Company registration number 09725702 (England and Wales)
CHAPTER HOMES DURHAM LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
PAGES FOR FILING WITH REGISTRAR
CHAPTER HOMES DURHAM LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
CHAPTER HOMES DURHAM LIMITED
BALANCE SHEET
AS AT
31 MARCH 2026
31 March 2026
- 1 -
2026
2025
Notes
£
£
£
£
Fixed assets
Investment property
3
765,000
765,000
Current assets
Stocks
4
1,653,390
2,088,546
Debtors
5
208,544
172,691
Cash at bank and in hand
4,871,188
4,778,325
6,733,122
7,039,562
Creditors: amounts falling due within one year
6
(349,832)
(378,781)
Net current assets
6,383,290
6,660,781
Total assets less current liabilities
7,148,290
7,425,781
Creditors: amounts falling due after more than one year
7
(15,952)
(56,393)
Provisions for liabilities
(34,855)
(34,855)
Net assets
7,097,483
7,334,533
Capital and reserves
Called up share capital
8
3,000,000
3,000,000
Profit and loss reserves
4,097,483
4,334,533
Total equity
7,097,483
7,334,533

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 16 July 2026 and are signed on its behalf by:
M D Laing
Director
Company registration number 09725702 (England and Wales)
CHAPTER HOMES DURHAM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2024
3,000,000
4,170,052
7,170,052
Year ended 31 March 2025:
Profit and total comprehensive income
-
239,481
239,481
Dividends
-
(75,000)
(75,000)
Balance at 31 March 2025
3,000,000
4,334,533
7,334,533
Year ended 31 March 2026:
Profit and total comprehensive income
-
62,950
62,950
Dividends
-
(300,000)
(300,000)
Balance at 31 March 2026
3,000,000
4,097,483
7,097,483
CHAPTER HOMES DURHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
- 3 -
1
Accounting policies
Company information

Chapter Homes Durham Limited is a private company limited by shares incorporated in England and Wales. The registered office is County Hall, Durham, Co. Durham, DH1 5UE.

1.1
Basis of preparation

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts 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.

Non Audit Services provided by Auditor

In common with many businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

1.2
Going concern

The directors assess whether the use of the going concern basis is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast doubt on the ability of the company to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date on which the financial statements are approved.true

The directors have prepared financial forecasts for a period in excess of 12 months from the date of this report. Whilst there is uncertainty around the global and national economy, the directors believe that it it appropriate to continue to adopt the going concern basis of accounting preparing the financial statements due to the level or reserves and expects future trading prospects.

1.3
Revenue

Revenue from private housing sales is recognised as the consideration received or receivable on legal completion, net of incentives.

Revenue on affordable housing contracts is recognised by reference to the sage of completion of the contract activity where the outcome of the contract can reasonably estimated.

Rental income represents the amount of rental income falling due during the year, including rental income due but not received until after the year end.

Profit arising from the sale of private residential properties is taken on legal completion. Residential development profit is calculated based on total expected revenues less total expected costs. Profit on affordable housing is only recognised by reference to the stage of completion when the outcome of the contract can be reasonably estimated. When it is probable that total costs will exceed total turnover the expected loss is recognised immediately.

1.4
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

CHAPTER HOMES DURHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 4 -
1.5
Stocks and work in progress

Completed properties are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Work in progress is stated at cost, including costs incurred for sites which have not yet been acquired or for which planning consent has not yet been granted. Regular reviews are carried out to identify impairments in the value of these provisional developments, considering current likelihood of completion and forecast profits.

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

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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

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.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial 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 paymen ts 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. A m ounts 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.

CHAPTER HOMES DURHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 5 -
1.8
Taxation

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

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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 when the company has 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.

1.9
Leases
As lessee

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 lease s asset are consumed.

1.10

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 any and all related party transactions between the parent company and any wholly owned subsidiaries within the group.

2
Employees

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

2026
2025
Number
Number
Total
4
4
CHAPTER HOMES DURHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 6 -
3
Investment property
2026
£
Fair value
At 1 April 2025 and 31 March 2026
765,000

Investment properties were valued on an open market basis on 31 March 2024 by Wisewove Land & Property Consultants Ltd.

4
Stocks
2026
2025
£
£
Completed properties
1,275,347
1,770,015
Work in progress
378,043
318,531
5
Debtors
2026
2025
Amounts falling due within one year:
£
£
Other debtors
208,544
64,691
2026
2025
Amounts falling due after more than one year:
£
£
Other debtors
-
0
108,000
Total debtors
208,544
172,691
6
Creditors: amounts falling due within one year
2026
2025
£
£
Trade creditors
6,320
10,325
Corporation tax
20,983
79,826
Accruals and deferred income
322,529
288,630
349,832
378,781
7
Creditors: amounts falling due after more than one year
2026
2025
£
£
Accruals and deferred income
15,952
56,393
CHAPTER HOMES DURHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 7 -
8
Called up share capital
2026
2025
2026
2025
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,000,000
3,000,000
3,000,000
3,000,000
9
Non-distributable profits reserve

Included within retained earnings is £115,208 of un-distributable reserves (202 5: £115,208). This £115,208 of un-distributable reserves relates to the increase in fair value of the investment properties, less any deferred tax, which under FRS102 are recognised through the profit and loss accounts.

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

Opinion

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.

Senior Statutory Auditor:
David Holloway BA FCA DChA
Statutory Auditor:
Sumer Auditco Limited
Date of audit report:
12 August 2026
11
Operating lease commitments
As lessee

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

2026
2025
£
£
Total commitments
4,192
11,378
CHAPTER HOMES DURHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 8 -
12
Related party transactions

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 any related party transactions between the parent company and any wholly owned subsidiaries within the group.

The company is a subsidiary of Durham County Council. Their registered office is:

County Hall

Durham

County Durham

DH1 5UE

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