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NORFOLK HOMES LIMITED

ANNUAL REPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Registered number: 1910791

 
NORFOLK HOMES LIMITED
 

COMPANY INFORMATION




 Directors
A D Clark 
P J Makepeace 
J S A Nicholls 




 Company secretary
A D Clark



 Registered number
1910791



 Registered office
52 Cambridge Road South

London

W4 3DA




 Independent Auditors
Tony Larner Limited
Chartered Certified Accountants & Statutory Auditors

23 Station Road

Sheringham

Norfolk

NR26 8RF




 Bankers
Lloyds Bank PLC
PO Box 72

Bailey Drive

Gillingham Business Park

Kent

ME8 0LS




 Solicitors
Isadore Goldman
Lawrence House

5 St Andrews Hill

Norwich

Norfolk

NR2 1AD





 
NORFOLK HOMES LIMITED
 

CONTENTS



Page
Strategic report
 
 
1 - 2
Directors' report
 
 
3 - 4
Independent auditors' report
 
 
5 - 7
Statement of comprehensive income
 
 
8
Balance sheet
 
 
9
Statement of changes in equity
 
 
10
Notes to the financial statements
 
 
11 - 20


 
NORFOLK HOMES LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

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

Introduction
 
During the year the Company has successfully continued house building operations in Norfolk.

Business review
 
The Company has continued to trade profitably and the directors are very satisfied with the trading performance and the Company’s overall financial position.
The Company results are shown in the Statement of Comprehensive Income on page 8 and the Balance Sheet on page 9.
The Company is primarily funded by reserves. A bank overdraft facility, together with other related party loans form the balance of funding requirements. 

Principal risks and uncertainties
 
The directors are mindful at all times of the risks and factors which affect the successful operation of the Company’s business. Appropriate processes are in place to monitor and mitigate risks.
Operating risks include, but are not limited to, the following issues:
 
The economic climate, buyer confidence and the housing market. General housing demand and supply.
 
The availability of development land and the complexities of dealing with the planning process.
 
Attracting and retaining the very best personnel, workforce, subcontractors and professional advisers.
 
Ensuring adequate systems and procedures exist, to reduce as far as possible the health and safety risks associated with construction operations.

Financial key performance indicators
 
The following key performance indicators are highlighted: 

Turnover for the year amounted to £41,402,320 (2022 - £37,079,006); Profit on ordinary activities before taxation £6,988,862 (2022 - £4,342,577); Total shareholder funds £55,205,769 (2022 - £50,594,888); The total number of employees increased to 58 (2022 - 53).

Page 1

 
NORFOLK HOMES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Directors' statement of compliance with duty to promote the success of the Company
 
The directors have a duty to act in good faith and to promote the success of the company for the benefit of its members.
The following, details how the directors have had regard to the matters set out in s172 of the Companies Act 2006.
 
The long term success of the company - is always considered when making strategic decisions and formulating strategies and risk management procedures within the company.
 
The interests of the company’s employees – The company has a very experienced and dedicated workforce which the directors appreciate and recognise is a valuable asset. The directors endeavour to create opportunities and the right environment for all employees to prosper and realise their full potential for mutual benefit.
 
The interests of customers and suppliers - The directors promote an environment to achieve a good and successful business relationship with customers, subcontractors, trade suppliers, third parties and professional advisers, recognising that this approach is important to ensure the company’s long term future and success.  
 
The community and environment – The company continues to support various charities and good causes in the local areas in which the company operates. The directors consider carefully the impact of the company’s business on communities and the environment.   All development opportunities are subject to detailed assessment, and are designed and undertaken with social responsibility, and for the benefit of customers and communities. The company are committed to electrifying their fleet of company vehicles, and to designing and building houses using the latest environmentally friendly materials, working practices and technologies.
 
Maintaining high standards and reputation – The directors and company operate and maintain high standards in all aspects of business. The directors are mindful of the importance of maintaining standards and protecting the company’s goodwill and reputation.


This report was approved by the board on 16 October 2023 and signed on its behalf.





A D Clark
Director

Page 2

 
NORFOLK HOMES LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the Company is house building.

Results and dividends

The profit for the year, after taxation, amounted to £5,610,886 (2022 - £3,528,379).

The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

A D Clark 
P J Makepeace 
J S A Nicholls 

Future developments

The Company continually seeks new opportunities to acquire development land and options over potential development land.

The directors' believe that the Company is well positioned to prosper in the future and to continue to operate profitably.

Page 3

 
NORFOLK HOMES LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company's greenhouse gas emissions and energy consumption data is included with other group companies in the consolidated financial statements of the ultimate parent Norfolk Homes Holdings Limited.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end that require adjustment to these financial statements.

Auditors

The auditorsTony Larner Limitedare deemed to be reappointed in accordance with an elective resolution made under section 386 of the Companies Act 1985 which continues in force under the Companies Act 2006.

This report was approved by the board on 16 October 2023 and signed on its behalf.
 






A D Clark
Director

Page 4

 
NORFOLK HOMES LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORFOLK HOMES LIMITED

Opinion

We have audited the financial statements of Norfolk Homes Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 31 March 2023 and of its profit 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Page 5

 
NORFOLK HOMES LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORFOLK HOMES LIMITED (CONTINUED)

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 Directors' report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 3, 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 is 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 an Auditors' report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities, including fraud
 
Based on our knowledge and understanding of the company and the housebuilding industry we identified the principal risks of a material misstatement in the financial statements relating to irregularities including fraud, and non-compliance with laws and regulations.
We documented our understanding of the legal and regulatory frameworks within which the company operates and focused on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Financial Reporting Standard 102, and compliance with relevant direct and indirect taxation regulations.
We also generally evaluated management’s incentives and opportunities for manipulation of the financial statements and determined that the principal risk in this area related to the calculation and valuation of construction work in progress. This involved management judgment to assess future income and direct construction costs in order to calculate development site profit margins and so establish work in progress value.
Audit procedures performed to respond to the risks identified included;
 
We assessed whether the accounting policies, treatments and presentation adopted in the financial statements were in accordance with applicable law and accounting standards.
 

Page 6

 
NORFOLK HOMES LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORFOLK HOMES LIMITED (CONTINUED)

We reviewed correspondence and documentation with regulatory bodies, such as HM Revenue & Customs for any indication of non-compliance with laws and regulations. 

We carried out a detailed analytical review of site work in progress calculations to identify unusual or unexpected results which may have indicated a risk of material misstatement. We compared results to previous accounting periods to monitor variances and ensure that these were as expected. We also reviewed post year end evidence to support the assessment of future income and expenditure.
 
We held discussions with management regarding the potential risks related to accounting irregularities, including fraud and carried out tests of management controls in certain areas, such as the approval for payment of business expenditure to suppliers.
 
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through 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 Auditors' report.





Antony Richard Larner (Senior Statutory Auditor)
for and on behalf of
Tony Larner Limited
Chartered Certified Accountants
Statutory Auditors
23 Station Road
Sheringham
Norfolk
NR26 8RF

16 October 2023
Page 7

 
NORFOLK HOMES LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
41,402,320
37,079,006

Cost of sales
  
(27,676,282)
(23,671,690)

Gross profit
  
13,726,038
13,407,316

Selling and direct expenses
  
(3,910,974)
(3,442,716)

Administration expenses
  
(2,573,026)
(5,374,440)

Operating profit
 5 
7,242,038
4,590,160

Interest receivable and similar income
 8 
5,872
1,151

Interest payable and similar expenses
 9 
(259,048)
(248,734)

Profit before tax
  
6,988,862
4,342,577

Tax on profit
 10 
(1,377,976)
(814,198)

Profit for the financial year
  
£5,610,886
£3,528,379

Total comprehensive income for the year
  
£5,610,886
£3,528,379

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

The notes on pages 11 to 20 form part of these financial statements.

Page 8

 
NORFOLK HOMES LIMITED
REGISTERED NUMBER:1910791

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,339,218
1,132,098

Current assets
  

Stocks
 13 
56,369,756
56,121,548

Debtors: amounts falling due within one year
 14 
5,572,945
1,471,598

Cash at bank and in hand
  
610
458

  
61,943,311
57,593,604

Creditors: amounts falling due within one year
 15 
(7,757,844)
(7,939,080)

Net current assets
  
 
 
54,185,467
 
 
49,654,524

Total assets less current liabilities
  
55,524,685
50,786,622

Provisions for liabilities
  

Deferred tax
 16 
(318,916)
(191,734)

Net assets
  
£55,205,769
£50,594,888


Capital and reserves
  

Called up share capital 
 17 
400,002
400,002

Profit and loss account
 18 
54,805,767
50,194,886

  
£55,205,769
£50,594,888


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 October 2023.






A D Clark
Director

The notes on pages 11 to 20 form part of these financial statements.

Page 9

 
NORFOLK HOMES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2022
400,002
50,194,886
50,594,888


Comprehensive income for the year

Profit for the year
-
5,610,886
5,610,886


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,000,005)
(1,000,005)


At 31 March 2023
£400,002
£54,805,767
£55,205,769


The notes on pages 11 to 20 form part of these financial statements.




STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2021
400,002
46,666,507
47,066,509


Comprehensive income for the year

Profit for the year
-
3,528,379
3,528,379


At 31 March 2022
£400,002
£50,194,886
£50,594,888


The notes on pages 11 to 20 form part of these financial statements.

Page 10

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Norfolk Homes Limited is a private company, limited by shares, incorporated in England and Wales. The company's registered office is 52 Cambridge Road South, London, W4 3DA. The company's principal place of business is Weybourne Road, Sheringham, Norfolk, NR26 8WB.

The principal activity of the Company is house building.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are presented in sterling which is the functional currency of the company.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Norfolk Homes Holdings Limited as at 31 March 2023 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

The directors have prepared the accounts on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future and for a period of no less than twelve months from the date of approving the financial statements.

 
2.4

Turnover

Turnover represents the value of house sales and is recognised where contracts for sale have been completed at the year end. Deposits received on exchange of contracts prior to the year end are also included within turnover on the basis that these are non-refundable. Turnover excludes Value Added Tax.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Page 11

 
NORFOLK HOMES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

Depreciation is provided at rates calculated to write off the cost of fixed assets over their estimated useful lives. 

Depreciation is provided on the following bases:

Plant and machinery
-
25%
reducing balance
Motor vehicles
-
25%
reducing balance
Showhouse furniture
-
15%
reducing balance
Office equipment
-
25%
reducing balance


Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

 
2.6

Stocks

Stocks and work in progress comprise development land and properties under construction and are valued at the lower of cost and net realisable value. The cost of work in progress includes all direct construction costs. Net realisable value is based on estimated selling price. Development land is included where contracts to purchase land have been exchanged prior to the year end. The corresponding liability is included in creditors.


 
2.7

Debtors

Debtors are measured at transaction price, less any impairment for bad or doubtful debts.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.9

Financial instruments

Basic financial assets and liabilities

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


 
2.10

Creditors

Short-term creditors are measured at the transaction price.

 
2.11

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

Page 12

 
NORFOLK HOMES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.12

Dividends

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.

 
2.13

Pensions

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 the Statement of Comprehensive Income when they fall due. The assets of the plan are held separately from the Company in independently administered funds.

 
2.14

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.16

Current and deferred taxation

The taxation expense for the year comprises current and deferred tax. Taxation is recognised in the Statement of Comprehensive Income.

The current corporation 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 United Kingdom.

The charge for taxation takes into account taxation deferred or accelerated as a result of all material timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax assets are recognised only to the extent that they are regarded as recoverable within the foreseeable future. Deferred tax assets and liabilities are not discounted.

Page 13

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Accounting estimates and judgements

The preparation of the financial statements involves, in certain areas, the use of accounting estimates and management judgment. The key areas involving estimates and judgments are as follows: 

The valuation of work in progress, incorporating assessments of future income and costs taking prudent account of economic circumstances.

The appropriate method and rate for depreciation of tangible fixed assets.



4.


Turnover

2023
2022
£
£

United Kingdom
41,402,320
37,079,006

£41,402,320
£37,079,006


All turnover arose within the United Kingdom.




5.


Operating profit

During the year, the directors did not received any emoluments (2022 - £NIL).



6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's annual financial statements
18,500
18,000

Fees payable to the Company's auditor in respect of:

Taxation compliance services
8,000
8,000

All non-audit services not included above
26,568
25,748

Page 14

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
2,844,156
2,466,856

Social security costs
327,103
264,458

Cost of defined contribution pension scheme
169,535
179,416

£3,340,794
£2,910,730




The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Office, administration and managerial
17
16



Production
36
33



Sales and marketing
5
4

58
53




8.


Interest receivable

2023
2022
£
£


Other interest receivable
5,872
1,151

£5,872
£1,151




9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
8
656

Other loan interest payable
259,040
248,078

£259,048
£248,734

Page 15

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,250,794
793,648


Total current tax
£1,250,794
£793,648

Deferred tax


Origination and reversal of timing differences
127,182
20,550

Total deferred tax
£127,182
£20,550


Taxation on profit on ordinary activities
£1,377,976
£814,198

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
£6,988,862
£4,342,577


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
1,327,884
825,090

Effects of:


Expenses not deductible for tax purposes
1,033
968

Capital allowances for year in excess of depreciation
(78,123)
(32,410)

Deferred taxation
127,182
20,550

Total tax charge for the year
£1,377,976
£814,198


Factors that may affect future tax charges

The main rate of Corporation Tax, currently 19% within these accounts, will increase to 25% with effect from 1 April 2023. The calculation for the deferred tax liability reflects this rate change.

Page 16

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Dividends

2023
2022
£
£


Interim dividend paid
1,000,005
-

£1,000,005
£-




12.


Tangible fixed assets





Plant & machinery
Motor vehicles
Showhouse furniture
Office equipment
Total

£
£
£
£
£



Cost


At 1 April 2022
2,662,909
548,590
73,442
277,488
3,562,429


Additions
507,709
182,340
27,978
12,970
730,997


Disposals
(254,711)
(88,393)
-
-
(343,104)



At 31 March 2023

2,915,907
642,537
101,420
290,458
3,950,322



Depreciation


At 1 April 2022
1,914,088
252,993
34,436
228,814
2,430,331


Charge for the year on owned assets
305,233
106,783
10,048
15,411
437,475


Disposals
(219,114)
(37,588)
-
-
(256,702)



At 31 March 2023

2,000,207
322,188
44,484
244,225
2,611,104



Net book value



At 31 March 2023
£915,700
£320,349
£56,936
£46,233
£1,339,218



At 31 March 2022
£748,821
£295,597
£39,006
£48,674
£1,132,098



Page 17

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Stocks

2023
2022
£
£

Development land
27,070,146
32,143,565

Work in progress
30,106,620
25,492,216

Payments received on account
(807,010)
(1,514,233)

£56,369,756
£56,121,548



14.


Debtors

2023
2022
£
£


Trade debtors
250,870
203,149

Amounts owed by group undertakings
3,898,321
-

Other debtors
1,310,181
1,148,703

Prepayments and accrued income
113,573
119,746

£5,572,945
£1,471,598





15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,913,765
2,686,516

Amounts owed to group undertakings
-
744,086

Corporation tax
950,832
493,686

Other taxation and social security
488,262
455,362

Other creditors
3,240,985
3,354,930

Accruals and deferred income
164,000
204,500

£7,757,844
£7,939,080




Page 18

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Deferred taxation




2023
2022


£

£






At 1 April 2022
191,734
171,184


Charged to Statement of Comprehensive Income
127,182
20,550



At 31 March 2023
£318,916
£191,734

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
318,916
191,734

£318,916
£191,734


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



400,002 (2022 - 400,002) Ordinary shares of £1.00 each
£400,002
£400,002



18.


Reserves

Profit & loss account

This reserve comprises all current and prior years retained profits and losses.


19.


Contingent liabilities

An election has been made for the group of undertakings of which this Company is a member to be treated as a single entity for VAT purposes. The Company has therefore been required to provide guarantees in respect of any liability for Value Added Tax by the other undertakings within the group.

The Company's bankers hold a letter of set-off and unlimited guarantees between the Company and the other members of the group. The arrangement is reciprocated.

The financial effect of these contingencies cannot be quantified.

Page 19

 
NORFOLK HOMES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £169,535 (2022 - £179,416). There were no contributions outstanding at the balance sheet date.


21.


Related party transactions

As a subsidiary undertaking, which is wholly owned within a group of companies that publish, consolidated financial statements, the Company is exempt from the requirement to disclose transactions or balances between group undertakings.
Included within other creditors (note 15) are unsecured loans from a director's family amounting to £2,622,852 (2022 - £2,454,759). Interest paid during the year amounted to £256,000 (2022 - £244,000) and interest due at the year end amounted to £100,000 (2022 - £100,000).
During the year the Company paid rent on showhouse properties owned by members of a director's family. No formal rental agreement exists for this arrangement and rent paid during the year amounted to £250,500 (2022 - £251,500).

During the year the company sold a residential property for £400,000, in the ordinary course of business, to a director of the company.


22.


Ultimate parent undertaking and controlling party

The immediate parent undertaking is Dacerell Limited, a company incorporated and registered in England and Wales.

The ultimate parent company is Norfolk Homes Holdings Limited, a company controlled by Mr A D Clark. The results of the company are consolidated in the financial statements of Norfolk Homes Holdings Limited which can be obtained from Companies House.


23.


Subsidiary undertaking

The company owns 100% of the issued ordinary share capital of Wensum View Management Company Limited. This company was incorporated in connection with a housing development in Drayton, Norwich, Norfolk. The ownership of the company will, on completion of the development, pass to the new owners and residents of the properties at nominal value. This company is dormant and not classified as an investment.


Page 20