Castlethorpe Homes Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 12852643 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

FOR

CASTLETHORPE HOMES LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr C D South

Mr D M South

Mr C D J Warner

SECRETARY:

Mr S J Hocking

REGISTERED OFFICE:

The Oaks

Revenge Road

Lordswood

Chatham

Kent

ME5 8LF

REGISTERED NUMBER:

12852643 (England and Wales)

AUDITORS:

Stephen Hill Partnership (Holdings) Limited

Registered Auditors

139-141 Watling Street

Gillingham

Kent

ME7 2YY

The directors present their strategic report for the year ended 31st March 2023.

The business of Castlethorpe Homes Ltd, is, to source, purchase and develop residential plots of land.

REVIEW OF BUSINESS

During the year the company continued to operate at a loss, as no units had been bought to market. The loss for the year being £535,347, and the balance sheet now showing a deficit of £1,000,054.

Subsequent to the year-end three of the four units at Bramley, Hampshire were sold, with the fourth under offer. The additional sites, fourteen units, commenced after the year end, and the exact completion dates of these units will determine if profitability is achieved in 2023/24 or 2024/25. A further two sites were acquired during the year and await planning, before they are commenced.

PRINCIPAL RISKS AND UNCERTAINTIES

The principle risks to the company are the state of the housing market and, of late, the impact of increased interest rates on this market.

ON BEHALF OF THE BOARD:

Mr D M South - Director

19th December 2023

The directors present their report with the financial statements of the company for the year ended 31st March 2023.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2023.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2022 to the date of this report.

Mr C D South

Mr D M South

Mr C D J Warner

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Stephen Hill Partnership (Holdings) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S J Hocking - Secretary

19th December 2023

Opinion

We have audited the financial statements of Castlethorpe Homes Ltd (the 'company') for the year ended 31st March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st March 2023 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion..

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following.

- The nature of the industry and sector, control environment and business performance.

- Results of our enquiries of management about there own identification and assessment of the risks of irregularities.

- Any matters we identified having obtained and reviewed the companies documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance.

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud.

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

- To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships.

- tested journal entries to identify unusual transactions.

- assess whether judgement and assumptions made in determining the accounting estimates were indicative of potential bias.

investigate the rational behind significant or unusual transactions.

- In response to the risks of irregularities and non-compliance with laws and regulations, we designed procedures which include, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation.

- enquiring of management as to actual and potential litigation and claims.

- reviewing correspondence with HMRC, relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any material misstatement that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr L A Clifton (Senior Statutory Auditor)

for and on behalf of Stephen Hill Partnership (Holdings) Limited

Registered Auditors

139-141 Watling Street

Gillingham

Kent

ME7 2YY

19th December 2023

TURNOVER

-

910,000

Cost of sales

141,523

905,844

GROSS (LOSS)/PROFIT

(141,523

)

4,156

Administrative expenses

393,824

280,664

OPERATING LOSS and

LOSS BEFORE TAXATION

(535,347

)

(276,508

)

Tax on loss

6

-

-

LOSS FOR THE FINANCIAL YEAR

(535,347

)

(276,508

)

LOSS FOR THE YEAR

(535,347

)

(276,508

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(535,347

)

(276,508

)

FIXED ASSETS

Tangible assets

7

9,955

8,056

CURRENT ASSETS

Stocks

8

8,201,005

2,313,193

Debtors

9

74,501

39,562

Cash at bank

268,946

22,434

8,544,452

2,375,189

CREDITORS

Amounts falling due within one year

10

9,554,461

2,847,952

NET CURRENT LIABILITIES

(1,010,009

)

(472,763

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,000,054

)

(464,707

)

CAPITAL AND RESERVES

Called up share capital

13

100

100

Retained earnings

14

(1,000,154

)

(464,807

)

SHAREHOLDERS' FUNDS

(1,000,054

)

(464,707

)

The financial statements were approved by the Board of Directors and authorised for issue on 19th December 2023 and were signed on its behalf by:

Mr D M South - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2021

100

(188,299

)

(188,199

)

Changes in equity

Total comprehensive income

-

(276,508

)

(276,508

)

Balance at 31st March 2022

100

(464,807

)

(464,707

)

Changes in equity

Total comprehensive income

-

(535,347

)

(535,347

)

Balance at 31st March 2023

100

(1,000,154

)

(1,000,054

)

Cash flows from operating activities

Cash generated from operations

1

(878,217

)

30,482

Net cash from operating activities

(878,217

)

30,482

Cash flows from investing activities

Purchase of tangible fixed assets

(4,835

)

(8,048

)

Net cash from investing activities

(4,835

)

(8,048

)

Cash flows from financing activities

New loans in year

1,129,564

-

Net cash from financing activities

1,129,564

-

Increase in cash and cash equivalents

246,512

22,434

Cash and cash equivalents at beginning of year

2

22,434

-

Cash and cash equivalents at end of year

2

268,946

22,434

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.23

31.3.22

£

£

Loss before taxation

(535,347

)

(276,508

)

Depreciation charges

2,936

1,497

(532,411

)

(275,011

)

Increase in stocks

(5,887,812

)

(2,296,611

)

Increase in trade and other debtors

(34,939

)

(29,830

)

Increase in trade and other creditors

5,576,945

2,631,934

Cash generated from operations

(878,217

)

30,482

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

268,946

22,434

Year ended 31st March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

22,434

-

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank

22,434

246,512

268,946

22,434

246,512

268,946

Debt

Debts falling due within 1 year

-

(1,129,564

)

(1,129,564

)

-

(1,129,564

)

(1,129,564

)

Total

22,434

(883,052

)

(860,618

)

1.	STATUTORY INFORMATION

Castlethorpe 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.	STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on the basis of going concern. This basis may not be appropriate because the company had at 31 March 2023, net liabilities of £1,000,054, (2022 £464,707). The validity of the going concern basis is dependent upon the continued support of the company's parent company Faithdean Holdings Limited.

Turnover

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

25% on cost

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.

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 value amount and are recognised in the Income Statement.

Stocks

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

Financial instruments

The company only enters into basic financial instruments transaction that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, and loans from related parties.

Taxation

Taxation for the year 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 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

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.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.

Creditors

Short term creditors are measured at the transaction price.

Employe benefits

Short term employee benefits, including holiday pay and other similar non monetary benefits are recognised as an expense in the period in which they are incurred.

4.	EMPLOYEES AND DIRECTORS

31.3.23

31.3.22

£

£

Wages and salaries

664,206

406,945

Social security costs

84,270

51,297

Other pension costs

7,209

3,251

755,685

461,493

The average number of employees during the year was as follows:

31.3.23

31.3.22

Director

1

1

Other staff

7

3

8

4

31.3.23

31.3.22

£

£

Directors' remuneration

222,806

250,000

Directors' pension contributions to money purchase schemes

1,316

1,321

Information regarding the highest paid director is as follows:

31.3.23

31.3.22

£

£

Emoluments etc

222,806

250,000

Pension contributions to money purchase schemes

1,316

1,321

5.	OPERATING LOSS

The operating loss is stated after charging:

31.3.23

31.3.22

£

£

Hire of plant and machinery

112,773

-

Depreciation - owned assets

2,936

1,497

Auditors' remuneration

3,960

4,599

6.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31st March 2023 nor for the year ended 31st March 2022.

7.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1st April 2022

9,788

Additions

4,835

At 31st March 2023

14,623

DEPRECIATION

At 1st April 2022

1,732

Charge for year

2,936

At 31st March 2023

4,668

NET BOOK VALUE

At 31st March 2023

9,955

At 31st March 2022

8,056

8.

STOCKS

31.3.23

31.3.22

£

£

Work-in-progress

8,201,005

2,313,193

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Other debtors

9,128

7,450

VAT

57,790

24,342

Prepayments and accrued income

7,583

7,770

74,501

39,562

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Bank loans and overdrafts (see note 11)

1,129,564

-

Trade creditors

574,538

227,357

Social security and other taxes

39,561

21,797

Other creditors

4,244

3,000

Amounts owed to group companies

7,806,554

2,595,798

9,554,461

2,847,952

11.

LOANS

An analysis of the maturity of loans is given below:

31.3.23

31.3.22

£

£

Amounts falling due within one year or on demand:

Bank loans

1,129,564

-

12.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.23

31.3.22

£

£

Bank loans

1,129,564

-

The bank hold a debenture dated 27/05/2022 over all the assets of the company, and a legal charge over the land at Caufaude Lane, dated 06/06/2022.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.23

31.3.22

value:

£

£

100

Ordinary

£1

100

100

14.

RESERVES

Retained

earnings

£

At 1st April 2022

(464,807

)

Deficit for the year

(535,347

)

At 31st March 2023

(1,000,154

)

15.	ULTIMATE PARENT COMPANY

Faithdean Holdings Limited is regarded by the directors as being the company's ultimate parent company.

16.	RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity

31.3.23

31.3.22

£

£

Amount due from related party

20

-

Amount due to related party

7,806,553

259,579

Other related parties

31.3.23

31.3.22

£

£

Purchases

44,599

29,437