Charity Number.. 1133321 Company Number.. 06972673 Registered Pfovider Number.. 4647 KEELMAN HOMES LIMITED la company limited by guarantee and not having share capital) Annual Report and Financial Statements for the year ended 31 March 2025
Keelman Homes Limitgd la company Ilmited by guarantee and not havlng a 6hare capital) Contants pagg For the year ended 31 March 2025 Page Strategic Report Slalemenl of Trustee's Responsibilities Independent auditors report 9-12 Slalemenl of Comprehensive Income 13 Batan Sheet 14 Slalemenl in changes in reserves 15 ststemenl of Cash flows 16 Notes lo Financial Slalements 17-26
Keelman Homes Limited la company lim1t by guarantee and not havlng a share capltsl) Report of the Board For the year gnded 31 March 2025 Report ofthe Board The Board present their report and financial stslemenls for the period ended 31 March 2025. Prlncipal actlvitles The principal activity of the company is development of affordable housing and las registered provider for affordable housing) carrying out landlord duties. The company contracts with delivery partners lo increase the levels of affordable housing within the Gateshead area and has entered into a partnorship with Karbon Solutions lo deliver housing management services lo existing homes and lenanls. Al 31 March 2025 the portfolio included.. 187 new build properties. 120 properties acquired as part of an Empty Homès Purchase and Repair IEHPaR} Programme. There was no development activity in 2024125 while the company focused on management of ils existing stock. One home was sold lo in the year via a Right to Acquire application. Our aims and oblectlves Keelman Homes, purpose as sel out in the objects contained within the Company's Memorandum ofAs80Cl8tion includes-. lal to provide houses or hostels or other residential accommcéalion and any associated amenities for persons in necessilous circumstances upon terms appropriate lo their means., Ibl lo provide for aged, disabled Iwhelher physically or menlallyl, or chronically sick persons in need thereof houses or hostels or other residential accommodation and any associated amenities specially designed or adapted lo meet the disabilities and requirements of such persons,. Icl to provide services, advice or assistan upon terms appropriate lo their means to aged, disabled Iwhelher physically or menlallyl or chronically sick persons or other persons in necessilous circumstances in need thereof and providing any associated amenities specially designed or adapted to meet the disabilitie$ and iequiremenls of such persons.. (dl the provision of recreation OT Other leisure facilities in the interest of social welfare wlh the object of improving the conditions of life for the residents of the area of benefit", le} the relief of poverty amongst the residents of the area of benefit,. lfj the advancement of education, training or retraining. p8rti¢ularly among unemployed people and providing unemployed people with work experience., {gl the maintenance, improvement or proVisn of public 8rnenilies for the public benefit in the interests of regeneration in areas of social and economic deprivation in which the Charity owns or manages housing stock,. and (h} such other chaiilable purposes beneficial to the public consislenl with the objects above as the Trustees shall in their absolute discretion detemiine. Keelman Homes aims lo provide new housing in Gateshead for affordable rent and to provide housing management ServIS for our tenants in this area. Our aims reflect the purposes Keelman Homes was set up lo deliver.
Kèelman Homos Limited la company limited by guarantee and not having a sh*re capltall Report of the Board For the year ended 31 March 2025 Ensuring our work deliver8 our alms Every year we reflect and self-assess our achievements against the company aims and objectives, and during a Board Strategy Planning day we develop our plans for the forthcoming years. ensuring the aims and objectives {which musl always align wilh our Articles of Association) are being fulfilled. Structure nd Governance Governlng document Keelman Homes is a ¢haiilable company limited by guarantee,. il was incorporated as a private company on 25 July 2009 and received charitable status on 16 December 2009. The organisalion was established under a Memorandum of Association which established the objects and powers of the company and is governed under the Articles of Association. During the 2014115 financial year IheTe was 8 signrficanl change in the membership of Keelman Homes with The Gateshead Housing Company resigning and the current Twslees of Keelman Homes being appointed 88 members. The ownership of Keelman Homes changed lo being owned by the Board of Trustees of Keelman Homes, rather than being owned by The Galeshead Housing Company. AS a subsidiary of The Gateshead Housing Company, Keelman Homes was precluded from applying for funding from Homes England's (HEI affoidable homes guarantee programme. Changing the membership of Keelman Homes allowed il access lo new potential funding resources from HE and the private sector, and with this there is the potential lo increase the amount of new affordable homes the company can deliver. In the event of the charity bein9 dissolved. every member musl pay £10 towards the cost of dissolution and the liabilities 1rlcurd by tho charity. Corporate govgrnance The company is a limited by guarantee without any share capital. The company adopts the principles of the NHF 2020 Code of Governance relative lo an organisation of ils size and structure. The Keelman Homes Board agree lo codes of conduct which are in line with the Charity Commissions 'Guide lo the Essential Trustee, ICC3} and the Company has a Risk Management Policy in place which underpins its key decisions. The current Board membership includes seven Trustees {known as Trustee's lor the purpose ol Charity Law, and Directors for the purpose of Company Lawl, which is suitable for all current activity. The Board complies with the rules a8 sel out in the ArtleS of As80ciation. and an internal governing document referred lo as Standing Orders. The Board act in the interests of Keelman Homes Limited and not on behalf of any other interest group. The Board who held office al the date of approval of this report confim that. so far as they are each aware. there is no relevant audit information of which the company's auditor is unaware.. and each Board Member has taken all the steps that he or she ought to have taken as a Board Member lo make themselves aware of any relevant audit information and lo establish that the company's auditor is aware of that information. In line with the slalulory requirements for a limited company, a copy of these accounts will be filed with Companies House. Compllancg with the Regulatory Framework As a Registered Provider, Keelman Homes must comply with rules sel out by the ReguL8tor of Social Housin9. There were no regulatory interventions during the year, and we continue lo operate within the standards set out by ROSH. We complete an annual return lo ROSH, and a quarterty disposals return lif applicable). Recruitment and appolntment of Trustees
Keelman Homes Llmlted (a company limited by guarantee and not havlng a share capltal) Report of tho Board For the year endod 31 March 202S The Trustees control the company, ils property and ils funds. The Trustees shall consist of al least six and not more than eight individuals, and includes one member nominated by Gateshead Council and six independents appointed through a selection process as ordinary Trustees. The Board skills are captured on a skills matrix which helps lo find the right candidate when recruiting new Trustee. Under the 2020 NHF Code of Governance, Trustees should serve no more than 6 consecutive years on a Board al Keelman this equates lo two lems of office. By exception only, Trustees can remain on the tx)ard for a third and final term, serving up lo 9 years, where the Board agrees il is in the best interest of the company and following an appraisal of the member. Organisational structure The Trustees meet at ast quartorly and are responsible for all decisions taken by the company. The company employs a Managing Director and Financial Controller lo oversee the day-l04ay running of the company. The Managing Director is also appointed as Company Secretary and Aulhorised Representative. Since 1S1 July 2023, Keelman Homes has worked in partnership with Karbon Homes as a member of a cost sharing group known as Karbon Solutions, taking one share of the company. The arrangement allows Keelman lo (rtilise Karbon staff and share services delivered lo existing Keelman lenanls. Recruitment and developmgnt of 8taff The quality and integrity of stsff are essential for maintaining good internal control. Staff Policies are sel out in a staff handbook and the staff structure is frequently reviewed lo ensure effective running of Ihg company. Related parties The Charity is guided by the Charities Act and Companies Act and is guided by ix)th National and Local Policy. Keelman Homes is a member of Karbon Solutions. and works in partnership with Karbon Homes- property management and tenancy management is predominantly handled by Karbon staff. One member of key management personnel of Keelrnan Homes is a related party- a declared interest is known lo the Board. The Board considers that the systems of internal control are effective and appropriate. Policigs on Internal Control Keelman Homes has established policies and procedures lo monitor and emphasize the need for strong inleinal control. These include Financial Regulations and Contract Piocedure Rules. Com ement Reports to the board Al every Board meeting, strategic risk is monitored, alongside performance assessed against agreed KPI targets, and compliance of the safely of our homes against KPI target8. Tenant feedback is presented annually, and includes management information which relates to the decency of our homes and lenanl experience. Budgets are sel before the beginning of each financial year and agreed annually in advance. Update reports on income and expenditure are issued lo the Board monthly, and reviewed collectively quarterly, assessing YTD acluals against budget and impacts YTD could have on forecast expenditure. Risk is considered as part of every board port presented and covers implications for the customer IKe$lman lenanuleaseholdersl, Company finance. health and safely, impact on inveslmentlassel managementldeliv8ry of new homes, legal or regulatory, EDI, company reputation.
Keelman Homes Llmlted la company Ilmitgd by guarant09 and not having a share capital) Report of the Board For the year end&d 31 March 2025 Rlsk Managem9nt The Board assess, and miligales as appropriate, the following key Strateg risks.. Effective management of the company's finances Effective delivery of new build and existing investment projects Effective delivery of asset management Effective management of business continuity Effective management of corporate governance Monitoring of changing government policy and effective deltvery of the business model if policy changes impact the company Impact on rent income due lo Universal Credit and Welfare Reform Sourcing funding lo support the company activities Achieving good value for money Effectively maintaining positive lalionships with partners Effectively concluding a strategic options appraisal for longer-lerm management of Keelman Homes existing housing stock Effective development and delivery a stralegK fonNard plan Effective conlfols lo manage increased costs of services, labour and materials linlroduced during 'cosl of living crisis'l The risks are reviewed in conjunction with an approved risk management policy. The risk management policy was last reviewed in 2023124, and is reviewed every three years lor sooner if appropriatel. Value for money We are commilled lo delivering excellent value for money lo our residents and communities, now and as part of our longei-lerm plans. This is one of our core values and is integrated into our business plan. We aim lo drive ongoing value for money by making informed financial and operational decisions. This means spending money wisely and having regard lo the three E's.. Economy Efficiency Effeclivene$s We are committed to reinvesting surpluses into our ccfflmunities by maintaining our existing homes and building more affordable homes. We recognise that value for money IVfMI is important for our customers and continue to focus on improving eslales, ener9y efficiency and safely for our customers. We have calculated our WM Metrics for 2024125 based upon the Housing Regulalorfs Vfm Slandaid for smallor Registered Providèrs..
K•elman Homes Limited la company limited by guaranteg and not having a 8hare capltal) Report of the Board Forthe year ended 31 Mawh 2025 Mttri¢ Result 23124 Result 24126 Perfomiance trgnd on rlor oar Value for Monoy Measure Metric 1 Reinveslmenl 0.47% 0.51% Efficiency Melrie 2a- New Supply Isociall 0.00% 0.00% Effectiveness Metric 2b- New Supply INon-Social} 0.00% 0.00% Effectiveness Metric 3- Gearing 56.08% 54.17% Efficiency Metric 4- EBITDA MRI Interest Rate Cover Metric 5- Headline Social Housing Cost er Unil Metric 6a- Operating Margin ISHLI 106,060 135.42Q/o Efficiency £4,487 £4,798 Economy 31.16° 39.86% Efficieney Metri¢ 6b- Operating Margin (Overall) 28.19% 34.51% Efficiency Metric 7- Return on Capital Employed ROCE 1.91% 3.50 Efficiency Flnancial highllghts 2024125 Statement of Comprehgnslve Incomè Annual Turnover Operating Costs £000 Balance Sheet £000 Cr•dltors £000 2,124 1,391 Fixed Assets Cash al Bank 3103.2025 Retained Earnin Loans GMBC Government Grants 15,213 8.868 406 Sur lus for the Year 68 179 Prlnclpal funding sources The principal funding sources for the building new homes are Homes England (HE} grants and loans. When properties are completed, the principal funding sources are rental income and service charge income for those properties. Reserves policy Keelman Homes aims lo maintain ils general reserves al a minimum of 3% of the annual expenditure budget,. reserves are reinvested into the business when required, lo support development aclivily and asset management. Futuro plans Our vision is lo build a beller Gateshead. Our mission is lo provide quality affordab homes to the residents of Gateshead. Our priorities are.. our customers- we strive lo achieve high levels of customer satisfaction from tenants and leaseholders.
Keglman Homes Limited la company limited by guarante• and not having a share capital) Report of the Board For the year ended 31 March 2025 2. delivering quality affordable homes- achieved by reinveslmenl in existing assets and growth by building new homes. 3. to remain well governed and financially strong. The business plan is reviewed and approved by Board on a regular basis, lo ensure our approach continues lo remain appropriate for our business needs. Operational targets are sel internally to support delwery against our priorities. Going Concern The financial statements have been prepared on a going concern basis. Audltor Pursuant to Section 487 of the Companies Act 2006, the auditor is S&W Audit Ifomierly appointed as Haines Waltsl b rder of the Board. nLee Chair of Trustees Offices 19-20, Gateshead International Business Centre Mul9rave Terrace. Gateshead, NE8 1AN 2025
Keelman Homes Limitgd la company limited by guarantag and not havlng a Share capital) Report of thg Board For the year ended 31 March 2025 Refergnce and admlnlstrative detsils Charity Rfrference Number 1133321 Company Rafgrgnce Number 06972673 Registorgd Provldgr Number 4647 Rggistered Addre88 Offices 19-20 Gateshead International Business Centre Mulgrave Terrace Gateshead NE8 1AN Dirgctoys Joanne Gile8- Resigned 18 September 2025 Tom Winter Christopher Buckley- Appointed 3Q July 2024 Marc Edwards Rhiannon Piasecki Alislair Wylie- Resigned 19 September 2024 John Adams- Resigned 30 July 2024 Scoll Robinson- Resigned 15 April 2024 Michelle Evans- Appointed 12 February 2025 John Lee- Appointed 32 February 2025 Sècretary Anne-marie Pearce Audltor S & WAudil 17 Queens Lane Newcastle upon Tyne NE1 1RN Banker The Co-operative Bank 131-135 Northumberland Street Newcastle upon Tyne NE1 7AG Sollcltor Weighlmans LLP 1 Sl James, Gate Newcastle upon Tyne NE1 4AD
Keelman Home8 Limited {a company Ilmltod by guarantee and not having a share capital} Statement of Trustees. Responsibilities For tho ygar &ndod 31 March 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The ITuslees Iwho are also directors of Keelman Homes Limited for the purposes of company lawl are responsible for preparing the Trustees, Annual Report {including the Strategic Report) and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Iruslees lo prepare financial slalemenls for each financial year. Under company law the Iruslees musl not approve the financial statements unless they are satisfied that they 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 these financial slalemenls, the trustees are required to.. 8elecl suitable accounting policies and then apply them consislenlly., slate whether applicable UK Accounting Stsndards have been followed make judgements and estimates that are reasonable and prudent., prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presume that the charitsblo company will continue in operation. The Iruslees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the charitable company and enable them lo ensure that the financial statement5 COMP with the Companies Act 2006, the Charities Act 2011, the CoperatIve and Community Benefit Societies Act 2014 and Registered Social Housing Legislation. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit information of which the Chartable company's aullilor is unaware.. and the Iruslees have taken all steps that they ought to have taken lo make themselves aware of any relevant audit information and lo establish that the auditor is aware of that infomialion. Approved by the board on19 |04iF 025 and signed on their behalf by., John Lee Chair of Trustees
Kaalman Home8 Llmlted {a company limit9d by guarantge and not havlng a share capital) Independènt Auditors Report to the Members of Keglman Homes Llmlted Forth9 yoarended 31 March 2025 Oplnlon We have audited the financial Statements of Keelman Homes Limited Ilhe 'associalion') for the year ended 31 March 2025 which comprise the slalemenl of comprehensive income, the statement of financial position, the slalemenl of changes in reserves, the statement of cash flows and the notes lo the financial slalements, including significant accounting policies. The financial reporting framework that has been applied in IheiT preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally ACpIed Accounting Praclicel. In oui opinion, the financial slalemenls.. give a true and fair view of the slate of the association's affair8 as al 31 March 202S and of its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Aceepled Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006, the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. Ba818 for oplnion We conducted our audit in accordance with International Standards on Auditing IUKI (ISAS {UK}l and applicable law. Our responsibilities undei those slandaids are further described in the Auditor's respon8ibililie8 for the audit of the financial slalemenls section of our report. We are independent of the associalioll in accordance with the ethical requirements that are relevant to our audit of the financial slalemenls in the UK, including tho FRC'S Ethical Standard, and we have fuifill6d our other ethical responsibilities in accordan with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slalemenls, we have concluded that the directors, Ltse 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 uncertaintios relating lo evenls or conditions that, individually or colbclively, may cast significant doubl on the association's ability lo continue as a going concern for a period of al least twelve months from when the financial statements are aulhorised 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 infom7ation The other information comprises the information included in the annual report. othèr than the financial slalemenls and our auditor's report thereon. The directors are responsible for the other infomation contained within the annual report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained in the course
Keelman Homes Limitod (a company limited by guarant99 and not havlng 8 Share capital) Independent Audltors R•port to the Members of Keelman Homes Limited For the year ended 31 March 2025 of the audit or olhenNise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalements, we are required to determine whether this give8 rise lo a material misstatement in the financial slalemenls themselves. If, based on the work we have performed, we conclude that there is a material misslalement of this other information. we are required lo report that fact, We have nothing lo report in this regard. Oplnions on other matt&r8 prescribed by the Companlgs Act 2006 In our opinion, based ori the work undertaken in the course of the audit.. the information given in the strategic report and the slalement of Iruslees for the financial yèar for which the financial statements are prepared is consislenl with the financial slalemenls., and the strategic report and the statement of trustee8 have been prepared in accordance with applicable legal requirements. Mattèrs on whi¢h wg are requlred to report by exception In the light of the knowledge and understanding of the association and ils environment obtained in the course of the audit. we have not identified material mi$5tatemenls in the strategic report and the slalemenl of Iruslees. We have nothing lo report in Tespecl of the following matters in relation lo which the Companies Act 2LXJ6 requires us lo report to you if. in our opinion.. adequate accounting records have not been kept, or returns adequate for ou¥ audit have not been received from branches not visited by us.. or the financial slalemenls are not in agreement with the accounting records and returns.. or certain disclosures of directors, remuneraliori specified by law are not made., or we have not received all the information and explanations we require for our audit. Responsibilities of dlrector8 As explained more fully in the Slalement of Trustee's Responsibilities sel out on page X the members of the board are the directors of the association for the purposes of company law. The directors are responsible for the preparation of the financial stslemenls and for being satisfied that they give a true and fair view, and for such internal controls as the directors determine is necessary lo enable the preparation of financial statements that are free from material misstalemenl, whether duo lo fraud or error. In preparing the financial st8lement8, the directors are responsible for assessing the assocAation's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the directors either intend lo liquidate the as80cialion or lo ase operations, or have no realistic allernalwe but to do so. Auditor's responsibilltle$ for the audlt of the financial statement$ Our obje¢lives are lo obtain reasonable assuranco about whether the financial statements as a whole are free from material misslalemenl, whether due lo fraud or error. and lo issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordan with ISAS IUKI will always delect a material misstatement when il exists. Misslalemenls 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 stslements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. lo delecl m?lerial misslalements in respect of 10
Koolman Homès Llmited la company Ilmltgd by guarantee and not having a shara capital) Independent Auditors RgPQrt to the M¢mb•r8 of Keelman Homes Limited For the year ended 31 March 2025 irregularities. including fraud. The exlenl lo which our procedures are capable of delecling irregularities, including fraud, is detailed below.. We obtained a general understanding of the company's legal and regulatory framework through enquiry of management concerning their undorslanding of relevant laws and regulations, the enlily's policies and procedures regarding compliance, and how they identify, ev21uale and account for litigation claims. We also drew on our existing understanding of the company's industry and regulation. We understand that the company complies with the framework through". Ou180urcing accounts preparation and lax compliance lo external experts. Subscribing to relevant updates from e)rternal experts , and making changes lo internal procedures and controls as necessary. Entering into arrangements with other parties lo ensure compliance with housing related regulations In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central ID the company's ability lo conduct ils business. andlor where there is a risk that failure lo comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company.. The Companies Act 200S, the Housing and Regeneration Act 2008. and the Accounting Direction for Private Registered Providers of Social Housing 2022 and FRS 102 in respect of the preparation and presentation of the financial stalemenls. The senior slalulory auditor led a discussion with senior members of the engagement team regarding the susceplibilily of the entity's financial slalemenls lo material misstalemenl. including how fraud might occur. The areas identified in this discussion were.. Manipulation of the financial slalemenls via fraudulent journal entries, particularly as the size of the company means that there is little opportunity for segregation of duties. The incorrect recognition of rental income resulting in the income being recognised in the incorrect accounting period. These aTeas were communicalod to the other members of the engagement team not present al the discL¢SSiOn. The procedures we carried out lo gain evidenc8 in the above areas included.. Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted at unusual limes. Recalculating the rental income baL4nce and agree that any amounts due around the year end date were recognised in the correct period. A further description of our responsibilities is available on the Financial Reporting Council's website at.. vmw fr¢ or .uklaudilorsres Ofisibilities. This description fomis part of our auditor's report. U8e of our roport Thi8 report is made solely lo the association'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 stale lo the association's members those mallers we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility lo anyone other than the association and the association's members as a body. for our audit work, for this report, or for the opinions we have formed.
K88lman Homes Llmlted la company limited by guarantee and not havlng a share capital) Independent Audltors Report to the Members of Keelman Hom9$ Llmitgd For the year ended 31 March 202S I g &ZC Cralg Henderson (Senlor Statutory Auditor) Forand on behalfof S & W Audit 17 Queens Lane Newcastle upon Tyne NE1 1RN statutory Audltor Chartorèd Accountants 12
Keolman Homos Limited la company limited by guarantee and not having a sharg Capitsll Statement of Compreh•n81ve Income For the year ended 31 March 2025 2025 2024 Notes £000 £000 Turnover 2.124 1,822 Operating costs 11.391 } 11,3081 Operatlng 8urplus 733 514 Interest payable 1665} 16681 Surpluslldeficit} bgforo tax 68 1154) Tax Surpluslldèficit) for the year 68 11531 Total comprghenslve Incomellexpendlturel for tho year 68 11531 All activities are continuing. The above income and expenditure should be read in conjunction with the accompanying notes. The financial slalements were approved by the trustees on Ig | oq k025 and signed on their bohaff by.. John Lee Rhiannon Piasecki 13
Keolman Homes Llmltèd {* company limited by guarantee and not having a $har• capltall Balance Shèèt For the year ended 31 March 2025 Notes 2025 £000 2024 £000 Fixgd assets Tangible assets 26,466 26,907 Curront assets Debtors Cash al bank and in hand 276 524 233 682 757 Llabilities Credilor8.' amounts falling due wrthin one year 10 { 7831 Net current a$$et$l Illabllltle81 26 Total a888t81è88 current liabilitles 26.452 26,881 Creditors.. amounts falling due after one year 11 126,271 1 126,768 } Not a$8ets 181 113 Reserves Income & Expenditure Reserve 181 113 181 113 Total reserve5 The accompanying notes form part of these financial statements. The fin slalements were approved by the Iruslees on I 2025 and signed on their behalf by.. John Le Rhia on Piasecki 14
Keolman Homes Limited la company limited by guarantee and not having a share capital) Statsment of Chang68 in Re8èrvè8 Forthe year endgd 31 Mah 2025 Incomg & Expendlture R•servo £000 Balance al 1 April 2023 Deficit for year 11531 Balance at 31 March 2024 113 Balance al 1 April 2024 113 Surplus for year 68 Balance at 31 March 2025 181 The above statement of changes in reserves should be read in conjunction with the accompanying notes. 15
Keelman Homes Llmlted (a Company limited by guarantee and not having a share ¢apltall Statamont of Ca8hflowB As at 31 March 2025 Not9$ 2025 £000 2024 £000 Cash flows from operating activiti9$ Net cash (used Inypmvlded by operating actlvlties 14 171 Cash flows from Investing activities PuTchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Proceeds from the receipt of govemmenl grants 11421 236 {142} Net cash provlded by Investing activities 11421 Cash flows from financing activltles Repayment of borrowings {369) 13691 Alet cash used in financlng actlvltles {369} 13691 Change In ca8h and cash equivalgnts 173 13401 Cash and cash equlvalenls al the beginning of the year 233 573 Cash and cash equivalents at tho end of the year 406 233 Breakdown of cash and Cash equlvalents Cash at bank and in hand 406 233 16
Keelman Homes Limited (a company Ilmltod by guarantee and not havlng a 8hare capltall Notes to the financial statamant$ For the year ended 31 March 2025 Accounting Pollcles 1.1 Basls of preparatlon The financial slalemenls have been prepared in accordance w5th applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republ of Ireland IFRS 102), the Statement of Recommended Practice for Social Housing Providers 2018. the Slalemenl of Recommended Practi for Charities 2015 and with the Accountin9 Direction for private regisleied providers of Social housing in England 2022. The re9lStered providei is a public benefit entity registered in the UK. The financial sialemenls comply with the Housing and Regeneration Act 2008 and the Companies Act 2006. The financial slalemenls are prepared in sterling, which is the functional currency, and rounded lo the nearest thousand. 1.2 Basis of accounting The financial slalemenls are prepared under the historical cost convention except for donated assets which are included al fair value upon donation. 1.3 Going concem The company's business activities, together with the factors likety to affect ils future developm8nl, performance and position are sel out in the Report of the Board on pages 110 7. Keelman are within a five-year management agreement with Karbon Home8 from 2023 -2028. The financial statements have been prepared on a going concern basis which the trustees consider lo be appropriate for the following reasons. The trustees have prepared cash flow forecasts for a period covering more than 12 months from the dale of approval of these financial slalemenls which indicate that, taking account of reasonabSy possible downsides, the company will have sufficient funds, to meet ils liabilities as they fall due for that period. 1.4 Turnover Turnover comprises rental income receivable in the year, income from shared ownership first tranche sales, sales of properties built for sale. Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting, nel of any voids. Income from first tranche sales and sales of properties built for sale is recognised at the point ol legal completion of the sale. 1.5 Taxatlon Current lax is recognised for the amount of income tax payable in respect of the taxable surplus for the current or past reporting periods using the tsx rates and laws that have been enacted or substantively enacted by the reporting date. 17
Koalman Home8 Llmitsd (a company limited by guarantee and not havlng a share capital) Notes to thè financial ststgment$ For the year ended 31 March 2025 1.6 Housing propgrtles Housing properties are recorded al cost less accumulated depreciation and impairment. Housing properties in the course of construction are slated at cost and are transferred into housing properties when completed. The cost of a propety includes purchase price and any costs directly allribulable lo bringing il into working condition for the intended use. Expenditure on shared ownership properties is split proportionally between current and fixed assets based on the element relating lo expected first tranche sales. The first tranche proportion is classed as a current asset and related sales proceeds included in turnover, and the remaining element is classod as fixed asset and included in housing properties al cost. less any provisions needed for depreciation or impaimienl. Housing properties are split under component aecounling beeen land, structure and a specific sel of major component that require replacement periodically. Replacement of such components is capilalised and depreciated on a straight line basis over the eslimaled useful life of components as follows.. Roof Heating systems Electrics Windows and external doors Sliucluro Bathroom Kitchen Gas boiler Land 50 years 40 years 30 years 25 years 1 OQ years 30 years 20 years 15 years Not depreciated Housing properties are assessed annually for impaimienl indEcaloTS. Where indicators are identified, an assessment for impairment is undertaken comparing the scheme's ICGUI carrying amount lo its recoverable amount. Where the Carrying amount of a scheme is deemed to exceed its recoverable amount, the scheme is written down lo ils recoverable amount. The resulting impairment loss is recognised as operating expenditure. Where a scheme is currently deemed not lo be providing service potential lo the association, its recoverable amount is its fair value less costs lo sell Costs of improvement works lo existing properties are only capilalised when there is a demonstrable enhancement of the economic benefrts of the asset. 1.7 Other tanglble fixed a88et8 Other fixed assets are slated al cost less aUmUlated depreciation and impairment. Depreciation is charged on a slraighl line basis. IT Equipment Fixtures and Fillings 3 years 5 years 18
Keelman Homes Limited la company limited by guarantee and not havlng a share capltall Notes to the flnanclal statements For the year ended 31 March 2025 1.8 sto¢k$ Stocks comprise housing properties held for outright sale and are slated al the lower of cost and nel realisable value. The costs associated with properties in the course of construction are recognised as incurred. lo the extent that they are considered lo be recoverable. 1.9 Social houslng grant and other government grants Inthere grants are reiVed from government agencies such as Homes Eng13nd and local authorities. which meet the definition of government grants, they are recognised when there is reasonab assurance that the conditions allached lo them will be complied with and the grant will be received. Government grants are recognised usin9 the accrual model and are classified either as a grant relating lo revenue or a grant relating lo assets. Grants relating lo revenue are recognised in income on a syslemalic basis over the period in which related costs for which the grant is intended lo compensate are recognised. Vvhere a grant is receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support with no future related costs. il Is Tecognised as revenue in the period in which il become5 receivable. Grants relating lo assets are reeognised in income on a syslemalic basis over the expected useful life of the asset. Grants recoived for housing properties are recognised in income over the expected useful life of the housing property structure. Where a grant is received specifically for components of a housing property, the grant is recognised in income over the expected useful life of the component. Government grants received for housing properties are subordinated to the repayment of loans by agreement with the Homes England. Government grants released on sale of a property may be repayable but are normally available lo be recycled and are credited lo a Recycled Capital Grant Fund and included in the statement of financial position in creditors. If there is no requirement lo recycle or repay the grant on disposal of the asset, any unamortised grant remaining within creditors is released and recognised as income in income and expenditure. 1.10 Ac¢ountlng gStimate$ and judgements The preparation of financial slalemenls requires the Board to make judgements, eslimales and assumptions that may affect the application of accounting policies and the reported amounts of assets and liabilities, and income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed lo be reasonable under the circumstances. Actual results may differ from these eslimale5. The key areas requiring the use of estimates and judgements which may significantly affect the financial statements are considered lo be.. Eslimalion of the useful lrfe of assets The board is required lo estimate the useful economic life of each component of its housing properties. These eslimales are based on experience of the housing stock compared to wider sector practice. Bad debt provision The bad debt provision is as follows: Evictions- 100% Former Arrears- 75% CUrn1 Arrears Greater than 1 year- 50% 19
Keelman Homes Llmited la company Ilmlted by guarantee and not havlng a shar& capital) Notes to the financial statamants For the ygar gnd&d 31 March 2025 Turnovgr 2025 £000 2024 £000 Rental and service charge income receivable Other income Amortisation of government grants Shared Ownership Sales Income 1,839 158 127 1.685 30 127 2,124 1,822 Operating surplus The operating surplus is arrived at after chargingl{creditingl'. 2025 £000 2024 £000 Depreciation of ownod tangible fixed assets Impaimienl of owned tangible fixed assets Amortisalion of government grants and donated land Auditor's remuneration audit other setvices relating lo taxation Profil on disposal of fixed assets 458 464 107 11271 11271 20 16 111 Tru8tee8' and koy management personnel remuneration and gxpenses During the period, no Trustees received any bènefits in kind12024.' nil} and no expenses were reimbursed lo any Trustees. The total amount of employee benefits received by key management pèrsonnel was £159,60912024.. £60,818). The company considers its key management personnel to comprise of the managing director, financial controller and operations manag8r. Staff c08ts and omploygo bongfSt8 The average number of empk)yees during the year was 412024.. 31 The total staff costs and employee benefits were as follows.. 202S £000 2024 £000 Gross wages Nl contributions Pension contributions 171 14 131 10 Total 193 144 20
Ke&lman Homes Limited la Company Ilmlted by guarantee and not having a sharo capltal) Notes to the financlal statfrments For the year ended 31 March 2025 Interest payable 2025 £000 2024 £000 Loans from Gateshead Council 665 Taxation Total lax expense recognised in the income and expenditure account 2025 £000 2024 £000 Current tsx 7.1. Rgconclllatlon of the offectSv& tax rata 2025 £000 2024 £000 SurplusllDeficit) Total tax Icredit}l expense 68 { 1531 SurplusllDeficit) before lax 68 { 1541 Tax using the UK corporation lax rale of 19%12023.. 19%) Tax exempt revenues Non-deduclible expenses 13 1291 113) 28 Total expensesllcreditl included in th8 income slalemenl 21
Keelman Homes Limited (a company limited by guarantee and not having a sharg ¢apitall Notes to tho financlal statements For the year ended 31 March 2025 8. Tanglble fixed asseis Shared Houslng Ownershlp Propertlos Housing Housing Und&r Propgrtigs Land Propertl&s Construction £000 £000 £000 £000 Offlce Equipment £000 Total £000 Cost Al 1 April 2024 Additions Disposals 26,019 3,255 126 {1351 1,308 48 13 15 30,845 142 11761 1411 At 31 March 2025 26,010 3,255 1,267 61 18 30,611 Depreciation At 1 April 2024 Charge for year Eliminated on disposal 3,645 440 150) 88 13 121 3,738 458 {521 At 31 March 2025 4,035 98 10 4,144 book value At 31 March 2025 21,974 3.255 1,168 61 26,466 At 31 March 2024 22,374 3.255 1,220 48 10 26.907 The income, costs and surplusldeficil relating lo the shared ownership properties amounts lo £61k12024 £nill, £41 kl2024 £nill, £22kl2024 £nill, respectively 22
Keglman Homes Limited {a company Ilmlted by guarantè8 and not having a share capital) Notes to the financial statamgnts For tho year ended 31 March 2025 Houslng Propertle8 Number of units under management 2025 2024 Under dev91opment at end of thè year Rented general need housing units Shared ownership units Under management at gnd of the year Rented general need housing units Shared ownership Ltnits 283 24 284 24 Debtors 2025 £000 2024 £000 78 446 Trade debtors Prepayments and accrued income Corporation lax 276 276 524 10. CredltOT8.' Amounts falling duo Within ong year 2025 £000 2024 £000 58 225 369 Trade Creditors Accruals Loans from Galeshoad Council Other lax and social security Government grants 132 369 127 127 696 783 11. Creditors: Amounts falling duo after one year 2025 £000 14.842 11,429 2024 Éooo 15,213 11,555 Loans from Gateshead Council Government grants 26,271 26,768 23
Keelman Home8 Limited la ¢ompany Ilmlted by guarantee and not having a share capital) Notes to the financial statements For the y&ar ended 31 March 2025 The firsl tranche of the loan from Gateshead Council of £4.5m is repayable in equal half yearly instalmenls of £46,717 over 50 years from March 2010 and accrues interest at 4.59%. An additional facility of £1.7m was agreed with the Council in October 2014, and is repayable in equal half yearly inslalmenls of £17,000 over 50 years from April 2015 and accrues interest at 4%. An additional facility of £1.5m was agreed with the Council in April 2015, and is repayable in equal half year inslalmenls of £15,000 over 50 years from October 2015 and accrues interest a14.250A. An additional facility of £1.Om was agreed with the Council in April 2016, and is repayable in equal half year inslalmenls of £10,000 over 50 years from October 2016 and accrues interest a13.750A. An additional facility of £0.5m was agreed with the Council in April 2017, and is repayable in equal half yearly inslalmenls of £5,000 over 50 years from October 2017 and accrues inlefesl a13.750A. An additional facility of £1.8m was agreed with the Council in September 2017, and is repayable in equal half yearly inslalmenls of £18,000 over 50 years from March 2018 and accrues interest at 3.75%. An additional facility of £0.5m was agreed with the Council in December 2017, and is repayable in equal ha yearly inslalmenls of £S,aDO over 50 years from June 2018 and accrues interest al 3.750kn. An additional facility of £0.9m was agreed with the Council in May 2018, and is repayable in equal half yearly inslalmenls of £9,000 over So years from November 2018 and accrues interest al 3.68•k. An additional facility of £0.5m was agreed with the Council in October 2018. and is repayable in equal half yearty inslalments of £5,000 over 50 years from April 2019 and accrues interest at 3.75°1ty. An additional facility of £0.7m was agreed in April 2019. and is repayable in equal half yearly inslalmenls of £5,000 over 50 years from October 2019 and accrues inleresl at 3.56%. An additional facility of £0.7m was agreed in July 2019, and is repayable in equal half yearly inslalments of £5,000 over 50 years from January 2020 and accrues interest al 3.3%. An additional facility of £0.25m was agreed in March 2020, and is repayable in equal half yearly inslalmenls of £5,000 over 50 years from September 2020 and accrues interest at 3.3%. An additional facility of £7m was agreed in May 2020, and is repayable in equal half yearly inslalments of £7,000 over 50 years from November 2020 and accrues interest al 3.3%. An additional facility of £4m w88 agreed in August 2020, and is repayable in equal ha yearly instalmenls of £4,000 over 50 years from February 2021 and accrues interest al 3.4 /0. An additional facility of £0.25m was agreed in September 2020, and is repayable in equal half yearly inslalmen18 of £2,500 over 50 years from March 2021 and accrues interest al 3.4OA. An additional facility of £0.25m was agreed in December 2020, and is repayable in equal half yearly instalmenls of £2,500 over 50 years from June 2021 and accrues interest at 3.35%. An additional facility of £0.6m was agreed in March 2021, and is repayable in equal half yearly inslalmenls of £6,000 over 50 years from September 2021 and accrues interest at 3.35%. An additional facility of £0.5m was agreed in May 2021. and is repayable in equ81 half yearly instslment8 of £5,000 over 50 years from November 2021 and accrues interest at 3.30A. 24
Keelman Homes Limited la company limltod by guarantee and not having * Share capitsl) Notes to the financial ststements For the year onded 31 March 2025 An additional facility of £0.35m was agreed in September 2021 and is repayable in equal half yearly inslalmenls of £3.500 over 50 years from March 2022 and accrues interest al 3.16'kn. An additional facility of £0.7m was agreed in November 2021 and is repayable in equal half yearty in5talmenls of £7,000 over 50 years from May 2022 and accrues interest al 3.19%. Governmènt grants A lolal of £4.832m grant was received from Homes England between the financial years of 2010111 and 2013114 in ¥elalion lo the Kibblesworth development. This is released lo the accounts over a period of 100 years. A lolal of £2.663m grant was received from Homes England between the financial years of 2013114 and 2020121 in relation lo tho Empty Homes Purchase and Repair schemes. This is released lo the accounts over a period of 100 years. A lolal of £33.7k grant was received from the Tyne and Wear Fire and Rescue Service in relation lo the inslallalion of sprinkler systems in some of our new build developments. This is released to the accounts over a period of 100 years A total of £0.345m grant was received from Homes England between the financial years of 2015116 and 2016117 in relation to the Runhead and Heddon View development. This is released lo the accounts over a period of 100 years. A lolal of £0.318m grant was received from Homes England between the financial years of 2016117 and 2018118 in relation lo the Wesl Park development. This 18 ieleased lo the accounts over a period of 100 years. A lolal of £0.778m grant was received from Homes England in financial years of 2019120 and 2020121 in relation lo the Bleach Green development. This is released lo the accounts over a period of 100 years. A total of £0.210m grant was received from Homes England in financial year 2020121 in relation to the Lyndhursl development. This is released lo the accounts over a period of 100 years. Included within government grants is an amount of £2,776,600 relating lo donated land12021', £2.806.2501 Land with a value £2.7m was donated lo the Company in 2010111 in relation lo the Kibble8WOrth development. This is released lo the accounts over a period of 100 years. Land with a value £0.115m was donated lo the company in 2016117 in relation lo the Heddon View development. This is released lo the accounts over a period of 100 years. Land with a value £0.15m was donated lo the company in 2017118 in relation to the Wesl Park development. This is released lo the accounts over a period of 100 years. Land with a value of £0.15m was donated lo the company in relation to Mallon Green development. This is released lo the accounts over a period of 100 years. 12. Related Party TransactionB During the financial period up until 3 July 2023, the company had a close working relationship with Gateshead Council due lo previously being a subsidiary prior lo becoming independent in 201411S. 25
Koelman Homes Llmltod (a company limited by guarantee and not having a share capital) Notes to the flnanclal statement8 For Ihg year ended 31 March 2025 The lolal &xpendilure incurfed with Gateshead Council during financial year 2025 was £66, 16012024 £218.0941. and the lolal income received was £351,36612024.. £598,0911 .There were also creditors due lo Gateshead Council totalling £30612024.'£6341 and a debtor amount of nil12024.' £77,935 }al 31 March 2025. 26
Keelmall Homes Llmited la company 11m1t by guarant99 and not having a share ¢apltal) Notes to the financial statements For tho yoar endod 31 Mar¢h 2025 Since 3 July 2023, the Company are a member of Karbon Homes cost saving group and have a share in this group. The total expenditure in¢urred with Karbon Homes during year 2025 was £559,48212024.. £282,251. and the total income received was £139,30212024.' £78,925). There were also creditors due lo Karbon lotalling £32,19412024.. £42,725) and a debtor amount of nil at 31 March 202512024 .' nil}. A member of key management personnel is resident in a rent lo buy property owned by the Company during the current and previous year. The lolal income received during the financial year 2024125 was £7,86712024'. £7,3251 and lolal expendilufe incurred was £nil12024'. nill. There was no creditor or deblol due at 31 March 2025 12024 nill, 13. Financlal assets and Ilabllltl•$ 2025 £000 2024 £000 Assets measured at CO8t less Impalrmgnt Trade debtors 78 Llabllltlg$ moasurgd at amortised cost Loans from Gateshead Council 15.213 15,582 There are no assets or liabilities held at fair value. 14. Cash from operating aetlvitle8 2025 £000 68 2024 £000 11531 Defictt for the year Adjustment for. Depreciation and amortisalion Impairment of fixed assets Profil on disposal of fixed assets Interest payable and similar charges Deferred government grant Taxation 458 107 17 669 1127) 1112) 665 1127) 952 976 Decfeasellincrease) in trade and other debtors IDecrea$el in trade and other creditors 1117 } 1252) 1871 Interest paid Tax paid 18651 { 6691 Net cash from operatlng actlvltlos 448 171 27