The directors present the strategic report for the year ended 30 April 2023.
Key points
Turnover decreased by 14% to £78m (2022: £91m)
331 total sale completions in the year ended 30 April 2023 (2022: 299)
Gross margin decreased to 13% (2022: 20%)
Acquired new sites in the year totalling £55m Gross Development Value (“GDV”)
Landbank of £190m at 30 April 2023 (2022: £200m)
Housebuilding
Another solid set of numbers was delivered in the year ended 30 April 2023 with turnover at £78m (2022: £91m) producing a gross profit of £10.3m. Operating profit for the year was £4m (2022: £13m including a one-off land profit of £3.1m) and ROCE was 36%, a performance which compares very favourably with similar housebuilding businesses.
There is no doubting that the company's diversified business model has supported the delivery of a strong set of financial numbers, in spite of the extreme economic and political volatility, both internationally and domestically. The company benefits from operating across a range of residential housing markets, including affordable housing and rental housing, which typically strengthen when economic conditions tighten, as well as catering for a broad range of buyers in the owner-occupier marketplace, from first-time buyers through to downsizers.
In the UK, the turbulence in financial markets in the wake of the September ‘22 Mini Budget, early in the short-lived Truss premiership, provided a jolt to reservation rates which had been running at historically high levels. Fortunately, footfall, reservations, exchanges and completions all returned to more normal levels in the first four months of 2023 taking us through to year end.
On the supply side, the continuing impact of the Ukraine war on energy costs filtered through to higher input costs. Spiralling inflation put pressure on sub-contractors and wage inflation added to the mix – all of which had a negative effect on margins. However, as the year comes to a close, our cost inflation has returned to much more normal levels as competition in our supply chain increases.
On the upside, the challenging conditions played to two of our core strengths:
an absolute commitment to highly focussed risk management, which meant we were not taken by surprise, and
short chains of command which allow us to react quickly to changed conditions.
These strengths, coupled with a strong cash position and low levels of debt, meant we felt as “in control” as it is possible to be in a challenging environment.
At a macro-level, the UK housing market is rarely out of the news but much of the media coverage tends towards the sensational – with “runaway” or “collapsing” prices being the constant subject of speculation. On the ground, we believe the market fundamentals remain strong. Demand significantly outstrips supply and the UK is still nowhere near meeting the required annual targets for new housing starts. The overheated rental market and the high net immigration figures suggest nothing is likely to change soon.
Land supply has, of course, been highly competitive in recent years but a cooler market means more opportunities. Our growing reputation for flexibility and imagination in the way we put land deals together, and the pace at which we can do them because of our in-house development team capability, will stand us in good stead.
One element which is difficult to combat is the increased delays in securing planning permissions. Tighter regulations, the lack of sufficient local authority resources, coupled with the removal of housing targets, are clearly primary causes of this issue. We are taking steps to mitigate the situation, although it remains one of the challenges for the Company.
During the financial year, the company completed 331 homes, compared with 299 in the year ended April 2022.
As with prior years, the diversity of our product mix meant we were able to cater for a broad market segment – from first time buyers to up-scalers, from those looking for a luxury statement home to downsizers and, of course, across the range, for investors too.
In addition, our PRS deal with Lloyds Bank backed Eden Living also helped smooth some of the bumps in the private market. This bulk sale approach, together with our partnership working to deliver affordable homes with social landlords, is a key element of our risk management strategy and should serve us particularly well as we move into a much tighter market.
Our wider social commitment is delivered through the Edenstone Foundation which receives a proportion of the proceeds from every home sold by the company, with staff also raising funds in aid of the Foundation. Beneficiaries included The Proton Foundation and their Flourish programme, delivering mental health & well-being support and training into junior schools across our area of operation; completion of a project to bring safe water to Kpoguede community in Togo with international children’s charity, Compassion and a number of significant DIY SOS-type school projects to improve outdoor play areas.
As we move into the new financial year, we remain inherently cautious about the market and prudent in our planning. We have, however committed to a number of steps which we believe, for relatively modest expenditure, will help to keep us moving forward.
We continue to focus on our zero carbon strategy and this will form a key part of our Conpany's strategy going forward. As part of our strategy we are developing a partnership with energy giant, Octopus, which will see us offering purchasers “zero carbon homes with zero energy bills” for at least five years. This will enable us to accelerate our ability to deliver more sustainable housing and, at the same time, to provide customers with an almost irresistible offer in a world of high energy prices and wider financial volatility.
Principal risks and uncertainties
Risk is a natural constituent of any business and the management of risk is a key operating component of the Company. The Company has identified and put in place strategies to mitigate the principal risks and uncertainties faced by the business.
The directors consider that the most significant risks and uncertainties for the Company relate to conditions in the UK economy and the subsequent impact on the housing market. Other risks include delays in the planning system in the UK and the availability of development finance.
The Company is closely monitoring and managing the disruption to its supply chain as a result of current economic conditions. Several materials used in the Company's construction processes have been impacted by constrained availability, extended lead times or higher than normal cost inflation. The Company's strong forward sales pipeline provides the visibility to enable the early procurement of the required building materials and thus mitigating the effects of the supply chain disruption. The Company's mix of private, affordable and private rental sector forward sales provides mitigation against the risk of rising interest rates.
The Company’s revolving credit facility is committed to 31 December 2023. Subsequently, the company has put in place a five year £30m revolving credit facility with Heritable Bank which expires in January 2029. The directors monitor and manage cashflows in detail to ensure that sufficient capacity is available in the Company's credit facility to finance the Company’s growth plans.
The Company is very active in the land market to ensure that sufficient land is acquired to satisfy the growth objectives. Authorisation of land acquisitions is required by the Board, supported by rigorous acquisition appraisals for all potential land purchases. The Company has also increased its pipeline of Partnerships work which gives us increased confidence on our ability to deliver our medium-term plans and provides a diversification which reduces exposure to market risk.
The Company’s key financial and other performance indicators during the year were as follows:
| 2023 | 2022 |
Total house sale completions | 331 | 299 |
Turnover - £’m | £77.8 | £90.9 |
Gross profit - £’000 | £10,295 | £18,072 |
Private forward sales - £’m* | 24.8 | 20.3 |
Total forward sales - £’m* | 35.8 | 53 |
ROCE%** | 36% | 69% |
*Forward sales are those reserved or legally exchanged as at 30 April 2023.
**ROCE is calculated as earnings before interest and tax as a percentage of average capital employed.
Section172 Statement
The board considers the requirements of key stakeholders with a focus on the development of long-term relationships in all areas of the business. As part of their S172 statement, the directors have considered the following key stakeholders:
Stakeholder | Why are they important and how we engage with them | How we consider them in our decision making |
Shareholders | Our shareholders are fully represented on the board and enable the growth of the business.
Performance information and business updates are presented and discussed during regular Board meetings throughout the year. | Effective decision making allows the business to achieve its long term strategy and short-term objectives for all shareholders.
As all shareholders are represented on the Board, the shareholders are involved in all key decisions made by the Company.
We provide reports and operational information to the shareholders on a regular basis. |
Customers | Our customers are of vital importance to the Company. They are the end user of the houses and developments we are proud to build and we place a great deal of importance on engaging with our customers from initial enquiry to completion and beyond. | We consider changing customer requirements when making decisions such as where to locate our developments, house styles, community facilities etc. |
Section 172 Statement (Continued)
Employees | Our employees are vital in enabling us to achieve our objectives. We pride ourselves on our positive and collaborative working culture. | We hold regular meetings with our employees to update them on current business developments and future plans. Any changes are communicated openly and discussions and feedback around key decisions is actively encouraged. |
Suppliers & subcontractors | We have an extensive supply chain of over 250 contractors, trade people and professional services teams, many of whom have worked with us for decades, trust us and are very loyal to our business. We value that greatly. | We have worked with our suppliers and subcontractors to ensure any additional safety measures as a result of Covid 19 have been implemented. We are in contact with our suppliers and subcontractors regularly to discuss the latest developments and any operational requirements.
We monitor payments to ensure we are settling payments in line with our agreements. |
Lenders | Our lenders provide funding for the Company which allows for future growth and development. | We provide regular reports and operational information to our lenders to ensure they are informed of the relevant aspects of our business. |
Communities | One of the things that sets the company apart from other homebuilders, is the community facilities we provide alongside new homes, We are keen to ensure that residents benefit from the additional amenities at the earliest opportunity. Our developments are built with features including feature walking and fitness trails, community hubs and allotments. The community Hub at Parc Ceirw and St Mary's will also boast an indoor gym. | We consult regularly with the communities in which our developments are situated. We consider the needs of the community when planning the amenities that we install at each development.
We take pride in the facilities we provide and work hard to ensure that they represent genuine value for the communities they serve. |
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 April 2023.
The results for the year are set out on page 12.
The directors recommend a dividend of £0 (2022: £5,000,000)
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
The company's principal business activity is the construction of newbuild dwellings. In order to operate in an environmentally responsible manner the business is continually considering the wider impact of its activities on the environment and looking at ways to improve and reduce its carbon footprint. The company invests in reducing the carbon footprint of all homes we sell and see this as a key strategic objective.
The Company's principal business activity is the construction of newbuild dwellings. In order to operate in an environmentally responsible manner, the business is continually considering the wider impact of its activities on the environment and looking at ways to improve and reduce its carbon footprint. The Company invests in reducing the carbon footprint of all homes we sell and see this as a key strategic objective.
Edenstone Homes is a company that strives to push the boundaries of quality design and importantly sustainable design. We have tested a number of zero carbon technologies across our developments over the past few years and are now gearing up to take our zero carbon strategy to the next level. With an ambition of constructing zero carbon developments, we have formed a partnership with Octopus Energy to deliver zero-carbon homes to our customers with no energy bills guaranteed by Octopus for five years.
Development Location & Site Layouts
All of our sites are situated in sustainable locations which offer easy access to local facilities on foot or by bicycle or public transport, where possible we will encourage and promote connection to active Travel Networks.
Where appropriate our developments will offer a mix of uses and a variety of house sizes and types to ensure they appeal to a wide range of people. Where possible an element of Care or retirement housing will be provided for.
We are not promoting residential development on areas at risk from flooding. Any land which is at risk from flooding on our sites will be identified for alternative uses, such as parks, wildlife areas and open spaces.
Sustainable Urban Drainage Systems (SUDS) are incorporated into layout design from inception.
All properties will have gigabit (gb) ready Broadband and we are currently experimenting with a number of different intelligent heating and electric systems for our houses.
Green infrastructure across all our developments will drive the scheme design and will be an integral part of the community, providing links within the development and making them accessible from existing surrounding communities.
Community Food Production areas (allotments or orchards) feature in the majority of our proposals.
Building Layouts & Fabrics
We will ensure the internal designs of our homes will ensure their efficiency.
Our homes will also be designed to demand less energy first and foremost. We will be going beyond Part L Building Regulations to build highly insulated homes which will need much less energy to be comfortable and warm and will incorporate thermal mass that helps moderate overheating on hot days but absorbing the warmth to keep rooms cool.
All homes to be net Zero Carbon (whereby a home’s Carbon Credit [energy that is supplied by the home to the grid] is greater than its Carbon Deficit [energy demanded by the home from the grid]) by 2025.
We are currently rolling out new kitchens across our ranges which are entirely made from recycled materials.
Sustainable Travel and EV Charging
In appropriate locations, support the introduction of bike hire within a site.
All designs ensure that a site is well connection by pedestrian and cycle paths to ensure our residents can access local facilities by sustainable means.
In addition, we have reviewed our operational procedures and put in place the following to reduce our carbon footprint both of our office-based and construction site-based activities;
Upgrading our company car fleet to be majority electric or plug-in hybrid vehicles. We have installed electric charging points at our Head Office and at the majority of our sites to further encourage the use of electric vehicles.
Retrofitting of our offices to include energy saving devices such as LED lighting
Set up of a drawing sharing platform to reduce the need to print
Remote working facilities are set up to allow for reduced travel and utilisation of online meeting facilities.
Energy and carbon reporting for 2023
UK Energy use (kwH) | 2,034,732 |
Associated Greenhouse gas emissions (tonnes CO2 equivalent) | 453 |
Intensity Ratio: Emissions (Tonnes) per 100 sq ft completed homes | 0.138 |
UK Energy use includes the following:
Activity | Source of Information |
Electric use | Total kwH used from electricity bills |
Natural gas use | Total kwH used from gas bills |
Fuel used | Litres of fuel purchased from fuel receipts |
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
As explained more fully in the directors' responsibilities statement, 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.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and 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 and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Edenstone Homes Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, Building 102, Wales 1 Business Park, Newport Road, Magor, Caldicot, Wales, NP26 3DG.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Edenstone Holdings Limited. These consolidated financial statements are available from its registered office, First Floor, Building 102 Wales 1 Business Park, Newport Road, Magor, Caldicot, Wales, NP26 3DG.
As at 30 April 2023 the company had net current assets of £20,643,000 (2022: £30,882,000), including cash of £5,401,000 (2022: £12,852,000), net assets of £20,742,000 (2022: £17,484,000) and reported a profit for the year end of £3,258,000 (2022: £10,654,000).
The Company’s revolving credit facility was committed to 31 December 2023. Subsequently, the company has put in place a five year £30m revolving credit facility with Heritable Bank which expires in January 2029. The directors monitor and manage cashflows in detail to ensure that sufficient capacity is available in the Company's credit facility to finance the Company’s growth plans.
The directors have prepared the cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements which indicate that, taking account of reasonable possible downsides and the anticipated impact of the current economic environment and the housing sector on the operations and its financial resources, the company will have sufficient funds to meet its liabilities as they fall due for that period.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised costs using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example, if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market value rate of instrument for a similar debt instrument.
Interest bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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. Amounts 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
A provision is recognised in the balance sheet when the company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Management considers the key sources of esimation uncertainty relate to:
Margin recognition
In order to determine the profit that the company recognises on its developments, the company has to allocate site-wide land and development costs between the homes built on the development. It also has to estimate costs to complete on the development and make estimates relating to future selling prices on those developments and homes. In making these assessments there is a degree of inherent uncertainty. The company has developed internal controls to assess and review carrying values and costs to complete, and the appropriateness of estimates made.
Turnover is derived solely from the development and sale of residential property within the UK.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
During the year 30 April 2023, the company has utilised its tax losses (2022: £633,466 held in relation to which a deferred tax asset had been recognised.)
Factors that may affect future tax charges
An increase in the UK corporation rate from 19% to 25% (effective 1 April 2023) was substantively enacted on 24 May 2021. These changes will have a consequential effect on the company's future tax charge. The deferred tax asset at 30 April 2023 has been calculated at 25% (2022: 25%).
The total carrying amount of stock pledged as security for liabilities in the year amounted to £20,225,000 (2022: £13,653,000). Stocks include capitalised finance costs of £2,425,000 (2022: £1,784,000). Total borrowing costs capitalised during the year was £2,533,000 (2022: £3,179,000)
Included within the deferred tax asset is £nil (2022: £140k) due after more than one year. The deferred tax asset is attributable to fixed asset temporary differences, short term temporary differences, and losses and other deductions.
Amounts due to group undertakings are non-interest bearing and are repayable on demand.
Bank and development finance loans comprises a revolving credit facility with Marshal European Investment Co 1 Sarl. The loan is secured against the assets of the project to which they relate. The facility is used for funding the acquisition and development of housing sites and repaid as those sites are sold through.
The revolving credit facility was a five year facility which ended on 5 January 2024 and disclosed as such. It was replaced by a five year £30m credit facility from Heritable Bank who have taken similar levels of security over the sites that are being funded.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
During the year, Eden Living Properties Limited acquired properties from Edenstone Homes Limited for a consideration of £30,723,000. The balance outstanding at 30 April 2023 was £4,742,000. Stuart Rodden is a director of Eden Living Properties Limited.
During the year, Green Borough Holdings Limited acquired 3 plots from Edenstone Homes Limited for a consideration of £826,000. The balance outstanding at 30 April 2023 was £nil. Green Borough Holdings Limited is controlled and owned by Martin Taylor, a director of Edenstone Homes Limited.
The company is a wholly owned subsidary of Edenstone Limited and the ultimate parent undertaking is Edenstone Holdings Limited. Both companies are registered in England and Wales and have their registered office at Building 102, Wales One Business Park, Magor, NP26 3DG. Consolidated accounts for Edenstone Holdings Limited (which heads the only group of undertakings for which group financial statements are drawn up and of which the company is a member) are available to the public and can be obtained from the registered office.
The directors consider there to be no ultimate controlling party.