Registered number: 12467881
FOR THE YEAR ENDED 31 DECEMBER 2025
SHROPSHIRE HOMES GROUP LIMITED
COMPANY INFORMATION
SHROPSHIRE HOMES GROUP LIMITED
CONTENTS
SHROPSHIRE HOMES GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their strategic report for the year ended 31 December 2025.
Shropshire Homes Group 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 at £40.3m. Profits were impacted by increased production and regulatory costs and flat selling prices which squeezed margins. Together with reduced revenues this resulted in profits of £0.9m for the Group.
The number of completions was 102 and the average selling price was £370,000, an increase from £335,000 in 2024 as result of changes in the mix of dwellings sold. The Company carried 87 reservations forward to 2026.
There are risks and uncertainties which could impact on the group's performance in the longer term. The board of directors have carried out a risk assessment to identify, manage and mitigate business risk.
House Sales Revenue - 2025: £37.9m - 2024: £48.5m
Pre Tax Profit - 2025: £1.2m - 2024: £0.9m
Plots Sold - 2025: 102 - 2024: 150
Average Selling Price (£000's) - 2025: 371 - 2024: 323
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SHROPSHIRE HOMES GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors believe that they have effectively implemented their duties under section 172(1) of the Companies Act 2006. The Group has considered the long term strategy of the business and consider that this strategy will continue to deliver long term success to the business and it's stakeholders.
The Group is committed to maintaining an excellent reputation and strives to achieve high standards. We are highly selective about which contractors are used to deliver best value while maintaining an awareness of the environmental impact of the work undertaken and strive to reduce our carbon footprint.
The directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the Group are considered to be the employees, suppliers and customers. Their importance to the business is considered below.
In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the Group.
This report was approved by the board and signed on its behalf.
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SHROPSHIRE HOMES GROUP 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 Group strategic report, the Directors' report and the consolidated 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 Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group 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 £915,687 (2024 - £55,782).
Dividends of £Nil (2024: £23,626) were declared in the year.
No dividend is to be declared on the results of these financial statements.
No dividend is to be declared on the results of these financial statements.
The directors who served during the year were:
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SHROPSHIRE HOMES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company and Group 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.
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.
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 Group 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 Group 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 Group benefits from close relationships with a variety of suppliers and contractors, in which the Group 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 the Group.
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SHROPSHIRE HOMES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
In accordance with SECR requirements, this provides a summary of GHG emissions and energy data for Shropshire Homes Limited during the reporting year.
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SHROPSHIRE HOMES GROUP 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 GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES GROUP LIMITED
We have audited the financial statements of Shropshire Homes Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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SHROPSHIRE HOMES GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES GROUP 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 Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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SHROPSHIRE HOMES GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES GROUP 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 Group 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 the Group 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 and the Group 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 and Group'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 GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHROPSHIRE HOMES GROUP 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 GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
REGISTERED NUMBER: 12467881
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
REGISTERED NUMBER: 12467881
CONSOLIDATED BALANCE SHEET (CONTINUED)
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 20 to 38 form part of these financial statements.
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SHROPSHIRE HOMES GROUP LIMITED
REGISTERED NUMBER: 12467881
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
REGISTERED NUMBER: 12467881
COMPANY BALANCE SHEET (CONTINUED)
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 20 to 38 form part of these financial statements.
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SHROPSHIRE HOMES GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Shropshire Homes Group Limited is a private company, limited by shares, registered in England and Wales. The company's number and registered office address can be found on the General 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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.
Forecasts and projections, which take account of reasonable possible changes in trading performance, show that the Company and the Group should be able to operate within the level of their current facilities.
The Directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for he foreseeable future. The Company and Group therefore have adopted the going concern basis in preparing these financial statements.
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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 GROUP 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 GROUP 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 Group 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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The whole of the turnover is attributable to the principal activity of the Group.
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
11.Taxation (continued)
There were no factors that may affect future tax charges.
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The bank overdraft and loans are secured by charges over the Group's land and sites.
On 7 April 2026 a Amendment and Restatement Deed relating to a facility agreement to the aggregate of £18,500,000 was signed. Previously, the facility agreement was £15,500,000.
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Included above within other creditors due in greater than 1 year are interest bearing loan notes with Directors totalling £1,985,000 (2024: £2,200,220).
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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188 growth shares were issued during the year for a nominal value of £1 each.
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Share premium account
Revaluation reserve
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group 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.
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SHROPSHIRE HOMES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company is under the control of the Directors by virtue of their majority shareholdings.
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