Registered number: 01567991
FOR THE YEAR ENDED 31 DECEMBER 2025
SHROPSHIRE HOMES LIMITED
COMPANY INFORMATION
SHROPSHIRE HOMES LIMITED
CONTENTS
SHROPSHIRE HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their strategic report for the year ended 31 December 2025.
Shropshire Homes experienced challenging trading conditions in 2025. For much of the year the housing market was relatively subdued as a result of continued high interest rates, slow economic growth and political uncertainty. The backdrop improved towards the end of the year as interest rates started to fall.
A further significant contributory factor to the disappointing outcome was delays in receiving planning consent on new developments which resulted in first sales on these sites being delayed into 2026. As a result of the above sales in 2025 were 20% lower than 2024.
Profits were impacted by increased production and regulatory costs and flat selling prices which squeezed margins. Together with reduced revenues this resulted in a reduction in profits to £1.6m.
The number of completions was 102 and the average selling price was £371,000, an increase from £323,000 in 2024 as result of changes in the mix of dwellings sold. The Company carried 87 reservations forward to 2026.
Key Performance Indicators ("KPI's)
There are risks and uncertainties which could impact on the company's performance in the longer term. The board of directors have carried out a risk assessment to identify, manage and mitigate business risk.
The Company experienced an upturn in demand in the latter part of 2025 which carried through to early 2026. The expectation at that time was that interest rates would continue to fall and, together with most of the industry, we expected improved outcomes in 2026.
The war in the middle east from the end of February has impacted strongly on our expectations for the year. Continued higher interest rates and political and economic uncertainty have depressed demand and subdued selling prices and cost pressures have put pressure on margins. Despite these adverse conditions the Company has continued to generate a reasonable level of sales, albeit below initial expectations, and we now expect to achieve sales of £55m in 2026 and complete approximately 170 plot sales.
We continued to experience planning delays in 2025 although we received consent for over 700 homes in the year and now control around 1,000 plots.
The directors continue to believe that underlying demand within the housing market will continue to generate a strong demand for new homes in the medium term and we are well positioned to benefit from this. We anticipate sales in the region of £100m in 2028.
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SHROPSHIRE HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Shropshire Homes Group Ltd launched a specialist business, SH Partnerships Ltd in 2025 to develop sites in partnership with other organisations, principally Registered Providers. We now have a number of sites in the planning process and expect to commence work later this year. This will allow the Group to grow and increase profitability without putting significant strain on cashflows.
The Company has strengthened its senior management over recent years and has now recruited a strong technical and managerial team and invested in new software systems. This together with the strong land pipeline and our partnership business puts the Company in a strong position to move forward.
This report was approved by the board and signed on its behalf.
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SHROPSHIRE HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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.
The profit for the year, after taxation, amounted to £1,608,611 (2024 - £2,360,419).
Dividends of £639,970 (2024: £1,214,847) were declared in the year. No further dividend is to be declared on the results of these financial statements.
The directors who served during the year were:
Details in relation to future developments are included in the Strategic Report.
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SHROPSHIRE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
To ensure Shropshire Homes Limited can continue to provide prestigious developments it is continually looking to develop new processes and seeking to innovate with new solutions to improve it's existing processes. Historic R&D projects have included methodologies to reduce waste material transportation, develop gas venting solutions and provide retaining structures in restricted access locations, using our internal skilled workforce as well as external consultants with the relevant experience to assist in the design and delivery of these developments.
The Company agrees terms and conditions for its business transactions with suppliers before orders are placed. Payments are then made in accordance with these obligations.
As a Company we believe it is important to pay our suppliers promptly and on time for the service they provide. The average time taken to pay invoices is 19 days which is significantly ahead of the industry norm.
The Company benefits from close relationships with a variety of suppliers and contractors, in which the Company has developed a high level of trust over the years. These relationships help the company to engineer cost effective solutions to individual project challenges for the mutual benefit of the supplier, customer and Shropshire Homes Limited.
In accordance with SECR requirements, this provides a sumamry of GHG emissions and energy data for Shropshire Homes Limited during the reporting year.
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SHROPSHIRE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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SHROPSHIRE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES LIMITED
We have audited the financial statements of Shropshire Homes Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity 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 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.
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SHROPSHIRE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES LIMITED (CONTINUED)
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.
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.
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.
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SHROPSHIRE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES LIMITED (CONTINUED)
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:
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the UK General Data Protection Regulation (GDPR).
We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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.
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SHROPSHIRE HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Belmont House
Shrewsbury Business Park
Shropshire
SY2 6LG
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SHROPSHIRE HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
REGISTERED NUMBER: 01567991
BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 29 form part of these financial statements.
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SHROPSHIRE HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Shropshire Homes Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office can be found on the Company Information page.
2.Accounting policies
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:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Shropshire Homes Group Limited as at 31 December 2025 and these financial statements may be obtained from Companies House.
Forecasts show that the Company is expected to be profitable in future years and that the Company will be able to meet liabilities as they fall due. The accounts have therefore been prepared on a going concern basis.
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a straight-line basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
The whole of the turnover is attributable to the principal activity of the Company being housing developers.
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Taxation (continued)
There were no factors that may affect future tax changes.
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
15.Tangible fixed assets (continued)
Cost or valuation at 31 December 2025 is as follows:
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The bank loans, overdraft and director's accounts are secured by charges over the company's assets.
Post year end the Company renegotiated a £18,500,000 Facility Agreement with its Agent (Prior year: £15,500,000).
Post year end the Company renegotiated a £18,500,000 Facility Agreement with its Agent (Prior year: £15,500,000).
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Share premium account
Revaluation reserve
Profit and loss account
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SHROPSHIRE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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 £96,642 (2024: £89,700). Contributions totalling £1,229 (2024: £Nil) were payable to the fund at the balance sheet date and are included in creditors.
Included within other creditors are balances due to directors that total £1,244,292 (2024: £1,270,105). During the year interest to the amount of £90,410 (£2024: £89,584) was paid to the directors on the outstanding balances. Included in other debtors is a balance due from a director of £60,000 (2024: £60,620).
Shropshire Homes Group Limited is regarded by the directors as being the company's ultimate parent company. The company is not under the control of any one individual party.
The address of the registered office of Shropshire Homes Group Limited is The Old Workhouse, The Chestnuts, Cross Houses, Shrewsbury, Shropshire, SY5 6JH. A copy of the group accounts can be obtained from Companies House.
The address of the registered office of Shropshire Homes Group Limited is The Old Workhouse, The Chestnuts, Cross Houses, Shrewsbury, Shropshire, SY5 6JH. A copy of the group accounts can be obtained from Companies House.
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