Company registration number 06375571 (England and Wales)
PENDLE ENTERPRISE & REGENERATION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
PENDLE ENTERPRISE & REGENERATION LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
PENDLE ENTERPRISE & REGENERATION LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment properties
4
4,035,000
2,350,000
Current assets
Stocks
-
1,391,463
Debtors
5
413,252
957,380
Cash at bank and in hand
101,778
314,224
515,030
2,663,067
Creditors: amounts falling due within one year
6
(822,951)
(2,604,370)
Net current (liabilities)/assets
(307,921)
58,697
Total assets less current liabilities
3,727,079
2,408,697
Creditors: amounts falling due after more than one year
7
(3,621,023)
(2,672,862)
Provisions for liabilities
(102,379)
Net assets/(liabilities)
106,056
(366,544)
Capital and reserves
Called up share capital
9
10
10
Non-distributable profits reserve
11
1,019,479
407,100
Distributable profit and loss reserves
(913,433)
(773,654)
Total equity
106,056
(366,544)
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. 06375571
PENDLE ENTERPRISE & REGENERATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Pendle Enterprise & Regeneration 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 under the historical cost convention as modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant upon the financial support of its shareholders trueand another group company 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for rent and other charges net of VAT.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value at the year end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
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.
PENDLE ENTERPRISE & REGENERATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
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.
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.
PENDLE ENTERPRISE & REGENERATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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.
PENDLE ENTERPRISE & REGENERATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 5 -
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
4
Investment property
2023
£
Fair value
At 1 April 2022
2,350,000
Transfers
1,175,000
Revaluations
510,000
At 31 March 2023
4,035,000
Investment property comprises of two properties.
The transfer during the year relates to a site previously included in stock but which is now expected to be held for its long term investment potential. The property has been transferred at market value, being the directors' valuation as at 31 March 2023.
The fair value of the other property has been arrived at on the basis of due consideration by one of the directors, Mr T Webber. The property was professionally valued in June 2020 and then subsequently revalued by Mr T Webber as at 31 March 2023.
Had the property not been revalued it would have been included in the financial statements at its historical cost of £1,675,351 (2022 - £1,675,351).
PENDLE ENTERPRISE & REGENERATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
58,462
62,596
Other debtors
354,790
613,784
413,252
676,380
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
281,000
Total debtors
413,252
957,380
Other debtors include £281,000 (2022: £535,804) still due from the sale of investment property and £4,467 (2022 - £nil) due from a connected company.
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
96,856
1,026,644
Trade creditors
4,434
22,468
Amounts owed to group undertakings
640,000
1,251,531
Taxation and social security
14,420
199,113
Other creditors
67,241
104,614
822,951
2,604,370
Other creditors includes £nil (2022 - £8,873) due to a connected company. The bank loan is secured on the assets of the company, together with a guarantee from a shareholder limited to £3,531,000. At the year end date the amount outstanding was £96,856 (2022 - £1,026,644).
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
832,932
Other creditors
2,788,091
2,672,862
3,621,023
2,672,862
PENDLE ENTERPRISE & REGENERATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Creditors: amounts falling due after more than one year
(Continued)
- 7 -
The bank loan is secured on the assets of the company, together with a guarantee from a shareholder limited to £3,531,000. At the year end date the amount outstanding was £832,932 (2022 - £nil).
Other creditors include unsecured loan notes of £1,957,060 (2022 - £1,876,177) and £831,031 (2022 - £796,685) due to Barnfield Investment Properties Limited and Pendle Borough Council respectively.
The loan notes do not have any prescribed repayment dates and are repayable at the company's discretion. The directors have indicated they do not intend to repay the loan within 12 months of the date of approval of the financial statements. Interest is charged at 2% over the Barclays Bank plc base rate and is compounded annually.
8
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Revaluations
-
102,379
2023
Movements in the year:
£
Liability at 1 April 2022
102,379
Credit to profit or loss
(102,379)
Liability at 31 March 2023
-
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
7
7
7
7
B Ordinary shares of £1 each
3
3
3
3
10
10
10
10
PENDLE ENTERPRISE & REGENERATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
10
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
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 another group company. 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.
11
Non-distributable profits reserve
2023
2022
£
£
At the beginning of the year
407,100
409,515
Non distributable profits in the year
612,379
(2,415)
At the end of the year
1,019,479
407,100
Non distributable profits reserve represents the revaluation amount on the property known as the Colne Shopping Precinct adjusted for the effect of deferred tax at each accounting period end date.
2023-03-312022-04-01false24 October 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedMr A J CouperMr S J RileyMr J P WebberMrs S WebberMr T J H WebberMs J H WhittakerCllr D WhippCllr A MahmoodCllr S Cockburn-PriceCllr N AhmedMr M HanifMr Andrew CouperJane Smith063755712022-04-012023-03-31063755712023-03-31063755712022-03-3106375571core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3106375571core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3106375571core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3106375571core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3106375571core:CurrentFinancialInstruments2023-03-3106375571core:CurrentFinancialInstruments2022-03-3106375571core:Non-currentFinancialInstruments2023-03-3106375571core:Non-currentFinancialInstruments2022-03-3106375571core:ShareCapital2023-03-3106375571core:ShareCapital2022-03-3106375571core:FurtherSpecificReserve1ComponentTotalEquity2023-03-3106375571core:FurtherSpecificReserve1ComponentTotalEquity2022-03-3106375571core:RetainedEarningsAccumulatedLosses2023-03-3106375571core:RetainedEarningsAccumulatedLosses2022-03-3106375571core:ShareCapitalOrdinaryShares2023-03-3106375571core:ShareCapitalOrdinaryShares2022-03-3106375571bus:Director52022-04-012023-03-31063755712021-04-012022-03-31063755712022-03-3106375571core:WithinOneYear2023-03-3106375571core:WithinOneYear2022-03-3106375571core:AfterOneYear2023-03-3106375571core:AfterOneYear2022-03-3106375571bus:PrivateLimitedCompanyLtd2022-04-012023-03-3106375571bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3106375571bus:FRS1022022-04-012023-03-3106375571bus:Audited2022-04-012023-03-3106375571bus:Director12022-04-012023-03-3106375571bus:Director22022-04-012023-03-3106375571bus:Director32022-04-012023-03-3106375571bus:Director42022-04-012023-03-3106375571bus:Director62022-04-012023-03-3106375571bus:Director72022-04-012023-03-3106375571bus:Director82022-04-012023-03-3106375571bus:Director92022-04-012023-03-3106375571bus:Director102022-04-012023-03-3106375571bus:Director112022-04-012023-03-3106375571bus:CompanySecretary12022-04-012023-03-3106375571bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP