Rowan Homes (SW) Limited - Filleted accounts

ROWAN HOMES (SW) LIMITED - Company Information

Registered number

05062908

Rowan Homes (SW) Limited

Filleted Accounts

31 December 2017

Rowan Homes (SW) Limited
Registered number:		05062908
Balance Sheet
as at 31 December 2017

Notes			2017			2016
£				£
Fixed assets
Tangible assets	3		6,828			8,448

Current assets
Stocks	4	645,471			566,935
Debtors	5	4,195			3,243
Cash at bank and in hand		5,358			29,415
		655,024			599,593

Creditors: amounts falling due within one year	6	(181,899)			(187,137)

Net current assets			473,125			412,456

Total assets less current liabilities			479,953			420,904

Creditors: amounts falling due after more than one year	7		(787,707)			(735,144)



Net liabilities			(307,754)			(314,240)

Capital and reserves
Called up share capital	9		100			100
Profit and loss account			(307,854)			(314,340)

Shareholders' funds			(307,754)			(314,240)

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.




R G J Lester
Director
Approved by the board on 25 September 2018

Rowan Homes (SW) Limited
Notes to the Accounts
for the year ended 31 December 2017


1	Summary of significant accounting policies

	Basis of preparation
	The accounts have been prepared in accordance with Financial Reporting Standard 102 (FRS 102) and the Companies Act 2006 (as applicable to companies subject to the small companies regime). The significant accounting policies applied in the preparation of these statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of property and from the rendering of services. Turnover from the sale of property is recognised when the contract for sale is completed and all contractual conditions have been fulfilled.. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Tangible fixed assets
	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

	Plant and machinery			20% straight line
	Motor vehicles			25% straight line

	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. Stock is assessed for impairment at each reporting date. The carrying amount of each item of stock is compared with its selling price less costs to complete and sell. If an item of stock is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the profit and loss account. Where an impairment loss is subsequently reversed, the carrying amount of the stock is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the stock in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

	Borrowing Costs
	Borrowing costs that are directly attributable to the acquisition, construction or production of stock are capitalised as part of the cost of that stock. Capitalisation is applied consistently to each property in stock. The borrowing costs that are directly attributable to the acquisition, construction or production of the stock are those borrowing costs that would have been avoided if the expenditure on the stock property had not been made.

	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.

	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference. Current and deferred tax assets and liabilities are not discounted.

	Provisions
	Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.

	Employee benefits
	When employees have rendered service to the company, short term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

	Going Concern
	The company has indebtedness to its bank and the directors of £154,699 (2016 - £158,977) and £637,433 (2016 - £586,765) respectively. The company is reliant on the continued support of the company's bankers and directors. The directors do not consider this support will be withdrawn and that the company can continue trading as a going concern for the foreseeable future.


2	Employees					2017		2016
Number							Number

	Average number of persons employed by the company					2		2


3	Tangible fixed assets
				Plant and machinery		Motor vehicles		Total
£					£		£
	Cost
	At 1 January 2017			3,251		17,220		20,471
	Additions			2,459		-		2,459
	Disposals			-		(3,055)		(3,055)
	At 31 December 2017			5,710		14,165		19,875

	Depreciation
	At 1 January 2017			2,476		9,547		12,023
	Charge for the year			537		3,542		4,079
	On disposals			-		(3,055)		(3,055)
	At 31 December 2017			3,013		10,034		13,047

	Net book value
	At 31 December 2017			2,697		4,131		6,828
	At 31 December 2016			775		7,673		8,448
	The company has allowed a floating charge over the company's assets, as security for the bank loan.


4	Stock

	Stocks include interest on funds borrowed to fund developments in progress at the year end. Borrowing costs in the year totalling £7,295 (2016 - £12,940) have been included in stock. The total interest included in stocks at the year end was £85,826 (2016 - £90,821). The amount of impairment losses recognised in the profit and loss account during the year is £ nil (2016 - £63,935). The reversals of impairment losses recognised in earlier years are £20,439 (2016 - £Nil). The company has allowed a floating charge over the company's assets, including development land and buildings with a carrying amount of £291,894 (2016 - £347,727), as security for the bank loan.


5	Debtors					2017		2016
£							£

	Other debtors					4,195		3,243


6	Creditors: amounts falling due within one year					2017		2016
£							£

	Bank loans and overdrafts					4,425		-
	Trade creditors					1,078		3,461
	Other taxes and social security costs					-		5,373
	Other creditors					176,396		178,303
						181,899		187,137


7	Creditors: amounts falling due after one year					2017		2016
£							£

	Bank loans					150,274		158,977
	Other creditors					637,433		576,167
						787,707		735,144


8	Borrowings					2017		2016
£							£
	Creditors include:
	Loan instalments falling due for payment after more than five years					130,493		135,788


	Secured bank loans					154,699		158,977

	The bank loans are secured by the following: a first legal charge over the freehold property at The Old Chapel, Chapel Street, Gunnislake, PL18 9NA, a property included within stock: together with a floating charge on company assets and a personal guarantee by a director.


9	Share Capital	Nominal		2017		2017		2016
Value			Number		£		£

	Ordinary shares	£1 each		100		100		100


10	Related party transactions

	A director has provided a personal guarantee for £50,000 for the company loan. The directors have lent various amounts to the company. No interest was due for the year (2016 £Nil). Unpaid accrued interest at the year end was £169,332 (2016 - £169,332). The loan amount due at the year end to the directors and included in other creditors is £637,433 (2016 - £576,167). The directors have indicated that they will not seek repayment of the loan for at least 12 months following approval of the accounts.


11	Other information

	Rowan Homes (SW) Limited is a private company limited by shares and incorporated in England. Its registered office is:
	17 Wyndham Square
	Plymouth
	Devon
	PL1 5EF

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