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Company Registration Number 11829236
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KIRKWHELPINGTON DEVELOPMENTS LIMITED
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UNAUDITED
FINANCIAL STATEMENTS
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KIRKWHELPINGTON DEVELOPMENTS LIMITED
REGISTERED NUMBER: 11829236
BALANCE SHEET
AS AT 31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 6 form part of these financial statements.
Page 1
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KIRKWHELPINGTON DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Kirkwhelpington Developments Limited is a private company limited by shares, incorporated in England and Wales. The registered office is Rotterdam House, 116 Quayside, Newcastle upon Tyne, NE1 3DY.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The accounts are presented in pounds sterling.
The following principal accounting policies have been applied:
As at the balance sheet date the company has net liabilities of £27,013, following a loss in the period of £24,329.
The company has continued to develop the land during the year using borrowings secured from Alternative Bridging (UK2) Limited in April 2020, drawing down facilities in line with the progress of the development. The terms of the loan were originally due for repayment February 2022, but was extended as part of a new agreement. In August 2022 the new agreement, with the existing funder, was secured which enables the site to be continued to be developed and the funds generated used to repay the funder as completions take place. This was expected to repay the funding by November 2022. Six properties have been completed and sold post year end, four plots are reserved pending sale, and seven plots are available for sale. The cash generated from these sales will be used to repay the loan. Whilst there is no formal extension in place the funder is continuing to support the development through to completion; the Director considers the risk of withdrawl at this late stage is unlikely however there remains a risk of material uncertainity. The director has confirmed that the going concern basis remains appropriate.
In August 2021, the company was sold to a new parent company and at that time there was a debt forgiveness for all group liabilities owed.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Inventories are stated at the lower of cost and estimated selling price less cost to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Included within Inventories is land held for development.
Page 2
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KIRKWHELPINGTON DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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The average monthly number of employees, including directors, during the year was 1 (2019 - 1).
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Prepayments and accrued income
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Page 3
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KIRKWHELPINGTON DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Amounts owed to group undertakings have no repayment date and are repayable on demand bearing no
interest.
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Creditors: Amounts falling due after more than one year
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The following liabilities were secured:
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Details of security provided:
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The loan is secured by way of a fixed charge on the land and development in favour of Alternative Bridging (UK 2) Limited. The loan attracts interest at a flat rate of 0.85% per month and is repayable based on the completion of the unit sales.
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Analysis of the maturity of loans is given below:
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Amounts falling due 1-2 years
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Page 4
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KIRKWHELPINGTON DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Related party transactions
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The company has taken advantage of the exemption as provided in paragraph 33.1A of FRS 102, from
disclosing transactions with group companies as it is a wholly owned subsidiary.
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Post balance sheet events
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The entity was part of a sale agreement in August 2021 where it was purchased from High Street GRP Limited by Hadrian Real Estate plc.
The Company's immediate parent is All Saints Living Limited.
The Company's ultimate parent at the balance sheet date was, High Street GRP Limited. High Street GRP Limited is incorporated in the UK.
Following a sale agreement in August 2021 the immediate parent has remained the same, however the
ultimate parent is now Hadrian Real Estate plc.
Page 5
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KIRKWHELPINGTON DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The auditors' report on the financial statements for the year ended 31 December 2020 was qualified.
The qualification in the audit report was as follows:
We have audited the financial statements of Kirkwhelpington Developments Limited (the 'Company') for the year ended 31 December 2020, which comprise the Balance Sheet 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).
Basis for qualified opinion
We were not appointed as auditor of the company until after 31 December 2020 and our appointment was made by the new shareholders following their purchase of the company in August 2021. With regards many of the transactions that arose in the period prior to the transfer of ownership, the new Directors are unable to support beyond the nominal ledger provided. As such, we have not been able to obtain confirmation from source documents in our testing. We were unable to satisfy ourselves by alternative means concerning the administrative expenses at the year end included in the statement of comprehensive income totalling £24,329, by using other procedures.
Additionally, we were unable to satisfy ourselves by alternative means concerning amounts owed to group undertakings of £494,256. Which we were unable to confirm by direct confirmation. These are reflected within the balance sheet under current liabilities.
Consequently we were unable to determine whether any adjustments to this balance were necessary.
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statements, which indicates that there is a loan due for repayment as at the date of approval of the financial statements, with repayment dependent on the sale of properties. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included a review of the funding position and the sales plan to repay the funder.
The audit report was signed on 4 March 2023 by Joanna Gray (Senior Statutory Auditor) on behalf of Armstrong Watson Audit Limited.
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