Company registration number 08400751 (England and Wales)
GONWIN DEVELOPMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
GONWIN DEVELOPMENTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
GONWIN DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment properties
3
1,400,000
Current assets
Stocks
-
894,491
Debtors
4
223,066
230,611
Cash at bank and in hand
2,363
3,638
225,429
1,128,740
Creditors: amounts falling due within one year
5
(791,774)
(23,077)
Net current (liabilities)/assets
(566,345)
1,105,663
Total assets less current liabilities
833,655
1,105,663
Creditors: amounts falling due after more than one year
6
(675,000)
Provisions for liabilities
(126,377)
Net assets
707,278
430,663
Capital and reserves
Called up share capital
9
1,000
1,000
Non-distributable profits reserve
379,132
Distributable profit and loss reserves
327,146
429,663
Total equity
707,278
430,663
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
GONWIN DEVELOPMENTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 FEBRUARY 2023
28 February 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 2 November 2023 and are signed on its behalf by:
M Wodskou
Director
Company Registration No. 08400751
GONWIN DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
1
Accounting policies
Company information
Gonwin Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gonwin Manor, Gonwin Manor Drive, Carbis Bay, St. Ives, Cornwall, United Kingdom, TR26 3GN.
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 pound.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Notwithstanding the net current liabilities of £565,412, at the time of approving the financial statements, after making enquiries and having considered the company's business, its financial plans and the facilities available to finance the business, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Specifically related party loans are not required to be repaid until the company has sufficient available funds. Accordingly, the going concern basis is adopted in preparing the financial statements.true
1.3
Turnover
Turnover represents the total invoice value of service charges during the year, excluding value added tax.
Revenue from the sale of residential property is recognised in full on the legal completion of a residential property sale.
Rental income represents the value of rental income due to the company during the year and is recognised on a straight line basis over the term of the rental.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Stocks
Work in progress are stated at the lower of cost and net realisable value. Cost includes all direct expenses.
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.
GONWIN DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.6
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, 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, and other creditors, 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.
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.
1.7
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.
1.8
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.
GONWIN DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 5 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was nil (2022: Nil):
2023
2022
Number
Number
Total
3
Investment property
2023
£
Fair value
At 1 March 2022
Transfers from stock
894,491
Revaluations
505,509
At 28 February 2023
1,400,000
The fair value of the investment properties has been arrived at on the basis of the valuations carried out at 4 August 2022 by Knight Frank LLP, considering the market value of similar properties.
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6
54
Amounts owed by group undertakings
5,894
Other debtors
223,060
224,663
223,066
230,611
GONWIN DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
226
146
Amounts owed to group undertakings
694,871
Taxation and social security
94,541
21,011
Other creditors
2,136
1,920
791,774
23,077
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
675,000
7
Loans and overdrafts
2023
2022
£
£
Other loans
675,000
Payable after one year
675,000
Arbuthnot Latham & Co Ltd hold a fixed and floating charge over all property or undertaking of the company, including the freehold property known as St Eia Townhouses.
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Investment properties
126,377
-
2023
Movements in the year:
£
Liability at 1 March 2022
-
Charge to profit or loss
126,377
Liability at 28 February 2023
126,377
GONWIN DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
10
Related party transactions
At the balance sheet date the company owed £694,871 to (2022: was owed £5,894 by) Wodskou Properties Limited, its immediate parent company. The balance is interest free, repayable on demand, and relates to various loans made throughout the year.
11
Directors' transactions
Directors current accounts are repayable on demand. Credit balances are interest free, interest is charged on debit balances at 2.00% from 6 April 2021.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
M Wodskou -
2.00
-
25,600
304
(13,351)
12,553
-
25,600
304
(13,351)
12,553
12
Ultimate controlling party
The ultimate controlling party is M Wodskou.