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Company Registration number: 00903201

Betterment Properties (Weymouth) Limited

Annual Report and Financial Statements

for the Year Ended 31 May 2022

 

Betterment Properties (Weymouth) Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12 to 13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 28

 

Betterment Properties (Weymouth) Limited

Company Information

Directors

S M Mansfield

J Saunders

Registered office

Leanne House
6 Avon Close
Weymouth
Dorset
DT4 9UX

Auditors

Albert Goodman LLP
Leanne House
6 Avon Close
Weymouth
Dorset
DT4 9UX

 

Betterment Properties (Weymouth) Limited

Strategic Report for the Year Ended 31 May 2022

The directors present their strategic report for the year ended 31 May 2022.

Principal activity

The principal activity of the company is that of property developers.

Fair review of the business

The company made a profit on ordinary activities before tax of £1,600,338 in the year to 31 May 2022 (2021 - £3,093,299).

This was based on turnover from development and land sales of £12,924,520 (2021 - £17,045,650), farming income of £1,253,581 (2021 - £529,890) and rental income of £717,451 (2021 - £528,381).The housing market continued to be strong in the year to 31 May 2022 with the company selling 53 properties during the year compared with 66 in the previous year. The sales were split over three sites, principally at Curtis Fields and Bumpers Lane with a legacy site at Axminster yielding a smaller number of sales.

The company had three sites with active development ongoing at the year end which have continued to yield a satisfactory level of sales in the current year.

The directors monitor costs on development sites carefully reviewing costs on a square foot basis against budgets and historic production levels.

The company's land bank remains strong with sufficient land in the balance sheet to facilitate development for a number of years.

The company continues to farm its agricultural land satisfactorily.

Principal risks and uncertainties

The company principal activity is property development, building houses for sale in the residential property market and is therefore subject to the fluctuations in house prices and levels of activity in the local area. The key risks identified and strategies developed to manage these risks are detailed below.

House prices were rising at the year end and activity levels have continued to increase when compared to historical levels. This increases the uncertainty that the existing land bank and intended future land purchases will be insufficient for future trading at this level. This risk is being mitigated by retaining appropriate funds and using a fairly risky appraisal process when assessing potential land purchases and development decisions, using the predicted eventual sales proceeds that might be achieved.Construction costs are controlled by strong budgetary control and review of costs.

Arable farming is organised with a contract farmer to minimise the risk of the cost of crops but the eventual selling prices is entirely dependant on widely fluctuating open market prices for wheat.

Approved by the Board on 11 October 2023 and signed on its behalf by:


S M Mansfield
Director

   
 

Betterment Properties (Weymouth) Limited

Directors' Report for the Year Ended 31 May 2022

The directors present their report and the financial statements for the year ended 31 May 2022.

Directors of the company

The directors who held office during the year were as follows:

M Stewkesbury (Deceased 7 May 2023)

S M Mansfield

J Saunders

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, and loans to and from the company. The main purpose of these instruments is to raise funds to finance the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to finance the company's operations.

Due to the nature of the financial instruments used there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

The liquidity of bank balances is managed by monitoring the amounts placed on deposit to ensure that sufficient liquidity is maintained.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning credit offered to customers and the regular monitoring of amounts outstanding from customers.

Future Developments

The future developments of the business are included within the strategic report.

Approved by the Board on 11 October 2023 and signed on its behalf by:


S M Mansfield
Director

   
 

Betterment Properties (Weymouth) Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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.

 

Betterment Properties (Weymouth) Limited

Independent Auditor's Report to the Members of Betterment Properties (Weymouth) Limited

Opinion

We have audited the financial statements of Betterment Properties (Weymouth) Limited (the 'company') for the year ended 31 May 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 31 May 2022 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 auditor 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 director's 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 original financial statements were 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.

 

Betterment Properties (Weymouth) Limited

Independent Auditor's Report to the Members of Betterment Properties (Weymouth) Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of our 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 and the Directors' Report.

Matters on which we are required to report by exception

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 4, 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.

 

Betterment Properties (Weymouth) Limited

Independent Auditor's Report to the Members of Betterment Properties (Weymouth) Limited

Auditor 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 auditor’s 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:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the construction sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and 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;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

 

Betterment Properties (Weymouth) Limited

Independent Auditor's Report to the Members of Betterment Properties (Weymouth) Limited

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

agreeing financial statement disclosures to underlying supporting documentation;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

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 misstatements 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 auditor's report.

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 an auditor’s report 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.





Joseph Doggrell BSc (Hons) FCA (Senior Statutory Auditor)
For and on behalf of Albert Goodman LLP, Statutory Auditor

Leanne House
6 Avon Close
Weymouth
Dorset
DT4 9UX

16 October 2023

 

Betterment Properties (Weymouth) Limited

Profit and Loss Account
for the Year Ended 31 May 2022

Note

2022
 £

2021
 £

Turnover

3

14,178,101

17,575,540

Cost of sales

 

(11,106,705)

(14,516,572)

Gross profit

 

3,071,396

3,058,968

Administrative expenses

 

(678,111)

(549,977)

Other operating income

4

762,451

584,308

Operating profit

5

3,155,736

3,093,299

Fair value adjustment in respect of investment properties

 

172,972

-

Other interest receivable and similar income

6

22,528

16,329

Interest payable and similar charges

7

(898)

(5,942)

Profit before tax

 

3,350,338

3,103,686

Taxation

11

(600,991)

(552,033)

Profit for the financial year

 

2,749,347

2,551,653

The above results were derived from continuing operations.

 

Betterment Properties (Weymouth) Limited

Statement of Comprehensive Income
for the Year Ended 31 May 2022

2022
£

2021
£

Profit for the year

2,749,347

2,551,653

Total comprehensive income for the year

2,749,347

2,551,653

 

Betterment Properties (Weymouth) Limited

(Registration number: 00903201)
Balance Sheet as at 31 May 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

12

9,319,369

9,325,042

Investment property

13

6,786,500

6,017,028

Investments

14

41,200

41,200

Other financial assets

15

250,000

250,000

 

16,397,069

15,633,270

Current assets

 

Stocks

16

25,275,632

20,023,518

Debtors

17

6,098,179

4,911,447

Cash at bank and in hand

 

8,034,474

13,470,084

 

39,408,285

38,405,049

Creditors: Amounts falling due within one year

19

(847,703)

(1,818,015)

Net current assets

 

38,560,582

36,587,034

Total assets less current liabilities

 

54,957,651

52,220,304

Creditors: Amounts falling due after more than one year

19

(600,000)

(600,000)

Provisions for liabilities

20

(18,888)

(18,888)

Net assets

 

54,338,763

51,601,416

Capital and reserves

 

Called up share capital

120,000

120,000

Capital redemption reserve

99,903

99,903

Revaluation reserve

1,823,438

1,103,978

Retained earnings

52,295,422

50,277,535

Shareholders' funds

 

54,338,763

51,601,416

Approved and authorised by the Board on 11 October 2023 and signed on its behalf by:
 


S M Mansfield
Director

   
 

Betterment Properties (Weymouth) Limited

Statement of Changes in Equity
for the Year Ended 31 May 2022

Ordinary share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss reserve
£

Total
£

At 1 June 2021

120,000

99,903

1,103,978

50,277,535

51,601,416

Movement in year :

Profit for the year

-

-

-

2,749,347

2,749,347

Total comprehensive income

-

-

-

2,749,347

2,749,347

Dividends

-

-

-

(12,000)

(12,000)

Transfers

-

-

719,460

(719,460)

-

Total movement for the year

-

-

719,460

2,017,887

2,737,347

At 31 May 2022

120,000

99,903

1,823,438

52,295,422

54,338,763

 

Betterment Properties (Weymouth) Limited

Statement of Changes in Equity
for the Year Ended 31 May 2022

Ordinary share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss reserve
£

Total
£

At 1 June 2020

120,000

99,903

1,216,457

47,829,903

49,266,263

Movement in year :

Profit for the year

-

-

-

2,551,653

2,551,653

Total comprehensive income

-

-

-

2,551,653

2,551,653

Dividends

-

-

-

(216,500)

(216,500)

Transfers

-

-

(112,479)

112,479

-

Total movement for the year

-

-

(112,479)

2,447,632

2,335,153

At 31 May 2021

120,000

99,903

1,103,978

50,277,535

51,601,416

 

Betterment Properties (Weymouth) Limited

Statement of Cash Flows
for the Year Ended 31 May 2022

Note

2022
 £

2021
 £

Cash flows from operating activities

Profit for the year

 

2,749,347

2,551,653

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

77,367

50,645

Changes in fair value of investment property

13

(172,972)

-

Profit on disposal of tangible assets

-

(21,028)

Finance income

6

(22,528)

(16,329)

Finance costs

7

898

5,942

Income tax expense

11

600,991

552,033

 

3,233,103

3,122,916

Working capital adjustments

 

(Increase)/decrease in stocks

16

(5,252,114)

2,423,460

Increase in trade and other debtors

17

(943,299)

(1,050,431)

Increase in trade and other creditors

19

283,893

74,922

Cash generated from operations

 

(2,678,417)

4,570,867

Income taxes paid

11

(2,098,629)

(206,895)

Net cash flow from operating activities

 

(4,777,046)

4,363,972

Cash flows from investing activities

 

Interest received

6

22,528

16,329

Acquisitions of tangible assets

(71,694)

(52,456)

Proceeds from sale of tangible assets

 

-

21,028

Acquisition of investment properties

(596,500)

-

Proceeds from sale of investment properties

 

-

262,972

Net cash flows from investing activities

 

(645,666)

247,873

Cash flows from financing activities

 

Interest paid

7

(898)

(5,942)

Dividends paid

22

(12,000)

(216,500)

Net cash flows from financing activities

 

(12,898)

(222,442)

Net (decrease)/increase in cash and cash equivalents

 

(5,435,610)

4,389,403

Cash and cash equivalents at 1 June 2021

 

13,470,084

9,080,681

Cash and cash equivalents at 31 May 2022

18

8,034,474

13,470,084

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Leanne House
6 Avon Close
Weymouth
Dorset
DT4 9UX

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Key sources of estimation uncertainty

The company carries stocks at the lower of cost and net realisable value.

Due to the nature of development timescales, it is routinely necessary to estimate costs to complete and future revenues and to allocate non-unit specific development costs between units legally completing in the current financial year and in future periods. A full review of the net realisable value of stocks was undertaken by the company as at 31 May 2022. Reasonable foreseeable changes in the assumptions used would not have a significant impact on the net realisable value.

Turnover recognition

Housing turnover comprises the value of contracts for the sale of houses once legal completion has taken place. Other turnover is based on the invoiced value, excluding value added tax and discounts, of goods and services supplied during the year.

Rental income received is included as other operating income and accounted on a cash received basis.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

Tax

The tax expense for the period comprises current tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% written down value

Fixtures and fittings

25% written down value

Motor vehicles

25% written down value

Freehold buildings

2% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade and other debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

Capital redemption reserve records the nominal value of shares repurchased by the company.

Investment Properties revaluation reserve is the surplus or deficit arising on the valuation of investment properties to fair value.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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 payments obligations.

The contributions are recognised as an expense in the profit and loss account 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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2022
£

2021
£

Sale of houses

12,924,520

17,045,650

Farming income

1,253,581

529,890

14,178,101

17,575,540

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2022
£

2021
£

Government grants

-

46,493

Rental income

762,451

537,815

762,451

584,308

5

Operating profit

Arrived at after charging/(crediting):

2022
 £

2021
 £

Depreciation expense

77,367

50,645

Profit on disposal of tangible fixed assets

-

(21,028)

6

Other interest receivable and similar income

2022
£

2021
£

Interest income on bank deposits

16,824

4,352

Other finance income

5,704

11,977

22,528

16,329

7

Interest payable and similar expenses

2022
£

2021
£

Interest expense on other finance liabilities

898

5,942

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2022
£

2021
£

Wages and salaries

514,850

479,470

Social security costs

54,543

47,772

Pension costs, defined contribution scheme

15,961

13,804

585,354

541,046

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2022
No.

2021
No.

Production

7

6

Administration and support

8

8

15

14

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2022
£

2021
£

Remuneration

114,071

101,800

Contributions paid to money purchase schemes

2,562

2,433

116,633

104,233

10

Auditors' remuneration

2022
£

2021
£

Audit of the financial statements

(2,392)

15,000


 

11

Taxation

Tax charged/(credited) in the profit and loss account:

2022
 £

2021
 £

Current taxation

UK corporation tax

600,991

552,033

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
£

2021
£

Profit before tax

3,350,338

3,103,686

Corporation tax at standard rate

636,564

589,700

Effect of revenues exempt from taxation

(32,865)

-

Decrease from effect of tax incentives

(2,081)

(39,971)

Tax (decrease)/increase from effect of capital allowances and depreciation

(627)

2,304

Total tax charge

600,991

552,033

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

12

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 June 2021

9,195,404

124,205

13,001

913,377

10,245,987

Additions

-

4,766

-

66,928

71,694

At 31 May 2022

9,195,404

128,971

13,001

980,305

10,317,681

Depreciation

At 1 June 2021

5,207

113,695

13,001

789,042

920,945

Charge for the year

25,775

3,819

-

47,773

77,367

At 31 May 2022

30,982

117,514

13,001

836,815

998,312

Carrying amount

At 31 May 2022

9,164,422

11,457

-

143,490

9,319,369

At 31 May 2021

9,190,197

10,510

-

124,335

9,325,042

Included within the net book value of land and buildings above is £9,164,422 (2021 - £9,190,197) in respect of freehold land and buildings.
 

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

13

Investment properties

2022
 £

At 1 June 2021

6,017,028

Additions

596,500

Fair value adjustments

172,972

At 31 May 2022

6,786,500

The investment properties class of fixed assets was adjusted on 31 May 2021 to fair value by the directors.

The basis of this valuation was open market value provided by Hull Gregson Hull, estate agents.

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

14

Investments

2022
£

2021
£

Investments in subsidiaries

41,200

41,200

Subsidiaries

£

Cost or valuation

At 1 June 2021

41,200

Carrying amount

At 31 May 2022

41,200

At 31 May 2021

41,200

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

Residential Estates (Dorset) Limited

The registered office is the same as the company.

Ordinary

100%

100%

 

     

Subsidiary undertakings

Residential Estates (Dorset) Limited

The principal activity of Residential Estates (Dorset) Limited is dormant.

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

15

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 June 2021

250,000

250,000

At 31 May 2022

250,000

250,000

Carrying amount

At 31 May 2022

250,000

250,000

16

Stocks

2022
£

2021
£

Land

5,701,072

5,425,087

Houses under construction and finished houses

19,408,682

14,463,988

Other stocks

165,878

134,443

25,275,632

20,023,518

17

Debtors

Current

Note

2022
£

2021
£

Trade debtors

 

95,976

115,705

Other debtors

 

5,721,582

4,714,261

Prepayments

 

37,188

81,481

Corporation tax

11

243,433

-

   

6,098,179

4,911,447

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

Details of non-current trade and other debtors

£4,136,357 (2021 -£1,784,637) of other debtors is classified as non current. The non-current element relates to bonds paid by the company on its developments that are receivable in more than one year.

18

Cash and cash equivalents

2022
£

2021
£

Cash at bank

8,034,401

13,470,011

Short-term deposits

73

73

8,034,474

13,470,084

19

Creditors

Note

2022
 £

2021
 £

Due within one year

 

Trade creditors

 

595,830

244,293

Amounts owed to group undertakings

 

106,871

106,871

Other creditors

 

108,446

154,471

Accrued expenses

 

36,556

58,175

Corporation tax

11

-

1,254,205

 

847,703

1,818,015

Due after one year

 

Loans and borrowings

21

600,000

600,000

20

Provisions for liabilities

Deferred tax
£

Total
£

At 1 June 2021

18,888

18,888

At 31 May 2022

18,888

18,888

Deferred tax

Deferred tax assets and liabilities:

2022

Asset
£

Liability
£

Capital allowances in excess of depreciation

-

18,888

-

18,888

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

2021

Asset
£

Liability
£

Capital allowances in excess of depreciation

-

18,888

-

18,888

21

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Redeemable preference shares

600,000

600,000

The redeemable preferance shares are entitled to nominal value on winding up and a cumulative floating rate dividend. The shares are redeemable in 2030 or after twenty one days notice by the company.

22

Dividends

 

2022

2021

 

£

£

Interim dividend

12,000

216,500

     

23

Related party transactions

Key management personnel

The directors are considered to be the only key management of the company and their remuneration is disclosed in note 9.

Transactions with directors

2022

At 1 June 2021
£

Advances to director
£

Repayments by director
£

At 31 May 2022
£

M Stewkesbury

Interest bearing current account

274,326

83,404

(33,827)

323,903

         

2021

At 1 June 2020
£

Advances to director
£

Repayments by director
£

At 31 May 2021
£

M Stewkesbury

Interest bearing current account

225,403

50,887

(1,964)

274,326

         
       

 

 

Betterment Properties (Weymouth) Limited

Notes to the Financial Statements
for the Year Ended 31 May 2022

Summary of transactions with entities with joint control or significant interest

Included in other debtors is a balance of £406,062 (2021 - £1,740,200) due from Portland Stone Firms Limited. This is repayable on demand and interest has been charged by the company amounting to £Nil (2021 - £Nil). The company made purchases from Portland Stone Firms Limited of land totalling £1,168.200 during the year.
 

24

Parent and ultimate parent undertaking

The ultimate controlling party is the estate of the late Mervyn Stewkesbury.

25

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £15,961 (2021 - £13,804).