PH (Hulme Hall) Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 12491440 (England and Wales)

Financial Statements

for the Period 1 July 2021 to 31 December 2022

for

PH (Hulme Hall) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

D R Gale

P N Hughes

REGISTERED OFFICE:

Bollin House

Oakfield Road

Cheadle Royal Business Park

Cheadle

Cheshire

SK8 3GX

REGISTERED NUMBER:

12491440 (England and Wales)

AUDITORS:

Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

CURRENT ASSETS

Stocks

-

11,113,630

Debtors

4

67,500

869,359

Cash at bank

5,240

34,742

72,740

12,017,731

CREDITORS

Amounts falling due within one year

5

(72,107

)

(11,622,575

)

NET CURRENT ASSETS

633

395,156

TOTAL ASSETS LESS CURRENT LIABILITIES

633

395,156

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

632

395,155

633

395,156

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:

P N Hughes - Director

1.	STATUTORY INFORMATION

PH (Hulme Hall) 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 (£).

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.

Changes in accounting policies

Effective from 1 July 2021, the Company changed it's turnover accounting policy to recognise profits on sale of properties upon legal completion. Previously, the sales were recognised when contracts were exchanged and the building work was physically complete. Sales which were exchanged and invoiced at year end were held within accrued income until legal completion.

The change in policy has been made because it is considered that this method more accurately reflects when risks and rewards of ownership are transferred.

The impact of this change in accounting policy is explained in note 9.

Turnover

Turnover represents the amounts receivable from the sale of properties, ground rents and other income directly associated with property development. Properties are treated as sold and profits are recognised upon legal completion of contracts.

Work-in-progress

The Company hold work-in-progress which is stated at the lower of cost and net realisable value. To assess the net realisable value of land held for development and housing work-in-progress, the Company assesses the likely revenue which will be generated when these sites are converted into residential properties and sold. Where it is assessed that the revenue generated will exceed costs expended to date and costs to bring the properties in saleable condition, work-in-progress is stated at cost. Where it is assessed that the revenue generated will be lower, work-in-progress is stated at net realisable value.

Work-in-progress includes land and associated acquisition costs, direct materials and subcontract work, other direct costs and those overheads (based on normal operating capacity) that have been incurred in bringing the stocks to their present location and condition.

Taxation

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

Cash and cash equivalents

Cash and cash equivalents include cash in hand, cash held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Share capital

Ordinary shares are classed as equity.

Short term debtors and creditors

Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Borrowing costs

Borrowing costs directly attributable to the acquisition and construction of the Company's development land (considered to be qualifying assets) are included as part of the cost of that asset. Borrowing costs are capitalised from the point expenditure is incurred and cease when substantially all the activities are complete. All other borrowing costs are recognised in the profit and loss in the period in which they are incurred.

Deposits

New property deposits and on account property contract receipts are shown within other creditors.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL (2021 - NIL).

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

as restated

£

£

Other debtors

67,500

8,000

VAT

-

2,056

Prepayments & accrued income

-

859,303

67,500

869,359

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

as restated

£

£

Bank loans and overdrafts

-

6,519,538

Trade creditors

-

3,096

Amounts owed to group undertakings

69,108

3,610,081

Tax

-

241,622

Other creditors

-

1,245,238

Accrued expenses

2,999

3,000

72,107

11,622,575

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

6.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

as restated

£

£

Bank loans

-

6,519,538

Bank loans are secured by Close Brothers Limited by a fixed and floating charge over various assets of the company.

7.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Jason Leach FCA (Senior Statutory Auditor)

for and on behalf of Bennett Brooks & Co Limited

8.	ULTIMATE PARENT COMPANY

P H Property Holdings Limited is regarded by directors as being the company's ultimate parent company. The registered office of the ultimate parent company is the same as PH (Hulme Hall) Limited and can be found on the Company Information page.

9.	PRIOR YEAR ADJUSTMENT

A prior year adjustment reducing profit and net assets by £778,753 has been made to reduce the turnover and increase stocks recorded as at 30 June 2021 due to a change in accounting policy.

Effective from 1 July 2021, the Company changed it's turnover accounting policy to recognise profits on sale of properties upon legal completion. Previously, the sales were recognised when contracts were exchanged and the building work was physically complete. Sales which were exchanged and invoiced at year end were held within accrued income until legal completion.

The impact on the Balance Sheet line items of the prior year adjustment at 30 June 2021 is set out below:

Balance Sheet (extract)

30 June 2021

Movement

30 June 2021

(Restated

)

£

£

£

Stocks

7,920,670

3,192,960

11,113,630

Prepayments & accrued income

4,831,016

(3,971,713

)

859,303

Retained earnings

(1,173,908

)

778,753

(395,155

)

Shareholders’ funds

(1,173,909

)

778,753

(395,156

)

The impact on the Income Statement in the year ended 30 June 2021 is as follows:

Income Statement (extract)

30 June 2021

Movement

30 June 2021

(Restated

)

£

£

£

Turnover

(7,242,165

)

3,971,713

(3,270,452

)

Closing stock

(7,920,670

)

(3,192,960

)

(11,113,630

)