Makewood Homes Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04725033 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 April 2021

for

Makewood Homes Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

S Bourke

P Bourke

SECRETARY:

S Bourke

REGISTERED OFFICE:

102-104 Park Lane

Croydon

Surrey

CR0 1JB

REGISTERED NUMBER:

04725033 (England and Wales)

ACCOUNTANTS:

Ledger Sparks Limited

Airport House

Suite 43-45

Purley Way

Croydon

CR0 0XZ

FIXED ASSETS

Investment property

4

520,000

-

CURRENT ASSETS

Stocks

-

350,000

Debtors

5

3,481

10,996

Cash at bank

34,895

29,101

38,376

390,097

CREDITORS

Amounts falling due within one year

6

(226,043

)

(234,735

)

NET CURRENT (LIABILITIES)/ASSETS

(187,667

)

155,362

TOTAL ASSETS LESS CURRENT LIABILITIES

332,333

155,362

CREDITORS

Amounts falling due after more than one year

7

(201,050

)

(201,050

)

NET ASSETS/(LIABILITIES)

131,283

(45,688

)

CAPITAL AND RESERVES

Called up share capital

2

2

Fair value reserve

8

170,000

-

Retained earnings

8

(38,719

)

(45,690

)

131,283

(45,688

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 January 2022 and were signed on its behalf by:

S Bourke - Director

P Bourke - Director

1.	STATUTORY INFORMATION

Makewood Homes 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.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal activity of the company continued to be that of buying & selling of own real estate and letting of leased real estate.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

TURNOVER

Turnover represents rent receivable on residential properties.

INVESTMENT PROPERTY

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

FINANCIAL INSTRUMENTS

The company only enters into basic financial transactions that result in recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from bank and other third parties, loans to related parties and investments in non-puttable ordinary shares.

TAXATION

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

CURRENT TAX

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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

Deferred tax is recognized in respect of all material timing differences that have originated but not reversed at the balance sheet date.

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company 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 company 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 Balance sheet.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements and will continue to support the company financially.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2020 - 2 ) .

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

Revaluations

170,000

Reclassification/transfer

350,000

At 30 April 2021

520,000

NET BOOK VALUE

At 30 April 2021

520,000

Fair value at 30 April 2021 is represented by:

£

Valuation in 2009

(71,044

)

Valuation in 2021

170,000

Cost

421,044

520,000

Investment property comprises two properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 30/04/2021 by the Directors. The valuation was made on an estimate by the Directors.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Other debtors

3,481

10,996

The directors consider the carrying value of trade and other receivables approximate to their fair value.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

820

820

Taxation and social security

1,635

-

Other creditors

223,588

233,915

226,043

234,735

The directors consider the carrying amounts of current liabilities approximate to their fair values .

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

201,050

201,050

The directors consider the carrying amounts of long term liabilities approximate to their fair values.

Charges

Mortgage charges at Companies House have been registered by National Westminster Bank PLC for the loan taken by company, which has a fixed charge over both of the investment properties, benefit of all covenants & rights concerning the property & all plant machinery, fixtures, fittings, furniture, equipment, implements & utensils. The goodwill of any business carried on at the property & the proceeds of any insurance affecting the property or assets.

The above charges on both of the properties were satisfied and changed to The Mortgage Works (UK) PLC and contains negative pledge post yearend.

8.

RESERVES

PROFIT AND LOSS ACCOUNT

The Profit and loss account comprises all current and prior period retained profit and losses after deducting any distributions made to the company's shareholders.

FAIR VALUE RESERVE

This is a non distributable reserve relating to fair value adjustments to investment properties and deferred tax calculated on fair value adjustments.

9.	RELATED PARTY DISCLOSURES

As at the balance sheet date included in creditors were amounts of £221,814 (2020: £230,013) due to the directors.

Other receivables represents a loan of £3,481 (2020: £10,996) to the Bourke, Bourke & Gadsby Partnership in which the directors, Mr and Mrs Bourke are partners. The loan is repayable by the partnership but there are no further terms.

10.	EVENT DURING THE REPORTING PERIOD

The Coronavirus (COVID-19) has emerged globally resulting in a significant impact on businesses worldwide and the UK government continued to impose restrictions in 2021. As a result some business operations have been restricted, however the company continues to operate using alternative methods and remote working. Hence financial statements do not include any adjustments that might result from the outcome of this uncertainty. The directors are continuing to monitor, assess and act to the current changing environment in order to position the company to ensure its future success.