REGISTERED NUMBER: 07879654 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

GRACE DEVELOPMENTS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

9

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Consolidated Statement of Cash Flows

17

Notes to the Consolidated Financial Statements

19

DIRECTOR:

H F Barney

REGISTERED OFFICE:

4 Melbourne House

Corbygate Business Park

Priors Haw Road

Corby

Northamptonshire

NN17 5JG

REGISTERED NUMBER:

07879654 (England and Wales)

AUDITORS:

Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

BANKERS:

National Westminster Bank Plc

41 The Drapery

Northampton

NN1 2EY

The director presents his strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

During the year, the Group was primarily involved in residential property development.

The Group is pleased to announce a gross profit of £2,032k during the year to 31 December 2025 (2024; £519k).

The 2025 UK housing market was defined by stability, modest price growth, and easing financial pressures. Mortgage rates eased as the Bank of England cut the base rate from 4.75% to 3.75% across the year, and a spring stamp duty change causing the year's biggest disruption. Overall, 2025 marked a shift from volatility toward cautious stability.

Planning uncertainty and extended planning timescales continue to be a major challenge and in the short term appears to be getting worse. It is hoped that the emerging National Planning Policy Framework will improve the situation in the medium term.

The Directors believe the key performance indicators of the business are turnover and gross profit:

Group turnover increased by 85% to £25,086k.

Group gross profit increased by 291% to £2,032k.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties faced by the group are:

- A downturn in the housing market.

- Availability of development finance.

- Availability of residential mortgages.

- Changes to the base rate of interest.

- Availability of skilled tradespeople.

- Global supply chain factors and price volatility.

- The planning system and any planning delays.

- Ability to maintain a consistent land pipeline.

FUTURE DEVELOPMENTS

The Directors review the financial position and land pipeline on a regular basis to ensure the Group is in the right position to allow the business to grow in a controlled manner.

When appraising each new development, cashflow and profitability are considered along with taking a view on the housing market, economy, inflation, interest rates and future Government policy.

SIGNED BY ORDER OF THE DIRECTORS:

H F Barney - Director

23 September 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of builders and developers and the provision of property development finance.

DIVIDENDS

Dividends of £278,581 were declared during the year ended 31 December 2025 (2024: £301,655).

DIRECTORS

H F Barney has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

S T Bateman ceased to be a director after 31 December 2025 but prior to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:

H F Barney - Director

23 September 2026

Opinion

We have audited the financial statements of Grace Developments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion on financial statements

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 and 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management, the misstatement of revenue and the work in progress valuation. Our audit procedures to respond to these risks included:

- enquiries of management about their own identification and assessment of the risks of irregularities,

- reviewing regulatory correspondence and professional fees

- analytical procedures to identify any unusual or unexpected relationships;

- detailed substantive testing on the completeness and cut-off of income;

- detailed testing on the work in progress valuation;

- testing journal entries to identify unusual transactions;

- assessing whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

- investigating the rationale behind significant or unusual transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Nicola Fox (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

23 September 2026

TURNOVER

3

25,085,692

13,530,030

Cost of sales

23,053,789

13,010,531

GROSS PROFIT

2,031,903

519,499

Administrative expenses

1,308,491

1,412,499

723,412

(893,000

)

Other operating income

13,500

10,698

OPERATING PROFIT/(LOSS)

5

736,912

(882,302

)

Interest receivable and similar income

2,799

19,126

739,711

(863,176

)

Gain/loss on revaluation of investment properties

53,069

-

792,780

(863,176

)

Interest payable and similar expenses

7

487,033

470,919

PROFIT/(LOSS) BEFORE TAXATION

305,747

(1,334,095

)

Tax on profit/(loss)

8

(162,202

)

(88,381

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

467,949

(1,245,714

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

467,949

(1,245,714

)

Profit/(loss) attributable to:

Owners of the parent

463,844

(1,159,945

)

Non-controlling interests

4,105

(85,769

)

467,949

(1,245,714

)

Total comprehensive income attributable to:

Owners of the parent

463,844

(1,159,945

)

Non-controlling interests

4,105

(85,769

)

467,949

(1,245,714

)

FIXED ASSETS

Tangible assets

11

96,521

164,091

Investments

12

-

-

Investment property

13

3,313,846

-

3,410,367

164,091

CURRENT ASSETS

Stocks

14

12,168,263

28,095,280

Debtors

15

757,142

151,055

Cash at bank

2,077,124

35,331

15,002,529

28,281,666

CREDITORS

Amounts falling due within one year

16

9,170,638

21,822,319

NET CURRENT ASSETS

5,831,891

6,459,347

TOTAL ASSETS LESS CURRENT LIABILITIES

9,242,258

6,623,438

CREDITORS

Amounts falling due after more than one year

17

(2,511,246

)

(40,771

)

PROVISIONS FOR LIABILITIES

21

-

(41,023

)

NET ASSETS

6,731,012

6,541,644

CAPITAL AND RESERVES

Called up share capital

22

4

4

Fair Value reserve

23

53,069

-

Retained earnings

23

6,484,338

6,352,144

SHAREHOLDERS' FUNDS

6,537,411

6,352,148

NON-CONTROLLING INTERESTS

24

193,601

189,496

TOTAL EQUITY

6,731,012

6,541,644

The financial statements were approved by the director and authorised for issue on 23 September 2026 and were signed by:

H F Barney - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

967

965

Investment property

13

-

-

967

965

CURRENT ASSETS

Stocks

14

10,000

30,000

Debtors

15

11,599,231

10,165,668

Cash at bank

1,689

1,490

11,610,920

10,197,158

CREDITORS

Amounts falling due within one year

16

6,722,289

5,508,103

NET CURRENT ASSETS

4,888,631

4,689,055

TOTAL ASSETS LESS CURRENT LIABILITIES

4,889,598

4,690,020

CAPITAL AND RESERVES

Called up share capital

22

4

4

Retained earnings

23

4,889,594

4,690,016

SHAREHOLDERS' FUNDS

4,889,598

4,690,020

Company's profit/(loss) for the financial year

478,159

(387,863

)

The financial statements were approved by the director and authorised for issue on 23 September 2026 and were signed by:

H F Barney - Director

Called up

Fair

share

Retained

Value

capital

earnings

reserve

£

£

£

Balance at 1 January 2024

4

7,813,744

-

Changes in equity

Dividends

-

(301,655

)

-

Total comprehensive income

-

(1,159,945

)

-

Balance at 31 December 2024

4

6,352,144

-

Changes in equity

Dividends

-

(278,581

)

-

Total comprehensive income

-

410,775

53,069

Balance at 31 December 2025

4

6,484,338

53,069

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 January 2024

7,813,748

275,265

8,089,013

Changes in equity

Dividends

(301,655

)

-

(301,655

)

Total comprehensive income

(1,159,945

)

(85,769

)

(1,245,714

)

Balance at 31 December 2024

6,352,148

189,496

6,541,644

Changes in equity

Dividends

(278,581

)

-

(278,581

)

Total comprehensive income

463,844

4,105

467,949

Balance at 31 December 2025

6,537,411

193,601

6,731,012

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

4

5,379,534

5,379,538

Changes in equity

Dividends

-

(301,655

)

(301,655

)

Total comprehensive income

-

(387,863

)

(387,863

)

Balance at 31 December 2024

4

4,690,016

4,690,020

Changes in equity

Dividends

-

(278,581

)

(278,581

)

Total comprehensive income

-

478,159

478,159

Balance at 31 December 2025

4

4,889,594

4,889,598

Cash flows from operating activities

Cash generated from operations

1

12,331,834

(5,408,299

)

Interest paid

(482,429

)

(465,390

)

Interest element of hire purchase payments paid

(4,604

)

(5,529

)

Net cash from operating activities

11,844,801

(5,879,218

)

Cash flows from investing activities

Purchase of tangible fixed assets

(5,659

)

(6,960

)

Sale of tangible fixed assets

833

45,500

Interest received

2,799

19,126

Net cash from investing activities

(2,027

)

57,666

Cash flows from financing activities

New loans in year

2,496,225

13,518,749

Loan repayments in year

(13,223,973

)

(7,661,770

)

HP repayments in year

(25,750

)

(34,604

)

Amount withdrawn by directors

(6,525

)

-

Amounts owed to related companies

1,237,623

-

Equity dividends paid

(278,581

)

(301,655

)

Net cash from financing activities

(9,800,981

)

5,520,720

Increase/(decrease) in cash and cash equivalents

2,041,793

(300,832

)

Cash and cash equivalents at beginning of year

2

35,331

336,163

Cash and cash equivalents at end of year

2

2,077,124

35,331

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

305,747

(1,334,095

)

Depreciation charges

73,229

83,407

Profit on disposal of fixed assets

(833

)

(44,456

)

Finance costs

487,033

470,919

Finance income

(2,799

)

(19,126

)

862,377

(843,351

)

Decrease/(increase) in stocks

12,613,171

(5,096,378

)

Decrease in trade and other debtors

153,907

435,740

(Decrease)/increase in trade and other creditors

(1,297,621

)

95,690

Cash generated from operations

12,331,834

(5,408,299

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

2,077,124

35,331

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

35,331

336,163

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

35,331

2,041,793

2,077,124

35,331

2,041,793

2,077,124

Debt

Finance leases

(66,521

)

25,750

(40,771

)

Debts falling due within 1 year

(13,804,905

)

12,591,644

(1,213,261

)

Debts falling due after 1 year

-

(2,496,225

)

(2,496,225

)

(13,871,426

)

10,121,169

(3,750,257

)

Total

(13,836,095

)

12,162,962

(1,673,133

)

1.	STATUTORY INFORMATION

Grace Developments 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 General Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and entities controlled by the company (its subsidiaries) made up to 31 December 2025 each period. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Subsidiaries

Subsidiaries are fully consolidated from the date on which control is transferred to the group and de-consolidated from the date that control ceases.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

The consolidated financial statements incorporate the assets, liabilities and results of the following entities in accordance with the accounting policy described above:

Name of entity

Registered office

Country of incorporation

Class of shares held

Equity holding %

Grace Homes Limited

As group

UK

Ordinary

90

White Lodge Developments Limited

As group

UK

Ordinary

64

Wattle Properties (Sysonby Lodge) Limited

As group

UK

Ordinary

100

All three of the above subsidiaries have claimed exemption from audit under section 479A of the Companies Act 2006.