Company registration number 07951533 (England and Wales)
PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
12,795,517
12,764,502
Debtors
5
371,442
61,055
Cash at bank and in hand
15,207
93,873
13,182,166
12,919,430
Creditors: amounts falling due within one year
6
(6,244,944)
(6,060,595)
Net current assets
6,937,222
6,858,835
Creditors: amounts falling due after more than one year
7
(3,179,450)
(3,495,523)
Government grants
(5,371,039)
(4,639,255)
Net liabilities
(1,613,267)
(1,275,943)
Capital and reserves
Called up share capital
8
1,001
1,001
Profit and loss reserves
(1,614,268)
(1,276,944)
Total equity
(1,613,267)
(1,275,943)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
Mr T J H Webber
Director
Company Registration No. 07951533
PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

Pendle Enterprise & Regeneration (Brierfield Mill) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kenyon Road, Lomeshaye Industrial Estate, Nelson, Lancashire, BB9 5SP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Barnfield Investment Properties Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

The company is reliant upon the financial support of its shareholders and of connected companies in order to meet its liabilities as they fall due. The directors and shareholders have indicated that this support will continue for the foreseeable future and, as a result, the directors have continued to adopt the going concern basis in preparing the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the rent received or receivable, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Turnover also includes revenue from sale of development projects. Profit is recognised on the sales only when it can be calculated with certainty.

PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
Construction contracts

Construction contracts incorporate a conservative estimate of profitability. The budgeted profit margin is usually used throughout the contract; only upon final completion of the contract is any additional profit recognised.

 

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Profit recognition

Profit recognition on the company's development projects is a key accounting estimate. The valuation of the company's work in progress is based on stage of completion, but the level of profit that the projects will achieve is subjective. The company base the level of profit on detailed costing schedules and sales forecasts. These forecasts are often based on previous projects undertaken for similar developments across company's group and connected companies.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
9
10
PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
18,375
Disposals
(18,375)
At 31 March 2023
-
0
Depreciation and impairment
At 1 April 2022
18,375
Eliminated in respect of disposals
(18,375)
At 31 March 2023
-
0
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
-
0
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
196,293
23,351
Other debtors
175,149
37,704
371,442
61,055
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
214,344
183,439
Amounts owed to group undertakings
4,055,000
2,280,000
Other creditors
1,975,600
3,597,156
6,244,944
6,060,595

At 31 March 2023 the company owed a fellow subsidiary Pendle Enterprise & Regeneration 2 Limited £4,055,000 (2022 - £2,280,000). The amounts are un-secured, interest free and repayable on demand.

 

Other creditors also include £1,917,985 (2022 - £3,452,248) due to connected companies.

PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
3,179,450
3,495,523

Other creditors include loan notes of £1,883,402 (2022 - £1,801,804). The amounts are due to the shareholders of the company in the same ratio as the shares are held.

 

The loan notes are unsecured and bear interest at the rate of 2% over Barclays Bank plc base rate, they are repayable at the discretion of the company and the directors have resolved that they do not intend to repay the loans within 12 months of the date of approval of the financial statements.

 

Other creditors also include a loan owed in respect of a Lancashire Growth Fund of £1,296,047 (2022 - £1,693,719). The loan is due for repayment on 31 December 2024. Interest is charged at a rate of Libor plus 3.5%.

The loan is secured over the freehold property known as land and buildings at Brierfield Mill and a fixed charge over the company's assets.

8
Called up share capital
2023
2022
Ordinary share capital
£
£
Authorised
700 A Ordinary shares of £1 each
700
700
300 B Ordinary shares of £1 each
300
300
1,000
1,000
Issued and fully paid
700 A Ordinary shares of £1 each
700
700
300 B Ordinary shares of £1 each
300
300
1,000
1,000
Preference share capital
Issued and fully paid
1 Preference share of £1 each
1
1
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified, but contained the following paragraph:

 

 

Material uncertainty related to going concern

PENDLE ENTERPRISE & REGENERATION (BRIERFIELD MILL) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Audit report information
(Continued)
- 8 -
In forming our opinion, which is not qualified, we have considered the adequacy of the disclosures made in note 1 to the financial statements concerning the continued financial support of Barnfield Investment Properties Limited and Pendle Borough Council and of other connected companies.  We consider that the  disclosures in the financial statements are adequate and no account has been taken of any adjustments which would be required if the support was to be withdrawn.
The senior statutory auditor was Jane Smith and the auditor was Pierce C A Limited.
2023-03-312022-04-01false24 October 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedMr A CouperMr T J H WebberMrs S WebberMr J P WebberMr S J RileyMs J H WhittakerCllr D WhippCllr A MahmoodCllr S Cockburn-PriceCllr N AhmedMr M HanifMr A CouperJane Smith079515332022-04-012023-03-31079515332023-03-31079515332022-03-3107951533core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3107951533core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3107951533core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3107951533core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3107951533core:CurrentFinancialInstruments2023-03-3107951533core:CurrentFinancialInstruments2022-03-3107951533core:ShareCapital2023-03-3107951533core:ShareCapital2022-03-3107951533core:RetainedEarningsAccumulatedLosses2023-03-3107951533core:RetainedEarningsAccumulatedLosses2022-03-3107951533core:ShareCapitalOrdinaryShares2023-03-3107951533core:ShareCapitalOrdinaryShares2022-03-3107951533bus:Director12022-04-012023-03-3107951533core:PlantMachinery2022-04-012023-03-31079515332021-04-012022-03-3107951533core:OtherPropertyPlantEquipment2022-03-3107951533core:OtherPropertyPlantEquipment2023-03-3107951533core:OtherPropertyPlantEquipment2022-04-012023-03-3107951533core:OtherPropertyPlantEquipment2022-03-3107951533core:WithinOneYear2023-03-3107951533core:WithinOneYear2022-03-3107951533core:Non-currentFinancialInstruments2023-03-3107951533core:Non-currentFinancialInstruments2022-03-3107951533bus:PrivateLimitedCompanyLtd2022-04-012023-03-3107951533bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3107951533bus:FRS1022022-04-012023-03-3107951533bus:Audited2022-04-012023-03-3107951533bus:Director22022-04-012023-03-3107951533bus:Director32022-04-012023-03-3107951533bus:Director42022-04-012023-03-3107951533bus:Director52022-04-012023-03-3107951533bus:Director62022-04-012023-03-3107951533bus:Director72022-04-012023-03-3107951533bus:Director82022-04-012023-03-3107951533bus:Director92022-04-012023-03-3107951533bus:Director102022-04-012023-03-3107951533bus:Director112022-04-012023-03-3107951533bus:CompanySecretary12022-04-012023-03-3107951533bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP