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← Hfhgb (Homes)

2025-06-30-accounts

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am e e © iy Habitat | for Humanity° GB Homes

HFHGB (Homes)

(Company Limited by Guarantee)

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TRUSTEES’ REPORT AND

FINANCIAL STATEMENTS

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FOR THE YEAR ENDED 30" JUNE 2025

Registered Company No: 03155218 Registered Charity No: 1053213

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HFHGB (Homes)

CONTENTS

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Page
REPORT OF THE TRUSTEES 1-7
INDEPENDENTAUDITORS’ REPORT 8-10
STATEMENTOF FINANCIAL ACTIVITIES 11
BALANCE SHEET 12
STATEMENTOF CASH FLOWS 13
NOTESTOFINANCIALSTATEMENTS 14-26

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Page 1

HFHGB (Homes)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30™ JUNE 2025

The Trustees are pleased to present their report together with the financial statements for the year ended 30th June 2025,

Reference and Administrative details

Registered Office 268 Bath Road, Slough, SL1 4DX

Bankers

CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ

Auditors Knox Cropper LLP, 65/68 Leadenhall Street, London, EC3A 2AD

Solicitors Bates, Wells and Braithwaite London LLP, 2-6 Cannon Street, London, EC4M 6YH

Chief Executive

David Clare (resigned 24 October 2024)

Trustees of the Company

HfHGB (Homes) Trustees serve as directors of the company and members of the Board of Trustees. The following were members of the Board of Trustees during the year:

Alistair Mugford (Resigned 1 October 2024)

Brian Clark (Resigned 5 December 2024) Ian Whitehead Gordon Holmes Ipeng Kiang (Resigned 1 October 2024) Henrietta Blackmore (Appointed 1 October 2024) and National Director of HEFHGB Holly Carter (Appointed 13 February 2025)

The Trustees confirm that the annual report and financial statements comply with current statutory requirements, the requirements of the charity’s governing document and the provisions of the statement of recommended practice SORP (FRS 102) “accounting and reporting by charities” (effective January 2019).

Structure and Governance and Management

HfHGB (Homes) (registered charity number 1053212) is constituted as a company limited by guarantee (registered number 3155218) and is therefore governed by its memorandum and articles of association. During the year, its sole member Habitat for Humanity Great Britain, and each Trustee had a legal liability of £10 each. Legal responsibility for the management and stewardship of the charity is vested in the Board of Trustees,

Strategic decisions and operational guidelines are made by the Board of Trustees, but the operations are managed by staff overseen by the Board. Any decisions that affect the strategic vision of the charity are referred to the Board for a final decision to be taken.

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Page 2

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30" JUNE 2025

Related Party Transactions

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During the year under review three trustees of the parent company Habitat for Humanity Great Britain (HFHGB) (Mr Alistair Mugford, Mr Gordon Holmes and Mr Ian Whitehead) were also trustees of HFHGB (Homes). In October 2019 the trustees of HFHGB and HFHGB (Homes) decided that it was strategically desirable for the operations and specified assets of HFHGB (Homes) to transfer to HFHGB. Detailed planning was interrupted by the Covid Pandemic. In 2023, the Boards of HFHGB and HFHGB (Homes) reconfirmed their intention to proceed with the planned transaction. The date of Transfer was 1* October 2024, As part of the Transfer HFHGB (Homes) has stopped taking on new projects and all relevant staff were TUPE’d to HFHGB and there are no active staff within HFHGB (Homes),

Appointment and Recruitment of Trustees

Trustees are appointed by the Board of Trustees based on the skills needed by the Board and the skills of potential Board members. The trustees currently meet quarterly to review strategy and operational management.

Trustee Induction and Training

New trustees undergo an induction when they are appointed, to brief them on their legal obligations under charity and company law, the aims and procedures of the charity, the content of the memorandum and articles of association, the Board and decision-making process, the business plan and recent financial performance of the charity, and the current objective. The trustee body as a whole is kept up to date with legal and statutory requirements via briefings. Updates are circulated of changes that may affect governance and operational best practice (e.g. Charity Commission and charity/company law updates).

Organisation

The Board of Trustees meets four times per year to discuss the current and future strategic development of the charity and any issues affecting the charity’s objectives.

Operational decision making is delegated to the National Director of HFHGB on behalf of the Board. Decisions related to governance, organisational strategy, the financial strategy and solvency of the charity or significant changes in operational policy are the responsibility of the Board.

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Public Benefit

The trustees confirm that they have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The trustees have referred to this guidance when reviewing the charity’s aims and objectives and in planning future activities of the charity.

Page 3

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 307 JUNE 2025

Risk Management

The trustees have resolved to wind up the charity up and are managing the associated risks, including the orderly disposal of existing assets and the transfer of any remaining obligations to HFHGB.

During this period the Trustees have overall responsibility for ensuring that appropriate systems of control, financial or otherwise, remain in place. They are responsible for safeguarding the assets of the charity, taking reasonable steps for the prevention and detection of fraud and other irregularities and providing reasonable assurance that:

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

Organisational risks are reviewed every year by the Board of Trustees who may take independent professional legal and financial advice to ensure that risks are properly managed.

Objectives

The Trustees' objective is to dispose of property and other assets in an orderly manner and transfer any remaining net assets and obligations to HFHGB to be applied in furtherance of its charitable objects.

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Page 4

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REPORT OF THE TRUSTEESHFHGBFOR (HOMES) THE YEAR ENDED 30 JUNE 2025

Financial Review

We had a deficit for the year to 30 June 2025 of £101,880 compared to the previous year deficit of £178,526. Our activities for the year were focused on maintenance of existing lease properties and preparation for the sales of the assets.

Going Concern Statement

The trustees have assessed HFHGB (Homes)'s financial position and have a reasonable expectation that the remaining entity will have adequate resources to continue leasing the properties while making plans to dispose of all assets and liabilities within the coming 24 months. This assessment is based on the forecasted financials relating to lease income and expenditure which also considers receipts from sale of leases.

However, the trustees are aware of the general uncertainties and thus acknowledge potential risks to the going concern status, including: °. Delays in selling off leases. ° Unexpected increases in repair and maintenance costs. ° Economic downturns that may affect potential buyers. ° Changes in government policies or regulations impacting the leased property. ° Unforeseen events or emergencies requiring substantial financial outlay.

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Despite these risks, the trustees continue to adopt the going concern basis in preparing the annual financial statements, confident in the charity's ability to manage these challenges effectively.

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HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30™ JUNE 2025 Mortgage Repayments

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Mortgage repayments from existing Habitat homeowners have continued to provide a reliable cash flow, with no material arrears to report. However, there are only 2 mortgages outstanding at the end of June 2025. As mortgages come to an end, arrangements to remove charges are organised with our solicitors, and updated Land Registry details are filed on behalf of our lenders.

Lease and Repair Income

Lease income has been steady through the year and performed in line with our expectations. Some leases expired during the year and end of lease arrangements were made with the owners for the return of their property, with appropriate dilapidations payments. We have accrued some income on behalf of owners where it was not possible to end a tenancy until the social housing tenant had been rehoused. These are contained within creditors in the financial statements.

Fundraising and other income

HFHGB (Homes) did not undertake direct fundraising activities during this period, working instead through the fundraising capacity of Habitat GB. This includes funding for projects connected to the Empty Spaces to Homes pilot project and the volunteer-based Upcycling programme, which HFHGB (Homes) helps to deliver in partnership with Habitat GB. Funding was mainly raised from corporate and philanthropic partners.

Where funds are passed to HFHGB (Homes) directly as a result of Habitat GB fundraising activities, costs are deducted. However, if Habitat GB disperses a portion of funds raised via Habitat for Humanity International to HFHGB (Homes), no deduction is made.

Fundraising of this kind is different to income which may be derived from leases or consultancy work which HFHGB (Homes) have contracted to deliver directly and with no involvement from Habitat GB.

Reserves Policy

This policy is to maintain unrestricted reserves to ensure short term liquidity and long-term financial stability and sustainability. The charity aims to hold unrestricted reserves equivalent to three months of operating expenses. These expenses include: loan repayments, required staff or consultancy costs payable by HFHGB (Homes), urgent repairs or maintenance obligations for lease properties, other costs related to management of assets and liabilities such as legal fees.

Reviewing the cash balance of £145,936 available at 30th June, the trustees confirm that this balance is sufficient to cover the mentioned operating expenses for the year ahead to maintain organisational expenses while the disposal of the assets is completed.

The trustees will review this policy on an annual basis to ensure it remains appropriate for the charity’s financial needs and medium-term plans.

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HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30" JUNE 2025

Investment Policy

In order to comply with the provisions of the SORP (FRS 102), the trustees conduct an annual review of the investment policy for the financial reserves held by HfHGB (Homes). The investment policy enables the trustees to make the best judgements about how and where the reserves should be invested, taking into consideration the return against the risk of investment, the need for growth and the ease of access to the funds. The trustees would expect to place large sums of capital which are not needed for significant periods of time with qualified investment advisors with an instruction to pursue medium risk growth. The trustees would expect to place smaller sums of capital which were required to be readily accessible in a high-income earning account such as CCLA.

Ethical Investments

Whilst HfHGB (Homes) does not have a formal ethical investment policy, it will endeavour to follow ethical guidelines when investing money.

Plans for the Future

As per the finalisation of the Transfer Deed between HFHGB (Homes) and Habitat GB on 1 October 2024, the ongoing business of HFHGB (Homes) will focus solely on the management and disposat of the current asset portfolio and corresponding liabilities. These comprise certain properties and an associated management company, leases, mortgages and loans. A detailed Asset & Liability Management Plan is in place, overseen by the Trustees, which ensures that income, expenditure and disposal strategies continue to keep HFHGB (Homes) as a going concern.

The day to day leadership and management of HFHGB (Homes) will be the responsibility of the Habitat GB executive and staff, who will report to and consult with the HFHGB (Homes) trustees, in line with the governance requirements of the charity. As the sole member of HEHGB (Homes), Habitat GB will also be sighted on the financial status and management of the subsidiary.

Both the HFHGB (Homes) and Habitat GB Boards have formally approved the long term strategy for HFHGB (Homes) to be wound up and closed as a legal entity on the final disposal of its current assets and liabilities. This is estimated to take up to two years. No other activities will be undertaken by HFHGB (Homes) in the future.

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Page 7

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HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30" JUNE 2025

Responsibilities in Relation to the Financial Statements

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UKGAAP).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements the trustees are required to:

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The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with relevant legislation and the trust deed. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006 relating to small companies.

This report was approved by the Trustees on 28 March 2026 and signed on its behalf by:

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Ian Whitehead (Trustee)

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Page 8

OF

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

HFHGB (Homes) FOR THE YEAR ENDED 30TH JUNE 2025

Opinion

We have audited the financial statements of HFHGB (Homes) (the ‘charitable company’) for the year ended 30" June 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow statement 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:

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 charitable 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 trustees’ 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 charitable 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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Page 9

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

HFHGB (Homes) FOR THE YEAR ENDED 30TH JUNE 2025

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

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In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsibie 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 trustees 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 trustees are responsible for assessing the charitable 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 trustees 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. Reasonabie 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:

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Page 10

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

HFHGB (Homes)

Auditor's FOR THE YEAR ENDED 30TH JUNE 2025 responsibilities for the audit of the financial statements (continued)

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There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities, This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable 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 charitable 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 charitable company and the charitable company’s members as a body, for our audit work, for this report or for the opinion we have formed.

James Holland-Leader FCA (Senior Statutory Auditor) For and on behalf of Knox Cropper LLP, Statutory Auditor 65 Leadenhall Street London EC3A 2AD

Date: 3° Merch 1026

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Page 12

HFHGB (Homes

BALANCE SHEET AS AT 30'" JUNE 2025

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||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |Notes|£|£|£|£| |FIXED|ASSETS| |Tangible|Fixed|Assets|10|718,854|769,469| |Programme|Related|Investments|i1|14,893|29,524| |Work|In|Progress|12|:|:| |733,747|798,993| |CURRENT ASSETS| |Debtors|13|4,191|119,206| |Cash|at|Bank|and|In|Hand|145,936|155,837| |150,127|275,043| |CREDITORS:|Amounts|falling| |due within one year|14|(152,546)|(213,570)| |NET|CURRENT| |(LIABILITIES)/ASSETS|(2,419)|61,473| |CREDITORS:|Amounts|falling| |due|after more than|one year|15|(46,125)|(73,383)| |NET ASSETS|£685,203|£787,083| |RESTRICTED|FUNDS|17|4,289|4,384| |UNRESTRICTED|FUNDS| |General|Funds|680,914|782,699| |TOTAL FUNDS|£685,203|£787,083|

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These accounts are prepared In accordance with the special provisions of Part 15 of the Companies Act relating to small companles and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements were approved by the Trustees on 28" March 2026 and signed on their behalf by:

Ross Avery (Treasurer)

Company No: 03155218

The notes on pages 14 to 26 form an Integral part of these financial statements.

Page 13

HFHGB (Homes)

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CASH FLOW STATEMENT FOR THE YEAR ENDED 30° JUNE 2025
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2025 2024
£ £ £ E
Cash flowsfrom Operating Activities (a) below
Net cash provided by/(used in)operating activities 7,978 (96,537)
Cash flowsfrom Investing Activities
Investment Income 201 174
Payments to acquire tangible fixed assets - (6,215)
Proceeds from sale of fixed assets - 175,000
Repayment of Programme Related Investments 14,631 14,343
Net cash provided by/(used in) investing activities 14,832 183,302
Cash flows from Financing Activities
Loan Drawdowns - - -
Loan Repayments (29,679) (28,637)
Interest Paid (3,032) (4,134)
Netcash provided by/(used in)financing activities (32,711) (32,771)
Change in Cash and Cash Equivalents in theYear (9,901) 53,994
Cash and Cash Equivalents at 15July 2024 155,837 101,843
Cash and Cash Equivalents at30 June2025 £145,936 £155,837
(a) Reconciliation ofNet Income/(Expenditure) to NetCash flow from
Operating Activities
2025 2024
£ £
Net Income/(Expenditure) (101,880) (178,526)
Interest Income Received (201) (174)
Interest Paid
Depreciation		 3,032
48,306		 4,134
103,414
(Gain)/Loss on disposal offixed assets 2,309 (135,024)
Expense ofWork in Progress - 66,560
(Increase)/Decrease in Debtors and Prepayments 115,015 54,838
Increase/(Decrease) InTrade Creditors and Provisions (58,603) (11,759)
£7,978 £(96,537)
(b) Analysis ofChanges in NetDebt
At 1%July At 30" June
2024 Cash Flows 2025
£ £ E
Cash
Loans falling due within one year
Loans fallingdue aftermorethan one year		 155,837
(29,627)
(73,383)		 (9,901)
2,421
27,298		 145,936
(27,206)
(46,125)
, £52,827 £19,778 £72,605

The notes on pages 14 to 26 form an integral part of these financial statements.

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Page 14 HFHGB (Homes NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30% JUNE 2025

1, ACCOUNTING POLICIES

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(a) Basis of Preparation of Financial Statements The financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities” (FRS 102), the Financial Reporting Standard 102 and the Companies Act 2006. The company Is a public benefit entity.

The financial statements are prepared in sterling, which is the functional and presentational currency of the company. Monetary amounts in these financial statements are rounded to the nearest £,

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. The Board has considered the principal risks and uncertaintles on the short and long term health of the Charity, and is content that the measures taken, combined with sufficient reserves, provides assurance that the going concern basis is appropriate in preparing the financlal statements.

(b) Company Status

The company, which Is a registered charity, is IImited by guarantee and |s controlled by Habitat for Humanity Great Britain who are the sole member, In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

(c) Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes,

Restricted funds are funds which are to be used in accordance with specific restrictions Imposed by donors which have been raised by the company for particular purposes. The cost of ralsing and administering such funds are charged against the speciflc fund. The aim and use of each restricted fund Is set out in the notes to the financial statements.

(d) Income

All incoming resources are included in the Statement of Financial Activities when the company is legally entitled to the income, it is probable the income will be recelved and the amount can be quantified with reasonable accuracy.

, HFHGB (Homes) enters into commercial contracts with a local authority to undertake renovation work on empty local authority properties. Contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the reporting date. The Charity uses the measured valuation method to determine the amounts to be recognised in the perlod. The value of works is calculated by surveyors by reference to the contract sum breakdowns up to the end of the reporting period for each contract.

(e) Expenditure All expenditure Is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

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Page 15

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30" JUNE 2025

1, ACCOUNTING POLICIES (Continued)

Direct costs, including directly attributable salaries, are allocated on an actual basis to the key areas of activity. Overheads and other salaries are allocated between the expense headings on the basis of time spent. Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and are allocated on the basis of staff cost.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Governance costs are those Incurred in connection with enabling the charity to comply with external regulation, constitutional and statutory requirements and in providing support to the Trustees in the discharge of their statutory duties.

(f) Tangible Fixed Assets and Depreciation

All assets costing more than £500 are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Freehold property - 2% straight line Plant and equipment - 20% straight line Computer Equipment - 33% straight line Short Term Leasehold Properties - Over Life of Lease

(g)

Short Term Leases

As part of the empty homes projects, HFHGB (Homes) enters into short term leases with either the local authority or housing association to enable the charity to generate rental Income which will fund the cost of the renovation. The costs of the renovation are capitalised and depreciated over the life of the lease to the extent that future rental Income will be received. Where the renovation expenditure is funded from grant income, the expenditure is charged to the statement of financial activities,

(h) Programme Related Investments

Programme related investments are stated at cost price at the balance sheet date.

(i) Stocks and Work in Progress Stocks are valued at the lower of cost and net realisable value after making due allowance for projected losses on jong term contracts. Cost includes all direct cost and an appropriate proportion of fixed and variable overheads.

{j) VAT

The charity Is registered for VAT.

(k) Taxation

HFHGB (Homes) Is a registered charity and is potentially exempt from taxation in respect of income and capital galns received within the categories covered Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

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Page 16

HFEHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

1. ACCOUNTING POLICIES (Continued)

(I) Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. These are initially recognised at transaction value and subsequently valued at thelr settlement value.

Debtors

Debtors are amounts owed to the Charity. They are measured on the basis of their recoverable amount.

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Creditors are amounts owed by the Charity. They are measured at the amount that the Charity expects to have to pay to settle the debt. Amounts which are owed in more than a year are shown as long term creditors.

(p) Significant Management Judgements and Estimation Uncertainties

The following are the critical judgements and key sources of estimation uncertainty that the Board has made in the process of applying the charity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Useful lives ofdepreciable assets

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Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets. The costs of the renovation are capitalised and depreciated over the life of the lease to the extent that future rental income will be recelved. This can be subject to estimation uncertainty.

Page 17

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HFHGB (Homes

NOTES TO THE FINANCIAL STATEMENT

FOR THE YEAR ENDED 30 JUNE 2025

2. VOLUNTARY INCOME
Restricted Unrestricted Total
2025 2025 2025
£ £ £
Grants and donations - - -
Restricted Unrestricted Total
2024 2024 2024
£ £ E
Grants (discontinued operations):
M&G 14,657 - 14,657
P&G
Whirlpool
JohnLaingTrust		 10,035
5,017
20,319		 -
-
-		 10,035
5,017
20,319
BP
LandAtd
Realty
Tradeweb
TraskRabbit
Wells Fargo
Bank ofAmerica
Wesco
Northern Trust
SEI
Cheniere
Henkel
Epsilon		 1,900
34,000
-
6,387
5,941
13,930
3,188
2,509
12,543
2,509
6,706
2,235
-		 . -
-
7,300
-
-
-
-
-
-
-
-
-
439		 1,900
34,000
7,300
6,387
5,941
13,930
3,188
2,509
12,543
2,509
6,706
2,235
439
Europa Capltal
Quaker		 1,304
-		 -
50		 1,304
50
£143,180 £7,789 £150,969
3. CHARITABLEACTIVITIES
CHARITABLE ACTIVITIES
Restricted
Funds
£		 Unrestricted
Funds
£		 2025
Total
£		 2024
Total
£
Professional fees (discontinued)
Contract works (discontinued)
Volunteer facilitation grants (discontinued)
Rental Income -Short Leasehold Properties		 -
-
-
-		 1,752
-
-
110,920		 1,752
-
-
110,920		 23,948
472,440
5,992
96,618
£ - £112,672 £112,672 £603,191

HfHGB (Homes) retains an equity interest in the properties which are subject to. mortgage as set out In note 10, During the year, none of these properties were sold (2024: none).

4, OTHER INCOME

Restricted
Funds
£		 Unrestricted
Funds
£		 2025
Total
E		 2024
Total
£
Gainon disposal ofproperty -
£
-		 -
£
-		 £ :
-		 135,024
£135,024

Page 18

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HFHGB (Homes

OTES TO THE FINANCIAL STATEMENT:

FOR THE YEAR ENDED 30*" JUNE 2025

5. COSTOF RAISING FUNDS(Discontinued operations) COSTOF RAISING FUNDS(Discontinued operations)
2025 2024
£ £
Staff Costs 156 10,165
Other Support Costs : 41
£156 £10,206
6. ANALYSIS OF CHARITABLE ACTIVITIES
2025 2025 2025
Restricted Unrestricted Total
£ £ £
Construction& Renovation ProjectExpenditure
East Street
Nithdale Road		 -
-		 1,980
57		 1,980
57
Gale Street, Barking & Dagenham - 378 378
Friends Meeting House, Tunbridge Wells
M&G Research Project		 -
-		 24,192
62		 24,192
62
Woodward Road
New Hope, Watford
Bolton Crescent Maintenance		 -
-
95		 1,881
1,790
~		 1,881
1,790
95
' Other Project Costs
Empty Spaces to Homes (ES2H)		 -
-		 1,403
928		 1,403
928
Upcycling Programme
Royal Parade		 -
-		 4,730
90		 4,730
90
Ringstead Road - 6,974 6,974
Amortisation ofProject Costs
Ringstead Road, Lewisham
Friends Meeting House, Tunbridge Wells
East Street		 -
-
-		 17,484
14,761
16,061		 17,484
‘14,761
16,061
InterestExpense
Ringstead Road, Lewisham - 841 841
East Street, Barking & Dagenham - 2,191 2,191
DevelopmentAdvisoryandManagementServices
_ Kingsley Hall/Livability
St. Leonards Church, Chesham Bois		 -
-		 1,545
68		 1,545
68
Other Project costs
Nationwide Sponsored Training Scheme " - -
95 97,416 97,511
' Support Costs
Governance Costs		 -
-		 102,744
14,342		 102,744
14,342
£95 £214,502 £214,597

Continuing operations comprise of amortisation of project costs amounting to £48,306, interest expense amounting to £3,032, Bad debt costs amounting to £19,809, and Governance costs amounting to £14,342. All other expenditure relates to discontinued activities.

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Page 19

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30" JUNE 2025

6, ANALYSIS OF CHARITABLE ACTIVITIES (Continued)

2024 2024 2024
Restricted Unrestricted Total
E £ £
Construction&Renovation ProjectExpenditure
East Street - 632 632
Nithdale Road - 1,727 1,727
Broad Street - 1,289 1,289
Gale Street, Barking & Dagenham - 4,596 4,596
Friends Meeting House, Tunbridge Wells - ~ 8,048 8,048
Claudia Jones - 5,189 5,189
M&G Research Project - 935 935
Woodward Road - 5,894 5,894
New Hope, Watford - 2,799 2,799
Bolton Crescent Maintenance 1,025 : 1,025
Other Project Costs - 20,000 20,000
- Winterisation Programme - 1,205 1,205
Empty Spaces to Homes (ES2H) 5,894 - 5,894
Upcycling Programme 43,621 - 43,621
MSQ Dumfries
Royal Parade		 -
100,522		 1,393
478,850		 1,393
579,372
Ringstead Road - 371 371
Amortisation ofProject Costs
Ringstead Road, Lewisham
Friends Meeting House, Tunbridge Wells
East Street
Nithdale Road		 -
-
-
-		 16,964
14,725
66,524
2,971		 16,964
14,725
66,524
2,971
InterestExpense
Ringstead Road, Lewisham
East Street, Barking &Dagenham		 -
-		 1,518
2,556		 1,518
2,556
DevelopmentAdvisoryandManagementServices
Kingsley Hall/Livability
St. Leonards Church, Chesham Bois
Choumert Road, Peckham		 -
-
-		 2,607
1,371
27		 2,607
1,371
27
Other Project costs
- NationwideSponsored Training Scheme 1,900 - 1,900
152,962 642,191 795,153
Support Costs
Governance Costs		 -
-		 242,636
19,889		 242,636
19,889
£152,962 £904,716 £1,057,678

Continuing operations comprise of amortisation of project costs amounting to £101,184, interest expense amounting to £4,074, , and Governance costs amounting to £19,889. All other expenditure relates to discontinued activities.

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Page 20

HFEHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30* JUNE 2025

  1. RESOURCES EXPENDED
RESOURCES EXPENDED
Activities _____Charitable Activities
Direct
Support
Governance		 2025
for Raising Costs Costs Costs Total
Funds
£ £ £ E £
StaffCosts 156 14,816 43,794 3,051 61,817
Outside Labour - 600 - - 600
Materials - 3,387 7,449 - 10,836
Other construction costs - 7,401 338 - 7,739
Insurance - 1,421 8,586 : 10,007
Legal & Professional - 14,829 9,700 10,970 35,499
Other Office Expenses - 3,719 8,111 321 12,151
Financing Costs - 3,032 60 - 3,092
Depreciation of fixed assets - - - - -
Amortisation ofshort-term leases “ 48,306 - - 48,306
Bad Debts AG
4 706
£156 £97,511 £102,744 £14,342 £214,753
Charitable Activities
Activities
for Raising		 Direct
Costs		 _ Support
Costs		 Governance
Costs		 2024
Total
Funds
£ E E £ £
StaffCosts 10,165 120,245 185,704 12,446 308,887
Outside Labour - 70 - - 70
Materials - 487,651 3,821 - 491,472
Other construction costs - 4,846 105 - 4,951
Insurance - 1,708 13,276 - 14,984
Legal & Professional - 59,585 22,535 7,314 89,434
Other Office Expenses 41 15,790 14,431 129 30,391
Financing Costs - 4,074 60 - 4,134
’ Depreciation of fixed assets - - 2,230 - 2,230
Amortisation of short-term leases - 101,184 - - 101,184
Bad Debts - - 474 - 474
£10,206 £795,153 £242,636 £19,889 £1,067,884
  1. NET INCOME/(EXPENDITURE)

The operating result is stated after charging.

2025 2024
£ £
Depreciation 48,306 103,414
Payments to auditors in respect of: audit services 10,712 7,300
Non-auditservices 258 -

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Page 22

  1. TANGIBLE FIXED ASSETS

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30" JUNE 2025

il.

TANGIBLE FIXED ASSETS
Short Term
Plant& Leasehold Schemes in
Machinery Properties Total Development
£ £ £ £
CosT
At 1°July 2024
Additions		 21,215
-		 1,140,247
-		 1,161,462
-		 -
-
Disposals
At30"June2025		 (21,215)
-		 (39,320)
1,100,927		 (60,535)
1,100,927		 :
DEPRECIATION/
;
AMORTISATION
At 1% July 2024 18,906 373,087 391,993 -
Charge for the Year - 48,306 48,306 -
Disposals
At 30"June 2025		 (18,906)
-		 (39,320)
382,073		 (58,226)
382,073		 :
NETBOOKVALUE
At 30"June2025		 £- £718,854 £718,854 £ -
At30"june 2024 £2,309 £767,160 £769,469 £ -
PROGRAMME RELATED INVESTMENTS
2025 2024
Cost orValuation £ £
At 1%July 2024
Additional loans in Year		 29,524
-		 43,867
-
Repayments
At30"June 2025		 (14,631)
£14,893		 (14,343)
£29,524
Repayable within one year
Repayable in more than one year		 12,191
2,702		 14,166
15,358
£14,893 £29,524

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The values stated relate to houses built by HfHGB (Homes) In partnership with low Income families which have been sold at cost price with interest free mortgages. This core activity involves the charity disposing of assets at less than market value, requiring permission from the Charity Commission. The Charity Commission has cleared the way for HFHGB (Homes) to sell houses without further reference to the Commission.

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Page 23

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HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30*" JUNE 2025

12, WORK IN PROGRESS
2025 2024
£ £
Building Renovation - -
New Bullding Construction - -
Total £ - £
-
2025 2024
£ £
Balance Brought Forward - 73,162
Additional Costs in the year - 5,050
Disposals - (78,212)
Balance Carried Forward £ - £
-
13, DEBTORS
2025 2024
£ £
Trade Debtors 19,997 37,167
Provision for doubtful debts (19,809) -
Prepayments 1,437 469
Other Debtors and Accrued Income 2,566 73,966
VAT - 7,604
£4,191 £119,206
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025 2024
£ £
Trade Creditors 9,456 46,316
Social Securityand OtherTaxes - 982
Accruals and Deferred Income 115,884 134,669
VAT - -
Sinking Fund - 1,976
Loan — Repayable within one year 27,206 29,627
£152,546 £213,570
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2025 2024
£ £
Loan — balance repayable in 1 — 5 years 46,125 69,701
Loan— balance repayable in more than 5 years . 3,682
£46,125 £73,383

The loans are secured against the assets of HfHGB (Homes) under a fixed and floating charge. The first loan Is repayable in monthly instalments of £1,485.06 whlch include interest charged at a rate of 3.75%, The term of the loan is 9,5 years from the date of drawdown of the loan. In 2019 an additional loan of £100,000 was drawn down, and in 2020 a further £23,500 was drawn down to fund the East Street development. It is repayable over 10 years from the date of completion and interest is chargeable at 3.25%.

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Page 24

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HFHGB (Homes

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30° JUNE 2025

.

16. NETASSETS BY FUND
2025 Restricted Unrestricted Total
E E £
Fixed Assets - 733,747 733,747
Current Assets 4,289 145,838 150,127
Creditors due within one year - (152,546) (152,546)
Creditors due in more than one year - (46,125) (46,125)
£4,289 £680,914 £685,203
2024 Restricted Unrestricted Total
£ £ £
Fixed Assets - 798,993 798,993
Current Assets 4,384 270,659 275,043
Creditors due within one year - (213,570) (213,570)
Creditors due in more thanoneyear - (73,383) (73,383)
, £4,384 £782,699 £787,083
17, RESTRICTED FUNDS
2025 Funds as at Incoming Resources Funds as at
ist July 2024 Resources Expended 30th June 2025
£ £ £ £
Adventure Playground 142 - (95) 47
Young Persons Tralning
Programme 4,242 - - 4,242
£4,384 £- £(95) £4,289
2024 Funds as at Incoming Resources Funds as at
istJuly 2023 Resources Expended 30th June 2024
£ £ £ £
Adventure Playground
Young Persons Training		 1,167 - (1,025) 142
Programme
EmptySpaces to Homes		 6,142
6,857		 7s
143,180		 (1,900)
(150,037)		 4,242
-
£14,166 £143,180 £(152,962 £4,384
TheYoung PersonsTraining Programme isaprogramme
persons with learning disabilities.		 being run in conjunction with Barking College foryoung
TheAdventure Playground fund represents income received forthe development ofan adventure playground in
Southwark.

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Page 25

HFHGB (H Ss

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30° JUNE 2025

EMPLOYEES

EMPLOYEES
2025 2024
£ £
Wages and Salaries 23,972 150,771
Employer's NI 3,865 15,955
Pension Costs 861 3,634
£28,698 £170,360
Capitallsed StaffCosts — Short Leasehold Projects - 7,118
Other StaffCosts 28,698 163,242
£28,698 £170,360

The total employee benefits of the 1 member of the senior management team amount to £18,049 (2024: £76,847).

Total redundancy benefits amount to ENII (2024: ENil),

The average number of employees during the year was 1 (2024: 4),

One employee earned between £60,000 - £70,000 pro-rata.

19. TRUSTEES REMUNERATION AND EXPENSES

None of the trustees received any remuneration and no other expenses have been incurred during both the current and preceding year.

20. CAPITAL COMMITMENTS

CAPITAL COMMITMENTS
2025 2024
£ £
Capital expenditure that has been contracted for but
has not been provided for in the financial statements
Total		 £ -
-		 4,220
£4,220

HFHGB (Homes) is a wholly controlled subsidiary of Habitat for Humanity Great Britain, a charitable company registered in England and Wales. The company number of Habitat for Humanity Great Britain Is 3012626, and the registered charity number is 1043641 (SCO48638 - Scotland), The principal objective of Habitat for Humanity GB is to alleviate poverty by helping people who live in substandard housing to access better living conditions. Control is exercised by the parent of HFHGB (Homes) via mutual Trustee Board members. During the year under review two Habitat for Humanity Great Britain trustees (Mr Gordon Holmes and Mr Ian Whitehead) were also trustees of HfHGB (Homes), together with Henrietta Blackmore (CEO of Habitat for Humanity Great Britain and Ex-officlo Trustee of HfHGB (Homes). The address from which the public can obtain the consolidated accounts of Habitat for Humanity Great Britain, which include the accounts of HFHGB (Homes), Is 268 Bath Road, Slough, SL1 4DXx.

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Page 26

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENT

FOR THE YEAR ENDED 30* JUNE 2025

21. RELATED PARTY TRANSACTIONS (Continued)

Some of the funding received by HFHGB (Homes) was raised by Habitat for Humanity GB. During the year some of the costs for HFHGB (Homes) were paid by Habitat for Humanity GB, the amount of funding owed is £30,480 and is included within other creditors.

22. COMPANY LIMITED BY GUARANTEE

The company, which is a registered charity, is limited by guarantee and is controlled by Habitat for Humanity Great Britain who are the sole member. In the event of the charlty being wound up, the liability in respect of the guarantee Is limited to £10 per member of the charity.

23. DISCONTINUED OPERATIONS

Following a strategic review of the Group’s structure, a Transfer Deed between HFHGB (Homes) and Habitat GB became effective on 1 October 2024. The ongoing business of HFHGB (Homes) now focuses solely on the management and disposal of the current asset portfolio and corresponding liabilities. These comprise certain properties and an associated management company, leases, mortgages and loans. All other activities, including renovation work, upcycling, and volunteer programmes, have been transferred to Habitat GB.

The day to day leadership and management of HFHGB (Homes) is the responsibility of the Habitat GB executive and staff, who will report to and consult with the HFHGB (Homes) trustees, in line with the governance requirements of the charity. As the sole member of HFHGB (Homes), Habitat GB will also be sighted on the financial status and management of the subsidiary.

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