REGISTERED NUMBER: 04242280 (England and Wales)

ASHWOOD HOMES LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2025

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

to

6

Report of the Independent Auditors

7

to

10

Income statement

11

Statement of Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

to

25

DIRECTORS:

A J King

Mrs J King

REGISTERED OFFICE:

1 Goodison Road

Lincs Gateway Business Park

Spalding

Lincolnshire

PE12 6FY

REGISTERED NUMBER:

04242280 (England and Wales)

SENIOR STATUTORY AUDITOR:

Edward Napper BSc FCA

AUDITORS:

PEM Audit Limited

Salisbury House

Station Road

Cambridge

Cambridgeshire

CB1 2LA

The directors present their strategic report for the year ended 30 June 2025.

REVIEW OF BUSINESS

The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and nature of the business.

The company's main focus of activity has been the construction and sale of new homes through the 'Ashwood Homes' brand.

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being revenue, gross profit and profit before tax and exceptional items.

2025

2024

2023

2022

2021

Revenue

£43,263,968

£33,800,771

£55,663,223

£51,632,335

£51,702,643

Gross profit

£5,596,972

£5,352,963

£8,874,485

£14,222,149

£7,916,431

Gross profit %

12.9%

15.8%

15.9%

27.5%

15.3%

Profit before tax

£2,860,352

£2,601,836

£5,357,925

£11,465,376

£5,186,201

Following the extraordinary and industry-wide dip during the previous year, the company has seen an improvement in both sales demand and overall profitability this year. The principal reason for this has been the gradual easing of the financial pressure on potential clients caused by higher interest rates and the increased cost of living in recent times.

The company's focus on high specification developments with a quality build is helping it to form an enviable reputation with high levels of customer satisfaction. The professional customer service team also plays no small part in this on-going success.

This year, gross profit has increased from £5,352,963 to £5,596,972, representing 12.9%. Cost pressures associated with the reduced levels of demand contributed to holding the core housing gross profit margin well below its normal target rate. We anticipate that margins will improve as sales demand increases further.

Taking these factors into account, the underlying trading performance remains very healthy and the directors are pleased considering the challenges that the last 12 months has brought and have confidence in the increased land bank to continue to deliver the company's targets.

Profit before tax has increased from £2,601,836 to £2,860,352. This reflects the continuing stability of the business in the face of the economic turbulence and uncertainties.

In the current year, there continues to be some cost pressures in relation to material and labour costs, but due to its proactive sales approach, good cost and operational control the company has continued to achieve healthy gross profit margins. There are signs that demand levels are starting to improve and the company is well placed to deal with this.

Overall, the directors are pleased with the results for the year and are confident of the future. There will undoubtedly be further challenges and uncertainties, such as the longer-term impact of both Brexit and interest rate uncertainty on the housing market.

The company is however in a favourable position with a significant land bank and plots with planning permission that will allow current activity to be maintained into the coming year and beyond.

The company continues to identify new land for future development. Our flagship 1,000 home project in Holbeach is fully operational and producing completions, giving the business security for the future. There are also a number of new sites coming on stream in the next year as part of our overall 9-year supply of land.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks arising from the company's activities and the board's policies for managing these risks are summarised below.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by revolving credit facilities.

Interest rate risk

The company finances its operations through a combination of bank borrowings, hire purchase, group loans and director financing loans. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and variable rate facilities. Interest on group loans and director financing loans is discretionary.

Government housing policy

Government housing policies can impact the market in both the short and long-term. Following the change of government there are likely to be new measures taken which will influence our business operations and future profitability. We are constantly monitoring current commentary relating to future government policy and maintaining contact with current thinking through industry platforms and contacts.

Economic conditions

The health of the economy at local and national level, and any deterioration in it, will potentially have an impact on demand and selling prices for new homes. Revenue, profit and cash flow could be adversely affected. Current economic data is monitored to identify any potential triggers for a deterioration in market conditions, allowing the company to set build rates and plot releases as close as possible to anticipated demand levels. The company's level of gearing and cash reserves are also monitored as part of its liquidity risk assessment to ensure borrowing levels are manageable in the event of a sudden downturn.

Impact of Brexit

There has been a considerable degree of uncertainty about Brexit in recent years. The situation continues to remain somewhat uncertain, with pressure being felt in supply chain and logistics, resulting in increased material prices, longer lead times and economy wide inflationary increases. The longer-term impact of Brexit remains uncertain, but the company manages this risk by monitoring the Government's post-Brexit policy closely and assessing any potential impact on both the housing market and the company.

Mortgage regulation

The housing market is dependent on homeowners' ability to borrow money to buy homes. Any changes in regulations, money supply or interest rates may affect that ability with potential impact on revenue, profit and cash flow. This risk is managed by monitoring current commentary relating to finance and assessing its impact on levels of construction activity.

Price risk

Material and labour supply demands will vary according to overall levels of house building activity. Increased activity can lead to cost increases.

Currency and credit risks

Due to the nature of the financial instruments used by the company there is no exposure to currency risk and minimal exposure to credit risk with new homes being released on full payment of the asking price.

Environmental

The company is aware of its environmental responsibilities and of its carbon footprint and is starting to look in some detail at its impact on the community and the environment. Our fleet of company cars are all 100% electric with chargers installed at both the company's head office and the EV user's homes.

We also continue to assess and implement new technologies in order to make the homes we build more energy efficient and lower our carbon footprint, through small changes such as using LED lights to replacing gas boilers with thermal heating pumps.

Future developments

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

SECTION 172(1) STATEMENT

The directors set out their compliance statement in accordance with S172(1) of the Companies Act 2006.

The directors key objectives in decision making is to ensure the short and long term success of all business related activities. This promotes the sustainable growth of the business, to the benefit of all involved stakeholders, including customers and suppliers.

Consideration is also given to the impact of any such decisions on the welfare of the group's employees, to ensure that decisions are made equitably, in their best interests. The directors are committed to providing a working environment that promotes the long term well-being of all employees, whilst enhancing their performance and potential.

The group is mindful of its environmental and community responsibility, and sets a high standard of conduct for both employees and suppliers to follow. The directors set high standards of ethical behaviour to promote the reputation of the company both in its operating area and across the wider housebuilding industry.

ON BEHALF OF THE BOARD:

A J King - Director

25 November 2025

The directors present their report with the financial statements of the company for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the development and sale of real estate.

DIVIDENDS

No interim dividend was paid on the Ordinary £1 shares. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Preference £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 30 June 2025 will be £nil.

FUTURE DEVELOPMENTS

Information concerning future developments is contained in the strategic report.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2024 to the date of this report.

A J King

Mrs J King

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise cash, bank term borrowings and trade creditors.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the 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 (United Kingdom Accounting Standards 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 accounting estimates that are reasonable and prudent;

-	state whether applicable 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

Our auditor, Peters Elworthy & Moore transferred their audit registration and therefore that part of their business to a newly incorporated company, PEM Audit Limited, on 1 September 2025. Accordingly, Peters Elworthy & Moore ceased to hold office as the Company's auditor with the Directors duly appointing PEM Audit Limited to fill the vacancy arising.

The auditor, PEM Audit Limited, will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

A J King - Director

25 November 2025

Opinion

We have audited the financial statements of Ashwood Homes Limited (the 'company') for the year ended 30 June 2025 which comprise the Income statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 company's affairs as at 30 June 2025 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

- 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; or

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Report of the Directors and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

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:

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;

- in addition, we considered provisions of other laws and regulations which do not have a direct effect on the financial statements but compliance with which might be fundamental to the company's ability to operate or to avoid material penalties;

- we obtained an understanding of the entity's policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;

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

- laws and regulations identified were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

As a result of the above risk assessment procedures, we identified the greatest risk of material misstatement on the financial statements arising from irregularities and fraud to be within the potential for management to override controls together with the risk of fraudulent revenue recognition. We considered the risk of fraudulent revenue recognition to be most prevalent in the cut-off of revenue. In response to these identified risks, we designed procedures which included, but were not limited to:

- analytical procedures to identify any unusual or unexpected relationships;

- audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business;

- evaluation of the assumptions and judgements used by management within significant accounting estimates and assessment of whether these indicated evidence of management bias;

- use of Audit Data Analytics to review the client data for unusual trends/anomalies; and

- substantive testing for a sample of revenue transactions and assessed whether revenue was recognised in the correct financial period.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing the financial statement disclosures to underlying supporting documentation;

- assessment of the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- discussion with management regarding actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditor's Report.

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.

Edward Napper BSc FCA (Senior Statutory Auditor)

for and on behalf of PEM Audit Limited

Salisbury House

Station Road

Cambridge

Cambridgeshire

CB1 2LA

25 November 2025

REVENUE

3

43,263,968

33,800,771

Cost of sales

37,666,996

28,447,808

GROSS PROFIT

5,596,972

5,352,963

Administrative expenses

2,486,163

2,508,267

3,110,809

2,844,696

Other operating income

4

151,335

60,397

OPERATING PROFIT

7

3,262,144

2,905,093

Income from shares in group undertakings

-

2,545,615

Interest receivable and similar income

157,189

29,616

157,189

2,575,231

3,419,333

5,480,324

Amounts written off investments

8

-

1,894,836

3,419,333

3,585,488

Interest payable and similar expenses

9

558,981

983,652

PROFIT BEFORE TAXATION

2,860,352

2,601,836

Tax on profit

10

773,095

511,432

PROFIT FOR THE FINANCIAL YEAR

2,087,257

2,090,404

PROFIT FOR THE YEAR

2,087,257

2,090,404

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,087,257

2,090,404

FIXED ASSETS

Property, plant and equipment

12

1,173,160

872,532

Investments

13

1

1

Investment property

14

166,435

166,435

1,339,596

1,038,968

CURRENT ASSETS

Inventories

15

48,523,678

51,670,038

Debtors

16

6,706,115

6,009,972

Cash at bank and in hand

4,800,293

3,913,493

60,030,086

61,593,503

CREDITORS

Amounts falling due within one year

17

24,206,385

27,601,400

NET CURRENT ASSETS

35,823,701

33,992,103

TOTAL ASSETS LESS CURRENT LIABILITIES

37,163,297

35,031,071

PROVISIONS FOR LIABILITIES

21

103,907

58,938

NET ASSETS

37,059,390

34,972,133

CAPITAL AND RESERVES

Called up share capital

22

6,510,001

6,510,001

Retained earnings

30,549,389

28,462,132

SHAREHOLDERS' FUNDS

37,059,390

34,972,133

The financial statements were approved by the Board of Directors and authorised for issue on 25 November 2025 and were signed on its behalf by:

A J King - Director

Called up

share

Retained

Merger

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 July 2023

6,510,001

28,727,893

1,163,612

36,401,506

Changes in equity

Sale of investment

-

1,163,612

(1,163,612

)

-

Dividends

-

(3,519,777

)

-

(3,519,777

)

Total comprehensive income

-

2,090,404

-

2,090,404

Balance at 30 June 2024

6,510,001

28,462,132

-

34,972,133

Changes in equity

Total comprehensive income

-

2,087,257

-

2,087,257

Balance at 30 June 2025

6,510,001

30,549,389

-

37,059,390

1.	STATUTORY INFORMATION

Ashwood Homes 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 Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements and consolidation

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.

The financial statements contain information about Ashwood Homes Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent Ashley King Group Limited.

The registered office of Ashley King Group Limited is 1 Goodison Road, Lincs Gateway Business Park, Spalding, Lincolnshire, PE12 6FY and from where copies of the consolidated financial statements can be obtained.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

(i) Work in progress/cost of sales

The company recognises costs in the profit and loss account based on the expected margin after considering the the total costs for each site.

Revenue

Revenue from housing sales is recognised at the fair value of the consideration received or receivable on legal completion, being the point that control is deemed to pass to the customer.

Profit is recognised on the sale of each housing plot by reference to the estimated costs of that plot based on an allocation from the expected overall cost out-turn for the development site.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

10% on cost and 5% on cost

Plant and machinery

-

100% on cost, 50% on cost, 33% on cost and 25% on cost

Fixtures, fittings and equipment

-

50% on cost and 25% on cost

Motor vehicles

-

25% on cost

Tangible fixed assets are held at cost less accumulated depreciation and impairment losses. Depreciation is charged to both administrative expenses and cost of sales.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Inventories

Inventory comprises units in the course of construction and currently held for sale. Cost is measured as the cost of materials used, plus staff and other costs directly attributable to bringing the stock to its current condition.

Stocks and work in progress are valued at the lower of cost and fair value less costs to complete and sell after making due allowance for slow moving and obsolete items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Financial instruments

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit and loss account, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Interest receivable and payable

Interest amounts are accounted for on an accruals basis.

3.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2025

2024

£

£

Property sales

43,053,334

33,332,771

Land sales

-

450,000

Contract sales

189,434

-

Management services

21,200

18,000

43,263,968

33,800,771

All revenue arose in the UK.

4.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

54,935

57,967

Sundry receipts

96,400

2,430

151,335

60,397

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,740,073

2,537,545

Social security costs

310,180

269,800

Other pension costs

111,369

91,394

3,161,622

2,898,739

The average number of employees during the year was as follows:

2025

2024

Directors

2

2

Management, office and administration

45

41

Site staff

15

14

62

57

RESTATEMENT OF 2024 COMPARATIVE

During the year, the Directors identified an issue with the totals reported as employment costs within the notes to the financial statements in previous years. To correct the position, comparative figures this year have been amended as follows:

- Wages and salaries £2,537,545 (previously reported £1,295,096)

- Social security costs £269,800 (previously reported £144,205)

- Other pension costs £91,394 (previously reported £76,558)

This was purely an inadvertent disclosure misstatement which had no impact on the amounts recognised in the income statement, statement of comprehensive income or statement of financial position.

6.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

20,000

20,000

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

23,297

18,713

Depreciation - owned assets

342,378

240,346

Depreciation - assets on hire purchase contracts

-

39,375

Profit on disposal of fixed assets

(52,329

)

(15,544

)

Auditors' remuneration

23,367

26,003

Hire of plant and machinery included in cost of sales

337,282

188,580

8.

AMOUNTS WRITTEN OFF INVESTMENTS

2025

2024

£

£

Amounts written off investments

-

1,894,836

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

528,784

966,743

Other bank loan interest

-

901

Interest on taxation

27,927

9,197

Hire purchase interest

2,270

6,811

558,981

983,652

10.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

728,126

507,715

Adjustment for previous years

-

16,516

Total current tax

728,126

524,231

Deferred tax

44,969

(12,799

)

Tax on profit

773,095

511,432

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

2,860,352

2,601,836

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

715,088

650,459

Effects of:

Expenses not deductible for tax purposes

52,520

-

Income not taxable for tax purposes

-

(141,156

)

Depreciation in excess of capital allowances

5,487

1,634

Adjustments to tax charge in respect of previous periods

-

16,516

Group loss relief

-

(16,021

)

Total tax charge

773,095

511,432