IRONBRIDGE_HOUSE_DEVELOPM - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Ironbridge House Development Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old Byre, Sevington, Grittleton, Chippenham, SN14 7LD.

The previous reporting period exceeded a year as it was the first year after incorporation and the financial period covered 17 February 2020 to 31 March 2021. These financial statements cover the period from 1 April 2021 to 31 March 2022. As a consequence, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

As at 31 March 22, Ironbridge House Development Limited was still in development; therefore, no units had been sold. During the development phase, the net assets position will always be negative due to the fact only allowable costs (as defined by the development finance provider) can be taken to work-in-progress, whilst the disallowable costs remain in the profit and loss statement. As a result, the entity accrues retained losses until such time when all the units are sold, and the project recognises the respective value accretion based on the achieved sale price of the units.true

On this premise the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover which relates to the revenue from the sale of developed properties is recognised at the point that the contracts are exchanged.

Turnover relating to the short-term rental revenues generated on properties while they are held for sale is recognised over the period to which the rental income relates.

Any other turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes.

Stocks and WIP are stated at the lower of cost and estimated selling price less costs to complete and sell. WIP comprises of properties being developed for sale. Cost comprises all directly attributable costs incurred to bring the properties to their present location and condition, which includes direct borrowing costs incurred.

Cash and cash equivalents are basic financial assets and 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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The average monthly number of persons (including directors) employed by the company during the year was: 5

Other borrowings are secured.

Bank loans are secured.

Other borrowings are secured.

Included within other creditors is an amount of £683,233 (2021: £2,227,890) owed by the company to group and associated undertakings.

Included within inventory is an amount of £92,422 (2021: £nil) paid by the company to EquaSSAS.