Hope Homes (Chapelton) Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: SC577735 (Scotland)

Financial Statements for the Year Ended 31 March 2022

for

Hope Homes (Chapelton) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

S Hope

I Hope

A E Hope

REGISTERED OFFICE:

Watson Terrace

Drongan

Ayrshire

KA6 7AB

REGISTERED NUMBER:

SC577735 (Scotland)

AUDITORS:

The Collins Counting Company Ltd.

Westburn Business Centre

McNee Road

Prestwick

Ayrshire

KA9 2PB

CURRENT ASSETS

Debtors

4

1,319,289

2,755,119

Cash at bank

374

161

1,319,663

2,755,280

CREDITORS

Amounts falling due within one year

5

983,014

2,408,882

NET CURRENT ASSETS

336,649

346,398

TOTAL ASSETS LESS CURRENT LIABILITIES

336,649

346,398

CAPITAL AND RESERVES

Called up share capital

7

100

100

Retained earnings

336,549

346,298

SHAREHOLDERS' FUNDS

336,649

346,398

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 15 November 2022 and were signed on its behalf by:

I Hope - Director

A E Hope - Director

1.	STATUTORY INFORMATION

Hope Homes (Chapelton) Limited is a private company, limited by shares , registered in Scotland. 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 the provisions of Section 1A "Small Entities" of 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.

Going concern

The financial statements have been prepared on a going concern basis which assumes the company will continue to be in operation for a period of 12 months from the date of approval.

The company is in the process of finalising all matters in relation to a recent house-building project. Thereafter the directors will consider the future use and benefit of the company if any. At the moment however the company is active , continues to meet its commitments as they fall due and the directors are of the view that this will continue to be the case.

On that basis the accounts have been prepared on a going concern basis.

This review takes account of the ongoing impact of COVID 19.

Turnover/revenue recognition

Sales comprise the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of the Company's activities.

Sales are presented, net of value-added tax, rebates and discounts.

The Company recognises revenue when the amount of revenue and related cost can be reliably measured, it is probable that the collectability of the related receivables is reasonably assured and when the outcome of long-term developments can be assessed with reasonable certainty.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. 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 cost

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.

Work in progress and long-term developments

Work in progress is valued as costs incurred, net of amounts transferred to cost of sales, after deducting foreseeable losses and payments on account not matched with turnover. Costs consist of direct materials, labour and attributable overheads.

Long-term developments are considered on an individual basis and reflected in the profit and loss account by recording turnover and related costs as the development progresses.

Where it is considered that the outcome of a long-term development can be assessed with reasonable certainty before its conclusion, the prudently calculated attributable profit is recognised in the profit and loss account as the difference between the reported turnover and related costs for that development. The amount by which turnover is in excess of payments on account is classified within accrued income.

Cash and cash equivalents

Cash and cash equivalents comprise cash held by the company and short term bank deposits with an original maturity of three months or less from inception and are subject to insignificant risk of changes in value.

Impairment of fixed assets

At each reporting date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the amount of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Financial instruments

Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instrument and are classified in accordance with their underlying economic reality.

The company has two main categories of financial instruments, which are loans and other receivables and other financial liabilities:

Loans and other receivables

Loans and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Upon recognition, these assets are measured at fair value less directly related transaction expenses. In successive periods these are measured at amortised cost, and any differences between acquisition cost and redemption value is accounted for over the borrowing period by using the effective interest method. If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value less any allowance for credit losses.

Other financial liabilities

Other financial liabilities are recognised initially at fair value, net of transaction costs incurred. In successive periods these are measured at amortised cost. Any differences between acquisition cost and redemption value is accounted for over the borrowing period by using the effective interest method. If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value.

Impairment of financial instruments

A provision for impairment is established when there is objective evidence that, as a result of one or more events that occurred after the initial recognition, the estimated future cash flows have been impacted.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2021 - 3 ) .

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

-

1,435,830

Amounts owed by group undertakings

1,319,289

1,319,289

1,319,289

2,755,119

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

-

660,496

Amounts owed to group undertakings

577,813

873,367

Taxation and social security

9,178

14,370

Other creditors

396,023

860,649

983,014

2,408,882

6.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Other creditors

93,279

99,763

At 31 March 2021, the group's bankers Santander held a bond and floating charge over the assets of the company and the group as security together with standard securities over certain development sites held by the parent company, Hope Homes (Scotland) Limited. In addition, the company had granted corporate cross company guarantees, in favour of the bank, in respect of all borrowings by group companies. At 31 March 2021, total bank borrowings of Hope Homes (Scotland) Limited amounted to £Nil.

In June 2021 all securities and guarantees in respect of bank borrowings in respect of the company and the group were discharged.

A charge had also been registered against the company in respect of the balance shown in other creditors, as amounts due to a third party in respect of a joint venture.

7.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary

£1

100

100

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

John Collins (Senior Statutory Auditor)

for and on behalf of The Collins Counting Company Ltd.

9.	CONTINGENT LIABILITIES

The company held road bonds to the value of £241,040 (2021: £241,040) which have been guaranteed by the company to local authorities. Post year end £202,040 had been released and the balance of £39,000 remains insured.

10.	RELATED PARTY DISCLOSURES

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.

During the year Hope Homes (Chapelton) Limited undertook transactions with Connect Modular Ltd (formerly know as The Wee House Company Ltd) totalling £Nil (2021: £307,000). As at 31 March 2022, the balance due to Connect Modular Ltd was £Nil (2021: £Nil). This company is connected to one of the Director's via his share ownership in its parent company Velocity Modular Ltd.

11.	ULTIMATE CONTROLLING PARTY

The company is controlled by the three directors: Ian Hope, Scott Hope and Anne Hope by virtue of their joint shareholding in the parent company, Hope Homes (Scotland) Limited which has its registered office at Watson Terrace, Drongan, Ayrshire, KA6 7AB.