ACCOUNTS - Final Accounts preparation

NORFOLK HOMES HOLDINGS LIMITED - Company Information

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NORFOLK HOMES HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Registered number: 12177661


NORFOLK HOMES HOLDINGS LIMITED

COMPANY INFORMATION

Director	A D Clark


Registered number	12177661


Registered office	52 Cambridge Road South
	London
	W4 3DA


Independent auditors	Tony Larner Limited
	Chartered Certified Accountants & Statutory Auditors
	23 Station Road
	Sheringham
	Norfolk
	NR26 8RF


Bankers	Lloyds Bank PLC
	PO Box 72
	Bailey Drive
	Gillingham Business Park
	Kent
	ME8 0LS


Solicitors	Isadore Goldman
	Lawrence House
	5 St Andrews Hill
	Norwich
	Norfolk
	NR2 1AD


NORFOLK HOMES HOLDINGS LIMITED

CONTENTS

	Page
Group Strategic Report	1
Director's Report	2 - 3
Independent Auditors' Report	4 - 6
Consolidated Statement of Comprehensive Income	7
Consolidated Balance Sheet	8
Company Balance Sheet	9
Consolidated Statement of Changes in Equity	10
Company Statement of Changes in Equity	11
Consolidated Statement of Cash Flows	12
Analysis of Net Debt	13
Notes to the Financial Statements	14 - 26


NORFOLK HOMES HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The director presents his strategic report for the year ended 31March 2021.

Introduction

During the year the Group has successfully continued house building operations in Norfolk.

Business review

The Group has continued to trade profitably and the director is satisfied with the trading performance and the Group's overall financial position.

The Group results are shown in the Statement of Comprehensive Income on page 7 and the Balance Sheet on page 8.

The Group is primarily funded by retained reserves, loan notes and a bank overdraft facility. Other related party loans form the balance of funding requirements.

Principal risks and uncertainties

The director is mindful at all times of the risks and factors which affect the successful operation of the Group's business. Appropriate processes are in place to monitor and mitigate risks.
Operating risks include, but are not limited to, the following issues:

∙The economic climate, buyer confidence and the housing market. General housing demand and supply.

∙The availability of development land and the complexities of dealing with the planning process.

∙Attracting and retaining the very best personnel, workforce, subcontractors and professional advisers.

∙Ensuring adequate systems and procedures exist, to reduce as far as possible the health and safety risks associated with construction operations.

∙The ongoing economic impact of the Covid-19 virus remains a risk to future company performance.

Financial and other key performance indicators

The following key performance indicators are highlighted:
Turnover for the year amounted to £53,741,891 (2020 - £21,019,953); Profit on ordinary activities before taxation £7,598,161 (2020 - £335,838); Total shareholder funds £36,479,599 (2020 - £30,696,320). The total number of employees was 54 (2020 - 61).

This report was approved by the board on 3 December 2021 and signed on its behalf.

A D Clark

Director

Page 1


NORFOLK HOMES HOLDINGS LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The director presents his report and the financial statements for the year ended 31 March 2021.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Principal activity

The principal activity of the Group is house building.

Results and dividends

The profit for the year, after taxation, amounted to £5,783,269 (2020 - £68,218).

The director does not recommend the payment of a final dividend.

Director

The director who served during the year was:

A D Clark

Future developments and outlook for the group

The Group continually seeks new opportunities to acquire development land and options over potential development land.

The director believes that the Group is well positioned to prosper in the future and to continue to operate profitably.

Page 2


NORFOLK HOMES HOLDINGS LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the period end that require adjustment to these financial statements.

Auditors

The auditors, Tony Larner Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 3 December 2021 and signed on its behalf.

A D Clark

Director

Page 3


NORFOLK HOMES HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORFOLK HOMES HOLDINGS LIMITED

Opinion

We have audited the financial statements of Norfolk Homes Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2021, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, 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's affairs as at 31 March 2021 and of the Group's profit 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 United Kingdom, including the Financial Reporting Council'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 director's 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 or 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.

Page 4


NORFOLK HOMES HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORFOLK HOMES HOLDINGS LIMITED (CONTINUED)

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 Group Strategic Report or the Director's Report.

We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Director's Responsibilities Statement set out on page 2, the director is 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 director determines is 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 director is 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 director either intends 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 an Auditors' Report 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 Group 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:

Identifying and assessing potential risks related to irregularities, including fraud

Based on our knowledge and understanding of the company and group we identified the principal risks of a material misstatement in the financial statements relating to irregularities including fraud, and non-compliance with laws and regulations.

We documented our understanding of the legal and regulatory frameworks within which the company and group operates and focused on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Financial Reporting Standard 102, and compliance with relevant direct and indirect taxation regulations.

Audit procedures performed to respond to the risks identified included;

∙We assessed whether the accounting policies, treatments and presentation adopted in the financial statements were in accordance with applicable law and accounting standards.

∙We reviewed correspondence and documentation with regulatory bodies, such as HM Revenue & Customs for any indication of non-compliance with laws and regulations.

Page 5


NORFOLK HOMES HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORFOLK HOMES HOLDINGS LIMITED (CONTINUED)

∙We carried out a detailed analytical review to identify unusual or unexpected results or outcomes which may have indicated a risk of material misstatement. We compared results to previous accounting periods to monitor variances and ensure that these were as expected.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

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 Auditors' Report.

Antony Richard Larner (Senior Statutory Auditor)

for and on behalf of

Tony Larner Limited

Chartered Certified Accountants

Statutory Auditors

23 Station Road

Sheringham

Norfolk

NR26 8RF

3 December 2021

Page 6


NORFOLK HOMES HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2021

	2021	2020
Note	£	£


Turnover	4	53,741,895	21,019,953
Cost of sales		(38,332,165)	(15,823,184)
Gross profit		15,409,730	5,196,769
Selling and direct expenses		(3,358,362)	(1,800,753)
Administration expenses		(3,832,247)	(2,518,093)
Other operating income	5	248,552	19,514
Operating profit		8,467,673	897,437
Interest receivable and similar income		-	79
Interest payable and similar expenses	9	(869,512)	(561,678)
Profit before taxation		7,598,161	335,838
Tax on profit	10	(1,814,892)	(267,620)
Profit for the financial year		5,783,269	68,218

There were no recognised gains and losses for 2021 or 2020 other than those included in the consolidated statement of comprehensive income.

The notes on pages 14 to 26 form part of these financial statements.

Page 7


NORFOLK HOMES HOLDINGS LIMITED REGISTERED NUMBER:12177661

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2021

		2021		2020
Note		£		£

Fixed assets
Intangible assets	11		2,208,334		2,502,778
Tangible assets	12		1,596,980		1,478,761
			3,805,314		3,981,539
Current assets
Stocks	14	55,931,874		73,635,616
Debtors: amounts falling due within one year	15	989,135		813,733
Cash at bank and in hand	16	8,526,166		1,564
		65,447,175		74,450,913
Creditors: amounts falling due within one year	17	(14,892,706)		(25,759,411)
Net current assets			50,554,469		48,691,502
Total assets less current liabilities			54,359,783		52,673,041
Creditors: amounts falling due after more than one year	18		(17,709,000)		(21,839,000)
Provisions for liabilities
Deferred taxation	19		(171,184)		(137,721)
Net assets			36,479,599		30,696,320

Capital and reserves
Called up share capital	20	111	101
Revaluation reserve	21	362,184	362,184
Profit and loss account	21	36,117,304	30,334,035
		36,479,599	30,696,320

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 December 2021.

A D Clark

Director

The notes on pages 14 to 26 form part of these financial statements.

Page 8


NORFOLK HOMES HOLDINGS LIMITED REGISTERED NUMBER:12177661

COMPANY BALANCE SHEET

AS AT 31 MARCH 2021

		2021		2020
Note		£		£

Fixed assets
Investments	13		26,372,100		26,372,100
Current assets
Debtors: amounts falling due within one year	15	1,800		-
Cash at bank and in hand	16	11		1
		1,811		1
Creditors: amounts falling due within one year	17	(2,747,816)		(2,973,120)
Net current liabilities			(2,746,005)		(2,973,119)
Total assets less current liabilities			23,626,095		23,398,981

Creditors: amounts falling due after more than one year	18		(17,709,000)		(20,439,000)

Net assets			5,917,095		2,959,981

Capital and reserves
Called up share capital	20		111		101
Profit and loss account brought forward		2,959,880		-
Profit for the year		2,957,104		2,959,880
Profit and loss account carried forward	21		5,916,984		2,959,880
			5,917,095		2,959,981

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 December 2021.

A D Clark

Director

The notes on pages 14 to 26 form part of these financial statements.

Page 9


NORFOLK HOMES HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2021

	Called up share capital	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
Group consolidation addition	-	362,184	49,993,906	50,356,090

Profit for the period	-	-	68,218	68,218
Consolidation movements	-	-	(19,728,089)	(19,728,089)
Shares issued during the period	101	-	-	101

At 1 April 2020	101	362,184	30,334,035	30,696,320

Profit for the year	-	-	5,783,269	5,783,269
Shares issued during the year	10	-	-	10
At 31 March 2021	111	362,184	36,117,304	36,479,599

The notes on pages 14 to 26 form part of these financial statements.

Page 10


NORFOLK HOMES HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2021

	Called up share capital	Profit and loss account	Total equity
	£	£	£
Comprehensive income for the year
Profit for the period	-	2,959,880	2,959,880
Contributions by and distributions to owners
Shares issued during the period	101	-	101

At 1 April 2020	101	2,959,880	2,959,981
Comprehensive income for the year
Profit for the year	-	2,957,104	2,957,104
Contributions by and distributions to owners
Shares issued during the year	10	-	10
At 31 March 2021	111	5,916,984	5,917,095

The notes on pages 14 to 26 form part of these financial statements.

Page 11


NORFOLK HOMES HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

			2021	2020
			£	£

Cash flows from operating activities
Profit for the financial year	5,783,269	68,218
Adjustments for:
Amortisation of intangible assets	294,444	147,222
Depreciation of tangible assets	329,240	147,793
Profit on disposal of tangible assets	(21,406)	-
Interest payable	869,512	561,678
Interest receivable	-	(79)
Taxation charge	1,814,892	267,620
Decrease in stocks	17,703,742	866,680
(Increase) in debtors	(175,402)	(8,751)
Increase/(decrease) in creditors	1,483,783	(1,029,756)
Corporation tax (paid)	(1,518,932)	(301,470)
Net cash generated from operating activities	26,563,142	719,155

Cash flows from investing activities
Purchase of tangible fixed assets	(462,137)	(20,732)
Sale of tangible fixed assets	36,084	-
Purchase of Dacerell Group including goodwill	-	(22,378,289)
Interest received	-	79
Net cash from investing activities	(426,053)	(22,398,942)
Cash flows from financing activities
Issue of ordinary shares	10	101
Loan notes issued	-	23,106,000
Repayment of loan notes	(2,667,000)	-
Interest paid	(921,098)	(531,532)
Net cash used in financing activities	(3,588,088)	22,574,569
Net increase in cash and cash equivalents	22,549,001	894,782
Cash and cash equivalents at beginning of year	(14,210,331)	(15,105,113)
Cash and cash equivalents at the end of year	8,338,670	(14,210,331)

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	8,526,166	1,564
Bank overdrafts	(187,496)	(14,211,895)
	8,338,670	(14,210,331)

Page 12


NORFOLK HOMES HOLDINGS LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MARCH 2021


At 1 April 2020	Cash flows	At 31 March 2021
£	£	£

Cash at bank and in hand	1,564	8,524,602	8,526,166
Bank overdrafts	(14,211,895)	14,024,399	(187,496)
Debt due within 1 year	(5,444,761)	(1,769,027)	(7,213,788)
Debt due after 1 year	(20,439,000)	2,730,000	(17,709,000)
	(40,094,092)	23,509,974	(16,584,118)

The notes on pages 14 to 26 form part of these financial statements.

Page 13


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1.	General information

Norfolk Homes Holdings Limited is a private company, limited by shares, incorporated in England and Wales. The company's principle place of business is Weybourne Road, Sheringham, Norfolk, NR26 8WB.

The group's consolidated financial statements have been prepared in compliance with FRS 102 as it applies to the financial statements of the group for the year ended 31 March 2021.

Comparative data relates to the accounting period 18 October 2019 to 31 March 2020.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 (see note 3).

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 Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

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 fully eliminated.

2.3

Going concern

The director has prepared the accounts on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future and for a period of no less than twelve months from the date of approval of these financial statements.

2.4

Turnover

Turnover represents the value of house sales and is recognised where contracts for sale have been completed at the year end. Deposits received on exchange of contracts prior to the year end are also included within turnover on the basis that these are non-refundable. Turnover excludes Value Added Tax.

2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

Page 14


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.6

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

2.7

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

2.8

Pensions

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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.9

Current and deferred taxation

The taxation expense for the year comprises current and deferred tax. Taxation is recognised in the Statement of Comprehensive Income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the United Kingdom.

The charge for taxation takes into account taxation deferred or accelerated as a result of all material timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax assets are recognised only to the extent that they are regarded as recoverable within the foreseeable future. Deferred tax assets and liabilities are not discounted.

2.10

Intangible assets

Goodwill and amortisation

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Statement of Comprehensive Income over its estimated economic life of nine years.

Details relating to goodwill included in the consolidated financial statements is shown in note 11.

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Page 15


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.11

Tangible fixed assets (continued)

Depreciation is provided at rates calculated to write off the cost of fixed assets over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold trading property	-	2%	straight line
Plant and machinery	-	25%	reducing balance
Motor vehicles	-	25%	reducing balance
Showhouse furniture	-	15%	reducing balance
Office equipment	-	25%	reducing balance

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

2.12

Revaluation of tangible fixed assets

Freehold investment properties are included at fair value determined from market based evidence and assessed by the director.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.14

Stocks

Stocks and work in progress comprise development land and properties under construction and are valued at the lower of cost and net realisable value. The cost of work in progress includes all direct construction costs. Net realisable value is based on estimated selling price. Development land is included where contracts to purchase land have been exchanged prior to the year end. The corresponding liability is included in creditors.

2.15

Debtors

Debtors are measured at transaction price, less any impairment for bad or doubtful debts.

2.16

Cash and cash equivalents

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.

2.17

Creditors

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

Page 16


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

2.19

Financial instruments

Basic financial instrument relate to transactions that result in the recognition of financial assets and liabilities at transaction price like trade and other debtors, creditors, loans from banks and other third parties. Debt instruments (other than those wholly repayable or receivable within one year), also include financing transactions where loans are financed at a rate which is not considered to be a market rate of interest. Transactions of this type are initially measured at the present value of future cash flows, discounted at a market rate of interest for a similar debt instrument.

3.	Judgments in applying group accounting policies

The preparation of the financial statements involves, in certain areas, the use of accounting estimates and management judgment. The key areas involving estimates and judgments are as follows:

∙The valuation of work in progress, incorporating assessments of, future income and future costs, taking prudent account of economic circumstances including the impact of Covid-19.

∙The appropriate method and rate for depreciation of tangible fixed assets.

Page 17


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Turnover

The whole of the turnover is attributable to house building.

Analysis of turnover by country of destination:

					2021	2020
					£	£

United Kingdom	53,741,895	21,019,953
	53,741,895	21,019,953

5.	Other operating income
		2021	2020
		£	£

Net rents receivable	39,000	19,514
Government grants received	209,552	-
	248,552	19,514

6.	Auditors' remuneration
		2021	2020
		£	£

Fees payable to the Group's auditor for the audit of the Group's annual financial statements

23,500

Fees payable to the Group's auditor in respect of:
Other services relating to taxation	9,000	9,000
All other services	29,523	30,520
	38,523	39,520

Page 18


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

7.	Employees
	Staff costs, including director's remuneration, were as follows:

Group	Group	Company	Company
2021	2020	2021	2020
£	£	£	£


Wages and salaries	4,780,492	5,022,040	-	-
Social security costs	568,780	579,448	-	-
Cost of defined contribution scheme	195,308	190,035	-	-
	5,544,580	5,791,523	-	-

The average monthly number of employees, including the director, during the year was as follows:

	Group	Group	Company	Company
	2021	2020	2021	2020
	No.	No.	No.	No.

Office, administration and managerial	15	18	1	1
Production	34	36	-	-
Sales and marketing	5	7	-	-

	54	61	1	1

8.	Director's remuneration
	No directors remuneration was paid by the company. Details relating to directors remuneration paid by other members of the group are included in the respective subsidiary companies financial statements.

9.	Interest payable and similar expenses
		2021	2020
		£	£

Bank interest payable	137,962	70,349
Other loan interest payable	731,550	480,000
Other interest payable	-	11,329
	869,512	561,678

Page 19


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

10.	Taxation

		2021	2020
		£	£

Corporation tax
Current tax on profits for the year	1,781,430	243,347
	1,781,430	243,347

Total current tax	1,781,430	243,347

Deferred tax
Origination and reversal of timing differences	33,462	24,273
Total deferred tax	33,462	24,273


	Taxation on profit on ordinary activities	1,814,892	267,620

Factors affecting tax charge for the period
The tax assessed for the year is higher than (2020 - higher than) the standard rate of corporation tax in the UK of19% (2020 - 19%). The differences are explained below:
	2021	2020
	£	£

Profit on ordinary activities before tax

7,598,161

335,838

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	1,443,651	63,809
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	369,005	158,150
Capital allowances for year in excess of depreciation	(33,129)	17,375
Deferred taxation	33,462	24,273
Group relief	1,903	4,013
Total tax charge for the year	1,814,892	267,620

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

11.	Intangible assets
	Group

		Goodwill
		£
	Cost
	At 1 April 2020	2,650,000
	At 31 March 2021	2,650,000
	Amortisation
	At 1 April 2020	147,222
	Charge for the year on owned assets	294,444
	At 31 March 2021	441,666
	Net book value
	At 31 March 2021	2,208,334
	At 31 March 2020	2,502,778

Page 21


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

12.	Tangible fixed assets
	Group

	Freehold property	Plant and machinery	Motor vehicles	Showhouse furniture	Office equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 1 April 2020	601,728	785,352	147,526	26,304	65,644	1,626,554
Additions	-	430,432	-	14,537	17,168	462,137
Disposals	-	(76,661)	(23,275)	-	-	(99,936)
At 31 March 2021	601,728	1,139,123	124,251	40,841	82,812	1,988,755
Depreciation
At 1 April 2020	877	113,873	21,076	2,286	9,681	147,793
Charge for the year on owned assets	1,753	273,649	29,772	5,783	18,283	329,240
Disposals	-	(69,347)	(15,911)	-	-	(85,258)
At 31 March 2021	2,630	318,175	34,937	8,069	27,964	391,775
Net book value
At 31 March 2021	599,098	820,948	89,314	32,772	54,848	1,596,980
At 31 March 2020	600,851	671,479	126,450	24,018	55,963	1,478,761

Freehold properties are revalued on a fair value basis annually by the director. Freehold property includes trading property used in the Group's business which is not held for investment purposes. The value of trading property was £112,694. The depreciation charge on trading property amounted to £1,753. Land relating to trading properties is valued at £25,000.

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
	2021	2020
	£	£

Group
Cost	290,477	290,477
Accumulated depreciation	(53,563)	(51,810)
Net book value	236,914	238,667

Page 22


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

13.	Fixed asset investments

	Company

		Subsidiary companies
		£
	Cost or valuation
	At 1 April 2020	26,372,100
	At 31 March 2021	26,372,100

Direct subsidiary undertaking
The following was a direct subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Dacerell Limited

52 Cambridge Road South, London

Ordinary

100%

Indirect subsidiary undertakings
The following were indirect subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

Norfolk Homes Limited	52 Cambridge Road South, London	Ordinary	100%
Sheridan Clark (Civil Engineering) Limited	52 Cambridge Road South, London	Ordinary	100%
Suffolk Homes Limited	52 Cambridge Road South, London	Ordinary	100%

14.	Stocks
		Group	Group
		2021	2020
		£	£

Development land	33,406,372	38,717,548
Work in progress	22,643,630	35,352,273
Payments received on account	(118,128)	(434,205)
	55,931,874	73,635,616

Page 23


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

15.

Debtors

Group	Group	Company	Company
2021	2020	2021	2020
£	£	£	£


Trade debtors	295,953	337,759	-	-
Other debtors	616,064	387,968	1,800	-
Prepayments and accrued income	77,118	88,006	-	-
	989,135	813,733	1,800	-

16.	Cash and cash equivalents
		Group	Group	Company	Company
		2021	2020	2021	2020
		£	£	£	£

Cash at bank and in hand	8,526,166	1,564	11	1
Less: bank overdrafts	(187,496)	(14,211,895)	(3)	-
	8,338,670	(14,210,331)	8	1

17.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2021	2020	2021	2020
		£	£	£	£

Loan notes (2021 - 2028)	2,730,000	2,667,000	2,730,000	2,667,000
Bank overdrafts	187,496	14,211,895	3	-
Trade creditors	4,276,368	3,809,143	-	-
Amounts owed to group undertakings	-	-	10,813	300,120
Corporation tax	1,035,479	772,983	-	-
Other taxation and social security	1,175,295	838,183	-	-
Other creditors	5,223,857	3,200,568	-	-
Accruals and deferred income	264,211	259,639	7,000	6,000
	14,892,706	25,759,411	2,747,816	2,973,120

The bank overdrafts are secured by the Group's bankers in the form of first legal charges over freehold development land owned by the Group.

Page 24


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

18.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2021	2020	2021	2020
		£	£	£	£

Loan notes (2021 - 2028)	17,709,000	20,439,000	17,709,000	20,439,000
Trade creditors	-	1,400,000	-	-
	17,709,000	21,839,000	17,709,000	20,439,000

The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
	Group	Group	Company	Company
	2021	2020	2021	2020
	£	£	£	£


Loan notes (2021 - 2028)	6,156,000	9,139,000	6,156,000	9,139,000
	6,156,000	9,139,000	6,156,000	9,139,000

The interest free loan notes (2021 - 2028) are repayable in equal annual instalments of £3,160,000 over eight years. In accordance with the treatment required by Financial Reporting Standard 102 this financing transaction has been measured at the present value of future cash flows, discounted at the groups cost of finance for a similar debt instrument.

19.	Deferred taxation
	Group

	2021	2020
	£	£

At 1 April 2020	(137,721)	(113,448)
Charged to profit or loss	(33,463)	(24,273)
At 31 March 2021	(171,184)	(137,721)

The provision for deferred taxation is made up as follows:
	Group	Group
	2021	2020
	£	£

	Accelerated capital allowances	(171,184)	(137,721)
		(171,184)	(137,721)

Page 25


NORFOLK HOMES HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

20.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

101 (2020 - 101) Ordinary A shares shares of £1.00 each	101	101
10 (2020 - 0) Ordinary B shares shares of £1.00 each	10	-

	111	101

During the year 10 ordinary B shares of £1 each were issued and fully paid for cash £1 each.

21.

Reserves

Revaluation reserve

The property revaluation reserve comprises unrealised revaluation gains on freehold investment property. The property revaluation reserve is not distributable.

Profit and loss account

The Profit and Loss account includes all current and prior year retained profits and losses.

22.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £195,308 (2020 - £156,680). Contributions totalling £16,561 (2020 - £15,466) were payable to the fund at the Balance Sheet date and are included in other creditors.

23.

Related party transactions

The company is exempt from the requirement to disclose transactions or balances between group undertakings.

Included within other creditors (note 17) are unsecured loans from a director's family amounting to £3,248,441 (2020 - £2,027,267). Interest paid during the year amounted to £235,000 (2020 - £241,000) and interest due at the year end amounted to £100,000 (2020 - £100,000).
During the year the Group paid rent on showhouse properties owned by members of a director's family. No formal rental agreement exists for this arrangement and rent paid during the period amounted to £191,000 (2020 - £149,000).
During the year the group sold residential properties for £1,100,000, in the ordinary course of business, to family members of a director.

During the year the company purchased development land in the ordinary course of business, from companies owned by a director and their family members for £2,117,949.

Page 26