2025-03-31-accounts

Registration number: [P000166

Connswater Homes Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2025

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Contents

Board ofManagement and Advisers	4
Report ofthe Board ofManagement	2to8
Independent Auditor's Report to the members ofConnswater Homes Limited	9 to 12
Statement ofComprehensive Income	13
Statement of Financial Position	14
Statement ofChanges in Reserves	15
Statement ofCash Flows	16
Notes to Statement ofCash Flows	17 to 18
NotestotheFinancialStatements	19to43

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Board of Management and Advisers

Management Board Mr Robbie Davis (Chairman) Dr Sara Templer (Vice Chairman) Mr Alan Hill (Honorary Secretary) Mrs Kelly Andrews (Honorary Treasurer) Mr John Beattie Mr Michael Graham Professor Paddy Gray Martin Leahy Gerard McGarry Mr Alex Ward Chief executive Jacqueline Locke Company secretary Mr Alan Hill (Honorary Secretary)

Registered office Unit 5 Citylink Business Park Albert Street Belfast BT12 4HQ Solicitors Elliot Duffy Garrett 40 Linenhall Street Belfast BT2 8BA Auditors RBCA Limited Linenhall Exchange 26 Linenhall Street Belfast BT2 8BG Company number —__1P000166 Status Registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 - No. IP 166 Registered Charity with the Charity Commission for Northern Ireland - Charity Registration No.: NIC106095-0

Registered with the DfC (NI) - Number 8 Registered with HMRC - Number XN 41599

Page 1

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Report of the Board of Management for the Year Ended 31 March 2025

The Board of Management present their report and the audited financial statements for the year ended 31 March 2025 of Connswater Homes Limited (the "Association"). This report is also known as the Trustees’ report for Charity law purposes.

Principal activities The Association is an Industrial and Provident Society and is registered with the Department for Communities ("DfC") providing housing accommodation for those in need. It has charitable status with HM Revenue and Customs and is a registered charity with the Charity Commission for Northern Ireland.

Board of Management

The Board of Management meets regularly throughout the year. There are also various committees who meet regularly throughout the year. The Committees have responsibility for development, housing management, maintenance and audit. Financial matters are reported directly to the Board. The Board carries out an annual appraisal of its own performance and an annual appraisal of individual of individual Board Members. The Board of Management are the directors of the company and are the trustees of the charity.

The Board of Management, who served the Association during the year, and up to the date of signing the financial statements, were:

Mr Robbie Davis (Chairman) Dr Sara Templar (Vice Chairman) Mr Alan Hill (Honorary Secretary) Mrs Kelly Andrews (Honorary Treasurer) Mr John Beattie Mr Michael Graham Professor Paddy Gray Mr Martin Leahy Mr Gerard McGarry Mr Alex Ward

Performance for the year ended 31 March 2025 During the year the number of homes in ownership increased to 1,320 from 1,262 at the end of the prior year representing a 4.6% increase in stock size for the Association. Turnover increased by 7.4% from £9,372,108 in 2023/24 to £10,064,903 in 2024/25. This increase is as a result of new homes added to the Association’s stock during the year. An average annual inflationary rent increase of 5.7% on much of our existing stock also helped to boost turnover.

Operating costs of £7,541,586 represent 75% of turnover (2024: 69%). The Association generated a surplus for the year of £1,040,423 giving a net margin of 10% (2024: 16%).

The Association continuously invests in the maintenance of our existing stock of properties, ensuring our homes remain in great condition. To this end £1,382,789 was spent on planned maintenance (including capital) during the year. These works included 55 window and door replacements, 30 kitchen replacements and 6 complete property refurbishments as well as internal decoration at one apartment scheme.

A programme of health and safety inspections was also completed including boiler servicing, smoke and carbon monoxide alarms testing, asbestos monitoring, legionella testing, periodic fixed wire testing and fire risk assessments.

Page 2

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Report of the Board of Management for the Year Ended 31 March 2025

The Board has a set number of key performance indicators monitoring the operations of the Association on regular basis.

Association on regular basis.
Performance Indicator	Actual 24/25	Target24/25
Emergency repairs carried out within 24 hours	95%	>85%
Urgent repairs carried out within 4 days	97%	>80%
Routine repairs carried out within 28 days	93%	>80%
Operating margin	27%	>30%
Net margin	10%	>10%
Gearing ratio	35%	<60%
Interest cover ratio	1.67	>1
Net debt per unit	£29,787	<£38,000
Voids as a % of Stock	0.5%	<4%
BoardmembersattendanceatBoardmeetings	88%	>75%

Housing management staff assisted tenants struggling on low incomes by offering welfare and general money management advice, including assistance with universal credit applications.

Expected performance in the year ending 31 March 2026 — Connswater Homes Ltd & Choice Housing Merger

In March 2024, Connswater Homes Ltd’s Chair and Chief Executive met with their counterparts in Choice Housing Ireland Limited. It was clear from the discussion that both parties would be open in principle to a more detailed assessment of the potential benefits of merger. It was agreed at that point to embark on some exploratory work to assess the basis for a more formal process. The exploratory work was completed and the case for a more formal (and public) process then existed.

The Board of Choice Housing Ireland Limited, at its meeting on 21st August 2024 approved an approach to the Board of Connswater Homes Ltd to commence a formal due diligence process. The Chair and CEO of Choice Housing Ireland Ltd attended a meeting with Connswater Board on 18th September 2024 and set out a case for moving forward.

Page 3

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025 Report of the Board of Management for the Year Ended 31 March 2025

Choice Housing

Choice Housing was formed in 2015 following the merger of several housing associations but has its origins in legacy organisations dating back to the 1970s. The Association owns and manages c12,000 homes (including a small joint venture in ROI) and employs 420 people. In its financial statements to 31st March 2024, it had a Group Turnover of c£83m, Net Surplus of £15m, Gross Assets of £1bn and Reserves of £180m. It generates a healthy annual net cash surplus and has routinely received the highest regulatory rating.

Its customer profile spans general needs, sheltered, supported and a small number of private rented homes (through Maple & May). It has strong operating performance metrics and has maintained high customer satisfaction levels before, throughout and post Covid. It supports tenants through its in-house repairs’ contractor (Choice Services), financial inclusion team, maintenance assistants and community investment programme. Choice is committed to shared housing and mixed tenure provision and the tenant engagement infrastructure is increasingly about community empowerment. It manages 7 ‘Housing for All’ projects with more in the pipeline. Choice invests in its people, systems and culture to maximise the social and economic value of its work to their tenants, their neighbourhoods and to society as a whole.

Potential Benefits

The respective Chairs and CEOs articulated several potential benefits of merger, for tenants, staff and partners, including:

• ¢ Enhanced skills development and career progression opportunities for staff.

• Operational efficiencies through delivery of existing services through the Choice SMT.

• Access to value for money repairs and maintenance through Choice Services.

• Sufficient resources to address a more proactive regulatory regime.

• Scale to manage expanding tenant and public expectations around services including compliance. (damp, mould, fire etc.), decarbonisation and digital transformation.

Post merger, the combined organisation would also benefit from:

• Access to additional skilled staff in a tight labour market.

• Innovation around service expansion in community development, planned maintenance, sustainability, mixed tenure, in-sourced maintenance etc.

• Supplementing cash surpluses to fund broader tenant and community empowerment initiatives.

• • Scale to deliver enhanced value for money (and hence affordability) for existing tenant services (including through further digital engagement).

• In short... to do more, better and add value.

Page 4

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Report of the Board of Management for the Year Ended 31 March 2025

Potential Risks

There are a number of potential risks in any merger process, including:

• Ensuring that staff are reassured about their role, job security and prospects in a combined organisation.

• Assuring tenants that we retain their interests at the core of the merger process and that they will derive positive outcomes from a larger social landlord.

• Maintaining the trust of our regulators (DfC and CCNI), funders (public and private sector) and service partners (including NIHE, contractors, developers etc.).

Preliminary Considerations

As initial conversations and high-level exploration of the financial position of both organisations raised no red flags, and based on the case set out by Choice, Connswater Board agreed that discussions between both organisations should progress to formal due diligence and open communication with stakeholders.

The due diligence process comprised three externally commissioned elements, namely:

• Financial due diligence

• « Legal due diligence

• Compliance due diligence

In parallel with these external workstreams, colleagues in Choice worked with Connswater to:

• Understand the profile of Connswater tenants and stock and how this might align with Choice housing and property management structures.

• Consider the skills and expertise of the Connswater team and how staff resources could be successfully integrated with Choice should the merger proceed, considering also the NILGOSC position of Connswater staff.

• Assess the nature of existing contractual commitments at Connswater and if there are any priorities for transition following merger.

Stakeholders (in both organisations) with whom early engagement and ongoing communication would be important focussed around:

• Staff and tenants - who would be interested in the perceived benefits of the potential merger. Whilst neither staff nor tenant approval is required, it would be essential to highlight the positive impact of merger on service capacity and value for money.

• Shareholders - ultimately, both sets of members would need to approve the merger through Special General Meetings.

• Funders - who need to approve transfer of loan agreements at Connswater and Choice.

• Regulators at DfC and the Charities Commission - who would need to approve the transfer of assets/engagements.

Choice and Connswater agreed shared statements for public issue prior to due diligence commencing, putting the process into the public domain and affirming the principle that Connswater tenants should see no diminution of service delivery post-merger.

Page 5

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Report of the Board of Management for the Year Ended 31 March 2025

Merger Decision

• Ata board meeting of Connswater Homes on 28th November 2024, the Chair reported to board members that no significant risks or issues had been identified through the diligence processes and that the positive case for proceeding with a merger with Choice was compelling, there being no legal or financial impediment to indicate against a final decision in favour of merger. The Board voted in favour of merger and this put Connswater ona trajectory to a transfer of engagements on 30th April 2025.

• The following resolution was put to shareholders of Connswater Homes Ltd at a Special General Meeting on 19th February 2025: ‘To transfer all of the stock, property and assets and all engagements of Connswater Homes Ltd to Choice Housing Ireland Ltd (“Choice”) in consideration of the acceptance in full by Choice of all of the liabilities and engagements of Connswater with effect from the date the transfer is registered by the Financial Conduct Authority.’ There was a unanimous vote to approve the resolution.

• The following resolution was put to shareholders of Connswater Homes Ltd at a Special General Meeting on 10th March 2025: ‘To confirm the transfer of engagements from Connswater Homes Ltd to Choice Housing Ireland Ltd, subject to all necessary approvals having been obtained and with effect from the date the transfer is registered by the Financial Conduct Authority.’ There was a unanimous vote to approve the resolution.

Outcome

All necessary approvals having been received, all engagements have been transferred from Connswater Homes Ltd to Choice Housing Ireland Ltd, effective from the 30th April 2025.

Going Concern

The stock, property and assets and all engagements of Connswater Homes Limited were transferred to Choice Housing Ireland Limited on 30 April 2025, in consideration of the acceptance in full by Choice Housing Ireland Limited of all of the liabilities and engagements of Connswater Homes Limited with effect from the date of transfer. The Board of Management intend to wind up the affairs of Connswater Homes Limited and therefore these financial statements have been prepared on a basis other than going concern.

Regulation The Association’s principal regulator is the Department for Communities (DfC). Their regulatory judgement for the year 2023/24 gave the Association the highest rating of Level 1 assessing the three standards: Governance, Finance and Consumer. As a registered charity the Association is also subject to regulation by the Charity Commission for Northern Ireland.

Environmental matter

The Association recognises its corporate responsibility to carry out its operations and development programme whilst minimising environmental impacts. The Board's continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

Page 6

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025 Report of the Board of Management for the Year Ended 31 March 2025

Internal Financial Control

The Board of Management is responsible for establishing and overseeing a risk management framework in order to safeguard the assets of the Association and for the Association's systems of internal financial control and along with senior management is responsible for establishing and operating detailed control and report procedures. The systems of internal financial control can provide over reasonable, and not absolute, assurance against material misstatement and loss.

The Board of Management have reviewed the effectiveness of the Association's system of internal financial control. The review included consideration of the business risks facing the Association and of the existing internal financial control procedures.

The key elements of the control system in operation are:

• The Board has adopted a formal schedule of matters reserved for its approval ensuring it maintains responsibility for overall strategy, approval of all property transactions and other major capital expenditure projects.

• There is an organisation structure with clearly defined lines of responsibility and delegation of authority.

• Detailed budgets are prepared covering the Association's businesses which are reviewed and approved by the Board. Actual results are compared against budget and appropriate action identified and initiated.

• The Audit Committee review matters relating to internal control and receives reports on a regular basis from the external and internal auditors and from senior management.

Statement of the Board's responsibilities in respect of the financial statements

The Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and Registered Housing Association legislation require the members of the Board of Management to prepare the financial statements for each financial year which give a true and fair view of the state of the Association's affairs and of its surplus or deficit for that period. In preparing these statements the Board is required to:

• select suitable accounting policies and apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue to operate.

The members of the Board of Management are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993. They have general responsibility for the taking of reasonable steps to safeguard the assets of the Association and to prevent and detect fraud and other irregularities.

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Report of the Board of Management for the Year Ended 31 March 2025

Events after the Balance Sheet date

The stock, property and assets and all engagements of Connswater Homes Limited were transferred to Choice Housing treland Limited on 30 April 2025, in consideration of the acceptance in full by Choice Housing Ireland Limited of all of the liabilities and engagements of Connswater Homes Limited with effect from the date of transfer. The Board of Management intend to wind up the affairs of Connswater Homes Limited and therefore these financial statements have been prepared on a basis other than going concern.

Charitable donations

Donations totalling £5,763 (2024: £2,385) were made by the Association during the year. No donations for political purposes were made during the year (2024: fnil).

Statement of disclosure of information to auditors

So far as each of the members of the Board of Management at the date of approval of these financial statements is aware:

• there is no relevant audit information of which the Association's auditors are unaware, and

• that each Board member has taken all the steps that ought to have have been taken as a Board member in order to be aware of any relevant audit information and to establish that the Association's auditors are aware of that information.

Independent Auditors

The auditors, RBCA Limited, have indicated their willingness to continue in office.

This report was approved by the Board of Management on Mle /2e and signed on its behalf by:

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MrLiLRolfbie Davis (Chairman)
\
ie
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Mr Alan Hill (Honorary Secretary)

Mrs Kell-Andrews (Honorary Treasurer)

Page 8

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Independent Auditor's Report to the Members of Connswater Homes Limited

Opinion

We have audited the financial statements of Connswater Homes Limited for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Reserves, Statement of Cashflows 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 FRS 102 - "The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice for Social Housing Providers issued by the National Housing Federation. In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its surplus for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the requirements of the Co-operative and Community Benefits Societies Act (Northern Ireland) 1969 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969), the Charities Act (Northern Ireland) 2008, The Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 and the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993.

Basis of Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter- Basis other than Going Concern

We draw attention to Note 2 to the financial statements which explains that the stock, property and assets and all engagements of Connswater Homes Limited were transferred to Choice Housing Ireland Limited on 30 April 2025, in consideration of the acceptance in full by Choice Housing Ireland Limited of all of the liabilities and engagements of Connswater with effect from the date of transfer. The Board of Management intend to wind up the affairs of Connswater Homes Limited. Accordingly the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.

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.

Page 9

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Independent Auditor's Report to the Members of Connswater Homes Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Responsibilities of the Board of Management

As explained more fully in the Board of Management responsibilities statement the Board of Management are is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board of Management determines 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 Board of Management is responsible for assessing the Association'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 Board of Management either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• We identified areas of laws and regulations that could reasonably be expected have a material effect on the financial statements from our sector experiences through discussion the Board of Management and other management (as required by auditing standards).

• • We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered the extent of compliance with those laws and regulations as apart of our procedures on the related financial statement items.
• • With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect was limited to enquiry of the Board of Management.

• We communicated applicable laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.

• • We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Page 10

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Independent Auditor's Report to the Members of Connswater Homes Limited

• Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.fre.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other required reporting

Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 exception reporting Under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, we are required to report to you if, in our opinion:

• A satisfactory system of control over transactions has not been maintained; or

• We have not received all the information and explanations we require for our audit; or

• Proper accounting records have not been kept by the association; or

• The financial statements are not in agreement with the accounting records.

• We have no exceptions to report arising from this responsibility.

Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 exception reporting Under the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 we are required to report to you if, in our opinion:

• Sufficient accounting records have not been kept; or

• The financial statements are not in agreement with the accounting records; or

• We have not received all the information and explanations we require for our audit.

• We have no exceptions to report arising from this responsibility.

Use of our report

This report is made solely to the Board of Management, in accordance with Article 38 of the Co-Operative and Community Benefit Societies Act (Northern Ireland) 1969 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969). Our audit work has been undertaken so that we might state to the Board of Management 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 Board of Management and the Association as a body, for our audit work, for this report, or for the opinions we have formed.

Page 11

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Independent Auditor's Report to the Members of Connswater Homes Limited

Brian Stewart (Senior Statutory Auditor) For and on behalf of RBCA Limited,

Linenhall Exchange 26 Linenhall Street Belfast BT2 8BG vote: B10 2A

Page 12

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Statement of Comprehensive Income for the Year Ended 31 March 2025

	2025	2024
	£	£
Turnover	10,064,903	9,372,108
Operating costs	(7,541,586)	(6,449,286)
Operating surplus forthe year	2,523,317	2,922,822
Surplus arising from disposals ofhousing property	-	(980,381)
Miscellaneous income	1,114	12,522
Transfer to disposal proceeds fund	.	980,381
Interest received	140,644	59,505
Interest payable and similarexpenses	(1,624,652)	(1,485,831)
Other finance costs	-	14,000
Surplus forthe financial year	1,040,423	1,523,018
Totalcomprehensiveincomefortheyear	1,040,423	1,523,018

The notes on pages 19 to 43 form an integral part of these financial statements.

Page 13

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

(Registration number: 1P000166) Statement of Financial Position as at 31 March 2025

				2025		2024
		Note		£		£
Fixed assets
Housing properties		13	158,556,755		150,140,070
Other tangible fixed assets		15		404,294		436,483
Investments		16		2		2
			158,961,051		150,576,555
Current assets
Stocks				-		-
Debtors		17		2,878,841		3,632,275
Cash at bank and in hand				4,042,923		4,704,459
				6,921,764		8,336,734
Creditors: Amounts falling due within one year		18		(6,056,265)	(13,616,657)
Net current assets/(liabilities)				865,499		(5,279,923)
Total assets less current liabilities			159,826,550		145,296,632
Creditors: Amounts falling due after more than one year		19	(136,082,839)		(122,593,344)
Net assets				23,743,711		22,703,288
Capital and reserves
Called up share capital				12		42
Capital reserve				80		80
Revenue reserve				23,743,619		22,703,196
Total funds				23,743,711		22,703,288
Approvedand authorised bytheBoard	Boardon befhe [25 andsigned		on itsbehalfby:
Mr Robbie Davis (Chairman)	MrAlan Hill (Honorary Secretary)		Mrs	KellyAndrews		(Honorary
Director	Company secretary and	director	Treasurer) Director

The notes on pages 19 to 43 form an integral part of these financial statements.

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Statement of Changes in Reserves for the year ended 31 March 2025

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||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |Note|£|£| |Total|comprehensive|income|for|the|year|1,040,423|1,523,018| |Net|addition|to|revenue|reserves|1,040,423|1,523,018| |Opening|total|revenue|reserves|22,703,288|21,180,178| |Closing|total|revenue|reserves|23,743,711|22,703,288|

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2

The notes on pages 19 to 43 form an integral part of these financial statements.

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Statement of Cash Flows for the Year Ended 31 March 2025

		2025	2024
	Note	£	£
Net cash inflow/outflow from operating activities	A	1,969,766	6,346,272
Returns on investments and servicing offinance	B	(1,484,008)	(1,426,326)
Capital expenditure and financial investment	B	(1,326,940)	(4,317,420)
Cash inflow/outflow before use of liquid resources and financing		(841,182)	602,526
Financing	B	179,646	641,588
Incease/(decrease) in cash in period (661,536) 1,244,114 Deanne ee
		2025	2024
		£	£
Reconciliation of net cash flow
Increase/(decrease) in cash in period		(661,536)	1,244,114
Net cash at 1 April		4,704,459	3,460,345
Net cash at 31 March		4,042,923	4,704,459
ES

The notes on pages 19 to 43 form an integral part of these financial statements.

Page 16

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to Statement of Cash Flows for the Year Ended 31 March 2025

		2025	2024
		£	£
Note A - Reconciliation	of surplus for the year to
operating cashflows
Surplus for the year		1,040,423	4,523,018
Depreciation		2,399,666	2,215,259
Amortisation ofgrant		(1,647,267)	(1,577,459)
Movements:
- Stock		-	183,000
- Debtors		753,435	(2,954,755)
- Creditors		(1,394,385)	4,074,502
(Surplus)/deficit arising from	disposals of housing property	-	980,381
Difference in pension charge	and cash contributions	(656,000)	490,000
Other finance costs		(10,114)	(14,000)
Interest received		(140,644)	(59,505)
Interest payable		1,624,652	1,485,831
		1,969,766	6,346,272
ee
		2025	2024
		£	£
Note B - Analysis of cash flows for headings netted in
the cash flow statement
Returns on investment and	servicing offinance
Interest received		140,644	59,505
Interest payable		(1,624,652)	(1,485,831)
Net cash inflow/ (outflow) for returns on investment and servicing offinance		(1,484,008)	(1,426,326)
a

The notes on pages 19 to 43 form an integral part of these financial statements.

Page 17

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to Statement of Cash Flows for the Year Ended 31 March 2025

					2025	2024
					£	£
Capital expenditure and financial investment
Other fixed assets					(39,048)	(128,489)
Housing, land and buildings					(10,423,264)	(10,334,819)
Capital grant received					9,000,372	5,314,968
Sales proceeds					135,000	830,920
Net cash inflow/ (outflow) financial investment	for	capital	expenditure	and	(1,326,940)	(4,317,420)
eS
					2025	2024
					£	£
Financing
Loan principal payments					(771,995)	(1,358,412)
Loan redemptions					(2,048,359)	-
Draw-downs					3,000,000	2,000,000
Net cash inflow/ (outflow) financial investment	for	capital	expenditure	and	179,646	641,588
eS
			At 1 April 2024		Cashflows Other Changes	At 31 March 2025
				£	£ £	£
Note C - Analysis ofchanges in net funds
Cash in hand and at bank			4,704,459		(661,536) .	4,042,923
Debt due within one year			(6,546,598)		5,766,533 -	(780,065)
Debt due after more than one	year		(36,494,147)		(5,946,178) -	(42,440,325)
			(38,336,286)		(841,181) -	(39,177,467)
_———		ee			eee

The notes on pages 19 to 43 form an integral part of these financial statements.

Page 18

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

1 General information

The association's principal activity during the financial year was providing high quality, affordable homes for rent throughout Northern Ireland. The association is registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and domiciled in the UK.

The address of its registered office is: Unit 5 Citylink Business Park Albert Street Belfast BT12 4HQ

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements of Connswater Homes Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") under the historical cost convention, and in accordance with the applicable accounting standards in the United Kingdom and Statement of Recommended Practice for Accounting by Registered Social Landlords. The principal accounting policies, which have been applied consistently throughout the year, are set out below. The presentation of the financial statements complies with the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993.

Basis of preparation other than going concern

The stock, property and assets and all engagements of Connswater Homes Limited were transferred to Choice Housing Ireland Limited on 30 April 2025, in consideration of the acceptance in full by Choice Housing Ireland Limited of all of the liabilities and engagements of Connswater Homes Limited with effect from the date of transfer. The Board of Management intend to wind up the affairs of Connswater Homes Limited and therefore these financial statements have been prepared on a basis other than going concern.

Critical accounting estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the association accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

Foreign currency transactions and balances

Transactions and non-monetary assets, denominated in foreign currencies, are translated at the exchange rate at the date of the transaction. Monetary assets and liabilities are denominated in foreign currencies are retranslated at the rate of exchange ruling at the statement of the financial position date or the exchange rate of a related foreign exchange contract where relevant. The resulting exchange gains or losses are dealt with in the income and expenditure account.

Page 19

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the association and value added taxes. The association bases its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Where the consideration receivable in cash and cash equivalents is deferred and the arrangement constitutes a financing transaction, the fair value of the consideration is measured at the the present value of all future receipts using the imputed rate of interest. The association recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the association retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow through the association and (e) when the specific criteria relating to each of the associations’ sales channels have been met, as described below and in note 4.

Net rental income

Income includes rent and service charge income arising from the provision of housing accommodation and the amortisation of Housing Association Grant. Income is recognised in the period to which it relates.

Employee benefits

The association provides a range of benefits to employees, including paid holiday arrangements and defined benefit pension plans.

i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

ii) Multi-employer pension plan

Retirement benefits to employees of the Association are provided by the Northern Ireland Local Government Officers Superannuation Committee (NILGOSC) defined benefit scheme which is externally funded.

The assets of the NILGOSC scheme are held separately from those of the Association. The Association has implemented a change in accounting policy as regards the recognition of defined benefit pension assets in the financial statements. This is in line with increasing industry practice of applying the principles of IFRIC 14 to FRS reporting.

IFRIC 14 requires allowance to be made for a minimum funding requirement, which has the effect of jimiting the amount of economic benefit available to the excess of the value of prospective current service costs above the current funding requirement.

Stock

Housing properties held for sale are measured at the lower of cost and estimated selling price less costs to complete and sell.

Page 20

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

Tangible fixed assets

Housing properties

The association operates a full component accounting policy in relation to the capitalisation and depreciation of its completed housing stock.

Housing Association Grant and other grants

Housing Association Grant and other grants received as a contribution towards the capital costs of housing properties of the Association were set against the capital cost of these properties in the prior years. Housing Association Grant is disclosed as "Creditors: amounts falling due after more than one year" rather than set against the capital cost and are amortised to the Statement of Comprehensive Income as per the turnover policy. Housing Association Grant received against revenue expenditure is credited to revenue in the period in which the related expenditure is charged.

Such grants, although treated as a grant for accounting purposes, may be repayable under certain circumstances, primarily following the sale of housing property, but any amount repayable would be restricted to the net proceeds of the sale.

Depreciation and impairment

Housing properties

Housing properties are split between land, structure and major components which require periodic replacement. Replacement or refurbishment of such major components is capitalised and depreciated over the estimated useful life which has been set taking into account professional guidance and the association's asset management strategy. In determining the remaining useful lives for the housing stock, the association has taken account of views provided by both internal and external professional sources.

Freehold land is not subject to depreciation. Depreciation is charged so as to write down the cost or valuation of the freehold housing properties and major components on a straight-line basis over their expected useful economic lives.

Major components are treated as separable assets and depreciated over their expected useful economic lives or the lives of the structure to which they relate, if shorter, over the following periods:

Asset class	Depreciation method and rate
Land	Not depreciated
Structure (including roof)	100 years
Kitchen	20 years
Bathroom	25 years
Heating system	15 years
Windows and doors	35 years
Electrics	30years

Page 21

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

Housing assets are depreciated in the month of acquisition, or in the case of a larger project, from the month of completion. Where there is evidence of impairment, the fixed assets are written down to the recoverable amount and any write down would be charged to the operating surplus.

Other fixed assets Ground rents are depreciated. Depreciation of other fixed assets is charged on a straight-line basis over the estimated useful economic lives of the assets at the following annual rates:

Office premises 2%

Office furniture and equipment 25% Motor vehicles 14%

Subsequent additions and major components Subsequent costs, including major inspections, are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the association and the cost can be measured reliably. The carrying amount of any replaced component is de-recognised.

Repairs, maintenance and minor inspection costs are expensed as incurred.

Derecognition

Tangible assets are de-recognised on disposal or when no future economic benefits are expected. On disposal the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of Comprehensive Income.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to Statement of Comprehensive Income ona straight-line basis over the period of the lease.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of one month or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Page 22

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

Impairment of non-financial assets

At each Statement of financial position date non-financial assets are not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit).

The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows discontinued using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the assets.

If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the Statement of Comprehensive Income and Retained Earnings, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the Statement of Comprehensive Income and Retained Earnings.

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the Statement of Comprehensive Income and Retained Earnings.

i) Provisions

Provisions are recognised when the Association has a present legal or construction obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligations can be estimated reliably. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance costs.

ii) Contingencies

Contingent liabilities, arising as a result of past events, are not recognised when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii} when the existence will be confirmed by the occurrence of uncertain future events not wholly within the Association's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Page 23

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

Financial instruments

The association has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

i) Financial assets

Basic financial assets, including trade and other receivables and cash and bank balances initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in Statement of Comprehensive Income and Retained Earnings. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in Statement of Comprehensive Income and Retained Earnings.

Financial assets are de-recognised when (a) the contractual rights to the cash flows from the asset to expire or are settled, (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or, (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in the Statement of Comprehensive Income and Retained Earnings, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Page 24

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow association companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate of method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occur. The extent there is no evidence that it is probable that some or alll of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

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

Disposal proceeds fund

The net surpluses, after loan repayments, that arise from the sale of property to tenants under the voluntary purchase grant arrangements instituted by the Department for Communities can be used by the Association to fund works on property that would not be eligible for housing association grant or in certain circumstances, attract loan finance.

If the surpluses are not used within two years of their receipt they may be payable in part or in full to the Department of Communities.

Revenue reserves

The Association's policy is to retain a level of revenue reserves which reflects its needs at the current time and in the foreseeable future. The reserves required are sufficient to meet committed running costs for a period equivalent to nine months budgeted future expenditure. The Board of Management reviews the adequacy of the revenue reserves level on an annual basis.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 25

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

3 Critical accounting judgements and estimation uncertainty

Estimates and judgements made in the process of preparing the association financial statements are continually evaluated and are based on historical expenses and other factors, including expectations of future events that believed to be reasonable under the circumstances.

(a) Critical judgement in applying the entity's accounting policies

There are no critical judgements in applying the entity's accounting policies.

(b) Critical accounting estimates and assumptions

The Board of Management makes estimates and assumptions concerning the future in the process of preparing the association financial statements. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of housing properties

The annual depreciation on housing properties is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets. (ii) Defined benefit pension scheme The Association has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

There are no other critical accounting estimates and assumptions.

4 Analysis of turnover

Turnover and results relate to the association's main activities which are carried out in the United Kingdom. Turnover represents rental and service charge income and residential charges for housing with care, net of voids. It also includes amortisation of grants received from the Northern Ireland Housing Executive.

Page 26

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

5 Operating costs

5 Operating costs
	2025	2024
	£	£
Direct costs	5,197,404	4,376,280
Administrative expenses	2,344,182	2,073,006
	7,541,586	6,449,286
Naa

6 Operating surplus

6 Operating surplus
	2025	2024
	£	£
This is stated after charging/(crediting):
Staff costs (Note 7)
Wages and salaries	2,135,935	2,010,600
Depreciation
- Housing properties	2,328,429	2,162,863
- Other tangible fixed assets	71,765	52,396
Amortisation ofgrants	(1,742,570)	(1,690,092)
Auditors’ remuneration
-Auditservices	22,500	8,100

Page 27

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

7 Employee information

7 Employee information
	2025	2024
	£	£
Staff costs
Wages and salaries	1,671,041	1,561,139
Social security costs	171,495	165,642
Other pension costs	293,400	283,819
	2,135,936	2,010,600
SS
	2025	2024
	Number	Number
Average monthly number of persons employed during
the year by activity:
Administration	34	34

8 Directors’ emoluments

The aggregate remuneration of key management personnel of the Association during the year was:

	2025	2024
	£	£
Aggregate emoluments (including pension contributions)	402,046	377,833
Emoluments payable to the highest paid director (excluding pensioncontributions)	139,113	430,902

The number of directors to whom emoluments were paid during the year falls within each of the following bands:

Page 28

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

	2025	2024
Salary Band	No.	No.
£130,000 - £140,000	1	1
£120,000 - £130,000	-	-
£110,000 - £120,000	-	-
£100,000 - £110,000	1	1
£90,000 - £100,000	1	-
£80,000 - £90,000	-	1
£70,000 - £80,000	-	-
	3	3

Members of the Board of Management serve in a voluntary capacity and none (2024: none) were in receipt of emoluments during the year.

The Board and Committee members were reimbursed for expenses totalling £Nil (2024: ENil) during the year.

9 Transfer of disposal proceeds fund

		2025	2024
		£	£
Proceeds of disposal		-	135,000
Asset original costs/legal fees		.	(55,785)
Voluntary grant payable		-	44,160
Transfer to disposal proceeds fund (note 19)		-	123,375
ScaGeNj6eNe—e—ewjv“toxwoooqyOolyqonm@xqxas>$gq#yToy™qOn9n@qoéqaslqleleooOS=~<~$~$S$S$o	eee

10 Interest receivable and similar income

	2025	2024
	£	£
Interest receivable	140,644	59,505
	140,644	59,505
ee

Page 29

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

11 Interest payable and similar expenses
	2025	2024
	£	£
Housing property loans	1,622,510	1,481,189
Bank interest and charges	2,142	4,642
1,624,652 1,485,831 090909089888... "=—uU
12Otherfinancecosts

							2025	2024
							£	£
Defined	benefit	pension	scheme	net	interest	cost	-	(14,000)
							-	(14,000)

i

Page 30

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

13 Tangible fixed assets - housing properties and housing association grants

==> picture [409 x 368] intentionally omitted <==

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2025|2024| |Housing|Properties|£|£| |Cost| |At|1|April|2024|170,012,371|159,677,552| |Additions|10,767,870|10,794,814| |Disposals|(344,606)|(459,995)| |Transfers|-|-| |At|31|March|2025|180,435,635|170,012,371| |Accumulated|depreciation| |At|1|April|2024|19,872,301|18,017,181| |Charge|for|the|year|2,328,430|2,162,863| |Disposals|(321,851)|(307,743)| |Transfers|-|-| |At|31|March|2025|21,878,880|19,872,301| |Net|book|value| |At|31|March|2025|158,556,755|150,140,070| |Net|book|amount|comprises:| |-|Freehold|property|158,556,755|150,140,070| |Net|book|amount|comprises:| |-|Completed|scheme|147,761,106|137,253,470| |~|Properties|under|construction|10,795,649|12,886,600| |At|31|March|2025|158,556,755|150,140,070|

----- End of picture text -----

Included in the above is a figure of £729,800 for capitalised component replacements (2024: £547,072).

Page 31

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

14 Housing Association Grants
	2025	2024
Housing Association Grants	£	£
Cost
At 1 April 2024	104,367,818	99,052,850
Additions	9,272,353	5,649,836
Disposals	(271,981)	(334,868)
At 31 March 2025	113,368,190	104,367,818
Accumulated amortisation
At 1 April 2024	16,508,936	15,194,212
Charge for the year	1,647,267	1,577,459
Disposals	(271,981)	(262,734)
At 31 March 2025	(17,884,222)	16,508,936
Net book value
At31March2025	95,483,968	87,858,882

Page 32

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

==> picture [409 x 248] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |15|Other|tangible|assets| |Ground|Office|Office|Motor|Total| |Rents|Building|Equipment|Vehicles| |£|£|£|£|£| |Cost| |At|1|April|2024|839|516,272|441,532|58,223|1,016,866| |Additions|-|10,094|-|28,954|39,048| |At|31|March|2025|839|526,366|441,532|87,177|1,055,914| |Accumulated|amortisation| |At|1|April|2024|-|159,800|403,948|16,636|580,384| |Charge|for|the|year|-|26,389|32,393|12,454|71,236| |At|31|March|2025|-|186,189|436,341|29,090|651,620| |Net|book|value| |At|31|March|2025|839|340,177|5,191|58,087|404,294| |At|31|March|2024|839|356,472|37,584|41,588|436,483|

----- End of picture text -----

==> picture [405 x 75] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |16|Investments| |Investments| |£| |Cost|and|net|book|value| |At|1|April|2024|and|31|March|2025|2|

----- End of picture text -----

==> picture [408 x 119] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Investments|Detailed| |Name|EPIC|Clean|Limited| |Principal|Activity|Dormant|Company| |Country|of|Incorporation|Northern|Ireland| |.|Unit|5|Citylink,|Business|Park,|Albert|Street,|Belfast| |Registered|Address|BT12 4HO| |Holding|100%| |Class|of Share|Ordinary|

----- End of picture text -----

Page 33

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

17 Debtors

	2025	2024
	£	£
Rental Debtors Gross - Technical	248,703	261,778
Rental Debtors Gross - Non Technical	231,142	243,293
Provision forBad Debts	(140,808)	(140,808)
Net rental (including rates, service charges) debtors	339,037	364,263
Other Debtors	2,460,900	3,131,408
Prepayments and accrued income	78,904	136,604
Housing Association Grant receivable	-	.
	2,878,841	3,632,275
i

18 Creditors: amounts falling due within one year

18 Creditors: amounts falling due within one year
	2025	2024
	£	£
Bank loans	780,952	6,530,882
THFC premium	15,716	15,716
Housing Association grants	1,939,782	1,811,748
Rent, rates and service charges received in advance	60,904	28,082
Other creditors	230,105	288,669
HAG received in advance	2,578,886	4,510,233
Accruals and deferred income	449,920	431,327
	6,056,265	13,616,657

==> picture [407 x 5] intentionally omitted <==

----- Start of picture text -----
i
----- End of picture text -----

==> picture [33 x 10] intentionally omitted <==

----- Start of picture text -----
Page 34
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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

19 Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans	38,205,883	32,261,224
THFC premium	4,217,839	4,232,923
Housing Association grants	93,544,186	86,047,135
Other grants	114,931	52,062
	136,082,839	122,593,344

The surplus on the disposal proceeds fund must be used within two years of the sale of the property.

20 Loans

	2025	2024
	£	£
Bank loans - Housing property and otherloans
Less than one year, oron demand (Note 18)	780,952	6,546,598
Between one and two years	788,515	776,826
Between two and five years	10,934,021	411,329,747
After more than five years	30,716,903	24,387,574
	43,220,391	43,040,745

Security

Loans are secured by way of mortgages upon the deeds of the related housing properties.

21 Other grants

	£
As at 1 April 2024	52,062
Grant Received during the year	158,169
Grant amortisation	(95,300)
Asat31March2025	114,931

Page 35

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

22 Called up share capital

	£
Ordinary shares of£1 each, fully paid
As at 1 April 2024	12
Asat31March2025	12

ee

23 Turnover, operating costs and operating surplus

		2025		2024
	Operating	Operating	Operating	Operating
	Turnover	Costs	Surplus	Surplus
	£	£	£	£
Social Housing Activities	10,064,903	7,541,586	2,523,317	2,924,655
Non-Social Housing Activities	-	-	-	(1,833)
	10,064,903	7,541,586	2,523,317	2,922,822
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24 Housing stock

24 Housing stock
Number of units owned on 31 March	2025	2024
	Number	Number
Self-contained
General needs housing	1,320	1,262
ma	1,320 1,262 !:5°0.0.—..0

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

25 Turnover, operating costs and operating surplus or deficit from social and non-social housing activities - Association

25 Turnover, operating costs and operating surplus housing activities - AssociationAssociation	surplus or deficit from social and	and non-social
	2025	2024
Social Housing Activities	£	£
Operating income
Rent and rates receivable	8,241,927	7,615,195
Service charges receivable	118,546	103,621
Income from Housing Association grant	1,742,570	1,690,092
Voids	(38,140)	(36,800)
Total social housing income	10,064,903	9,372,108
Operating costs
Services	171,262	255,031
Management costs	1,344,557	1,082,298
Rates	987,564	881,083
Maintenance and administration costs	1,111,984	990,708
Planned and cyclical maintenance	784,859	512,208
Reactive maintenance	597,930	541,541
Depreciation of social housing	2,328,429	2,170,114
Development costs written off	187,129	1,833
Bad debts (rent and service charges)	27,872	14,470
Total social housing expenditure	7,541,586	6,449,286
Operatingsurplusonsocialhousing	2,523,317	2,922,822

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

	2025	2024
	£	£
DfC Allowances
Management allowances	511,236	488 466
Management costs	(1,344,556)	(1,200,046)
Deficit (833,320) (711,580) ————— a Sr
Maintenance Allowances		-
Maintenance Allowances	596,443	569,531
Planned and cyclical maintenance	(597,930)	(512,208)
Reactive maintenance	(784,859)	(541,541)
Deficit (786,346) (484,218) 0 Oe
Technical and Non - Technical income
Technical	5,488,619	5,762,095
Non-Technical	2,833,714	1,956,721
Total	8,322,333	7,718,816

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

26 Pension commitments

The Association operates a defined benefit pension plan for qualifying employees providing benefits based upon final pensionable pay. The pension plan is funded by the payment of contributions and assets of the plan are held in a separately administered fund. The most recent comprehensive actuarial valuation of pension plan assets and the present value of the defined benefit obligation was carried out at 31 March 2025 by a qualified actuary for the purpose of the disclosures below.

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2025|2024|2023|2022| |Rate|of|increase|in|salaries|4.00%|4.10%|4.10%|4.18%| |Rate|of|increase|in|pensions|in|payment|2.50%|2.60%|2.60%|2.28%| |Pension|accounts|revaluation|date|2.50%|2.60%|2.60%|2.28%| |Discount|rate|5.80%|4.70%|4.60%|2.70%| |Inflation|assumption|2.50%|2.60%|2.60%|2.28%| |The|mortality|assumptions|used|were|as|follows:| |2025|2024|2023|2022| |Years|Years|Years|Years| |Longevity|at|age|65|for|current|pensioners:| |-|Men|21.6|21.7|22.2|21.8| |-|Women|22.2|24.6|25.0|25.0| |Longevity|at|age|65|for future|pensioners:| |-|Men|24.5|22.7|23.2|23.2| |- Women|25,2|25.6|26.0|26.4|

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

Pension Commitments (continued)

		Value	Value
		at	at
		31	31
		March	March
		2025	2024
		%	%
The assets in the scheme and the expected rate ofreturn		were:
Equities		41.3%	43.7%
Property		9.5%	9.7%
Bonds		19.6%	21.6%
Gilts		29.6%	25%
		100%	100%
a... SS.S.606O0808°SS.S cc
		2025	2024
		£	£
Reconciliation of present value ofscheme liabilities
At 1 April		5,937,000	5,447,000
Current service cost		290,000	288,000
Interest cost		281,000	252,000
Member contributions		119,000	109,000
Actuarial losses/(gains)		(1,596,000)	(125,000)
Benefits paid		(36,000)	(34,000)
At 31 March ——	4,995,000 5,937,000 ssssss

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

			2025	2024
			£	£
Reconciliation offair value ofscheme	assets
At 1 April			6,557,000	5,595,000
Interest income on assets			317,000	266,000
Remeasurement gains on assets			(67,000)	337,000
Contributions by the employer			304,000	284,000
Contributions by participants			119,000	109,000
Net benefits paid out			(36,000)	(34,000)
At 31 March			7,194,000	6,557,000
eSq“Cq[qeqa—@sqowpqwq#s#qeoxoqsauqmEqOle_——eeeee
			2025	2024
			£'000	£'000
Analysis of amount charged to income or expenditure are			as
follows:
Current service costs			290,000	288,000
Interest on pension scheme liabilities			(36,000)	(14,000)
Loss/(gain) on plan introductions,	changes,	curtailments	and
settlements				7
			254,000	274,000
			2025	2024
			£'000	£'000
Amounts recognised in other comprehensive income
Return on plan assets excluding interest	income		(67,000)	337,000
Actuarial losses/(gains)			(603,000)	(495,000)
			(670,000)	(158,000)

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Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

Amounts for current and previous three years:

Amounts for current and previous three years:
	2025	2024	2023	2022
			(As
			restated)
	£	£	£	£
Fairvalue ofemployer assets	7,194,000	6,557,000	5,595,000	6,049,000
Present value ofdefined benefit obligation	(4,995,000)	(5,937,000)	(5,447,000)	(7,117,000)
Unrecognised asset	(2,199,000)	(620,000)	(148,000)	-
Surplus/(deficit) - - - (1,068,000) sw .°0—0—00
27 Capital Commitments
		2025		2024
		£		£
Capital expenditure
Contracted for but not provided for in the financial statements		18,268,303		21,605,690

The Association anticipates that this expenditure will be funded by Housing Association Grant from the Department for Communities, by private finance, both external and internal and the association's reserves.

28 Contingent liabilities

There exists a contingent liability on the Association of the possibility of having to repay grants received on properties if any properties are sold. This also includes any grants written off through the implementation of component accounting.

29 Related party disclosures

Connswater Homes Limited is an admitted body to the Northern Ireland Local Government Officers' Superannuation Committee (NILGOSC) and make contributions on behalf of those of its employees whom are in the scheme.

Page 42

Connswater Homes Limited Annual report and Financial statements for the year ended 31 March 2025

Notes to the Financial Statements for the Year Ended 31 March 2025

30 Post balance sheet events

The stock, property and assets and all engagements of Connswater Homes Limited were transferred to Choice Housing Ireland Limited on 30 April 2025, in consideration of the acceptance in full by Choice of all of the liabilities and engagements of Connswater with effect from the date of transfer. Connswater Homes Limited ceased operations from this date and therefore these financial statements have been prepared on a basis other than going concern and appropriate disclosure of this has been made.

It is the intention of the Board of Management to wind up the affairs of Connswater Homes Limited in an orderly fashion.

31 Ultimate controlling party

The ultimate controlling party is the Board of Management.

Page 43