MID_SUFFOLK_GROWTH_LIMITE - Accounts

The directors of the company have elected not to include a copy of the income statement within the financial statements.

Mid Suffolk Growth Limited is a private company limited by shares incorporated in England and Wales. The registered office is 280 Fifers Lane, Norwich, Norfolk, NR6 6EQ. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future.

The company has the full financial support of Mid Suffolk District Council & Norse Group Limited. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The Company's financial statements are prepared on an accruals basis. Income is recognised in the accounts in the accounting period in which the effect of the relevant transaction takes place and not in the period in which the cash is received.

This means that the income due is accounted for in the same period as the construction costs occur. Where income has been recognised but cash has not yet been received, a debtor for the relevant amount is recorded in the Statement of Financial Position.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

First-time adoption of IFRS

These financial statements, for the year ended 31 March 2021, are the first the Company has prepared in accordance with IFRS. For periods up to and including the period ended 31 March 2020, the Company prepared its financial statements in accordance with local generally accepted accounting principles (Local GAAP).

Accordingly, the Company has prepared financial statements that comply with IFRS applicable as at 31 March 2021, together with the comparative period data for the period ended 31 March 2020,as described in the summary of significant accounting policies. As the prior period was the first period for Mid Suffolk Growth Limited an opening statement of financial position has therefore not been prepared.

In restating the Local GAAP financial statements, including the statement of financial position as at 31 March 2020, there have been no adjustments necessary.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Work In Progress has been accounted for by attributing a percentage of total development costs by reference to the square footage of the open market units compared to the square footage of the total development units.

The average monthly number of persons (including directors) employed by the company during the year was:

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the company's maximum exposure to credit risk.

The company does not hold any collateral or other credit enhancements to cover this credit risk.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

Market risk is the risk that changes in market prices, such as property prices, will affect the Company's income or the value of its assets. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders.

The company is not subject to any externally imposed capital requirements.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company is under the joint ownership of Norse Group Holdings Limited, a 100% indirect subsidiary of Norfolk County Council & MSDC (Suffolk Holdings) Limited, a 100% direct subsidiary of Mid Suffolk District Council.

At the year end Norse Group Holdings Limited had unpaid share capital of £5,000 (2020: £5,000).

At the year end MSDC (Suffolk Holdings) Limited had unpaid share capital of £5,000 (2020: £5,000).

Mid Suffolk Growth Limited has an outstanding loan liability with Norse Holdings Limited of £419,676 (2020: £Nil)

During the year ended 31 March 2021, Mid Suffolk Growth Limited recognised income totalling £1,024,734 (2020: £123,698) receivable from Mid Suffolk District Council. At 31 March 2021 Mid Suffolk Growth Limited was due £429,524 (2020: £123,698) from Mid Suffolk District Council.

During the year ended 31 March 2021, Mid Suffolk Growth Limited recognised expenditure totalling £4,600 (2020: £4,600) receivable from Mid Suffolk District Council. At 31 March 2021 Mid Suffolk Growth Limited owed £4,600 (2020: £4,600) to Mid Suffolk District Council. Mid Suffolk Growth Limited has an outstanding loan liability with Mid Suffolk District Council of £280,330 (2020: £Nil)

During the year Mid Suffolk Growth Limited incurred purchase costs from Hamsen Barren Smith Limited, a related party who is a 100% indirect subsidiary of Norfolk County Council of £178,897 (2020: £123,698).

At 31 March 2021 Mid Suffolk Growth Limited owed £259,316 (2020: £227,231) to Hamsen Barren Smith Limited.

During the year Mid Suffolk Growth Limited incurred purchase costs from NPS Property Consultants Limited, a related party who is a 100% indirect subsidiary of Norfolk County Council of £1,228 (2020: £1,228).

At 31 March 2021 Mid Suffolk Growth Limited owed £1,228 (2020: £2,456) to Hamsen Barren Smith Limited.