Registered number: 08583170
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their strategic report for the year ended 31 March 2026.
Candleston Limited was established on 25 June 2013 for the purposes of acting as development agent as well as developing homes for sale for its parent, Tai Hedyn,(Candleston homes previous parent Melin Homes, merged with Newport City Homes on 1 April 2025 to form Tai Hedyn) . It operates in South East Wales and aims to provide high quality homes. Since incorporation the company has progressed with its objective of securing sites for development.
Overall, for the financial year Candleston Completed a total of 54 homes, with 15 being affordable rent or Low Cost Home Ownership (LCHO) and 39 open market Sales.
Candleston Pre-tax loss for the year was £222,118 (2025 - £978,214 profit). Shareholders funds now stand at £437,801 (2025 – £659,919). Corporation tax payable for the year was £NIL (2025 - £NIL). The reduced profits for this financial year correlate to unforeseen costs on our sites and also the timings of delays of a few sales which simultaneously exchanged and completed post year end.
During the financial year, Candleston continued with its construction at Grove Farm, Llanfoist. This prestigious development project will deliver 106 new homes. Of these homes, 37 units have been built for Group as affordable rented and LCHO homes and the remaining 69 are being sold on the open market. As at the year-end, 105 homes have been sold, with the remaining one property completing in April 2026.
Candleston has also been providing Development agency services to Group for its phase 1 site at Crick Road. Following significant delays with statutory bodies regarding sectional agreements initial sales on phase 1 were delayed to March 2024. This phase delivers 49 open market units in total. As at the year-end, all homes in phase 1 have now been sold.
On Phase 2 (and all future phases) at Crick Road, Candleston is acting in the capacity of the developer and will deliver 55 units, 21 of which are either affordable rented or LCHO Homes with the remaining 34 to be sold on the open market. At the year-end, 49 homes were sold, 21 of which were affordable. The remaining 6 units are expected to be completed / sold by July 2026.
Crick Road Phase 3 is now on site and will deliver 77 units, 21 of which are either affordable rented or LCHO Homes with the remaining 56 to be sold on the open market. At the year-end, 2 homes were sold with significant interest continuing with strong levels of engagement.
The Board continue to support Officers in exploring future opportunities, to ensure continuity of work to sit alongside the current schemes ensuring a ready pipeline of units in the long term.
Candleston has a revised funding arrangement in place with its parent, with those funds being utilised to cover agreed costs. During the year, the Parent reaffirmed its commitment and support to Candleston with the on-lending capacity increasing fourfold.
Candleston Pre-tax loss for the year was £222,118 (2025 - £978,214 profit). Shareholders funds now stand at £437,801 (2025 – £659,919). Corporation tax payable for the year was £NIL (2025 - £NIL). The reduced profits for this financial year correlate to unforeseen costs on our sites and also the timings of delays of a few sales which simultaneously exchanged and completed post year end.
During the financial year, Candleston continued with its construction at Grove Farm, Llanfoist. This prestigious development project will deliver 106 new homes. Of these homes, 37 units have been built for Group as affordable rented and LCHO homes and the remaining 69 are being sold on the open market. As at the year-end, 105 homes have been sold, with the remaining one property completing in April 2026.
Candleston has also been providing Development agency services to Group for its phase 1 site at Crick Road. Following significant delays with statutory bodies regarding sectional agreements initial sales on phase 1 were delayed to March 2024. This phase delivers 49 open market units in total. As at the year-end, all homes in phase 1 have now been sold.
On Phase 2 (and all future phases) at Crick Road, Candleston is acting in the capacity of the developer and will deliver 55 units, 21 of which are either affordable rented or LCHO Homes with the remaining 34 to be sold on the open market. At the year-end, 49 homes were sold, 21 of which were affordable. The remaining 6 units are expected to be completed / sold by July 2026.
Crick Road Phase 3 is now on site and will deliver 77 units, 21 of which are either affordable rented or LCHO Homes with the remaining 56 to be sold on the open market. At the year-end, 2 homes were sold with significant interest continuing with strong levels of engagement.
The Board continue to support Officers in exploring future opportunities, to ensure continuity of work to sit alongside the current schemes ensuring a ready pipeline of units in the long term.
Candleston has a revised funding arrangement in place with its parent, with those funds being utilised to cover agreed costs. During the year, the Parent reaffirmed its commitment and support to Candleston with the on-lending capacity increasing fourfold.
The Directors recognise the nature of its activities and the landscape and environment in which the company operates
will continue to change and so all plans as set out in our Business Plan are kept under regular review.
Development strategies are reviewed against on-going market conditions to ensure that recoveries can be made on
completion of the homes being built.
will continue to change and so all plans as set out in our Business Plan are kept under regular review.
Development strategies are reviewed against on-going market conditions to ensure that recoveries can be made on
completion of the homes being built.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
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 loss for the year, after taxation, amounted to £222,118 (2025 - profit £978,214).
No dividends will be distributed for the year ended 31 March 2026.
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The auditors, Menzies LLP, 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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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CANDLESTON LIMITED
We have audited the financial statements of CANDLESTON LIMITED (the 'Company') for the year ended 31 March 2026, which comprise the Statement of comprehensive income, the Analysis of net debt, the Balance sheet, the Statement of cash flows, 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.
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CANDLESTON LIMITED (CONTINUED)
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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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CANDLESTON 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:
-Discussing with Director and management which areas of the business they believe to be more susceptible to fraud,
and whether they have any knowledge or suspicion of fraudulent activities;-
-Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the
effectiveness of those and discussing how these are maintained and monitored internally;-
-Assessing the risk of management override and review and testing of journal entries made into the accounting system;-
-Challenging assumptions and judgements made by the company in relation to the significant accounting estimates
employed in the preparation of the financial statements;-
-Discussing with Director and Management the legal and regulatory obligations of the business and whether they have
any knowledge or suspicion of non compliance.
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that
material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and
that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional
misrepresentation, or the override of internal controls.
and whether they have any knowledge or suspicion of fraudulent activities;-
-Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the
effectiveness of those and discussing how these are maintained and monitored internally;-
-Assessing the risk of management override and review and testing of journal entries made into the accounting system;-
-Challenging assumptions and judgements made by the company in relation to the significant accounting estimates
employed in the preparation of the financial statements;-
-Discussing with Director and Management the legal and regulatory obligations of the business and whether they have
any knowledge or suspicion of non compliance.
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that
material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and
that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional
misrepresentation, or the override of internal controls.
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.
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 Auditor
5th Floor Hodge House
114-116 St Mary Street
CF10 1DY
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
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BALANCE SHEET
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 July 2026 .
The notes on pages 13 to 17 form part of these financial statements.
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