REGISTERED NUMBER: 05014570 (England and Wales)

HERITAGE DEVELOPMENTS SOUTH WEST LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

S Anthony

A P Martinovic

J E Quinn

L C Duringer

REGISTERED OFFICE:

1A Newton Centre

Thorverton Road

Matford Business Park

Exeter

Devon

EX2 8GN

REGISTERED NUMBER:

05014570 (England and Wales)

ACCOUNTANTS:

Wilson Partners Limited

Chartered Accountants

7 Sandy Court

Ashleigh Way

Langage Business Park

Plymouth

Devon

PL7 5JX

FIXED ASSETS

Tangible assets

5

875,834

986,145

Investment property

6

4,025,000

4,025,000

4,900,834

5,011,145

CURRENT ASSETS

Stocks

24,067,501

20,053,380

Debtors

3,745,133

2,298,031

Cash at bank

1,351,380

5,569,293

29,164,014

27,920,704

CREDITORS

Amounts falling due within one year

15,663,828

12,297,848

NET CURRENT ASSETS

13,500,186

15,622,856

TOTAL ASSETS LESS CURRENT LIABILITIES

18,401,020

20,634,001

CREDITORS

Amounts falling due after more than one year

7

(4,013,198

)

(5,389,763

)

PROVISIONS FOR LIABILITIES

(125,000

)

(152,000

)

NET ASSETS

14,262,822

15,092,238

CAPITAL AND RESERVES

Called up share capital

1,500

1,500

Revaluation reserve

11

184,572

183,572

Retained earnings

14,076,750

14,907,166

SHAREHOLDERS' FUNDS

14,262,822

15,092,238

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Balance Sheet for the year ended 31 January 2026 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 August 2026 and were signed on its behalf by:

A P Martinovic - Director

1.	STATUTORY INFORMATION

Heritage Developments South West Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned companies within the group.

Significant judgements, assumptions and estimates

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that may have a risk of causing adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

(i) Useful economic life of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimates of useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) WIP provisioning

The company's developments are subject to changing industry demands and market trends. As a result it is necessary to consider the recoverability of the cost of WIP and the associated provisioning required. When calculating any WIP provision, management considers the anticipated saleability of the plots.

(iii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(iv) Stage of completion and potential losses on construction contracts

Construction contracts have been entered into in the current year, and income is required to be recognised based on the stage of completion. This could be open to interpretation. The directors use the percentage of costs incurred vs budgeted costs to ascertain a stage of completion for the purpose of income recognition. Costs are budgeted for in a similar manner to normal developments, and any losses therefore occurring, as a result of overheads allocation, for example, are taken into consideration when identifying onerous contracts.

(v) Overheads allocation

The company allocates central overheads, including payroll costs, to ongoing development projects based on management’s assessment of resource usage and benefit. This involves judgement in determining appropriate allocation bases and the extent to which overheads relate to specific developments. Management base their decision of the size of the developments ongoing and level of input expected to be required as a result.

(vi) Cash flows from future sales of shared equity homes

The company has entered into a number of shared equity arrangements when selling homes in the past. There is uncertainty arising from these arrangements, as although there is a right to future cash flows, it is uncertain when this may occur, and how much the cash flow may be. Discounting is also required. The management have assessed the potential level of discounted future cash flows and the lack of certainty associated with these arrangements and consider them to be such that no debtor has been recorded, and the income will be recorded as and when it is received.

(vii) Valuation of property

Freehold property and investment property are held at valuation. An external valuer has been appointed in order to determine the value of the properties, and reduce the estimation uncertainty.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

Sales of homes

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for houses sold to customers and work carried out in respect of services provided to customers, net of returns, discounts and rebates allowed by the Company and value added taxes. All turnover relates to activities within the UK. Turnover related to sales of homes is recognised on legal completion. At this point the appropriate percentage of income is included in turnover matched by the appropriate costs in cost of sales.

The Company recognises turnover when the following conditions are satisfied:

(a) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

(b) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow to the Company; and

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest receivable

Interest income is recognised using the effective interest method.

Rental income

Rental income is recognised when the right to the income has occurred, i.e. once the period to which the rental relates has passed.

Construction Contracts

Contract revenue and expenses are recognised by reference to the stage of completion of the contract activity, where the outcome of the construction contract can be estimated reliably. Any adjustments required are recongised in either accrued or deferred income accordingly.

Otherwise revenue is recognised only to the extent of recoverable contract costs incurred.

Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

The company has adopted the revaluation model for freehold property. Freehold property is stated at the revalued amount, being fair value at the date of revaluation less subsequent accumulated depreciation and accumulated impairment losses. Revaluations are performed with sufficient regularity to ensure the carrying amount does not differ materially from fair value.

(i) Depreciation and residual values

Freehold land is not depreciated. Depreciation on other assets is calculated, using both the straight-line and reducing balance method, to allocate the cost of their residual values over their estimated useful lives, as follows:

Freehold property

-

1% - 2% Straight line

Plant & machinery

-

25% Reducing balance

Motor vehicles

-

25% Reducing balance

Office equipment

-

25% Reducing balance

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any changes is accounted for prospectively.

(ii) Subsequent additions and major components

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the company and the cost can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset when they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Repairs and maintenance costs are expensed as incurred.

(iii) Assets in the course of construction

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use.

(iv) Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss.

Investment property

In accordance with FRS 102, investment properties are included at their fair value in the financial statements. This valuation is prepared by an external expert on an open market basis, and movements in the value are recognised in profit and loss.

Work in progress

Work in Progress comprises site development expenses and plots available for sale. Work in progress is valued at the lower of cost and net realisable value plus attributable overheads, including costs to sell. Finance costs which relate to property developments are included in work in progress.

Revenue is recognised once a completed plot goes through legal completion with a solicitor. Any deposits made prior to legal completion are treated as deferred income.

Expected losses on affordable and social housing which are required as part of a development are recognised as a cost of the development. These costs are therefore spread over the profitable plots on a development. This is considered to be a necessary adjustment in order to show a true and fair view of the profitability of the units within the development.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. For the current year, the tax rate of 25% has been utilised.

Deferred tax assets, including unrelieved tax losses, are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

Current or deferred taxation assets and liabilities are not discounted.

Provisions and contingencies

(i) Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one time included in the same class of obligations may be small.

In particular provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

(ii) Contingencies

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (a) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (b) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefit is probable.

Construction contracts

Where the contract is expected to be onerous (loss making), the loss will be recognised immediately in the Profit and Loss Account. An accrual will be recognised on the Balance Sheet for the expected loss.

Hire purchase and leased assets

At inception the company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substances of the arrangement.

(i) Hire purchase arrangements

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as hire purchase or finance leases.

Hire purchases are capitalised at commencement of the lease as assets at their value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the company's incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.

Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.

The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

(ii) Operating leases

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

(iii) Lease incentives

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

Short- term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

Impairment of assets

At each reporting date financial assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. There is considered to be an impairment, where there is objective evidence that, as a result of events occurring after the date of initial recognition, the estimated future cash flows have been affected.

For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of doubtful debt account. When a trade receivable is considered uncollectible, it is written off against the doubtful debt account. Subsequent recoveries of amounts previously written off are credited against the doubtful debt account. Changes in the carrying amount of the doubtful debt account are recognised in profit or loss.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Interest bearing borrowings

Interest-bearing borrowings, such as bank loans, are recognised initially at fair value less attributable transaction costs.

Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 22 (2025 - 25 ) .

5.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 February 2025

2,084,182

Additions

67,014

Disposals

(81,770

)

At 31 January 2026

2,069,426

DEPRECIATION

At 1 February 2025

1,098,037

Charge for year

147,166

Eliminated on disposal

(51,611

)

At 31 January 2026

1,193,592

NET BOOK VALUE

At 31 January 2026

875,834

At 31 January 2025

986,145

On 27 September 2024, the company's freehold interest was subject to an independent professional valuation (undertaken by Jones Lang LaSalle, a firm of surveyors), which was derived on the basis of market value.

The revaluation surplus is recognised in equity under the revaluation reserve, net of deferred tax.

Revaluations have taken place to date, uplifting net book value by a total of £191,572. The historic cost of the freehold property is £280,303.

The cost of land within freehold property is £108,954 and is not depreciated.

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 February 2025

and 31 January 2026

4,025,000

NET BOOK VALUE

At 31 January 2026

4,025,000

At 31 January 2025

4,025,000

Fair value at 31 January 2026 is represented by:

£

Valuation in 2025

391,953

Cost

3,633,047

4,025,000

In a previous year, following a reassessment of the plans surrounding the sites which were currently under development, there was a transfer of one of the development sites from work-in progress to investment property. At that stage, the property remained under construction and was therefore held at cost which was also deemed its fair value.

During the previous year, the site was completed and held for investment purposes. On 5 September 2024, the site was subject to an independent professional valuation (undertaken by Jones Lang LaSalle, a firm of surveyors), which was derived on the basis of market value, assuming that all of the properties are let out, with none remaining empty for a significant period since completion.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN FIVE YEARS

2026

2025

£

£

Repayable by instalments

Bank loans more 5 yr by instal

2,472,754

2,667,473

8.	LEASING AGREEMENTS

Future expected income as a lessor

The total of future minimum lease payments to be received as lessor is as follows:

2026

2025

£

£

Amounts due within one year

81,760

65,184

Amounts due between one and five years

327,040

327,040

Amounts due in more than five years

323,176

404,936

731,976

797,160

9.	SECURED DEBTS

The following secured debts are included within creditors:

2026

2025

£

£

Bank loans

8,133,185

5,471,928

Other loans

6,140,812

6,141,017

14,273,997

11,612,945

The bank loans are secured over the plots and freehold to which they are financing with a bank interest rate of 3.5% over the Bank of England base rate.

National Westminster Bank Plc has legal charges over the following land and properties:

Unit 1A Newton Centre, Thorverton Road, Exeter, EX2 8GN

Units 1-4 Bell House, Marsh Green Road, Marsh Barton Trading Estate, Exeter, EX2 8PT

Land on the east side of Newcourt Road, Topsham, Exeter

National Westminster Bank Plc also has a debenture including a fixed and floating charge over all the assets of the company.

One of the other loans amounting to £5,000,000 has a rate of interest of 7% and is secured by way of a debenture over all assets of the company and a personal guarantee from two of the directors.

Another loan amounting to £1,140,812 has a rate of interest of 7% and is secured by way of a financial interest in the underlying property purchased with the proceeds.

Following a group restructure on 29 October 2024, loan notes were issued in the holding company, Heritage Developments (South West) Holdings Limited. The loan notes are secured by way of charges over:

- Land at Five Acres, Topsham Road, Exeter (DN698726 and DN698723);

- Land at Albion Hill, Exmouth (DN772407); and

- Land at Pynes Farm House, Ide (DN763428 and DN772076).

10.	FINANCIAL INSTRUMENTS

The Company has only basic financial instruments. The instruments are discussed below:

For trade and other debtors, cost approximates to fair value, as it is expected that the debts will be settled within 1 year.

Cash at bank and in hand is shown on the face of the Balance Sheet.

For trade and other payables, cost approximates to fair value, as it is expected that the debts will be settled within 1 year.

For hire purchase contracts, the sum of digits method has been used as an approximation for fair value. These amounts are show in note 17.

Bank loans are recognised at amortised cost. Details of the amounts are shown in note 16.

11.

RESERVES

Revaluation

reserve

£

At 1 February 2025

183,572

Deferred tax on revaluation

1,000

At 31 January 2026

184,572

12.	RELATED PARTY TRANSACTIONS

During the year there were the following transactions with related parties.

Loans from a director

2026

2025

At start of the period

45,860

(573,964

)

Advanced

51,065

(38,950

)

Repaid

(5,603

)

662,978

Interest

-

(4,204

)

At end of the period

91,322

45,860

Loans from another director

2026

2025

At start of the period

1,621,974

970

Advanced

-

1,600,000

Repaid

(4,774

)

(8,174

)

Interest

-

29,178

At end of the period

1,617,200

1,621,974

Both loans have no set terms of repayment and the loans are disclosed as due in one year.

Interest on loans have been accrued at a rate of 7%.

Companies and partnerships under common control

Please note the following transactions have been grouped by class of related party.

There have been various trade related transactions with other companies/partnerships in which the directors are involved. These have been summarised below.

During the year goods and services were provided by businesses under common control and invoiced totalling a gross amount of £1,071,266 (2025: £2,047,415) and goods and services recharged to companies were £4,303 gross (2025: £121,553 - gross). Balances outstanding at the year end, in relation to these transactions, totalled £303 (2025: £50,112), of which £Nil (2025: £51,781) is shown in trade creditors and £303 (2025: £1,669) in trade debtors.

As at the year-end there was a loan outstanding owed to another company in which a director is involved. The balance totalled £1,140,812 at the year end (2025: £1,141,017). Interest charged and paid on the loan totalled £74,441 (2025: £74,646). This loan is reported as due within one year as there are no set terms of repayment.

As at the year end, there are balances due to other companies in which the directors are involved of £345,000 and £220,954 (2025: £350,000 and £353,875). This balance has arisen due to the purchase of land from the related party, as well as the provision of an advance. The balance outstanding at the year end relates entirely to the advance outstanding. Both loans have no set terms of repayment. Interest was only charged on one of the balances totalling £17,079 (2025 - £Nil).

Other close family of the directors

The ex-wife of a director has advanced the company £1,855,000 and repayments totalled £100,000. There are no set terms of repayment and interest charged and paid on the amounts totalled £56,000.

13.	CONTINGENT ASSETS

The company has the right to future cash inflows from the sale of properties sold under shared equity and deferred consideration schemes. However, as there is such a high degree of uncertainty with respect to the timing and the amount associated with these cash flows, no debtor has been recorded. Instead, they have been classified as a contingent asset.