Morrish Builders (Poole) Limited - Limited company accounts 20.1

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

FOR

MORRISH BUILDERS (POOLE) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

D Morrish

E J C Rapson

P M Kneafsey

REGISTERED OFFICE:

Unit 5

Upton Industrial Estate

Upton

Poole

Dorset

BH16 5SL

REGISTERED NUMBER:

01633484 (England and Wales)

AUDITORS:

Schofields

Chartered Accountants and Statutory Auditors

5th Floor

Waverley House

115 - 119 Holdenhurst Road

Bournemouth

Dorset

BH8 8DY

The directors present their strategic report for the year ended 30 September 2020.

REVIEW OF BUSINESS

The results for the year are set out on page 7.

With a backdrop of the Covid-19 pandemic, and enforced lockdown severely prejudicing income, the group did exceptionally well to maintain the activity levels of the previous unimpacted year. Additional costs were inevitably incurred in the creation of a remote working infrastructure, and the additional safety measures necessary to support the eventual return to work of our staff, and safe operation of our activities. The structural and financial improvements previously evident within the business enabled it to navigate through this period and produce a positive outcome to the year, and enhance its forward order book.

A further significant event within the financial year was the reorganisation of the business to disentangle the housing business from the wider group activities. Hence the commercial property portfolio, and Spanish subsidiary were transferred at par value from the subsidiary company to the new parent group company.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is a homebuilder and developer and as such is reliant on the availability of mortgage products to fund its purchasers, funding lines to support its activities, and a ready supply of land supported by a fluent planning process.

All of these factors have been disrupted during the year and are returning to new levels at differing paces, with the ability to engage with the planning process the last to progress.

The relationship with, and the support of the group's funders is strong and facilities were extended through the year, and renewed post year end providing a new five year funding profile for the business to support its current and future development programme.

The group seeks to maintain a spread of development sites, to enable it to offer a range of products to the market. The planning process remains cumbersome, time consuming and expensive which impacts the group's ability to bring future developments to the market in an orderly fashion.

The coronavirus pandemic is still prevalent and remains a significant uncertainty to the safe consistent operation of our activities, which along with the latent effects of the decision to leave the European Union are yet to be recognised within the housing economy or building supply chain.

ON BEHALF OF THE BOARD:

E J C Rapson - Director

19 September 2021

The directors present their report with the financial statements of the company for the year ended 30 September 2020.

PRINCIPAL ACTIVITY

The company is a holding company and conducts no trading activities of its own.

DIVIDENDS

Dividends totalling £24,490,913 were declared and paid during the year ended 30 September 2020.

FUTURE DEVELOPMENTS

The group continues to develop its land bank but inevitably planning delays have restricted the delivery of homes to the market. The group in addition to its consortia commitments continues to actively pursue the extension of its existing land stocks through acquisition and the securing of longer term options.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2019 to the date of this report.

D Morrish

E J C Rapson

Other changes in directors holding office are as follows:

P M Kneafsey - appointed 1 September 2020

S Morrish, joint managing director of the group since 1982, sadly passed away on 31 January 2021.

FINANCIAL INSTRUMENTS

The group's principal financial instruments comprise bank loans and overdrafts, trade creditors, other loans and finance lease agreements. The main purpose of these instruments is to provide funds for the group's working capital requirements and to finance group operations. Due to the nature of these financial instruments used by the group, there is a risk to price exposure although the group does not anticipate any significant increase in the borrowing costs.

Funding for current and future development sites are financed via a long-term bank facility, which ensures continuity of funding. The day to day fluctuations in working capital requirements are funded via an overdraft.

The group continue to closely monitor the group's required financing via its banking facilities. The group is a lessee in respect of finance lease assets. The liquidity risk in respect of these is managed in the same way as bank overdrafts and the loans above. Trade creditors liquidity risk is managed by ensuring there are sufficient funds available to the group to meet these amounts as they fall due.

HEALTH AND SAFETY

The company continues to pursue a vigorous monitoring of its health and safety obligations.

ENVIRONMENTAL ISSUES

The company's policy on environmental issues is to assess their impact and whenever practical and cost effective to incorporate those within new sustainable developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 company will continue in business.

The directors are 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Schofields, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

E J C Rapson - Director

19 September 2021

Opinion

We have audited the financial statements of Morrish Builders (Poole) Limited (the 'company') for the year ended 30 September 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 company's affairs as at 30 September 2020 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page three, the directors are 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 directors determine 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 directors are responsible for assessing the 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 directors either intend to liquidate the 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 a Report of the Auditors 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 financial statements.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr P J Schofield FCA (Senior Statutory Auditor)

for and on behalf of Schofields

Chartered Accountants and Statutory Auditors

5th Floor

Waverley House

115 - 119 Holdenhurst Road

Bournemouth

Dorset

BH8 8DY

20 September 2021

TURNOVER

-

-

OPERATING PROFIT

-

-

Income from shares in group undertakings

24,490,913

150,000

PROFIT BEFORE TAXATION

24,490,913

150,000

Tax on profit

4

-

-

PROFIT FOR THE FINANCIAL YEAR

24,490,913

150,000

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

24,490,913

150,000

FIXED ASSETS

Investments

6

2,014,798

2,014,798

CURRENT ASSETS

Debtors

7

2

2

NET CURRENT ASSETS

2

2

TOTAL ASSETS LESS CURRENT LIABILITIES

2,014,800

2,014,800

CAPITAL AND RESERVES

Called up share capital

8

2,014,800

2,014,800

SHAREHOLDERS' FUNDS

2,014,800

2,014,800

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2021 and were signed on its behalf by:

D Morrish - Director

E J C Rapson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2018

2,014,800

-

2,014,800

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

150,000

150,000

Balance at 30 September 2019

2,014,800

-

2,014,800

Changes in equity

Dividends

-

(24,490,913

)

(24,490,913

)

Total comprehensive income

-

24,490,913

24,490,913

Balance at 30 September 2020

2,014,800

-

2,014,800

1.	STATUTORY INFORMATION

Morrish Builders (Poole) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Morrish Builders (Poole) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Morrish Group Limited, Unit 5, Upton Industrial Estate, Upton, Poole, Dorset BH16 5SL.

The consolidated financial statements of Morrish Group Limited are available from Companies House.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 30 September 2020 nor for the year ended 30 September 2019.

The average number of employees during the year was NIL (2019 - NIL).

2020

2019

£

£

Directors' remuneration

-

-

The aggregate amount of remuneration paid to the directors through the subsidiary undertaking amounted to £332,915 (2019 - £307,150).

4.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 30 September 2020 nor for the year ended 30 September 2019.

5.

DIVIDENDS

2020

2019

£

£

Ordinary shares of £1 each

Final

1,265,913

-

Interim

23,225,000

150,000

24,490,913

150,000

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 October 2019

and 30 September 2020

2,014,798

NET BOOK VALUE

At 30 September 2020

2,014,798

At 30 September 2019

2,014,798

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Morrish Homes

Registered office: Unit 5, Upton Industrial Estate, Upton, Poole, Dorset BH16 5SL

Nature of business:

%

Class of shares:

holding

Ordinary

100.00

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Called up share capital not paid

2

2

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

2,014,800

Ordinary

£1

2,014,800

2,014,800

9.

RESERVES

Retained

earnings

£

Profit for the year

24,490,913

Dividends

(24,490,913

)

At 30 September 2020

-

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

10.	ULTIMATE PARENT COMPANY

The parent company, and ultimate parent company, is Morrish Group Limited.