ELMC Ltd Director’s report for financial year 2024-2025

Friday 30th May 2025

Welcome to the third Elm Leys Management Company Ltd AGM.

Elm Leys is a private residential estate that consists of 40 individual dwellings, of which 14 are owned/managed by Hightown Housing Association.

It also includes communal areas of land, landscaped areas, a pond (which forms part of the drainage system acting as a flood water attenuation basin), an access road, footpaths (including a public right of way), as well as services and drains.

The developer, Ridgepoint Homes Ltd set up a private limited Company, registered at Companies House to administer and maintain the communal areas of the estate on behalf of the property owners.

Each freehold property owner of the estate is also a shareholder in the Company. There is only one share per property.

The shareholders are required to elect a director (or directors) to manage the Company on their behalf. The duties of the directors are regulated by Company Law and the Articles of Association of the Company which can be downloaded from Companies House. The article of association state what we do and our purpose.

Five householders agreed to take on the Director role and are:-

MCCOSH, David

MELVEN, Caroline – Treasurer

O’CALLAGHAN, Jennifer – Secretary

TARGELL, Andrew – Chairman

WESTWOOD, Stuart

 

In 2023, in the interests of good governance and transparency, the directors created a constitution.

Our Constitution sets out how ELM LEYS (MANAGEMENT COMPANY) LTD is governed for the benefit of the shareholders. It is acts as a guide to both existing and new property owners, who may wish to volunteer to become directors of the Company. The Constitution should be read in conjunction with the Articles of Association of the Company, where a link is provided for in the constitution.

It forms the basis of how we work and it was approved by shareholder agreement at the first AGM by a majority vote. The constitution also outlines what we are responsible for and that is the maintenance of the land shown on the appendix in the constitution.

Although the constitution uses formal terms such as the Company, Shareholders and Directors, it is important to note that we are simply a group of ordinary private householders who have collective responsibility for maintaining the communal areas of the estate for the benefit of us all. However, because we are set up as a Limited Company, we also have some legal responsibilities, duties, and liabilities, which we should all be aware of.


Why are we a business not a charity?

Fundamentally it is because being a company we have shareholders and with each householder as a shareholder it means no house can be sold without a transfer of that shareholding. And no shareholding can be transferred if there are any debts – basically it means there is a way to (to some degree) facilitate recovery of any annual fees due.

Importantly, ELMC is not a community association; we do not handle disputes between neighbours – we are here to

1.    To maintain, in good working order, of the communal land, including any landscaped areas, certain boundary fences, hedges, the access road and turning areas, relevant road drainage and footpaths.

2.    Place and maintaining of policies of insurance against Third-Party Claims, loss or damage by fire, flood, storm or tempest, or special perils normally included in the Property Owners Liability Policies.

3.    Establish and maintain adequate capital reserves to pay all fees, costs and other expenses incurred in the implementation of the company’s aims and to require the members to contribute towards such reserves or funds.

Our financial year starts in May, and we hold an AGM around this time. At each AGM we seek your approval for the proposed fees for the next year. We will do that this evening and our Treasurer will share more details on our spend and proposed budget and fees for next year – which we will vote on. A majority vote is required. Fees are then due immediately on receipt of invoice which will be issued each June.


Work completed since the last AGM

1.    Issued and collected fees in accordance with the fee structure agreed at the 2024 AGM.

2. Established the 2024 budget and allowed some funding for householder nominated projects.

3. Maintained the website and communication channels.

4. Completed Formal account submissions to Companies House

5.    Renewed our auditors (BAS)

6.    Cleared and replanted beds with new bark and barking around trees

7. Dig out the old blackberry bush besides public footpath and replanted with grass

8. Implemented weed suppression routine and grass feeding

9. Perimeter Hedge cut back and clearance of areas behind properties.

10. Oil filter alarms system and maintenance

11. Renewed Insurances – risk assessment approach (landowners’ insurance and street lighting coverage and legal dispute coverage)

12. New Dog Waste bin installed (agreed with Parish Council to fund and pay for ongoing emptying)

13. Completed road and pathway repairs

14. Engaged the Parish Council and Wild Wingrave for guidance on habitat maintenance

15. Pond clearance and maintenance

16. Tree support removals and/or additions as necessary

 

We have not completed the move and repairs to the boxing around the electrical box at the entrance due to delays receiving quotes for moving the box from UK Power Networks. As a result we will look to complete this in 2025/26 with a more limited makeover and without moving the box as this will be a significant expense.

 

Financial summary and fees

Summary Financials for FY 2024-2025 and proposed budget and fees for the FY 2025-2026 have been issued separately as pre-reads for the AGM – in this report and the financial and budget statement.

The majority of our spend relates to grounds maintenance covering regular mowing, weed suppression, bed maintenance, new planting and bark replacement. We also undertake full perimeter hedge cuts and strimming of all areas behind properties once or twice annually. The regular grounds maintenance also covers removal of weeds and debris along curbs and pathways and keeping drains cleared. We anticipate these costs being similar over the coming financial year.

Over the past year our contractors have provided for a much improved upkeep compared to the previous contractors and as a result we propose to continue with the existing service providers.

A significant investment this year accounted for our next largest item of spend, the road and pathways repairs. Sunken paths and cracked kerbs were replaced and several road cracks were treated to avoid further longer term deterioration.

The Directors are targeting building up a longer term capital reserve of around £10,000, to account for longer term maintenance works and unforeseen expenses – such as road or drainage repairs. Doing so allows us to handle these costs, as they may arise, without any significant one-off fee increases and helps keep fees more consistent over time.

It is our aim to achieve this over the next few years and to do so incrementally each year. To achieve this our annual fees need to be a little more than our day to day spending to allow us to build up the reserves.

The fee being proposed for FY 2025 are £277 per householder, this compares to other new developments in the area that currently charge around £400 per householder per annum. The proposed annual fee is rising in line with the average inflation rate (2.5%) and is an increase of £7 on the prior year.

The proposed budget, provided with this report, summarizes the proposed spend for the next financial year, accounting for the proposed fee increase

The Treasurer will outline our expenditure and budget and fees, and we will have an opportunity to vote on this in the AGM.

 

An update on Parking

At the 2023 AGM, parking was a concern for many residents, with complaints of blocked roads, paths and inappropriate use of shared spaces as top concerns. As a result, the Directors reviewed the parking obligations as described in householder title deeds and undertook consultation with residents. A Parking Guide was then finalised and published by ELMC Ltd – available at all times from the Elm Leys website.

 

Since being published, the Directors note an improvement in overall parking behaviour. However, we will continue to seek householder feedback and adjust the guidelines as necessary.

 

What are our Plans for 2024-25?

1.    Pond clearing (as far as can be done due to the presence of great crested newts)

2. Gate and fencing repairs

3. Electrical box repairs, tidy and planting (to act as a visual shield)

4. Perimeter Hedge cut maintenance.

5. Additional Trees to be procured and planted in wildlife area by estate entrance.

6. Ongoing lawn mowing and feed

7. Regular weed suppression.

8.    Ongoing Bed weeding, new planting and bark application

 

You may all have suggestions, and we can look to cover some of those in the AOB once the formal matters are completed, however I want to draw your attention to the project submission form on the website – please use this to submit new idea or requests in advance of future AGMs so we can have proper proposal ready for vote.

 

So, lots of voting today, voting on our budget and fees for next year and who will be company officers, the Chairman, the Secretary and the Treasurer.

 

Finally, thank you for coming along today, we hope it is informative and sets the scene for a future well managed estate that we all are proud of.

 

Andrew Targell

Chairman ELMC Ltd