Cuerden Developments Limited - Limited company accounts 18.2

REGISTERED NUMBER: 03199033 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

CUERDEN DEVELOPMENTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Statement of Financial Position

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

Mr K Lowe

Mrs K J Cramant

SECRETARY:

Mr R J Lowe

REGISTERED OFFICE:

Unit 6

Beecham Court

Pemberton

Wigan

Lancashire

WN3 6PR

REGISTERED NUMBER:

03199033 (England and Wales)

AUDITORS:

Fairhurst

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

The directors present their strategic report for the year ended 31 March 2019.

The company continues to maintain and develop sites being operated or intending to be operated as care homes by a

fellow group company. It also continues to incur expenditure which is recharged to the fellow group company. In the

current year it also carried out development activities on sites which will not be retained.These sites are included in work

in progress.

REVIEW OF BUSINESS

The company has principally incurred costs which it has recharged to a fellow group subsidiary. It has also carried out

some development activities on sites which will not be retained within the business. Some sites have been fully

developed and sold.

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces a number of risks and uncertainties and the directors believe that the the key business risks are in

respect of ensuring the deliverance of high levels of care at each home.

FUTURE DEVELOPMENTS

The directors anticipate the business environment will continue to be competitive but are confident the service provided

by the company is set up to meet the needs of its customers.

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price,credit, liquidity and cash flow risks arising from trading activities

which are conducted.

ON BEHALF OF THE BOARD:

Mr K Lowe - Director

30 September 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

Mr K Lowe

Mrs K J Cramant

The company is a wholly owned subsidiary of Launchrandom Limited and the interests of the director are disclosed in

the financial statements of the parent company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

AUDITORS

The auditors, Fairhurst, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr K Lowe - Director

30 September 2019

Opinion

We have audited the financial statements of Cuerden Developments Limited (the 'company') for the year ended

31 March 2019 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of

Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2019 and of its profit 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 Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' 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 a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Dennis BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of Fairhurst

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

1 October 2019

TURNOVER

2,566,252

3,917,887

Cost of sales

1,845,765

3,798,709

GROSS PROFIT

720,487

119,178

Administrative expenses

1,214,701

1,107,520

(494,214

)

(988,342

)

Other operating income

1,189,715

1,077,074

OPERATING PROFIT

4

695,501

88,732

Interest receivable and similar income

37,529

30,447

733,030

119,179

Interest payable and similar expenses

5

12,544

-

PROFIT BEFORE TAXATION

720,486

119,179

Tax on profit

6

139,048

22,998

PROFIT FOR THE FINANCIAL YEAR

581,438

96,181

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

581,438

96,181

FIXED ASSETS

Tangible assets

7

5,908

3,895

CURRENT ASSETS

Stocks

8

3,189,362

2,731,856

Debtors

9

886,446

921,917

Cash at bank

5,041,647

5,030,390

9,117,455

8,684,163

CREDITORS

Amounts falling due within one year

10

8,553,845

8,699,978

NET CURRENT ASSETS/(LIABILITIES)

563,610

(15,815

)

TOTAL ASSETS LESS CURRENT LIABILITIES

569,518

(11,920

)

CAPITAL AND RESERVES

Called up share capital

13

2

2

Retained earnings

14

569,516

(11,922

)

SHAREHOLDERS' FUNDS

569,518

(11,920

)

The financial statements were approved by the Board of Directors on 30 September 2019 and were signed on its behalf by:

Mr K Lowe - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

2

(108,103

)

(108,101

)

Changes in equity

Total comprehensive income

-

96,181

96,181

Balance at 31 March 2018

2

(11,922

)

(11,920

)

Changes in equity

Total comprehensive income

-

581,438

581,438

Balance at 31 March 2019

2

569,516

569,518

1.	STATUTORY INFORMATION

Cuerden Developments Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements contain information about Cuerden Developments Limited as an individual company

The company is a subsidiary and part of a medium sized group. Under the provisions of the Companies Act 2006

the parent company is required to prepare consolidated financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements,

as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents the net invoiced value of goods sold, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Fixed assets are initially recorded at cost.

Stocks

Work in progress is included at cost less any losses foreseen in completing and disposing of the development,

less any amounts received or receivable as progress payments. For long term contracts, work in progress includes

an element of attributable profit, where it is considered that the outcome of the contract can be assessed with

reasonable certainty before its conclusion.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

336,905

644,903

Social security costs

39,685

83,438

Other pension costs

122,834

272

499,424

728,613

The average number of employees during the year was as follows:

2019

2018

Management and administration

7

7

2019

2018

£

£

Directors' remuneration

91,520

432,498

Directors' pension contributions to money purchase schemes

40,000

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Depreciation - owned assets

1,937

1,261

Auditors' remuneration

10,500

10,000

Auditors' remuneration for non audit work

13,308

10,918

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Interest on VAT assessments

12,544

-

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

139,048

22,998

Tax on profit

139,048

22,998

7.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 April 2018

25,085

3,404

28,489

Additions

-

3,950

3,950

At 31 March 2019

25,085

7,354

32,439

DEPRECIATION

At 1 April 2018

21,250

3,344

24,594

Charge for year

935

1,002

1,937

At 31 March 2019

22,185

4,346

26,531

NET BOOK VALUE

At 31 March 2019

2,900

3,008

5,908

At 31 March 2018

3,835

60

3,895

8.

STOCKS

2019

2018

£

£

Work-in-progress

3,189,362

2,731,856

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Pension scheme debtor

834,241

838,311

VAT

52,205

82,610

Prepayments and accrued income

-

996

886,446

921,917

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts (see note 11)

12,725

217,330

Trade creditors

170,481

342,609

Amounts owed to group undertakings

8,146,504

7,818,996

Tax

139,023

26,094

Social security and other taxes

6,430

249,487

Other creditors

9,632

3,412

Accrued expenses

69,050

42,050

8,553,845

8,699,978

11.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

12,725

217,330

12.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank overdrafts

12,725

217,330

There is a cross guarantee from other group companies. Any bank indebtedness is secured by a debenture and

legal charges over the three trading properties held in Cuerden Estates Ltd.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

2

Ordinary

£1

2

2

14.

RESERVES

Retained

earnings

£

At 1 April 2018

(11,922

)

Profit for the year

581,438

At 31 March 2019

569,516

15.	ULTIMATE PARENT COMPANY

Launchrandom Ltd is regarded by the directors as being the company's ultimate parent company.

16.	CONTINGENT LIABILITIES

There is a cross guarantee for any bank indebtedness of the parent company, Launchrandom Limited, and the

fellow subsidiary, Cuerden Estates Limited.