Resolution Homes Ltd - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 04953246 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

RESOLUTION HOMES LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr E W H Lawley

Mr C T Porter

SECRETARY:

Mr E W H Lawley

REGISTERED OFFICE:

The Loft

111 Dunstable Street

Ampthill

Bedfordshire

MK45 2NG

REGISTERED NUMBER:

04953246 (England and Wales)

ACCOUNTANTS:

Kings Chartered Accountants

4 Grovelands

Boundary Way

Hemel Hempstead

Hertfordshire

HP2 7TE

FIXED ASSETS

Tangible assets

4

20,399

40,352

Investments

5

1

1

20,400

40,353

CURRENT ASSETS

Stocks

6

2,200,000

791,898

Debtors

7

843,657

379,690

Cash at bank

4,416

23,663

3,048,073

1,195,251

CREDITORS

Amounts falling due within one year

8

2,002,864

1,006,027

NET CURRENT ASSETS

1,045,209

189,224

TOTAL ASSETS LESS CURRENT LIABILITIES

1,065,609

229,577

CREDITORS

Amounts falling due after more than one year

9

(205,780

)

(215,650

)

PROVISIONS FOR LIABILITIES

12

(903,000

)

(257

)

NET (LIABILITIES)/ASSETS

(43,171

)

13,670

CAPITAL AND RESERVES

Called up share capital

13

100

100

Retained earnings

(43,271

)

13,570

SHAREHOLDERS' FUNDS

(43,171

)

13,670

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 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 Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2023 and were signed on its behalf by:

Mr E W H Lawley - Director

Mr C T Porter - Director

1.	STATUTORY INFORMATION

Resolution Homes Ltd 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.

The accounts have been prepared on a going concern basis which assumes that the company will continue to trade. The validity of this assumption is dependent on sufficient and continuing financial support being made available by the company's director, the shareholders, the parent undertaking and the creditors. If the company were unable to continue to trade adjustments would have to be made to reduce the value of assets to their realisable amount, to reclassify fixed assets as current assets, long-term liabilities as current liabilities, and to provide for any further liabilities that may arise.

Preparation of consolidated financial statements

The financial statements contain information about Resolution Homes Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

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 balance sheet 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group undertakings, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2021 - 9 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2022

78,800

16,880

17,200

22,929

135,809

Additions

479

-

-

764

1,243

Disposals

(31,675

)

-

-

-

(31,675

)

At 31 December 2022

47,604

16,880

17,200

23,693

105,377

DEPRECIATION

At 1 January 2022

54,232

15,924

9,944

15,357

95,457

Charge for year

2,921

239

1,814

2,859

7,833

Eliminated on disposal

(18,312

)

-

-

-

(18,312

)

At 31 December 2022

38,841

16,163

11,758

18,216

84,978

NET BOOK VALUE

At 31 December 2022

8,763

717

5,442

5,477

20,399

At 31 December 2021

24,568

956

7,256

7,572

40,352

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2022

-

17,200

17,200

Reclassification/transfer

32,250

-

32,250

At 31 December 2022

32,250

17,200

49,450

DEPRECIATION

At 1 January 2022

-

9,944

9,944

Charge for year

2,633

1,814

4,447

Reclassification/transfer

21,718

-

21,718

At 31 December 2022

24,351

11,758

36,109

NET BOOK VALUE

At 31 December 2022

7,899

5,442

13,341

At 31 December 2021

-

7,256

7,256

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertaking

£

COST

At 1 January 2022

and 31 December 2022

1

NET BOOK VALUE

At 31 December 2022

1

At 31 December 2021

1

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

Resolution Homes (2019) Ltd

Registered office: The Loft, 111 Dunstable Street, Ampthill, Bedfordshire, MK45 2NG

Nature of business: Dormant company

%

Class of shares:

holding

Ordinary

100.00

31.12.22

31.12.21

£

£

Aggregate capital and reserves

1

1

6.

STOCKS

31.12.22

31.12.21

£

£

Work-in-progress

2,200,000

791,898

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade debtors

445,271

42,355

Other debtors

336,611

284,874

Tax

13,294

-

Value added tax

28,312

52,461

Deferred tax asset

Accelerated capital allowances

3,069

-

Prepayments

17,100

-

843,657

379,690

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Bank loans and overdrafts (see note 10)

9,870

9,626

Other loans (see note 10)

-

80,000

Hire purchase contracts (see note 11)

14,230

13,255

Trade creditors

950,298

286,947

Amounts owed to group undertakings

164,849

144,849

Taxation

13,481

13,294

Social security and other taxes

28,402

12,490

Other creditors

405,737

428,125

Directors' current accounts

15,202

16,646

Accruals

400,795

795

2,002,864

1,006,027

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.22

31.12.21

£

£

Bank loans (see note 10)

25,780

35,650

Directors' loan accounts

180,000

180,000

205,780

215,650

10.

LOANS

An analysis of the maturity of loans is given below:

31.12.22

31.12.21

£

£

Amounts falling due within one year or on demand:

Bank loans

9,870

9,626

Other loans

-

80,000

9,870

89,626

Amounts falling due between one and two years:

Bank loans - 1-2 years

10,119

9,870

31.12.22

31.12.21

£

£

Amounts falling due between two and five years:

Bank loans - 2-5 years

15,661

25,780

11.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.12.22

31.12.21

£

£

Net obligations repayable:

Within one year

14,230

13,255

Non-cancellable

operating leases

31.12.22

31.12.21

£

£

Within one year

13,000

13,000

Between one and five years

52,000

52,000

In more than five years

49,833

62,833

114,833

127,833

The above lease has been disclosed based on the contractual term as agreed in the lease agreement, which terminates on the 30th of September 2031. This agreement contains break dates which occur on every second anniversary of the date agreed of the 1st of October 2023.

12.	PROVISIONS FOR LIABILITIES

31.12.22

31.12.21

£

£

Deferred tax

Accelerated capital allowances

-

257

Other provisions

903,000

-

903,000

257

Deferred

tax

£

Balance at 1 January 2022

257

Credit to Statement of Income and Retained Earnings during year

(3,326

)

Balance at 31 December 2022

(3,069

)

Other provisions comprises of a percentage of loss as a result of an onerous contract signed in the year. This has been assessed and estimated based on the current available information by the directors of the company.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.22

31.12.21

value:

£

£

100

Ordinary

£1

100

100