IMPACT_DEVELOPMENTS_CHIGW - Accounts

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

For the financial period ended 31 March 2021 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 period 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.

Impact Developments Chigwell Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Vicarage Lane, Stratford, London, E15 4HF.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is in a net liabilities position of £true4,969 at the balance sheet date, with the largest creditor balance being £5,055,539 due to connected companies, which the ultimate parent undertaking has confirmed in writing to the directors it will not recall until the company is in a position to repay this and for at least 12 months from the date these financial statements are signed.

The second largest creditor is an amount of £3,553,573 due to an external funding provider which is due for repayment in November 2021. This loan is being extended for 3 months in order to finish construction. At the end of those 3 months, the loan will be refinanced into a 12 month development loan.

The directors have considered the forecasted future operations of the company and that the ultimate parent undertaking has confirmed to provide continuing financial support to the company, and have concluded that the company will have adequate resources to continue in business for the foreseeable future, being at least 12 months from the date of approval of these financial statements.

The reporting period is for less than one year due to the company being incorporated on 6 October 2020, and as such future trading periods will not be wholly comparable.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

These costs are then released through the income statement in the period in which the release of work in progress occurs. These are included within cost of sales accordingly.

Stocks, are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour costs and those overheads that are directly attributable to the construction of the qualifying assets of stock, including capitalised borrowing costs. These are the borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been made. Management assesses the cost held and where required will write down the stock to its net realisable value. Net realisable value represents the estimated selling price less all estimated costs of completion and overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 statement of financial position 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.

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Work in progress & stocks are carried at the lower of cost and net realisable value.

The Company annually conducts a review of its work in progress and makes impairments to ensure work in progress is carried at the lower of cost and net realisable value. Valuations of site work are carried out at regular intervals and estimates of the cost to complete and anticipated revenues are reviewed to determine the level of any impairment required. Management are required to employ judgement in estimating the profitability of a site and in assessing any impairment provisions required.

These assessments include a degree of inherent uncertainty due to the need to estimate future costs and future selling prices. These estimates are based on the Directors' assessment of current market conditions.

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

A fixed and floating charge created on 12 November 2020 exists over the freehold land being 181 - 185 (odd) High Road, Chigwell in favour of West End Capital Finance Limited.

A fixed charge created on 12 November 2020 exists over the freehold land being 181 - 185 (odd) High Road, Chigwell in favour of West End Capital Finance Limited.

Included within other creditors above is a balance of £5,055,539 owed to connected companies. These balances will not be called for repayment until the company has earned sufficient revenues from ongoing projects to repay these amounts. The ultimate parent company, being Impact Capital Group Limited, has agreed to provide continuing financial support to the company and guarantee those inter-company balances due from the company to other group companies, until this company earns sufficient revenue to repay these balances.

The bank loan of £3,553,573 above is due to an external funding provider and is due for repayment in November 2021. This loan is being extended for 3 months in order to finish construction. At the end of those 3 months, the loan will be refinanced into a 12 month development loan.