Breckland Bridge Limited - Limited company accounts 20.1

REGISTERED NUMBER: 09359161 (England and Wales)

BRECKLAND BRIDGE LIMITED

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Page

Company information

1

Report of the directors

2

Report of the independent auditors

4

Consolidated income statement

8

Consolidated statement of other comprehensive income

9

Consolidated balance sheet

10

Company balance sheet

11

Consolidated statement of changes in equity

12

Company statement of changes in equity

13

Consolidated cash flow statement

14

Notes to the consolidated cash flow statement

15

Notes to the consolidated financial statements

16

DIRECTORS:

D J Winch

A G Doyle

N C S Robson

S Bizley

Ms M R O'Mahony

J P Cowen

REGISTERED OFFICE:

1 Quay Point

Station Road

Woodbridge

Suffolk

IP12 4AL

REGISTERED NUMBER:

09359161 (England and Wales)

AUDITORS:

Scrutton Bland LLP

Fitzroy House

Crown Street

Ipswich

IP13LG

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of building development.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

D J Winch

A G Doyle

N C S Robson

S Bizley

Ms M R O'Mahony

J P Cowen

GOING CONCERN

It is the directors' opinion that the company is a going concern for the foreseeable future.

Whilst Covid - 19 has had a significant impact on the economy, the demand for energy efficient family housing remains strong.

The directors have taken any impact from Brexit and the international situation into account in the forecast and costings and have both the experience and financial support from the shareholders to ensure this does not have a significant impact on the business.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

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

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

D J Winch - Director

25 July 2022

Opinion

We have audited the financial statements of Breckland Bridge Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated income statement, Consolidated statement of other comprehensive income, Consolidated balance sheet, Company balance sheet, Consolidated statement of changes in equity, Company statement of changes in equity, Consolidated cash flow statement and Notes to the consolidated cash flow statement, 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 group's and of the parent company affairs as at 31 March 2022 and of the group's loss 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 group 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in 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 this gives rise to a material misstatement in the financial statements themselves. 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 Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the directors has 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Group strategic report or in preparing the Report of the directors.

Responsibilities of directors

As explained more fully in the Statement of directors' responsibilities set out on page two, 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 group's and the parent 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 group or the parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of Directors and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the company.

The following laws and regulations were identified as being of significance to the company:

Those laws and regulations considered to have a direct effect on the financial statements including UK

financial reporting standards, taxation regulations and UK Company Law.

Auditing Standards limit the required audit procedures to identify non-compliance with these laws

and regulations to enquiry of the directors and other management and inspection of regulatory and legal

correspondence, if any.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Susan Gull (Senior Statutory Auditor)

for and on behalf of Scrutton Bland LLP

Fitzroy House

Crown Street

Ipswich

IP13LG

20 September 2022

TURNOVER

523,946

1,844,650

Cost of sales

375,228

1,619,049

GROSS PROFIT

148,718

225,601

Administrative expenses

112,479

150,394

OPERATING PROFIT

3

36,239

75,207

Interest payable and similar expenses

4

93,310

75,557

LOSS BEFORE TAXATION

(57,071

)

(350

)

Tax on loss

5

-

-

LOSS FOR THE FINANCIAL YEAR

(57,071

)

(350

)

Loss attributable to:

Owners of the parent

(57,071

)

(350

)

LOSS FOR THE YEAR

(57,071

)

(350

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(57,071

)

(350

)

Total comprehensive income attributable to:

Owners of the parent

(57,071

)

(350

)

CURRENT ASSETS

Work in progress

8

255,081

400,582

Debtors

9

64,301

44,640

Cash at bank

137,559

104,571

456,941

549,793

CREDITORS

Amounts falling due within one year

10

113,459

366,827

NET CURRENT ASSETS

343,482

182,966

TOTAL ASSETS LESS CURRENT LIABILITIES

343,482

182,966

CREDITORS

Amounts falling due after more than one year

11

936,354

718,767

NET LIABILITIES

(592,872

)

(535,801

)

CAPITAL AND RESERVES

Called up share capital

13

180

180

Retained earnings

14

(593,052

)

(535,981

)

SHAREHOLDERS' FUNDS

(592,872

)

(535,801

)

The financial statements were approved by the Board of Directors and authorised for issue on 25 July 2022 and were signed on its behalf by:

D J Winch - Director

S Bizley - Director

FIXED ASSETS

Investments

7

3

2

CURRENT ASSETS

Work in progress

8

255,081

-

Debtors

9

23,498

297,665

Cash at bank

73,061

29,058

351,640

326,723

CREDITORS

Amounts falling due within one year

10

60,911

313,894

NET CURRENT ASSETS

290,729

12,829

TOTAL ASSETS LESS CURRENT LIABILITIES

290,732

12,831

CREDITORS

Amounts falling due after more than one year

11

936,354

718,767

NET LIABILITIES

(645,622

)

(705,936

)

CAPITAL AND RESERVES

Called up share capital

13

180

180

Retained earnings

14

(645,802

)

(706,116

)

SHAREHOLDERS' FUNDS

(645,622

)

(705,936

)

Company's profit/(loss) for the financial year

60,314

(149,872

)

The financial statements were approved by the Board of Directors and authorised for issue on 25 July 2022 and were signed on its behalf by:

D J Winch - Director

S Bizley - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2020

100

(535,631

)

(535,531

)

Changes in equity

Issue of share capital

80

-

80

Total comprehensive income

-

(350

)

(350

)

Balance at 31 March 2021

180

(535,981

)

(535,801

)

Changes in equity

Total comprehensive income

-

(57,071

)

(57,071

)

Balance at 31 March 2022

180

(593,052

)

(592,872

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2020

100

(556,244

)

(556,144

)

Changes in equity

Issue of share capital

80

-

80

Total comprehensive income

-

(149,872

)

(149,872

)

Balance at 31 March 2021

180

(706,116

)

(705,936

)

Changes in equity

Total comprehensive income

-

60,314

60,314

Balance at 31 March 2022

180

(645,802

)

(645,622

)

Cash flows from operating activities

Cash generated from operations

1

206,337

334,221

Interest paid

(93,310

)

(75,557

)

Net cash from operating activities

113,027

258,664

Cash flows from financing activities

Loans from related parties

217,587

1,159,939

Loan repayments in year

(297,626

)

(1,494,636

)

Share issue

-

80

Net cash from financing activities

(80,039

)

(334,617

)

Increase/(decrease) in cash and cash equivalents

32,988

(75,953

)

Cash and cash equivalents at beginning of year

2

104,571

180,524

Cash and cash equivalents at end of year

2

137,559

104,571

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

Loss before taxation

(57,071

)

(350

)

Finance costs

93,310

75,557

36,239

75,207

Decrease in work in progress

145,501

410,646

Increase in trade and other debtors

(19,661

)

(5,416

)

Increase/(decrease) in trade and other creditors

44,258

(146,216

)

Cash generated from operations

206,337

334,221

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts:

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

137,559

104,571

Year ended 31 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

104,571

180,524

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank

104,571

32,988

137,559

104,571

32,988

137,559

Total

104,571

32,988

137,559

1.	COMPANY INFORMATION

Breckland Bridge Limited is a limited liability company incorporated in England. The Registered office is 1 Quay Point, Station Road, Woodbridge, Suffolk, IP12 4AL. The company's principal activity is building development.The presentation currency of the financial statements is 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.

Basis of consolidation

The consolidated financial statements, incorporate the financial statements of Breckland Bridge Limited and all its subsidiary undertakings drawn up to 31 March each year.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenditures during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Management do not consider that there is a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.

The items in the financial statements where these judgements and estimates have been made include:

Work in progress as detailed in the work in progress accounting policy.

Going Concern

It is the directors' opinion that the company is a going concern for the foreseeable future.

Whilst Covid - 19 has had a significant impact on the economy, the demand for energy efficient family housing remains strong.

The directors have taken any impact from Brexit and the international situation into account in their forecast and costings and have both the experience and financial support from the shareholders to ensure this does not have a significant impact on the business.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover for recharges of development expenditure is accrued until the amount has been invoiced.

Work in progress

Work in progress is valued at cost in relation to projects where the income is realised in future periods.

Cost includes all direct expenditure including interest charged on development loans

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.

Debtors

Short term debtors are measures at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks. Bank overdrafts, when applicable are shown within borrowings in current liabilities.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3.	OPERATING PROFIT

The operating profit is stated after charging:

2022

2021

£

£

Auditors' remuneration

9,250

8,750

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Other loan interest

93,310

75,557

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

£

Loss before tax

(57,071

)

(350

)

Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %)

(10,843

)

(67

)

Effects of:

Losses carried forward

10,843

67

Total tax charge

-

-

6.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income statement of the parent company is not presented as part of these financial statements.

7.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertaking

£

COST

At 1 April 2021

2

Additions

1

At 31 March 2022

3

NET BOOK VALUE

At 31 March 2022

3

At 31 March 2021

2

The group or the company's investments at the Balance sheet date in the share capital of companies include the following:

Subsidiaries

Breckland Homes (Mileham) Limited

Registered office: 1 Quay Point, Station Road, Woodbridge, Suffolk, IP12 4AL.

Nature of business: Building development

%

Class of shares:

holding

Ordinary

100.00

Breckland Homes (Attleborough) Limited

Registered office: 1 Quay Point, Station Road, Woodbridge, Suffolk, IP12 4AL.

Nature of business: Building development

%

Class of shares:

holding

Ordinary

100.00

Breckland Homes (Colkirk) Limited

Registered office: 1 Quay Point, Station Road, Woodbridge, Suffolk, IP12 4AL

Nature of business: Building Development

%

Class of shares:

holding

Ordinary

100.00

8.	WORK IN PROGRESS

Group

Company

2022

2021

2022

2021

£

£

£

£

Work-in-progress

255,081

400,582

255,081

-

Included within cost of work-in-progress is interest charged of £nil (2021; £19,956) on development loans.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

£

£

£

£

Trade debtors

12

638

12

638

Amounts owed by group undertakings

-

-

999

264,961

Other debtors

42,973

18,972

7,972

18,262

VAT

14,316

18,030

14,515

13,804

Prepayments

7,000

7,000

-

-

64,301

44,640

23,498

297,665

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

£

£

£

£

Trade creditors

49,322

4,614

49,009

4,616

Amounts owed to group undertakings

-

297,626

-

297,626

Accrued expenses

64,137

64,587

11,902

11,652

113,459

366,827

60,911

313,894