Lagan Homes (Lisburn) Ltd Filleted accounts for Companies House (small and micro)

LAGAN HOMES (LISBURN) LTD - Company Information

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COMPANY REGISTRATION NUMBER: NI627960

Lagan Homes (Lisburn) Ltd

Filleted Financial Statements

31 December 2021

Lagan Homes (Lisburn) Ltd

Statement of Financial Position

31 December 2021

	2021	2020
Note	£	£

Fixed assets

Tangible assets	6	276,029	287,034

Current assets

Stocks		–	221,673
Debtors	7	8,482,434	6,121,999
		------------	------------
		8,482,434	6,343,672

Creditors: amounts falling due within one year	8	7,560,629	6,466,434
		------------	------------
Net current assets/(liabilities)		921,805	( 122,762)
		------------	---------
Total assets less current liabilities		1,197,834	164,272

Creditors: amounts falling due after more than one year	9	1,023,024	95,278

Provisions	10,985	11,947
	------------	---------
Net assets	163,825	57,047
	------------	---------

Capital and reserves

Called up share capital	1	1
Profit and loss account	163,824	57,046
	---------	--------
Shareholders funds	163,825	57,047
	---------	--------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements were approved by the board of directors and authorised for issue on 1 August 2022 , and are signed on behalf of the board by:

SG McCann

Director

Company registration number: NI627960

Lagan Homes (Lisburn) Ltd

Notes to the Financial Statements

Year ended 31 December 2021

1. General information

The company's principal activities are the construction of high quality housing developments and the provision of management services for other group and related companies. The company is a private company limited by shares and is incorporated and domiciled in Northern Ireland, within the United Kingdom. The address of the registered office is Lagan House, 19 Clarendon Road, Belfast, Co Antrim, BT1 3BG.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed funding and liquidity needs for a period of more than one year after the balance sheet date and concluded sufficient reserves exist within the Group and its wider accessible funding to ensure the future trading of the business. On this basis, the Directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	25% straight line
Motor vehicles	-	25% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 49 (2020: 49 ).

5. Loans

Analysis of the maturity of loans is given below:

	2021	2020
	£	£
Amounts falling due within one year
Obligations under finance lease and hire purchase agreements	119,569	95,916
Amounts falling due 1-2 years
Obligations under finance lease and hire purchase agreements	83,199	76,309
Amount falling due 2-5 years
Obligations under finance lease and hire purchase agreements	–	18,969
	---------	---------
	202,768	191,194
	---------	---------

6. Tangible assets

	Plant and machinery	Motor vehicles	Total
	£	£	£
Cost
At 1 January 2021	492,890	435,482	928,372
Additions	68,000	71,652	139,652
Disposals	–	( 42,074)	( 42,074)
	---------	---------	------------
At 31 December 2021	560,890	465,060	1,025,950
	---------	---------	------------
Depreciation
At 1 January 2021	325,794	315,544	641,338
Charge for the year	78,544	72,113	150,657
Disposals	–	( 42,074)	( 42,074)
	---------	---------	------------
At 31 December 2021	404,338	345,583	749,921
	---------	---------	------------
Carrying amount
At 31 December 2021	156,552	119,477	276,029
	---------	---------	------------
At 31 December 2020	167,096	119,938	287,034
	---------	---------	------------

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:

	2021	2020
	£	£
Motor vehicles	114,091	90,340
Plant & machinery	138,910	133,523
	---------	---------
	253,001	223,863
	---------	---------

7. Debtors

	2021	2020
	£	£
Trade debtors	68,048	69,048
Amounts owed by group undertakings and undertakings in which the company has a participating interest	7,595,784	5,094,582
Other debtors	818,602	958,369
	------------	------------
	8,482,434	6,121,999
	------------	------------

8. Creditors: amounts falling due within one year

	2021	2020
	£	£
Bank loans and overdrafts	5,895,627	3,478,768
Trade creditors	290,238	917,131
Amounts owed to group undertakings and undertakings in which the company has a participating interest	1,124,688	1,691,884
Corporation tax	–	94,754
Social security and other taxes	78,102	92,098
Other creditors	171,974	191,799
	------------	------------
	7,560,629	6,466,434
	------------	------------

Secured loans and overdrafts Bank facilities are secured by fixed and floating charges and inter-company cross guarantees.

9. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Amounts owed to group undertakings and undertakings in which the company has a participating interest	939,825	–
Other creditors	83,199	95,278
	------------	--------
	1,023,024	95,278
	------------	--------

10. Deferred taxation

	2021	2020
	£	£
At beginning of year	11,947	19,203
Credited to Statement of income and retained earnings	(962)	(7,256)
	--------	--------
At end of year	10,985	11,947
	--------	--------

The provision for deferred taxation is made up as follows:

	2021	2020
	£	£
Fixed asset timing differences	10,985	11,947

11. Called up share capital

	2021	2020
	£	£
Allotted and fully paid
1 (2020:1) Ordinary share of £1	1	1

12. Related party transactions

The company has taken advantage of the exemptions contained in FRS 102 not to disclose transactions with related companies which are controlled within the Lagan Homes Group Ltd of which the company is a subsidiary.

The company had the following transactions with related undertakings during the year:

	2021	2020
	£	£
LF Fasthouse Ltd	(405,417)	(303,574)
Lagan Management Limited	400,280	748,419
L.P.I Properties Limited	84,047	102,206

The company had the following amounts outstanding from/(to) related undertakings:

	2021	2020
	£	£
Mealough Developments LLP	120,365	1,693
Lagan Developments Limited	–	163
Lagan Cement Ltd	–	207

	2021	2020
	£	£
LF Fasthouse Ltd	(146,312)	–
Lagan Management Limited	(87,440)	(24,331)
LPI (Properties) Limited	(21,000)	–

13. Summary audit opinion

The auditor's report for the year dated 2 August 2022 was unqualified .

The senior statutory auditor was Brian McKee , for and on behalf of BMK Accounting Limited .

14. Ultimate controlling party and parent undertakings

The company considers JPK Lagan to be ultimate controlling party.