Adderstone Living Limited

Registered number

12554240

Report and Financial Statements

31 March 2026

Adderstone Living Limited
Report and accounts
Contents




Page

Company information	1
Strategic report	2 - 3
Directors' report	4
Statement of directors' responsibilities	5
Independent auditor's report	6 - 9
Income statement	10
Statement of comprehensive income	11
Statement of financial position	12
Statement of changes in equity	13
Notes to the financial statements	14 - 22

Adderstone Living Limited

Company Information

Directors

M R Shipley BSc (Hons), BFP, FCA

S McCoy

P Galbraith

H Bell

Auditors

S&W Audit

17 Queens Lane

Newcastle upon Tyne

NE1 1RN

Registered office

Collingwood House, The Fleming

Burdon Terrace

Jesmond

Newcastle upon Tyne

NE2 3AE

Registered number

12554240

Adderstone Living Limited
Strategic Report

The directors present their Strategic Report for the year ended 31 March 2026.

Business review
Supported by continued demand from housing association partners and the successful delivery of schemes across multiple regions, turnover increased by 40% to £34.6 million (2025: £24.7 million). The company is now led by a dedicated executive management team with regional offices in Newcastle, York, Manchester and Birmingham. This structure combines strong local market knowledge, including relationships with housing associations and local authorities, with economies from a central support function. The Company's land-led strategy continues to gain momentum, with approximately £192 million of identified development opportunities progressing through the legal or planning process at the year end (2025: £85 million). The Board believes this pipeline provides a strong platform for future growth and reflects the increasing scale and geographic reach of the business. The Company continues to deliver developments as a member of the Homes England Delivery Partner Panel (DPP) and the Prosper Framework, both of which are highly driven to deliver affordable homes throughout the UK. The Company also maintains strong direct relationships with a number of leading Registered Provider partners (RPs), including Karbon Homes, Gentoo, Places for People, North Star Housing and Believe Housing. Whilst the planning environment remains challenging, the Company continues to leverage its in-house planning expertise to manage risk and support the efficient delivery of schemes. Operations are supported by ISO 9001, ISO 14001 and ISO 45001 accredited management systems, promoting consistency in quality, environmental management and health and safety across the business.

Key performance indicators ("KPIs")
The Board monitors the following indicators to assess the performance and progress of the business:

KPI	2026	2025
Turnover (£)	34,630,503	24,662,675
Profit before tax (£)	2,144,373	1,621,328
Identified land pipeline in legals or planning (£)	192,000,000	85,000,000
Direct employees at year end (number)	38	24
Accident frequency rate	0	0
RIDDOR reportable incidents	0	0

Our people and health & safety
Our people remain central to our ability to deliver consistent quality across a growing regional footprint. During the year we introduced a digital health and safety system across all sites, helping to drive consistency and speed up processes on site.

Sustainability and the environment
The majority of our schemes are now delivered in timber frame construction, reducing weather related delays and improving build programme certainty. This approach also supports our clients' sustainability objectives and reduces embodied carbon relative to traditional masonry construction.

Social value
Beyond the homes we deliver, we aim to generate lasting benefit for the communities in which we build. Social value spend in the year totalled £96k, including a public art installation in North Shields, refurbishment of the village hall in East Cowton, and refurbishment of a community centre in Sunderland.

Principal risks and uncertainties
The level of grant and how it is spread across the length of the affordable homes programme is key to our growth. Although we still take a modest share of the overall programme, it remains important that we align our growth with that of our clients. Whilst planning continues to be incredibly challenging, there are some positive changes in the pipeline that will hopefully speed up the process, especially when the scheme is 100% affordable. Inflation is included in all contracts. Standard house types assist with cost certainty and delivery, and the majority of our schemes are now delivered in timber frame construction to minimise weather delays and overruns. Uncertainties remain for our clients in terms of interest rates and overall scheme viability. We track this regularly and are constantly reviewing new schemes in terms of budget viability.

Future developments
Continued regional growth is our strategy to support the delivery requirements of our clients. Recruitment of regional staff and supply chain partners is critical to sustaining our growth. While this is not currently a constraint, we recognise it will become increasingly important as the business scales.

Key relationships
Repeat work is fundamental to our success. We currently work with 12 registered provider partners, of which 4 are repeat clients. Delivering on time and to the required quality is fundamental to this repeat work. Defects and aftercare are closely monitored.




This report was approved by the board on 9 October 2026 and signed on its behalf.



S McCoy
Director

Adderstone Living Limited
Registered number: 12554240
Directors' Report

The directors present their report and financial statements for the year ended 31 March 2026.

Principal activities
The company's principal activity during the year continued to be the acquisition and development of land for affordable and social housing, including site identification, planning, stakeholder engagement and the delivery of completed developments in partnership with registered housing providers.

Future developments
See disclosures within the Strategic Report regarding future developments of the Company.

Going concern
The Company is expected to generate positive cash flows for the foreseeable future. After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The directors have no reason to believe that a material uncertainty exists that may cast significant doubt over the ability of the Company to continue as a going concern. Therefore, they continue to adopt the going concern basis in preparing financial statements.

Dividends
Interim dividends of £1,500,000 (2025 - £750,000) were paid during the year. The directors do not recommend payment of a final dividend.

Directors
The following persons served as directors during the year:

	I R Baggett, Professor, BSc (Hons), PhD, MRICS, FRGS	(resigned 16 February 2026)
	M R Shipley BSc (Hons), BFP, FCA
	S McCoy
	P Galbraith
	H Bell

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is 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 company's auditor is aware of that information.


Appointment of auditors
S&W Audit were appointed as the company's first auditor during the year.


This report was approved by the board on 9 October 2026 and signed on its behalf.



S McCoy
Director

Adderstone Living Limited
Statement of Directors' Responsibilities

The directors are responsible for preparing the report and financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and 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 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 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.

Adderstone Living Limited
Independent auditor's report
to the members of Adderstone Living Limited

Opinion

We have audited the financial statements of Adderstone Living Limited (the 'company') for the year ended 31 March 2026 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 31 March 2026 and of its profit for the year then ended;
●	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
●	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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.

Other information
The other information comprises the information included in the directors’ report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the directors’ 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.

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 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.

Matters on which we are required to report by exception

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.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
●	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
●	the financial statements are not in agreement with the accounting records and returns; or
●	certain disclosures of directors’ remuneration specified by law are not made; or
●	we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 5, the directors are 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 directors determine is 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 an auditor’s 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:
We obtained a general understanding of the company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company’s industry and regulation.
We understand that the company complies with the framework through:
●	Engaging external legal professionals as required and making changes to internal procedures and controls as necessary.
●	The directors’ close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly.
In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company’s ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company:
●	The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.
We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:
●	Making enquiries of management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;
●	Obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
●	We obtained meeting minutes for evidence of non-compliance, for which there were none;
●	We obtained written management representations that they have disclosed to us all known instances of noncompliance or suspected non-compliance with laws and regulations and accounted for and disclosed all known actual or potential litigation and claims in the financial statements and that the procedures in place to ensure compliance with relevant laws and regulations are considered to be adequate.
The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:
●	Manipulation of the financial statements via and management overriding controls;
●	The incorrect recognition of contract revenue resulting in the revenue being recognised in the incorrect accounting period;
●	The risk that contract revenue to which the entity is entitled has not been identified or recognised in the financial statements, resulting in understated income;
●	The risk that amounts recoverable on contracts in relation to retention have been calculated incorrectly, resulting in misstated revenue;
●	The risk that the entity is not entitled to amounts recoverable on contracts in relation to retention, resulting in overstated revenue.
The procedures we carried out to gain evidence in the above areas included:
●	Assessing the risk of management override including identifying and testing a sample of journal entries using data analytics on the general ledger against client specific risk criteria;
●	Testing a sample of retention debtors to third party documentation;
●	Agreement of revenue recorded in the year to third party documentation, focussing on the assessed cut off risk period.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.


Other matter
The financial statements of Adderstone Living Limited for the year ended 31 March 2025 were unaudited.

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 an auditor’s 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.





Nicola Scarr FCA
Senior Statutory Auditor, for and on behalf of
for and on behalf of
S&W Audit
Statutory Auditor
Chartered Accountants
17 Queens Lane
Newcastle upon Tyne
NE1 1RN


9 October 2026

Adderstone Living Limited
Income Statement
for the year ended 31 March 2026

Unaudited
Notes		2026		2025
£			£

Turnover	3	34,630,503		24,662,675

Cost of sales		(30,370,503)		(21,632,949)

Gross profit		4,260,000		3,029,726

Administrative expenses		(2,170,012)		(1,459,358)
Other operating income		3,280		-

Operating profit	4	2,093,268		1,570,368

Interest receivable		85,028		56,854
Interest payable	7	(33,923)		(5,894)

Profit on ordinary activities before taxation		2,144,373		1,621,328

Tax on profit on ordinary activities	8	(542,616)		(405,558)

Profit for the financial year		1,601,757		1,215,770

Adderstone Living Limited
Statement of Comprehensive Income
for the year ended 31 March 2026

Unaudited
Notes	2026		2025
£		£

Profit for the financial year	1,601,757		1,215,770

Other comprehensive income

Total comprehensive income for the year	1,601,757		1,215,770

Adderstone Living Limited
Statement of Financial Position
as at 31 March 2026
Unaudited
Notes			2026			2025
£				£
Fixed assets
Tangible assets	9		23,631			28,998

Current assets
Stocks	10	1,496,096			1,176,710
Debtors	11	5,519,959			3,583,802
Cash at bank and in hand		3,766,948			4,056,268
		10,783,003			8,816,780

Creditors: amounts falling due within one year	12	(10,024,212)			(8,165,113)

Net current assets			758,791			651,667

Net assets			782,422			680,665

Capital and reserves
Called up share capital	13		1,000			1,000
Profit and loss account	14		781,422			679,665

Total equity			782,422			680,665




M R Shipley BSc (Hons), BFP, FCA
Director

Approved by the board on 9 October 2026

Adderstone Living Limited
Statement of Changes in Equity
for the year ended 31 March 2026

Share		Profit		Total
capital		and loss
account
£		£		£

At 1 April 2024	1,000		213,895		214,895

Profit for the financial year			1,215,770		1,215,770

Dividends			(750,000)		(750,000)

At 31 March 2025	1,000		679,665		680,665



At 1 April 2025	1,000		679,665		680,665

Profit for the financial year			1,601,757		1,601,757

Dividends			(1,500,000)		(1,500,000)

At 31 March 2026	1,000		781,422		782,422

Adderstone Living Limited
Notes to the Accounts
for the year ended 31 March 2026

1	Summary of significant accounting policies

	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

	Disclosure exemptions
	The company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel. The financial statements of the company are consolidated in the financial statements of Adderstone 1993 Limited (formerly Arlenia Limited). These consolidated financial statements are available from its registered office: Nelson House, The Fleming, Burdon Terrace, Jesmond, Newcastle upon Tyne, NE2 3AE.

	Turnover
	Revenue represents the fair value of consideration receivable for construction services provided in the ordinary course of business, net of value added tax and trade discounts. Revenue from construction contracts is recognised over time by reference to the stage of completion at the reporting date. The stage of completion is measured by comparing contract costs incurred to date with the total estimated contract costs for each contract. Revenue recognised reflects management's assessment of the contract outcome, including estimated revenues, forecast costs to complete and the resulting contract margin. Where the outcome of a contract cannot be estimated reliably, revenue is recognised only to the extent of costs incurred that are expected to be recoverable. Amounts recognised as revenue in excess of amounts invoiced or certified are included within accrued income. Amounts invoiced or certified in excess of revenue recognised are included within deferred income.

	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

	Plant and machinery			33% straight line
	Fixtures, fittings and equipment			33% straight line


	Work in progress
	Work in progress measured at the lower of cost and estimated selling price less costs to complete and sell. The carrying amount of work in progress represents the value of contract costs not yet billed.

	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Provisions
	Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.

	Pensions
	Contributions to defined contribution plans are expensed in the period to which they relate.


2	Critical accounting estimates and judgements

	The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows. Assessing indicators of impairment - In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairment identified during the current financial year. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
	Long-term construction contracts The Company undertakes long-term construction contracts which require management to make estimates in determining the profitability of individual projects. Revenue is based on contractual valuations, applications for payment, certifications and other evidence of work performed. The principal estimation uncertainty arises in the assessment of contract costs and the resulting profit recognised on contracts. The key estimates include: Costs incurred and work in progress – Management reviews each contract at the reporting date and assesses costs incurred but not yet recorded, accruals for subcontractors and suppliers, and other project-specific adjustments required to reflect the true cost position of the contract. These amounts are recognised within cost of sales. Forecast costs to complete – Management estimates the remaining costs required to complete each contract based on the latest available information from project and commercial teams. These estimates take account of labour, materials, subcontractor costs, programme risks and other contract-specific matters. Contract profitability – The assessment of costs incurred and forecast costs to complete determines the expected profitability of each contract. Changes in these estimates may result in adjustments to cost of sales, reported profit and the carrying value of accrued income and deferred income.


3	Analysis of turnover							Unaudited
						2026		2025
£							£

	Revenue from construction contracts					34,630,503		24,662,675

	By geographical market:

	UK					34,630,503		24,662,675


4	Operating profit							Unaudited
						2026		2025
£							£
	This is stated after charging:

	Depreciation of owned fixed assets					24,052		39,220
	Operating lease rentals - land and buildings					76,424		31,333
	Auditors' remuneration for audit services					7,000		-
	Carrying amount of stock sold					30,370,503		21,605,920


5	Directors' emoluments							Unaudited
						2026		2025
£							£

	Emoluments					241,304		193,291
	Company contributions to defined contribution pension plans					53,106		70,325
						294,410		263,616


	Highest paid director:
	Emoluments					101,228		85,500
	Company contributions to defined contribution pension plans					9,603		7,200
						110,831		92,700


	Number of directors to whom retirement benefits accrued:							Unaudited
						2026		2025
Number							Number

	Defined contribution plans					3		3


6	Staff costs							Unaudited
						2026		2025
£							£

	Wages and salaries					2,114,024		1,357,781
	Social security costs					291,684		157,972
	Other pension costs					210,302		160,741
						2,616,010		1,676,494


	Average number of employees during the year					Number	Number

	Directors					3		3
	Senior management					5		1
	Office staff					16		12
	Site staff					15		11
						39		27


7	Interest payable							Unaudited
						2026		2025
£							£

	Bank loans and overdrafts					-		116
	Other loans					32,395		-
	Finance charges payable under finance leases and hire purchase contracts					1,528		5,778
						33,923		5,894


8	Taxation							Unaudited
						2026		2025
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					542,616		405,558

	Tax on profit on ordinary activities					542,616		405,558


	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:

						2026		2025
£							£
	Profit on ordinary activities before tax					2,144,373		1,621,328

	Standard rate of corporation tax in the UK					25%		25%

£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					536,093		405,332

	Effects of:
	Expenses not deductible for tax purposes					6,523		858
	Capital allowances for period in excess of depreciation					-		(632)

	Current tax charge for period					542,616		405,558


9	Tangible fixed assets
				Plant and machinery		Fixtures, fittings, tools and equipment		Total
				At cost		At cost
£					£		£
	Cost or valuation
	At 1 April 2025			112,039		30,117		142,156
	Additions			-		18,685		18,685
	At 31 March 2026			112,039		48,802		160,841

	Depreciation
	At 1 April 2025			93,269		19,889		113,158
	Charge for the year			14,745		9,307		24,052
	At 31 March 2026			108,014		29,196		137,210

	Carrying amount
	At 31 March 2026			4,025		19,606		23,631
	At 31 March 2025			18,770		10,228		28,998


10	Stocks							Unaudited
						2026		2025
£							£

	Work in progress					1,496,096		1,176,710


11	Debtors							Unaudited
						2026		2025
£							£

	Trade debtors					3,110,278		1,849,659
	Amounts owed by group undertakings					-		16,542
	Other debtors					135,282		190,723
	Prepayments and accrued income					608,567		332,240
	Amounts recoverable on contracts					1,665,832		1,194,638
						5,519,959		3,583,802


12	Creditors: amounts falling due within one year							Unaudited
						2026		2025
£							£

	Trade creditors					5,787,861		4,001,465
	Amounts owed to group undertakings					253		15,411
	Amounts owed to related parties					-		32
	Corporation tax					573,084		402,847
	Other taxes and social security costs					77,748		6,201
	Other creditors					4,602		8,248
	Accruals and deferred income					3,580,664		3,730,909
						10,024,212		8,165,113


13	Share capital							Unaudited
Nominal				2026		2026		2025
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		1,000		1,000		1,000


14	Profit and loss account							Unaudited
						2026		2025
£							£

	At 1 April					679,665		213,895
	Profit for the financial year					1,601,757		1,215,770
	Dividends					(1,500,000)		(750,000)

	At 31 March					781,422		679,665


15	Dividends							Unaudited
						2026		2025
£							£

	Dividends on ordinary shares (note 14)					1,500,000		750,000


16	Other financial commitments

	Total future minimum lease payments under non-cancellable operating leases:

Unaudited
						Land and buildings		Land and buildings
						2026		2025
£							£
	Falling due:
	within one year					91,072		47,000
	within two to five years					29,792		31,333
						120,864		78,333


17	Related party transactions

	During the year, the company advanced a loan of £2,000,000 to Adderstone 1993 Limited (formerly Arlenia Limited), the ultimate parent company. The loan was provided on a short term basis and carried interest at 5% per annum. The loan was repaid in full during the year. Interest income of £51,849 was recognised in respect of the loan. The company also incurred management charges from Adderstone 1993 Limited (formerly Arlenia Limited) of £26,404 (2025: £12,843). At the year end, no balances were due to or from Adderstone 1993 Limited (formerly Arlenia Limited) (2025: £15,411 due to the ultimate parent company). In the prior year, the company incurred management charges from Holdco 9395 Limited (formerly Adderstone 1993 Limited), a fellow subsidiary, of £22,718. At the year end, no balances were due to or from Holdco 9395 Limited (formerly Adderstone 1993 Limited) (2025: £nil).

	The company incurred charges from Adderstone Management Limited, a fellow subsidiary, for the following:
						2026		2025
£							£

	Professional fees					-		170,000
	Software and IT support					46,500		25,725
						46,500		195,725

	At the year end, the balance due to Adderstone Management Limited was £253 (2025: £16,542 due from).


18	Controlling party

	The immediate parent company is Adderstone Living (UK) Limited, incorporated in England & Wales. The ultimate parent undertaking is Adderstone 1993 Limited (formerly Arlenia Limited), incorporated in England & Wales. The most senior parent entity producing publicly available financial statements is Adderstone 1993 Limited (formerly Arlenia Limited). These financial statements are available upon request from Companies House.


19	Presentation currency

	The financial statements are presented in Sterling.


20	Legal form of entity and country of incorporation

	Adderstone Living Limited is a private company limited by shares and incorporated in England.


21	Principal place of business

	The address of the company's principal place of business and registered office is:

	Collingwood House, The Fleming
	Burdon Terrace
	Jesmond
	Newcastle upon Tyne
	NE2 3AE