Stonewood Homes (Babdown) Limited - Period Ending 2019-09-30
Stonewood Homes (Babdown) Limited - Period Ending 2019-09-30
Registration number:
for the
Year Ended
Stonewood Homes (Babdown) Limited
Contents
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Company Information |
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Directors' Report |
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Accountants' Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Notes to the Financial Statements |
Stonewood Homes (Babdown) Limited
Company Information
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Directors |
M Aitkenhead J P Ashenden J A Brosch A S Cowie A G Jenkins B M Lang |
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Company secretary |
J Cowie |
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Registered office |
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Accountants |
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Stonewood Homes (Babdown) Limited
Directors' Report for the Year Ended 30 September 2019
The directors present their report and the financial statements for the year ended 30 September 2019.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is that of a building contractors.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the
.........................................
Director
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of Stonewood Homes (Babdown) Limited
for the Year Ended 30 September 2019
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Stonewood Homes (Babdown) Limited for the year ended 30 September 2019 as set out on pages 4 to 11 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Stonewood Homes (Babdown) Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Stonewood Homes (Babdown) Limited and state those matters that we have agreed to state to the Board of Directors of Stonewood Homes (Babdown) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Stonewood Homes (Babdown) Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Stonewood Homes (Babdown) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Stonewood Homes (Babdown) Limited. You consider that Stonewood Homes (Babdown) Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Stonewood Homes (Babdown) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
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Chartered Accountants
Staverton
Cheltenham
GL51 0UX
Stonewood Homes (Babdown) Limited
Profit and Loss Account for the Year Ended 30 September 2019
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Note |
2019 |
2018 |
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Turnover |
- |
- |
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Administrative expenses |
( |
( |
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Operating loss |
( |
( |
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Loss before tax |
( |
( |
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Taxation |
- |
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Loss for the financial year |
( |
( |
The above results were derived from continuing operations.
Stonewood Homes (Babdown) Limited
Statement of Comprehensive Income for the Year Ended 30 September 2019
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2019 |
2018 |
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Loss for the year |
( |
( |
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Total comprehensive income for the year |
( |
( |
Stonewood Homes (Babdown) Limited
(Registration number: 09209364)
Balance Sheet as at 30 September 2019
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Note |
2019 |
2018 |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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100 |
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Profit and loss account |
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448,586 |
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Total equity |
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448,686 |
For the financial year ending 30 September 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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• |
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
.........................................
Director
Stonewood Homes (Babdown) Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Turnover is recognised on legal completion for each individual unit sold.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Stonewood Homes (Babdown) Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks which comprise work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Stonewood Homes (Babdown) Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
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.
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Stonewood Homes (Babdown) Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
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Staff numbers |
The company incurred no staff costs and had no other employees other than the directors.
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Taxation |
Tax charged/(credited) in the profit and loss account
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2019 |
2018 |
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Current taxation |
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UK corporation tax adjustment to prior periods |
- |
( |
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Stocks |
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2019 |
2018 |
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Work in progress |
3,284,549 |
1,781,997 |
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Debtors |
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2019 |
2018 |
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Other debtors |
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Prepayments |
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Corporation tax asset |
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59,049 |
13,629 |
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Creditors |
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Note |
2019 |
2018 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
- |
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Amounts due to related parties |
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Accrued expenses |
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Loans and borrowings |
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2019 |
2018 |
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Current loans and borrowings |
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Bank borrowings |
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- |
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Other borrowings |
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Bank borrowings
Bank borrowings in the current and prior year comprise:
• A bank loan of £1,239,753 (2018 - £nil) which is denominated in GBP and bears interest at a rate of 4.25% per annum above the Bank of England base rate. The loan is considered to be repayable on demand and therefore the full balance has been disclosed as falling due in less than one year.
Stonewood Homes (Babdown) Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
The loan is secured by a fixed and floating charge over the assets and property of the company, including the freehold land at Arms Farm, Sutton Benger.
The bank loan imposes a negative pledge which prohibits the company from creating any security interests over the assets pledged as security.
Other borrowings
Other borrowings in the current and prior year relate to loans advanced to the company from its directors and shareholders. These loans are to be repaid, together with a 10% uplift, upon completion and sale of the development to which they relate. No interest has been charged on these loans during the year.
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Share capital |
Allotted, called up and fully paid shares
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2019 |
2018 |
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No. |
£ |
No. |
£ |
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Ordinary A shares of £1 each |
80 |
80 |
80 |
80 |
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Ordinary B shares of £1 each |
20 |
20 |
20 |
20 |
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100 |
100 |
100 |
100 |
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All Ordinary shares rank pari passu in all respects except that they shall carry independent rights to dividends.
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Related party transactions |
Transactions with Directors and Company Secretary
At the balance sheet date the company owed the following amounts to the Directors and the Company Secretary in respect of loans advanced to fund the ongoing development projects: Alun Jenkins £310,000 (2018 - £310,000), James Brosch £310,000 (2018 - £310,000), Andrew Cowie £115,000 (2018 - £115,000) and Judi Cowie £195,000 (2018 - £195,000). No interest was charged on these loans in the current or prior year.
Other related party transactions
Stonewood Properties Limited
(A shareholder and company in which the Directors M Aitkenhead and B Lang have a controlling interest)
During the year ended 30 September 2019 further loan funding of £300,000 has been advanced to the company by Stonewood Properties Limited. No interest was charged on this loan in the current or prior year and there are no fixed repayment terms. At the balance sheet date the amount due to Stonewood Properties Limited was £404,333 (2018 - £104,333).
Stonewood Builders Limited
(A company in which the Directors M Aitkenhead and B Lang have a controlling interest)
During the year Stonewood Homes (Babdown) Limited made purchases of £1,498,586 (2018 - £14,904) from Stonewood Builders Limited. At the balance sheet date the amount due to Stonewood Builders Limited was £137,340 (2018 - £116,395).