Caseware UK (AP4) 2022.0.179 2022.0.179 2023-01-312023-01-310truetruetruetruetruetrue203278truetrue2022-02-01falseThe Company operates ten year contracts with the Home Office for the provision of asylum accommodation, aupport and transport services in London and the South of England, and in Wales.false 07921508 2022-02-01 2023-01-31 07921508 2021-02-01 2022-01-31 07921508 2023-01-31 07921508 2022-01-31 07921508 2021-02-01 07921508 c:Director2 2022-02-01 2023-01-31 07921508 c:Director3 2022-02-01 2023-01-31 07921508 c:RegisteredOffice 2022-02-01 2023-01-31 07921508 c:Agent1 2022-02-01 2023-01-31 07921508 d:FurnitureFittings 2022-02-01 2023-01-31 07921508 d:FurnitureFittings 2023-01-31 07921508 d:FurnitureFittings 2022-01-31 07921508 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 07921508 d:ComputerEquipment 2022-02-01 2023-01-31 07921508 d:ComputerEquipment 2023-01-31 07921508 d:ComputerEquipment 2022-01-31 07921508 d:ComputerEquipment d:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 07921508 d:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 07921508 d:CurrentFinancialInstruments 2023-01-31 07921508 d:CurrentFinancialInstruments 2022-01-31 07921508 d:CurrentFinancialInstruments d:WithinOneYear 2023-01-31 07921508 d:CurrentFinancialInstruments d:WithinOneYear 2022-01-31 07921508 d:ReportableOperatingSegment1 2022-02-01 2023-01-31 07921508 d:ReportableOperatingSegment1 2021-02-01 2022-01-31 07921508 d:UKTax 2022-02-01 2023-01-31 07921508 d:UKTax 2021-02-01 2022-01-31 07921508 d:ShareCapital 2023-01-31 07921508 d:ShareCapital 2022-01-31 07921508 d:ShareCapital 2021-02-01 07921508 d:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 07921508 d:RetainedEarningsAccumulatedLosses 2023-01-31 07921508 d:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 07921508 d:RetainedEarningsAccumulatedLosses 2022-01-31 07921508 d:RetainedEarningsAccumulatedLosses 2021-02-01 07921508 d:AcceleratedTaxDepreciationDeferredTax 2023-01-31 07921508 d:AcceleratedTaxDepreciationDeferredTax 2022-01-31 07921508 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-02-01 2023-01-31 07921508 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-01-31 07921508 c:OrdinaryShareClass1 2022-02-01 2023-01-31 07921508 c:OrdinaryShareClass1 2023-01-31 07921508 c:OrdinaryShareClass1 2022-01-31 07921508 c:FRS102 2022-02-01 2023-01-31 07921508 c:Audited 2022-02-01 2023-01-31 07921508 c:FullAccounts 2022-02-01 2023-01-31 07921508 c:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 07921508 d:WithinOneYear 2023-01-31 07921508 d:WithinOneYear 2022-01-31 07921508 d:BetweenOneFiveYears 2023-01-31 07921508 d:BetweenOneFiveYears 2022-01-31 07921508 2 2022-02-01 2023-01-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 07921508









CLEARSPRINGS READY HOMES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

 
CLEARSPRINGS READY HOMES LTD
 
 
COMPANY INFORMATION


DIRECTORS
R Slatter 
S Lakey 




REGISTERED NUMBER
07921508



REGISTERED OFFICE
26 Brook Road

Rayleigh

Essex

SS6 7XJ




INDEPENDENT AUDITORS
Peters Elworthy & Moore
Chartered Accountants & Statutory Auditors

Salisbury House

Station Road

Cambridge

CB1 2LA




BANKERS
Barclays Bank PLC
Priory Place

New London Road

Chelmsford

CM2 0PP





 
CLEARSPRINGS READY HOMES LTD
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Statement of Financial Position
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 25


 
CLEARSPRINGS READY HOMES LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

PRINCIPAL ACTIVITIES
 
The Company operates ten-year contracts with the Home Office for the provision of asylum accommodation, support and transport services in the South of England and Wales.

REVIEW OF THE BUSINESS
 
The Home Office contracts run until September 2029.
Demand for accommodation for asylum seekers has remained high throughout the year. This has been driven by an ever-increasing influx of asylum applicants to the UK due to high levels of political and economic turmoil in many countries. Contingency accommodation including hotels has increased over the year.
Operating profit on sales was 5.8%, compared with 6.7% the previous year. Return on capital employed was 119%, compared with 6,763% in the previous year. Current ratio increased to 1.7 from 1.0, reflecting a continuation of conservative financial management policies.

KEY PERFORMANCE INDICATORS
 
Turnover per employee in the year was £4,651,484 (2022 - £2,472,033). The increase reflects growth in the number of asylum seekers accommodated under the Home Office contracts.
Operating profit per employee in the year was £269,377 (2022 - £166,573). Revenue growth while maintaining cost control is mainly responsible for this improvement.

FUTURE OUTLOOK

The strategic agenda for CRH will be influenced by the UK government’s “New Plan for Immigration” and its associated legislation. CRH is well-placed to bid for new accommodation contracts when tenders are invited by the Home Office.
CRH is looking to expand its involvement in larger non-hotel accommodation sites, such as ex-army camps.
Demand for asylum accommodation is driven by the arrival of asylum applicants in the UK, and the number of arrivals per year is expected to continue at a high level for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES AND FINANCIAL RISK MANAGEMENT
 
The Company manages its exposure to the other financial risks through internal policies and regular review as follows:
Credit risk associated is managed through regular credit control procedures. UK government departments account for a significant proportion of debtors which are settled in line with agreed terms. Any issues with outstanding or overdue balances are immediately investigated with the Home Office and promptly resolved.
The nature of the Company's financial instruments and significant cash balances means that they are not currently subject to cash flow or liquidity risk. There is no long term third party external debt or associated covenants. Cash flow and liquidity health are further supported by the on-going contract with the Home Office due to span a further 7+ years as well as growing revenues & profitability. Cash-flow and liquidity are reviewed on a monthly basis as part of the management accounts process. Key decisions impacting cash-flow & liquidity are always considered in detail by the board of Directors who are in regular contact to ensure no exposure to the business and its day to day operations of the company.
Furthermore, due to the long-term nature of the contract and pre-agreed rates, price risk is considered minimal.
 
Page 1

 
CLEARSPRINGS READY HOMES LTD
 

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


DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE COMPANY
 
The directors must act in accordance with a general set of duties, which are detailed in section 172 of the Companies Act 2006. The directors of Clearsprings Ready Homes Ltd are aware of their responsibilities to ensure key decisions promote the success of the Company. When making decisions, each director ensures they take consideration of the benefits to its members as a whole. In making these decisions the directors ensure they consider:
a. the likely consequences of any decision in the long term
b. the interests of the Company's employees
c. the need to foster the Company's business relationships with suppliers, customers and others
d. the impact of the Company's operations on the community and the environment
e. the desirability of the Company maintaining a reputation for high standards of business conduct
f. the need to act fairly as between stakeholders of the Company.
  
Consequences of decisions in the long term
The directors, as a matter of policy, consider wherever possible the long-term impact of their decision-making upon its stakeholders. The operational business operates in a long-term planning environment as a result of aligning the business strategy with its customer needs and changing requirements. Consequently, decision making is based around logistical planning and building long term customer and supplier arrangements. Wider long-term external factors are also considered in such decision making with the consequences of matters such as economic uncertainty & inflation and are planned into the operations based on consideration of scenarios. Contracts with the customers, particularly the Home Office, are long-term which allows the Company's operations to remain close to the long term thinking of its customers and in turn allows the business to build out suitable supplier relationships to match the needs of the business.
Interests of the Company's employees
The directors acknowledge that the employees of the group are vital to the success of the organisation and achieving its strategic goals. The Company's human resources team strive to achieve enlightened best practice in all interactions with its employees. They aspire to provide a safe workplace and an open and supportive work culture. Employees’ needs in respect of working hours, health including mental health, and financial security and wellbeing are all actively addressed in the Company's group’s policies and practice. Regular briefings keep employees informed on the strategic direction and progress of the group and its subsidiaries.
The need to foster the Company's business relationships with suppliers, customers and others
The Company engages with its customers on a frequent basis. For its larger contracts, the framework for engagement is contractually defined and includes regular detailed briefings covering such matters as operating and financial progress.
The Company's suppliers and subcontractors are an important element in delivering the it’s services. Through a formal due diligence process, and the agreement of back-to-back contractual arrangements, the directors encourage a transparent and co-operative approach to business success. This includes provision for sustainable financial rewards for its supply chain and ensuring prompt payment in line with contracts and with published best practice. Performance issues are dealt with through supplier meetings and sharing appropriate information.
Impact of the Company's operations on the community and the environment
Local authorities are always consulted extensively on the location and operation of accommodation, to ensure and promote harmonious integration of the Company's service users with the wider community. The Directors aspire to minimise the adverse environmental impact of the Company's activities. Service users are encouraged to take a responsible approach to the use of energy. The Company’s employees are also encouraged to use greener forms of transport where possible. 
 
Page 2

 
CLEARSPRINGS READY HOMES LTD
 

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

The desire of the Company maintaining a reputation for high standards 
The directors are concerned to maintain a reputation for high standards of conduct and governance in the Company's activities. Therefore, the operations of the group follow necessary quality guidelines all the way through staff recruitment & training to oversight of the quality of service provided whether directly or through third party providers. Contracts both with the Home Office are based on longer term relationships and maintained through customer satisfaction. The Company, through the connection with its shareholders seeks to comply with the Environmental, Social and Governance obligations; this extends to include seeking to be a responsible employer and providing support to its workforce and seeking out suppliers and customers that also adopt the same principles.
The need to act fairly 
The directors aspire to act with fairness in their dealings with all stakeholders, including customers, its employees, its suppliers, and the wider community.
 
This report was approved by the board and signed on its behalf by:





R Slatter
Director

Date: 17 October 2023

Page 3

 
CLEARSPRINGS READY HOMES LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

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

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £62,538,674 (2022 - £28,012,427).

No dividends (2022 - £27,987,264) were proposed during the year.

DIRECTORS

The directors who served during the year were:

R Slatter 
S Lakey 
J Vyvyan-Robinson (resigned 31 August 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 judgements 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.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY ACTION

The information required to be disclosed by Article 8 of the Energy Efficiency Directive is included in the consolidated financial statements of Clearsprings (Management) Limited.

Page 4

 
CLEARSPRINGS READY HOMES LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

EMPLOYEES INVOLVEMENT

Employees are kept informed of the progress of, and issues affecting the group through regular newsletters and briefing sessions which include the opportunity to ask questions and suggest ideas. Employees are encouraged to take an interest in all aspects of the group's financial and operational performance.

DISABLED EMPLOYEES

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses will be given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

There were no directors who benefited from qualifying indemnity provisions during the financial year or at the
date of this report.

MATTERS COVERED IN THE STRATEGIC REPORT

Under Section 414c(ii) of the Companies Act 2006, the following information is included within the Strategic Report:
 - Statement on employee engagement and business relationships with suppliers, customers and others
 - Financial risk management objectives & policies

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.

AUDITORS

Under section 487(2) of the Companies Act 2006Peters Elworthy & Moore will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf by:
 





R Slatter
Director

Date: 17 October 2023

Page 5

 
CLEARSPRINGS READY HOMES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLEARSPRINGS READY HOMES LTD
 

OPINION


We have audited the financial statements of Clearsprings Ready Homes Ltd (the 'Company') for the year ended 31 January 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 January 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.


Page 6

 
CLEARSPRINGS READY HOMES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLEARSPRINGS READY HOMES LTD (CONTINUED)


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 Report.  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. 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.


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 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.


Page 7

 
CLEARSPRINGS READY HOMES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLEARSPRINGS READY HOMES LTD (CONTINUED)


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.

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:

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 industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements, including FRS 102, the Companies Act 2006, taxation legislation, or those fundamental to the Company’s ability to operate, or to avoid a material penalty, including data protection, employment and health and safety;
we obtained an understanding of the Company’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; 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.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of fraud through management bias and override of controls. In addressing the risk of fraud through management bias and override of controls we:

tested the appropriateness of journal entries and other adjustments;
designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;
assessed whether the accounting judgements made in the financial statements were indicative of potential bias; and
evaluated the business rationale of any significant transactions that were unusual or outside the normal course of business.

Page 8

 
CLEARSPRINGS READY HOMES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLEARSPRINGS READY HOMES LTD (CONTINUED)


AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)

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; and
enquiring of management as to actual and potential litigation and claims; and
reviewing the minutes of meetings of those charged with governance.

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.

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.


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 2006Our 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 Auditors' 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.





James Burrett (Senior Statutory Auditor)
  
for and on behalf of
Peters Elworthy & Moore
 
Chartered Accountants
Statutory Auditors
  
Salisbury House
Station Road
Cambridge
CB1 2LA

 
Date: 
18 October 2023
Page 9

 
CLEARSPRINGS READY HOMES LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
Note
 £
£

  

Turnover
 4 
1,293,112,483
501,822,664

Cost of sales
  
(1,209,134,157)
(462,072,729)

GROSS PROFIT
  
83,978,326
39,749,935

Administrative expenses
  
(9,091,502)
(5,935,642)

OPERATING PROFIT
 5 
74,886,824
33,814,293

Interest receivable and similar income
 9 
2,079,252
775,452

Interest payable and similar expenses
 10 
(133,592)
-

PROFIT BEFORE TAX
  
76,832,484
34,589,745

Tax on profit
 11 
(14,293,810)
(6,577,318)

PROFIT FOR THE FINANCIAL YEAR
  
62,538,674
28,012,427

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

There was no other comprehensive income for 2023 (2022- £NIL).

The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
CLEARSPRINGS READY HOMES LTD
REGISTERED NUMBER: 07921508

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Tangible assets
 12 
289,410
84,430

  
289,410
84,430

CURRENT ASSETS
  

Stocks
 13 
40,000
40,000

Debtors: amounts falling due within one year
 14 
35,056,493
34,806,612

Cash at bank and in hand
 15 
59,918,160
24,955,392

  
95,014,653
59,802,004

Creditors: amounts falling due within one year
 16 
(89,099,596)
(59,365,316)

NET CURRENT ASSETS
  
 
 
5,915,057
 
 
436,688

TOTAL ASSETS LESS CURRENT LIABILITIES
  
6,204,467
521,118

  

PROVISIONS FOR LIABILITIES
  

Deferred tax
 17 
(72,353)
(21,108)

Other provisions
 18 
(93,430)
-

NET ASSETS
  
6,038,684
500,010


CAPITAL AND RESERVES
  

Called up share capital 
 19 
10
10

Profit and loss account
 20 
6,038,674
500,000

  
6,038,684
500,010


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R Slatter
Director

Date: 17 October 2023

The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
CLEARSPRINGS READY HOMES LTD
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


AT 1 FEBRUARY 2021
10
474,837
474,847



Profit for the year
-
28,012,427
28,012,427

Dividends: Equity capital
-
(27,987,264)
(27,987,264)



AT 1 FEBRUARY 2022
10
500,000
500,010



Profit for the year
-
62,538,674
62,538,674

Dividends: Equity capital
-
(57,000,000)
(57,000,000)


AT 31 JANUARY 2023
10
6,038,674
6,038,684


The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


GENERAL INFORMATION

Clearsprings Ready Homes Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is 26 Brook Road, Rayleigh, Essex, SS6 7XJ.
The Company's functional and presentational currency is GBP.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement 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);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Clearsprings (Management) Limited as at 31 January 2023 and these financial statements may be obtained from Companies House.

 
2.3

GOING CONCERN

The Company has positive shareholder's funds and net current assets. Commercial arrangements with key suppliers and sub-contractors are structured so as to provide natural resilience during conditions of increased or decreased demand. The new Home Office contracts are not expected to place significant strain on cash resources or working capital. Management are confident based upon forecasts that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 13

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 
2.5

OPERATING LEASES

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

FINANCE COSTS

Finance costs are charged to profit or loss 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.9

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income 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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
5 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.11

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.12

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost 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 profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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 Statement of Financial Position.

 
2.16

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid
Page 16

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)


2.16
FINANCIAL INSTRUMENTS (CONTINUED)

or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.17

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.


3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Company maintains a portfolio of leasehold property which is utilised in the normal course of business. Through general use these properties suffer wear and tear and require maintenance and upkeep. Management have a comprehensive programme in place for maintenance and upkeep of these properties. The timing of surrender of these leases cannot be predicted. In addition this unknown timing makes quantifying any potential dilapidation provision difficult, and as such management have not provided for any potential dilapidations payments to landlords.

Page 17

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

4.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Turnover
1,293,112,483
501,822,664


The Company's turnover was entirely within the United Kingdom and related mainly to the provision of accommodation, support and transport to asylum seekers.


5.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Cost of pension scheme
295,752
197,656

Other operating lease rentals
31,588,347
26,257,003

Depreciation
101,290
53,483


6.


AUDITORS' REMUNERATION

2023
2022
£
£


Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
17,500
12,500


The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.

Page 18

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

7.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
9,254,219
5,480,412

Social security costs
1,045,451
529,371

Cost of defined contribution scheme
295,752
197,656

10,595,422
6,207,439


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


        2023
        2022
            No.
            No.







Employees
278
203


8.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
259,140
211,032

Company contributions to defined contribution pension schemes
11,760
21,551

270,900
232,583


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £259,140 (2022 - £211,032).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £11,760 (2022 - £21,551).


9.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
2,079,252
775,452

Page 19

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Other interest payable
133,592
-


11.


TAXATION


2023
2022
£
£

CURRENT TAX


Current tax on profits for the year
14,230,519
6,573,548

Adjustments in respect of previous periods
12,046
-

TOTAL CURRENT TAX
14,242,565
6,573,548

DEFERRED TAX


Origination and reversal of timing differences
51,245
3,770

TOTAL DEFERRED TAX
51,245
3,770


TOTAL TAXATION ON PROFIT ON ORDINARY ACTIVITIES
14,293,810
6,577,318
Page 20

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
11.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19.00% (2022 - 19.00%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
76,832,484
34,589,745


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.00% (2022 - 19.00%)
14,598,172
6,572,052

EFFECTS OF:


Expenses not deductible for tax purposes
11,489
21,670

Capital allowances for year in excess of depreciation
(60,814)
(11,072)

Adjustments to tax charge in respect of prior periods
12,046
-

Group relief
(318,328)
(9,102)

Movements in deferred tax
51,245
3,770

TOTAL TAX CHARGE FOR THE YEAR
14,293,810
6,577,318


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

Closing deferred tax assets and liabilities are calculated at 25.00% (2022 - 25.00%) in accordance with the rates enacted at the balance sheet date. The Finance Act 2021, which announced the upcoming rise in headline rates of corporation tax to 25% from 1 April 2023, was substantively enacted on 24 May 2021.

Page 21

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

12.


TANGIBLE FIXED ASSETS





Fixtures and fittings
Computer equipment
Total

£
£
£



COST


At 1 February 2022
14,419
184,162
198,581


Additions
2,784
303,486
306,270


Disposals
-
(92,516)
(92,516)



At 31 January 2023

17,203
395,132
412,335



DEPRECIATION


At 1 February 2022
6,431
107,720
114,151


Charge for the year on owned assets
3,018
98,272
101,290


Disposals
-
(92,516)
(92,516)



At 31 January 2023

9,449
113,476
122,925



NET BOOK VALUE



At 31 January 2023
7,754
281,656
289,410



At 31 January 2022
7,988
76,442
84,430


13.


STOCKS

2023
2022
£
£

White goods held on premises
40,000
40,000


Page 22

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

14.


DEBTORS

2023
2022
£
£


Trade debtors
8,818,900
8,556,856

Amounts owed by group undertakings
15,889,010
11,269,449

Other debtors
200,031
77,347

Prepayments and accrued income
10,148,552
14,892,087

Tax recoverable
-
10,873

35,056,493
34,806,612



15.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
59,918,160
24,955,392



16.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
47,566,605
35,580,690

Corporation tax
230,519
6,573,548

Other taxation and social security
13,494,871
8,994,110

Other creditors
1,760
77,411

Accruals and deferred income
27,805,841
8,139,557

89,099,596
59,365,316


Page 23

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

17.


DEFERRED TAXATION




2023
2022


£

£






At beginning of year
21,108
17,338


Charged to profit or loss
51,245
3,770



AT END OF YEAR
72,353
21,108

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
72,353
21,108


18.


PROVISIONS




Leave pay

£





Charged to profit or loss
93,430



AT 31 JANUARY 2023
93,430

The leave pay provision represents holiday balances accrued as a result of services rendered in the current period and which employees are entitled to carry forward. The provision is measured as the salary cost payable for the period of absence.


19.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



10 (2022 - 10) Ordinary shares of £1.00 each
10
10

Called-up share capital represents the nominal value of shares that have been issued. Ordinary shares carry rights in respect of dividends and voting.


Page 24

 
CLEARSPRINGS READY HOMES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

20.


RESERVES

Profit and loss account

Includes all current and prior periods retained profits & losses.


21.


PENSION COMMITMENTS

The Company operates a defined contributions 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 £295,752 (2022 - £197,656) . Contributions totalling £NIL (2022 - £NIL) were payable to the fund at the balance sheet date and are included in creditors.


22.


COMMITMENTS UNDER OPERATING LEASES

At 31 January 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£

LAND & BUILDINGS


Not later than 1 year
2,503,800
2,503,200

Later than 1 year and not later than 5 years
155,014
215,014

2,658,814
2,718,214


23.OTHER FINANCIAL COMMITMENTS

There is a cross guarantee in place between Clearsprings Ready Homes Limited and its parent company, Clearsprings (Management) Limited.


24.


RELATED PARTY TRANSACTIONS

The company has chosen to take advantage of the exemption available under FRS 102, paragraph 33.1A not to disclose transactions with group entities that are wholly owned by the group.


25.


CONTROLLING PARTY

The largest and smallest group for which consolidated financial statements is prepared is that headed by the parent entity, Clearsprings (Management) Limited, incorporated in England and Wales. Financial statements can be obtained from Companies House.
 
The ultimate controlling party is G King by virtue of his shareholding in Clearsprings (Management) Limited.

 
Page 25