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Registered number: 12415030
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KINGSWOOD HOMES ESTATES LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2021
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KINGSWOOD HOMES ESTATES LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2021
Kingswood Homes Estates Limited is a residential property developer that operates in the North West and South West of England with a vision of building quality homes. Building works are contracted to Kingswood Homes (UK) Ltd, a company with common directors and shareholders, the properties are sold by subsidiary companies of Kingswood Homes (Estates) Limited on the open market.
Kingswood Homes Estates Limited is a private residential house developer that builds high specification and quality new build dwellings. The principal activity of the company is to source land, plan and design dwellings exclusively on behalf of it’s subsidiary companies.
This is the first year of trading under Kingswood Homes Estates Limited although the business has been operating for over 12 years under Kingswood Homes (UK) Ltd and it’s subsidiary companies. As a group the units built and sold in the year increased by 108% to 77 (2020: 37).
The business has introduced a range of systems and procedures including new accounting software which will enable the continued growth and success of the company and to ensure the right operating platforms are in place to manage a business with positive forward growth projections.
PRINCIPAL RISKS AND UNCERTAINTIES
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The primary operating risks for the company centre around the macro factors facing the construction industry, especially the Covid 19 pandemic. Whilst we have seen a positive response to the housing market following the re opening of the business after the lockdowns the future industry outlook remains uncertain until the pandemic has disappeared and restrictions are fully lifted across the UK and further. In addition to this the UK’s exit from the European Union has resulted in cost increases although there has also been value increases in house sales. The changes to the Help to Buy scheme that happened in April 2021 did not create any issues. The directors undertake weekly, monthly and annual reviews of key performance indicators, including but not limited to, cash flow projections (long and short term), anticipated turnover and cost monitoring. This ensures early action is taken to achieve the company’s operational objectives and effectively mitigate identified risks.
Whilst early indications and market conditions are encouraging it is important to proceed with measured caution whilst assessing risks and uncertainties before, during and after significant events.
FINANCIAL KEY PERFORMANCE INDICATORS
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The company operates and monitors performance indicators in relation to revenues and costs incurred, throughout the development process. Performance is reviewed against that of direct competitors and the wider industry.
The key financial indicators for the business is gross profit percentage on a site by site basis, site performance against budget, and return on shareholders’ funds. Our current net profit margin before corporation tax is around 12% which is higher than the industry norm of 10%.
This report was approved by the board on 5 January 2022 and signed on its behalf.
Page 1
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KINGSWOOD HOMES ESTATES LIMITED
REGISTERED NUMBER:12415030
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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Creditors: amounts falling due after more than one year
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the consolidated statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Page 2
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KINGSWOOD HOMES ESTATES LIMITED
REGISTERED NUMBER:12415030
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2021
The notes on pages 10 to 21 form part of these financial statements.
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KINGSWOOD HOMES ESTATES LIMITED
REGISTERED NUMBER:12415030
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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Creditors: amounts falling due after more than one year
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Profit and loss account brought forward
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Profit and loss account carried forward
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Page 4
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KINGSWOOD HOMES ESTATES LIMITED
REGISTERED NUMBER:12415030
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2021
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the consolidated statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 10 to 21 form part of these financial statements.
Page 5
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KINGSWOOD HOMES ESTATES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
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Equity attributable to owners of parent Company
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 10 to 21 form part of these financial statements.
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Page 6
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KINGSWOOD HOMES ESTATES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
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Equity attributable to owners of parent Company
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Comprehensive income for the period
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Total comprehensive income for the period
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Shares issued during the period
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The notes on pages 10 to 21 form part of these financial statements.
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Page 7
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KINGSWOOD HOMES ESTATES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
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Comprehensive income for the period
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Other comprehensive income for the year
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Total comprehensive income for the year
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Total transactions with owners
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The notes on pages 10 to 21 form part of these financial statements.
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Page 8
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KINGSWOOD HOMES ESTATES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
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Comprehensive income for the period
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Other comprehensive income for the period
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Total comprehensive income for the period
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Contributions by and distributions to owners
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Shares issued during the period
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Total transactions with owners
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The notes on pages 10 to 21 form part of these financial statements.
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Page 9
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Kingswood Homes Estates Limited is a private company limited by share capital, incorporated in England. For the address of the registered office and registration number, please see the company information page. The principal activity of the company was construction of domestic properties.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The Group arose as a result of a reconstruction. The ultimate shareholders of the Group are unchanged from prior to this reconstruction and as a result, the consolidated financial statements ihave been drawn up using merger accounting. This presents the result of the Group as if the current structure had always existed and no fair value adjustments of the acquirees' identifiable assets, liabilities and contingent liabilities have been made.
The directors have prepared the accounts using the going concern basis. This assessment has included consideration of the effects of Covid-19.
The Group has recorded annual profits before tax of £1.84m (2020: £1.21m) and at the balance sheet date had net current assets of £14.83m including cash at bank of £3.87m.
The directors believe the Group will be able to meet its liabilites as they fall due for the foreseeable future and have, therefore, concluded that the going concern basis of preparation continues to be reasonable.
Page 10
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.ACCOUNTING POLICIES (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
DEFINED CONTRIBUTION PENSION PLAN
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
Page 11
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.ACCOUNTING POLICIES (continued)
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Page 12
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.ACCOUNTING POLICIES (continued)
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LAND STOCKS AND WORK IN PROGRESS
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Land stocks and work in progress are valued at the lower of cost and net realisable value.
Work in progress is valued on the basis of direct costs (materials and labour) plus attributable overheads. Provisions are made for any foreseeable losses. No element of profit is included in the valuation of work in progress.
Short term debtors are measured 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.
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees, including the directors, during the year was as follows:
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Average number of employees
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Page 13
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Charge for the year on owned assets
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All of the Group's tangible fixed assets are held in the Parent company
Page 14
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Investments in subsidiary companies
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Page 15
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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The following were subsidiary undertakings of the Company:
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Kingswood Homes Aughton Ltd (KHAL)
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8 Bridge Court, Liverpool New Road, Preston, Lancashire, PR4 5JT
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Construction of domestic buildings
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Kingswood Homes (Blackburn) Ltd (KHBL)
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8 Bridge Court, Liverpool New Road, Preston, Lancashire, PR4 5JT
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Construction of domestic buildings
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Kingswood Homes Developments Ltd (KHDL)
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8 Bridge Court, Liverpool New Road, Preston, Lancashire, PR4 5JT
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Construction of domestic buildings
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Kingswood Homes Devon Limited (KHDEL)
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8 Bridge Court, Liverpool New Road, Preston, Lancashire, PR4 5JT
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Construction of domestic buildings
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Kingswood Homes (Elswick) Ltd (KHEL)
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8 Bridge Court, Liverpool New Road, Preston, Lancashire, PR4 5JT
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Construction of domestic buildings
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Kingswood Homes (Forton) Ltd (KHFL)
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8 Bridge Court, Liverpool New Road, Preston, Lancashire, PR4 5JT
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Construction of domestic buildings
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Kingswood Homes (Jacksmere) Ltd (KHJL)
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8 Bridge Court, Liverpool New Road, Preston, Lancashire, PR4 5JT
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Construction of domestic buildings
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The following subsidiaries have been excluded from the consolidation:
All subsidiaries are exempt from audit under section 477 of the Companies Act 2006
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Page 16
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
(CONTINUED)
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The aggregate of the share capital and reserves as at 31 March 2021 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
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Aggregate of share capital and reserves
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Kingswood Homes Aughton Ltd (KHAL)
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Kingswood Homes (Blackburn) Ltd (KHBL)
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Kingswood Homes Developments Ltd (KHDL)
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Kingswood Homes Devon Limited (KHDEL)
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Kingswood Homes (Elswick) Ltd (KHEL)
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Kingswood Homes (Forton) Ltd (KHFL)
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Kingswood Homes (Jacksmere) Ltd (KHJL)
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Amounts owed by group undertakings
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Called up share capital not paid
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Prepayments and accrued income
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Page 17
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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CASH AND CASH EQUIVALENTS
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CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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Amounts owed to group undertakings
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Amounts owed to other participating interests
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Other taxation and social security
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Accruals and deferred income
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CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
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Page 18
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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AMOUNTS FALLING DUE WITHIN ONE YEAR
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AMOUNTS FALLING DUE 1-2 YEARS
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AMOUNTS FALLING DUE 2-5 YEARS
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The loan has a fixed and floating charge over all assets in the company and future undertakings of the company.
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ALLOTTED, CALLED UP AND FULLY PAID
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512 (2020:512) Ordinary shares of £1.00 each
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Page 19
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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During the previous period, the following entities were acquired by the Company:
The purchase consideration is the fair value for of 99 shares of Kingswood Homes Estates Limited, as at the purchase date.
The results of the acquired entities since their acquisition are as follows:
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Page 20
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KINGSWOOD HOMES ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
An investment figure of £979,341 was included on the balance sheet at 31 March 2020. This balance was calculated based on the fair value of subsidiairies acquired in February 2020. However, the directors had elected to take merger relief and, therefore, the balance has been reduced to nominal value.
During the year the company contributed towards a defined contribution pension scheme. Contributions during the year totalled £5,632 (2020: £Nil). At the year end, the company owed £4,103 (2020: £Nil) to the scheme. This is included in other creditors.
The controlling party is Kingswood Homes (Holdings) Limited.
The auditors' report on the financial statements for the year ended 31 March 2021 was unqualified.
The audit report was signed on 4 February 2022 by Fleur Lewis FCA (Senior statutory auditor) on behalf of Bishop Fleming LLP.
Page 21
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