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Registered number: 07549600 SHEFFIELD HOUSING COMPANY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
SHEFFIELD HOUSING COMPANY LIMITED
COMPANY INFORMATION
Directors | S Armitage
| S McClean
| T Wray
| H Spencer
| C Clingo (resigned 1 July 2025)
| K Darlow
| A Midgley
| W Thompson (appointed 1 July 2025)
Registered number | 07549600
Registered office | Keepmoat Offices
| The Waterfront
| Lakeside Boulevard
| Doncaster
| South Yorkshire
| DN4 5PL
Independent auditors | Shorts
| Chartered Accountants & Statutory Auditor
| Cedar House
| 63 Napier Street
| Sheffield
| South Yorkshire
| S11 8HA
Bankers | Lloyds Bank plc
SHEFFIELD HOUSING COMPANY LIMITED
CONTENTS
| Page
Strategic Report | 1 - 2
Directors' Report | 3 - 4
Independent Auditors' Report | 5 - 8
Statement of Income and Retained Earnings | 9
Balance Sheet | 10
Statement of Cash Flows | 11
Analysis of Net Debt | 12
Notes to the Financial Statements | 13 - 21
SHEFFIELD HOUSING COMPANY LIMITED
STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2026
Introduction
The directors present the Strategic Report of Sheffield Housing Company Limited (the "Company") for the year ended 31 March 2026.
Business review
The Company made sales in the year of £37,603,103 (2025: £34,141,130) and a profit before taxation for the financial year of £1,301,024 (2025: £2,172,820). The Company is a developer dedicated to building high quality homes in Sheffield. The Company is a partnership between Sheffield City Council, Keepmoat Homes and Great Places and is engaged in a 15-year plan to build 2,300 new homes in 7 districts of Sheffield. At the balance sheet date, the Company had properties in development with a value of £3,491,116 (2025: £18,927,009). The Company continues to work closely with Homes England and other funding bodies to deliver schemes that regenerate neighbourhoods across Sheffield.
Financial key performance indicator
In order to measure the financial impact of the Company’s strategy, we use a variety of key performance indicators (KPIs) to monitor the performance of the Company. These include the following:
Working capital
The amount of working capital required to service the Company's operations is closely monitored and controlled and forms a key part of the management information reviewed on a daily, weekly, and monthly basis. The Company’s current assets mainly comprise trade receivables, work in progress and land held for the development of private housing and affordable housing through partnership schemes. The Company has no significant history of bad or doubtful debts. Page 1
SHEFFIELD HOUSING COMPANY LIMITED
STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Principal risks and uncertainties
A number of external factors, over which we have limited control, have the potential to impact our revenue and business performance including:
Risk and Description | Possible impact | Mitigation | Movement
A number of external factors, over which we have limited control, have the potential to impact our revenue and business performance including: ∙Changes in the UK and European macroeconomic environments ∙Central and local government funding strategies; ∙Government incentives, such as the ‘Help to Buy’ scheme; ∙House price inflation and interest rates; and mortgage availability | Significant policy changes/ a decline in the housing market or additional lending restrictions could have an adverse impact on plot sales and profitability | Government policy is routinely monitored and communicated to management and the business actively participates in industry consultation. Strong end-client relationships result in a partnership approach to determining future volumes of work providing high levels of forward visibility of revenue. Management regularly assess future revenue risk through analysis of their pipeline of future work and adjusts the scale of infrastructure investment accordingly. Our product mix and pricing strategy is regionally assessed and implemented. Maintenance of an appropriate capital structure and Balance Sheet control. | No significant change during the year.
This report was approved by the board on 3 August 2026 and signed on its behalf.
T Wray Director
Page 2
SHEFFIELD HOUSING COMPANY LIMITED
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2026 The directors present their report and the financial statements for the year ended 31 March 2026.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £1,078,012 (2025 - £1,755,765). The statement of income and retained earnings for the year is set out on page 7. Dividends have been proposed and paid out of £Nil (2025: £5,000,000).
Directors
The directors who served during the year were:
S Armitage
S McClean
T Wray
H Spencer
C Clingo (resigned 1 July 2025)
K Darlow
A Midgley
W Thompson (appointed 1 July 2025)
Page 3
SHEFFIELD HOUSING COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Auditors
The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 3 August 2026 and signed on its behalf.
T Wray Director
Page 4
SHEFFIELD HOUSING COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEFFIELD HOUSING COMPANY LIMITED
Opinion
We have audited the financial statements of Sheffield Housing Company Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of Income and Retained Earnings, the Analysis of Net Debt, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Company's affairs as at 31 March 2026 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 5
SHEFFIELD HOUSING COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEFFIELD HOUSING COMPANY LIMITED (CONTINUED)
Opinion on other matters 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 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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. Page 6
SHEFFIELD HOUSING COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEFFIELD HOUSING COMPANY LIMITED (CONTINUED)
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 Auditors' 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: ∙the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; ∙through discussions with the directors and other management and from our commercial knowledge and experience of the clients business, we identified the laws and regulations applicable to the Company; and ∙focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence. We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: ∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and ∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulation. To address the risk of fraud through management bias and override of controls, we: ∙performed analytical procedures to identify any unusual or unexpected relationships; ∙reviewed journal entries to identify unusual transactions; ∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and ∙investigated the rationale behind significant or unusual transactions. ∙ In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: ∙agreeing financial statement disclosures to underlying supporting documentation; ∙reading the minutes of meetings of those charged with governance; ∙enquiring of management as to actual and potential litigation and claims; and ∙considering relationships with HMRC and other relevant authorities. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations Page 7
SHEFFIELD HOUSING COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEFFIELD HOUSING COMPANY LIMITED (CONTINUED) to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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. Howard Freeman BSc FCA (Senior Statutory Auditor) for and on behalf of Shorts Chartered Accountants Statutory Auditor Cedar House 63 Napier Street Sheffield South Yorkshire S11 8HA 3 August 2026 Page 8
SHEFFIELD HOUSING COMPANY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 MARCH 2026
| 2026 | 2025
Note | £ | £
Turnover | 4 | 37,603,103 | 34,141,130
Cost of sales |  | (38,202,600) | (32,638,926)
Gross (loss)/profit |  | (599,497) | 1,502,204
Administrative expenses |  | (439,739) | (477,124)
Other operating income | 5 | 2,645,628 | 1,508,227
Operating profit |  | 1,606,392 | 2,533,307
Interest payable and similar expenses | 8 | (305,366) | (360,487)
Profit before tax |  | 1,301,026 | 2,172,820
Tax on profit | 9 | (223,014) | (417,055)
Profit after tax |  | 1,078,012 | 1,755,765
Retained earnings at the beginning of the year |  | 4,600,455 | 7,844,690
Profit for the year |  | 1,078,012 | 1,755,765
Dividends declared and paid |  | - | (5,000,000)
Retained earnings at the end of the year |  | 5,678,467 | 4,600,455
The notes on pages 13 to 21 form part of these financial statements.
Page 9
SHEFFIELD HOUSING COMPANY LIMITED REGISTERED NUMBER:07549600
BALANCE SHEET AS AT 31 MARCH 2026
|  | 2026 |  | 2025
Note |  | £ |  | £
Current assets |  |  |  |  |
Stocks | 10 | 3,491,116 |  | 18,927,009 |
Debtors | 11 | 455,188 |  | 248,928 |
Cash at bank and in hand |  | 7,805,191 |  | 1,340,549 |
|  | 11,751,495 |  | 20,516,486 |
Creditors: amounts falling due within one year | 12 | (6,072,028) |  | (15,915,031) |
Net current assets |  |  | 5,679,467 |  | 4,601,455
Total assets less current liabilities |  |  | 5,679,467 |  | 4,601,455
Net assets |  |  | 5,679,467 |  | 4,601,455
Capital and reserves |  |  |  |  |
Called up share capital | 14 |  | 1,000 |  | 1,000
Profit and loss account |  |  | 5,678,467 |  | 4,600,455
|  |  | 5,679,467 |  | 4,601,455
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 August 2026.
T Wray
Director
The notes on pages 13 to 21 form part of these financial statements. Page 10
SHEFFIELD HOUSING COMPANY LIMITED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026
|  |  | 2026 | 2025
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 1,078,012 | 1,755,765
Adjustments for: |  |
Government grants | (2,599,725) | (1,508,227)
Interest paid | 305,366 | 360,487
Taxation charge | 223,014 | 417,055
Decrease/(increase) in stocks | 15,435,894 | (4,421,830)
Decrease in debtors | 4,553 | 240,241
(Decrease)/increase in creditors | (4,951,344) | 3,893,438
Corporation tax (paid) | (809,742) | (498,888)
Net cash generated from operating activities | 8,686,028 | 238,041
Cash flows from investing activities |  |
Government grants received | 2,599,725 | 1,508,227
Net cash from investing activities | 2,599,725 | 1,508,227
Cash flows from financing activities |  |
Other new loans | - | 11,300,000
Repayment of other loans | (4,515,745) | (9,312,804)
Dividends paid | - | (5,000,000)
Interest paid | (305,366) | (360,487)
Net cash used in financing activities | (4,821,111) | (3,373,291)
Net increase/(decrease) in cash and cash equivalents | 6,464,642 | (1,627,023)
Cash and cash equivalents at beginning of year | 1,340,549 | 2,967,572
Cash and cash equivalents at the end of year | 7,805,191 | 1,340,549
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 7,805,191 | 1,340,549
The notes on pages 13 to 21 form part of these financial statements.
Page 11
SHEFFIELD HOUSING COMPANY LIMITED
ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 MARCH 2026
| At 1 April 2025 | Cash flows | At 31 March 2026
| £ | £ | £
Cash at bank and in hand | 1,340,549 | 6,464,642 | 7,805,191
Debt due within 1 year | (4,515,753) | 4,515,753 | -
| (3,175,204) | 10,980,395 | 7,805,191
The notes on pages 13 to 21 form part of these financial statements.
Page 12
SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
1. | General information
Sheffield Housing Company Limited is a private company, limited by shares, incorporated and domiciled in the UK. The address of the registered office is Sheffield Housing Company Limited, The Waterfront, Lakeside Boulevard, Doncaster, South Yorkshire, DN4 5PL. The principal activity of the Company continued to be the construction and project management of domestic dwellings. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Revenue
Revenue and profits on private house-building developments are included in the financial statements on legal completion. Revenue in respect of the sale of residential properties is recognised at the fair value of the consideration received or receivable upon legal completion. Open market sale plots are recognised at the agreed sales price, deemed to be fair value, whilst sales to Registered Providers are recognised at the fair value of the sale.
| 2.3 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.4 | Government grants
Government grants are recognised at fair value when there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Grants related to assets are shown as deferred income in the balance sheet and released to other income over the useful life of the related assets.
| 2.5 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. Page 13
SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.6 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
| 2.7 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 14
SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.8 | Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value. (a) Land held for and under development Land held for and under development includes land purchase costs and costs directly attributable to enhancing land value. (b) Work in progress House developments in progress are valued at the lower of cost and net realisable value. Cost comprises direct expenditure, together with an appropriate proportion of production overheads, excluding borrowing costs. Net realisable value represents the estimated amount at which stock could be realised after allowing for costs of completion and realisation.
| 2.9 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.10 | Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties. Page 15
SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below: (i) Fair value of land acquired at a discount to market rate Where the Company enters into specific arrangements with partners who provide discounted land in return for provision of social housing, the fair value of the housing units provided, which equates to the open market value of the discount to land, is reflected in the financial statements. The land value held in the balance sheet is therefore reflected at its fair value and is released to the profit and loss account at this fair value as the land is sold. (ii) Estimation of costs to complete, work in progress and contract provisions In order to determine the profit and loss that the Company is able to recognise on its developments and the work in progress in a specific period, the Company has to allocate the total costs of the developments and the work in progress in proportion to the units completing during the year and those completing in future periods. The total costs of the development requires a degree of estimation. However, management have established internal controls to review and ensure the appropriateness of estimates made on an individual contract basis.
4. | Turnover
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Sale of domestic buildings | 37,603,103 | 34,141,130
| All turnover arose within the United Kingdom.
5. | Other operating income
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Ground rent receivable | 45,903 | 45,000
| Government grants | 2,599,725 | 1,463,227
|  | 2,645,628 | 1,508,227
Page 16
SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
6. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 29,500 | 28,000
7. | Employees
| Staff costs were as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Wages and salaries | 222,289 | 251,766
| Social security costs | 31,620 | 27,101
| Other pension costs | 6,987 | 7,042
|  | 260,896 | 285,909
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2026 | 2025
|  |  | No. | No.
|  | Administration | 4 | 4
|  | Board of directors (see below) | 7 | 6
|  |  | 11 | 10
| Employee numbers disclosed above relate to operational employees, serving in an administrative capacity. There is also the board of directors, who are not remunerated for their services by the Company. The directors are remunerated for their services through their respective parent companies.
8. | Interest payable and similar expenses
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Bank interest payable | 305,366 | 360,487
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SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
9. | Taxation
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 222,872 | 405,672
| Adjustments in respect of previous periods | - | 11,169
| Total current tax | 222,872 | 416,841
| Deferred tax |  |
| Short term timing differences | 142 | 214
| Total deferred tax | 142 | 214
| Tax on profit | 223,014 | 417,055
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as (2025 - lower than) the standard rate of corporation tax in the UK of 25% (2025 - 25%). The differences are explained below:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,301,026 | 2,172,820
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%) | 325,257 | 543,205
| Effects of: |  |
| Additional deduction for land remediation expenditure | (102,243) | (137,319)
| Adjustments in respect of previous periods | - | 11,169
| Total tax charge for the year | 223,014 | 417,055
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 18
SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
10. | Stocks
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| House building work in progress | 3,491,116 | 18,927,009
11. | Debtors
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Trade debtors | 28,380 | 15,956
| Amounts owed by group undertakings | 4,915 | 5,353
| Other debtors | 257,924 | 103,460
| Prepayments and accrued income | 163,969 | 124,017
| Deferred taxation | - | 142
|  | 455,188 | 248,928
12. | Creditors: Amounts falling due within one year
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Trade creditors | 12,541 | 13,437
| Amounts owed to group undertakings | 3,730,121 | 8,504,897
| Corporation tax | - | 375,915
| Other taxation and social security | 7,367 | 8,130
| Accruals and deferred income | 2,321,999 | 7,012,652
|  | 6,072,028 | 15,915,031
| Within amounts owed to group undertakings there are loans from Sheffield City Council of £NIL (2025: £1,346,177), and Keepmoat £NIL (2025: £3,169,568) that are due for repayment on the date of completion of current developments. The Keepmoat loan is secured with a fixed charge and has negative pledges, these are over various leasehold and freehold land for development. The Sheffield City Council loan again is secured by a fixed charge, and is in relation to leasehold landheld for development. Both of these loans were fully repaid in the period. All other amounts owed to related party undertakings are unsecured and payable on demand.
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SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
13. | Deferred taxation
|  | 2026
|  | £
| At beginning of year | 142
| Charged to profit or loss | (142)
| At end of year | -
| The deferred tax asset is made up as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Short term timing differences | - | 142
|  | - | 142
14. | Share capital
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 500 (2025 - 500) Ordinary A shares of £1.00 each | 500 | 500
|  | 500 (2025 - 500) Ordinary B shares of £1.00 each | 500 | 500
|  |  | 1,000 | 1,000
15. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £6,987 (2025 - £7,042). Contributions totalling £Nil (2025 - £1,514) were payable to the fund at the balance sheet date and are included in creditors. Page 20
SHEFFIELD HOUSING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
16. | Commitments under operating leases
| At 31 March 2026 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Not later than 1 year | 6,915 | 6,075
|  | 6,915 | 6,075
17. | Related party transactions
| Sheffield City Council owns 100% of the Ordinary A Shares of £1 each in the Company. During the year the Company incurred costs from Sheffield City Council amounting to £123,944 (2025: £104,765) relating, in principle, to developer contributions, planning fees and recharges of staff costs. The Company also made sales to Sheffield City Council amount to £14,156,480 (2025: £1,521,287). The Company also has loans from Sheffield City Council; a loan of £NIL (2025: £1,346,177) with interest charged at 5.75% plus Bank of England base rate and a loan of £NIL (2025: £NIL) with interest charged at 5.75% plus Bank of England base rate. An interest charge of £119,062 was made in the year (2025: £175,364). At 31 March 2026, the total amount owing to Sheffield City Council was £NIL (2025: £1,346,177). Amounts due from Sheffield City Council was £4,500 (2025: £NIL). KGP (SHC) Limited, a subsidiary of Keepmoat Limited, owns 100% of the Ordinary B Shares of £1 each in the Company. Great Places Housing Association is a wholly owned subsidiary of Great Places Housing Group Limited (“GPHG”), a 10% shareholder of KGP (SHC) Limited. During the year, the Company made sales of £NIL (2025: £2,362,669) to Great Places Housing Association. No balances were payable at the reporting date (2025: £NIL). Plumlife is a wholly owned subsidiary of Great Places Housing Group Limited (“GPHG”), a 10% shareholder of KGP (SHC) Limited. During the year, the Company received ground rent income of £90,903 (2025: NIL). During the year Keepmoat Homes Limited, a fellow Group subsidiary of Keepmoat Limited, undertook build work to the value of £22,146,139 (2025: £35,821,604). At the year end the amount due to Keepmoat Homes Limited was £NIL (2025: £NIL). The Company has a loan from Keepmoat Limited, with a balance outstanding at the reporting date of £NIL (2025: £3,169,568) with interest charged at 7.0%. An interest charge of £152,524 was made in the year (2025: £189,519). MET Living Limited is a related party by virtue of being under the control of one of the directors of the Company. During the year, sales of £NIL (2025: £153,000) were made to MET Living Limited. There were no outstanding balances receivable or payable at the reporting date (2025: £NIL).
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