Company Registration number:
Betterment Properties (Weymouth) Limited
for the Year Ended 31 May 2022
Betterment Properties (Weymouth) Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Betterment Properties (Weymouth) Limited
Company Information
Directors |
S M Mansfield J Saunders |
Registered office |
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Auditors |
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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
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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:
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
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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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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:
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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 |
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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:
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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; |
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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; |
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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; |
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
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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:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
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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:
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performed analytical procedures to identify any unusual or unexpected relationships; |
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tested journal entries to identify unusual transactions; |
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
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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:
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agreeing financial statement disclosures to underlying supporting documentation; |
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enquiring of management as to actual and potential litigation and claims; and |
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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.
For and on behalf of
Leanne House
6 Avon Close
Dorset
DT4 9UX
Betterment Properties (Weymouth) Limited
Profit and Loss Account
for the Year Ended 31 May 2022
Note |
2022 |
2021 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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|
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Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Fair value adjustment in respect of investment properties |
172,972 |
- |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
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 |
|
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Total comprehensive income for the year |
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Betterment Properties (Weymouth) Limited
(Registration number: 00903201)
Balance Sheet as at 31 May 2022
Note |
2022 |
2021 |
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Fixed assets |
|||
Tangible assets |
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Investment property |
|
|
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Investments |
|
|
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Other financial assets |
250,000 |
250,000 |
|
|
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||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Revaluation reserve |
|
|
|
Retained earnings |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
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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 |
|
|
|
|
|
Movement in year : |
|||||
Profit for the year |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
Transfers |
- |
- |
719,460 |
(719,460) |
- |
Total movement for the year |
- |
- |
719,460 |
2,017,887 |
2,737,347 |
At 31 May 2022 |
|
|
|
|
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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 |
|
|
|
|
|
Movement in year : |
|||||
Profit for the year |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
Transfers |
- |
- |
(112,479) |
112,479 |
- |
Total movement for the year |
- |
- |
(112,479) |
2,447,632 |
2,335,153 |
At 31 May 2021 |
|
|
|
|
|
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 |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
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Changes in fair value of investment property |
( |
- |
|
Profit on disposal of tangible assets |
- |
( |
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Finance income |
( |
( |
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Finance costs |
|
|
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Income tax expense |
|
|
|
|
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||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
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Increase in trade and other debtors |
( |
( |
|
Increase in trade and other creditors |
|
|
|
Cash generated from operations |
( |
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Acquisition of investment properties |
( |
- |
|
Proceeds from sale of investment properties |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 June 2021 |
|
|
|
Cash and cash equivalents at 31 May 2022 |
8,034,474 |
13,470,084 |
Betterment Properties (Weymouth) Limited
Notes to the Financial Statements
for the Year Ended 31 May 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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
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
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
2022 |
2021 |
|
Sale of houses |
|
|
Farming income |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2022 |
2021 |
|
Government grants |
- |
|
Rental income |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting):
2022 |
2021 |
|
Depreciation expense |
|
|
Profit on disposal of tangible fixed assets |
- |
( |
Other interest receivable and similar income |
2022 |
2021 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2022 |
2021 |
|
Interest expense on other finance liabilities |
|
|
Betterment Properties (Weymouth) Limited
Notes to the Financial Statements
for the Year Ended 31 May 2022
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2022 |
2021 |
|
Production |
|
|
Administration and support |
|
|
|
|
Betterment Properties (Weymouth) Limited
Notes to the Financial Statements
for the Year Ended 31 May 2022
Directors' remuneration |
The directors' remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
116,633 |
104,233 |
Auditors' remuneration |
2022 |
2021 |
|
Audit of the financial statements |
( |
|
Taxation |
Tax charged/(credited) in the profit and loss account:
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
|
|
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
The differences are reconciled below:
2022 |
2021 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
( |
- |
Decrease from effect of tax incentives |
( |
( |
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
Total tax charge |
|
|
Betterment Properties (Weymouth) Limited
Notes to the Financial Statements
for the Year Ended 31 May 2022
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
|||||
At 1 June 2021 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
At 31 May 2022 |
|
|
|
|
|
Depreciation |
|||||
At 1 June 2021 |
|
|
|
|
|
Charge for the year |
|
|
- |
|
|
At 31 May 2022 |
|
|
|
|
|
Carrying amount |
|||||
At 31 May 2022 |
|
|
- |
|
|
At 31 May 2021 |
|
|
- |
|
|
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
Investment properties |
2022 |
|
At 1 June 2021 |
|
Additions |
|
Fair value adjustments |
|
At 31 May 2022 |
|
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
Investments |
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 June 2021 |
|
Carrying amount |
|
At 31 May 2022 |
|
At 31 May 2021 |
|
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 |
||||
|
The registered office is the same as the company. |
Ordinary |
|
|
Subsidiary undertakings |
Residential Estates (Dorset) Limited The principal activity of Residential Estates (Dorset) Limited is |
Betterment Properties (Weymouth) Limited
Notes to the Financial Statements
for the Year Ended 31 May 2022
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 |
Stocks |
2022 |
2021 |
|
Land |
|
|
Houses under construction and finished houses |
|
|
Other stocks |
|
|
|
|
Debtors |
Current |
Note |
2022 |
2021 |
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Corporation tax |
|
- |
|
|
|
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.
Cash and cash equivalents |
2022 |
2021 |
|
Cash at bank |
|
|
Short-term deposits |
|
|
|
|
Creditors |
Note |
2022 |
2021 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts owed to group undertakings |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
Corporation tax |
- |
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 June 2021 |
|
|
At 31 May 2022 |
|
|
|
Deferred tax
Deferred tax assets and liabilities:
2022 |
Asset |
Liability |
Capital allowances in excess of depreciation |
- |
|
- |
|
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 |
- |
|
- |
|
Loans and borrowings |
2022 |
2021 |
|
Non-current loans and borrowings |
||
Redeemable preference shares |
|
|
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.
Dividends |
2022 |
2021 |
|
£ |
£ |
|
Interim dividend |
12,000 |
216,500 |
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 |
|
|
( |
|
2021 |
At 1 June 2020 |
Advances to director |
Repayments by director |
At 31 May 2021 |
M Stewkesbury |
||||
Interest bearing current account |
|
|
( |
|
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
Parent and ultimate parent undertaking |
The ultimate controlling party is
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 £