PH Alderley Park LLP - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: OC412364 (England and Wales)

Unaudited Financial Statements

for the Period 1 July 2021 to 31 December 2022

for

PH Alderley Park LLP

Page

General Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Chartered Accountants' Report

6

DESIGNATED MEMBERS:

DRCT (PHPH) Ltd

P H Property Holdings Limited

REGISTERED OFFICE:

Bollin House

Oakfield Road

Cheadle Royal Business Park

Cheadle

Cheshire

SK8 3GX

REGISTERED NUMBER:

OC412364 (England and Wales)

ACCOUNTANTS:

Bennett Brooks & Co Limited

Chartered Accountants

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

CURRENT ASSETS

Stocks

4

-

3,620,157

Debtors

5

12,896

73,529

Cash at bank

187,702

14,921

200,598

3,708,607

CREDITORS

Amounts falling due within one year

6

(158,875

)

(121,141

)

NET CURRENT ASSETS

41,723

3,587,466

TOTAL ASSETS LESS CURRENT LIABILITIES

and

NET ASSETS ATTRIBUTABLE TO MEMBERS

41,723

3,587,466

LOANS AND OTHER DEBTS DUE TO MEMBERS

7

41,723

3,587,466

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

7

41,723

3,587,466

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the period ended 31 December 2022.

The members acknowledge their responsibilities for:

(a)	ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the LLP 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 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to financial statements, so far as applicable to the LLP.

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

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved by the members of the LLP and authorised for issue on 29 September 2023 and were signed by:

P H Property Holdings Limited - Designated member

1.	STATUTORY INFORMATION

PH Alderley Park LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General 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 requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention.

Changes in accounting policies

Effective from 1 July 2021, the LLP 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.

There is no impact on the previous accounting year as a result of the change in policy.

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 Partnership holds 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 Partnership 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 into a 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 aquisition 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.

Borrowing costs

Borrowing costs directly attributable to the acquisition and construction of the Partnership'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.

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.

Cash and cash equivalents

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

Loans and borrowings

Loans and borrowings are initially recognised at fair value including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Loans and other debts due to members

Profits attributable to members less drawings in respect of the profits shares are included as equity within total member' interests.

Critical estimates and judgements in applying the entity's accounting policies

The Partnership makes estimates and assumptions concerning the future. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of assets and liabilities within the next 12 months are:

(a) Carrying value of land and work in progress and estimation of costs to complete

The Partnership holds inventories stated at the lower of cost and net realisable value. Such inventories include land, work in progress and completed units. As residential development is largely speculative by nature, not all inventories are covered by forward sales contracts. Furthermore due to the nature of the Partnership's activity and, in particular the scale of its developments and the length of the development cycle, the Partnership has to allocate site-wide development costs between units being built and/or completed in the current year and those for future years. It also has to forecast the costs to complete on such developments.

In making such assessments and allocations, there is a degree of inherent estimation uncertainty. The has Partnership established internal controls designed to effectively assess and centrally review inventory carrying values and ensure the appropriateness of the estimates made. These assessments and allocations evolve over the life of the development in line with the risk profile, and accordingly the margin recognised reflects these evolving assessments, particularly in relation to the Partnership's long-term developments.

3.	EMPLOYEE INFORMATION

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

4.

STOCKS

2022

2021

£

£

Work-in-progress

-

3,620,157

Borrowing costs totalling nil (2021: £2,047,162) have been included in work-in-progress in the year.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

146

46,918

Other debtors

12,750

20,000

VAT

-

6,611

12,896

73,529

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

-

17,599

Other creditors

7,848

38,690

Amounts owed to related entities

143,027

56,852

Accrued expenses

8,000

8,000

158,875

121,141

Amounts owed to related entities are unsecured, interest free and repayable on demand.

7.

LOANS AND OTHER DEBTS DUE TO MEMBERS

2022

2021

£

£

Amounts owed to members in respect of profits

41,723

3,587,466

Falling due within one year

41,723

3,587,466

Member loans rank behind the bank, but in preference to other creditors.

8.	ULTIMATE CONTROLLING PARTY

The members consider there to be neither a controlling party nor an ultimate controlling party.

The following reproduces the text of the report prepared for the members in respect of the LLP's annual unaudited financial statements. In accordance with the Companies Act 2006, the LLP is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Members are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, we have prepared for your approval the financial statements of PH Alderley Park LLP for the period ended 31 December 2022 which comprise the Income Statement, Balance Sheet, Reconciliation of Members' Interests and the related notes from the LLP's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the members of PH Alderley Park LLP, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of PH Alderley Park LLP and state those matters that we have agreed to state to the members of PH Alderley Park LLP, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than PH Alderley Park LLP and its members, as a body, for our work or for this report.

It is your duty to ensure that PH Alderley Park LLP has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of PH Alderley Park LLP. You consider that PH Alderley Park LLP is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of PH Alderley Park LLP. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Bennett Brooks & Co Limited

Chartered Accountants

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

29 September 2023