2024: £16,245,323).
The following are the major deferred tax liabilities and assets recognised by the group and company:
During the year, the Group recognised income of £347,821 (2024: £72,155) in respect of transactions with K&C (Property North Wales) Limited, a company in which director C D White has a material interest. At 31 October 2025, the Group had a net creditor balance of £203,375 (2024: £595,647) due to K&C (Property North Wales) Limited.
During the year, the Group charged £1,203 (2024: £5,532) to K&C (Property North Wales) Limited in respect of management services and incurred costs of £12,026 (2024: £22,205) for works completed. Included within debtors at 31 October 2025 was a balance of £370 (2024: £1,006) relating to transactions with this entity.
At 31st October 2025, included within trade debtors was a balance of £3,375 (2024: £2,775) in relation to works completed on behalf of All Seasons Facility Management LLP in which the director has a material interest. During the year a charge of £3,510 (2024: £3,510) was made to All Seasons Facility Management Charge LLP for management services and £28,310 (2024: £25,032) paid for works completed.
Included within trade debtors at 31 October 2025 was a balance of £916,125 (2024: £200,028) in relation to works completed on behalf of the directors. During the year, income of £1,415,691 (2024: £791,531) was recognised in respect of works and services provided to the directors.
As at 31 October 2025 there was an amount due from a director of £16,956 (2024: £40,945)
During the year, the Group disposed of Units 1 and 2 at Tir Llwyd Enterprise Park to the directors' pension scheme (White Family SSAS), a related party, for total consideration of £710,000. The consideration was settled by way of set-off against amounts owed by the Group to the pension scheme. The transaction was supported by an independent valuation and was undertaken at market value.
At 31 October 2025, the Group had an outstanding loan balance of £885,500 (2024: £1,421,140) due to the directors' pension scheme (White Family SSAS).
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.
At 31 October 2025 the Group had contracted capital commitments of £3,610,000 (2024: £3,610,000) in respect of ongoing property development projects.
The commitments principally relate to construction and infrastructure expenditure required to complete developments currently in progress and are expected to be financed through existing development finance facilities, operating cash flows and future property sales.