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Registered number: 05885892
Hapstead Properties Limited
Unaudited
Financial statements
Information for filing with the registrar
For the year ended 31 March 2023
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Hapstead Properties Limited
Chartered accountants' report to the board of directors on the preparation of the unaudited statutory financial statements of Hapstead Properties Limited for the year ended 31 March 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Hapstead Properties Limited for the year ended 31 March 2023 which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of changes in equity and the related notes from the Company'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 at https://www.icaew.com /regulation.
This report is made solely to the Board of directors of Hapstead Properties Limited, as a body, in accordance with the terms of our engagement letter dated 23 November 2022. Our work has been undertaken solely to prepare for your approval the financial statements of Hapstead Properties Limited and state those matters that we have agreed to state to the Board of directors of Hapstead Properties Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Hapstead Properties Limited and its Board of directors, as a body, for our work or for this report.
It is your duty to ensure that Hapstead Properties Limited 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 Hapstead Properties Limited. You consider that Hapstead Properties Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of Hapstead Properties Limited. 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.
Kreston Reeves LLP
Chartered Accountants
Springfield House
Springfield Road
Horsham
West Sussex
RH12 2RG
5 December 2023
Page 1
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Hapstead Properties Limited
Statement of income and retained earnings
For the year ended 31 March 2023
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Interest receivable and similar income
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Interest payable and similar expenses
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Retained earnings at the beginning of the year
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Profit/(loss) for the year
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Transfer of non-distributable reserve
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Dividends declared and paid
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Retained earnings at the end of the year
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The notes on pages 6 to 14 form part of these financial statements.
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Page 2
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Hapstead Properties Limited
Registered number: 05885892
Balance sheet
As at 31 March 2023
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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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Provisions for liabilities
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Page 3
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Hapstead Properties Limited
Registered number: 05885892
Balance sheet (continued)
As at 31 March 2023
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
M P Ringrose
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The notes on pages 6 to 14 form part of these financial statements.
Page 4
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Hapstead Properties Limited
Statement of changes in equity
For the year ended 31 March 2023
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Comprehensive income for the year
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Surplus on revaluation of freehold property
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Other comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Transfer of non-distributable reserve
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Transfer of non-distributable reserve
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Total transactions with owners
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Comprehensive income for the year
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Other comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Transfer of non-distributable reserve
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Total transactions with owners
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The notes on pages 6 to 14 form part of these financial statements.
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Page 5
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
The company is a private company limited by share capital incorporated in England and Wales (company registration number 05885892). The principal activity of the company is that of property investment.
The address of its registered office is:
Springfield House
Springfield Road
Horsham
West Sussex
RH12 2RG
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.
These financial statements are presented in sterling and are rounded to the nearest £1.
The company and its parent comprise a small group. The company has therefore taken advantage of the exemption provided by section 399 of the Companies Act 2006 not to prepare group financial statements.
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 6
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investment property is carried at fair value. No depreciation is provided. Changes in fair value are recognised in the Statement of income and retained earnings.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Page 7
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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The average monthly number of employees, including directors, during the year was 3 (2022 - 3).
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Page 8
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
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Current tax on profits for the year
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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Factors affecting tax charge for the year
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There were no factors that affected the tax charge for the year which has been calculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of19% (2022 - 19%).
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Page 9
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
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Charge for the year on owned assets
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Page 10
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
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Freehold investment property
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The 2023 valuations were made by the director, on an open market value for existing use basis.
The historic cost of the freehold investment property is £6,018,257 (2022: £6,018,257).
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Page 11
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Amounts owed to group undertakings
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Other creditors (secured)
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The following liabilities were secured:
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Details of security provided:
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The other loans and bank loans and mortgages are secured over the investment properties.
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due after more than 5 years
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Page 12
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
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Minimum lease payments under hire purchase fall due as follows:
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Short term timing differences
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Revaluation reserve
The Company uses the revaluation model for the measurement of its investment properties. This reserve
records the revaluation surplus recognised less the related provision for deferred tax. This is a non
distributable reserve.
Profit and loss account
The profit and loss account comprises all current and prior period retained profits and losses after
deducting any distributions made to the company's shareholder. This is a distributable reserve.
Page 13
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Hapstead Properties Limited
Notes to the financial statements
For the year ended 31 March 2023
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Related party transactions
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Murray Homes Limited
(same directors)
During the year, Hapstead Properties Limited provided a loan to Murray Homes Limited. At the year end £7,365 (2022: £Nil) was due from Murray Homes Limited.
Lizard Properties (Sussex) Limited
(M P Ringrose is the sole director)
During the year, Hapstead Properties Limited provided a loan to Lizard Properties (Sussex) Limited. At the year end £57,751 (2022: £Nil) was due from Lizard Properties (Sussex) Limited.
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The company is controlled by Murray House & Homes Limited which owns 100% of the called up share capital.
Page 14
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