Resolution Homes (MM) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09636335 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

FOR

RESOLUTION HOMES (MM) LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr E W Lawley

Mr C T Porter

Mr J P Cavill

Mr J P Cavill Snr

REGISTERED OFFICE:

Moulsoe Business Centre

Cranfield Road

Moulsoe

Milton Keynes

Buckinghamshire

MK16 0FJ

REGISTERED NUMBER:

09636335 (England and Wales)

ACCOUNTANTS:

Hanburys Limited

Chartered Certified Accountants

6b Parkway

Porters Wood

St Albans

Hertfordshire

AL3 6PA

CURRENT ASSETS

Stocks

4

828,753

2,140,178

Debtors

5

487,164

6,012

Cash at bank and in hand

2,174

8,341

1,318,091

2,154,531

CREDITORS

Amounts falling due within one year

6

387,711

1,276,027

NET CURRENT ASSETS

930,380

878,504

TOTAL ASSETS LESS CURRENT LIABILITIES

930,380

878,504

CREDITORS

Amounts falling due after more than one year

7

932,000

932,000

NET LIABILITIES

(1,620

)

(53,496

)

CAPITAL AND RESERVES

Called up share capital

11

4

4

Retained earnings

12

(1,624

)

(53,500

)

SHAREHOLDERS' FUNDS

(1,620

)

(53,496

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2020 and were signed on its behalf by:

Mr E W Lawley - Director

Mr J P Cavill - Director

1.	STATUTORY INFORMATION

Resolution Homes (MM) Ltd 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on a going concern basis which assumes that the company will continue to

trade. The validity of this assumption is dependent on sufficient and continuing financial support being made

available by the company's director, the shareholders, and the creditors. If the company were unable to continue

to trade adjustments would have to be made to reduce the value of assets to their realisable amount, and to

provide for any further liabilities that may arise.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12

'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the

contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is

a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to

realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction

price including transaction costs and are subsequently carried at amortised cost using the effective interest

method 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. Financial assets classified as

receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of

the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group undertakings and preference

shares that are classified as debt, 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 payments

discounted at a market rate of interest. Financial liabilities classified as payable within one year are not

amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Amounts 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 creditors are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2018 - 4 ) .

4.

STOCKS

30.6.19

30.6.18

£

£

Work-in-progress

828,753

2,140,178

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.19

30.6.18

£

£

Trade debtors

486,113

-

Other debtors

653

653

Value added tax

18

1,254

Deferred tax asset

Tax losses carried forward

380

4,105

487,164

6,012

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.19

30.6.18

£

£

Bank loans and overdrafts (see note 8)

206,708

1,141,695

Trade creditors

32,872

24,132

Amounts owed to participating interests

77,778

60,000

Other creditors

3,500

-

CIS payable

7,708

7,708

Directors' current accounts

1,940

1,940

Deferred income

1,000

1,000

Accruals

56,205

39,552

387,711

1,276,027

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.19

30.6.18

£

£

Amounts owed to participating interests

500,000

500,000

Directors' loan accounts

432,000

432,000

932,000

932,000

8.

LOANS

An analysis of the maturity of loans is given below:

30.6.19

30.6.18

£

£

Amounts falling due within one year or on demand:

Bank loans

206,708

1,141,695

9.	SECURED DEBTS

The bank loans are secured by way of a fixed and floating debenture charge on the development site and

properties.

The loan of £500,000 due after one year from the participating interest is secured by way of a second charge on

the development properties.

10.	DEFERRED TAX

£

Balance at 1 July 2018

(4,105

)

Charge to Profit and Loss Account during year

3,725

Balance at 30 June 2019

(380

)

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.6.19

30.6.18

value:

£

£

4

Ordinary

£1

4

4

12.

RESERVES

Retained

earnings

£

At 1 July 2018

(53,500

)

Profit for the year

51,876

At 30 June 2019

(1,624

)

13.	RELATED PARTY DISCLOSURES

During the year the company provided financial support to a participating interest. The balance owed as at 30

June 2019 amounted to £77,777.61 (2018: £60,000).

A £500,000 loan has been advanced from a participating interest under control of the directors with interest

accruing at fair market rates. The loan is repayable upon the sale of properties and is secured by way of a charge

falling after the debenture charge in favour of the bank.