Company registration number 05427989 (England and Wales)
BOWEN HOMES LTD LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 OCTOBER 2022
PAGES FOR FILING WITH REGISTRAR
BOWEN HOMES LTD LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
BOWEN HOMES LTD LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF BOWEN HOMES LTD LIMITED FOR THE PERIOD ENDED 30 OCTOBER 2022
- 1 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Bowen Homes Ltd Limited for the Period ended 30 October 2022 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the board of directors of Bowen Homes Ltd Limited, as a body, in accordance with the terms of our engagement letter dated 17 December 2020. Our work has been undertaken solely to prepare for your approval the financial statements of Bowen Homes Ltd Limited and state those matters that we have agreed to state to the board of directors of Bowen Homes Ltd Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Bowen Homes Ltd Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Bowen Homes Ltd Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Bowen Homes Ltd Limited. You consider that Bowen Homes Ltd Limited is exempt from the statutory audit requirement for the Period.

We have not been instructed to carry out an audit or a review of the financial statements of Bowen Homes Ltd Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Azets
15 November 2023
Lime Court
Pathfields Business Park
South Molton
Devon
United Kingdom
EX36 3LH
BOWEN HOMES LTD LIMITED
BALANCE SHEET
AS AT
30 OCTOBER 2022
30 October 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
200,072
3,791,622
Investment properties
5
7,950,000
-
0
8,150,072
3,791,622
Current assets
Stocks
-
16,235
Debtors
6
12,985
794,447
Cash at bank and in hand
12,651
838,285
25,636
1,648,967
Creditors: amounts falling due within one year
7
(381,315)
(806,717)
Net current (liabilities)/assets
(355,679)
842,250
Total assets less current liabilities
7,794,393
4,633,872
Provisions for liabilities
(700,345)
(26,615)
Net assets
7,094,048
4,607,257
Capital and reserves
Called up share capital
9
1,000
1,000
Profit and loss reserves
7,093,048
4,606,257
Total equity
7,094,048
4,607,257
BOWEN HOMES LTD LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 OCTOBER 2022
30 October 2022
- 3 -

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

For the financial Period ended 30 October 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges her 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 Period 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.

The financial statements were approved by the board of directors and authorised for issue on 15 November 2023 and are signed on its behalf by:
Mrs S A Stevens
Director
Company Registration No. 05427989
BOWEN HOMES LTD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 OCTOBER 2022
- 4 -
1
Accounting policies
Company information

Bowen Homes Ltd Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lime Court, Pathfields Business Park, South Molton, Devon, United Kingdom, EX36 3LH.

 

The company changed its name from Fremington Homes Ltd to Bowen Homes Ltd Limited on 19th July 2022.

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

These financial statements for the Period ended 30 October 2022 are the first financial statements of Bowen Homes Ltd Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 November 2020. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Reporting period

The accounting period has been shortened by one day to 30 October 2022. The comparative year is for a twelve month period and are therefore not entirely comparable.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
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.

BOWEN HOMES LTD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 OCTOBER 2022
1
Accounting policies
(Continued)
- 5 -

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:

Land and buildings Freehold
30 years straight line
Leasehold improvements
10 years straight line
Fixtures, fittings & equipment
8 years straight line
Motor vehicles
4 years straight line

Freehold land is not depreciated.

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.

1.6
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.

1.7
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.

1.8
Cash at bank and in hand

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.

1.9
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price. Financial assets classified as receivable within one year are not amortised.

BOWEN HOMES LTD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 OCTOBER 2022
1
Accounting policies
(Continued)
- 6 -
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. 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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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.

 

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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

BOWEN HOMES LTD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 OCTOBER 2022
1
Accounting policies
(Continued)
- 7 -
1.13
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

3
Employees

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

2022
2021
Number
Number
Total
5
10
BOWEN HOMES LTD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 OCTOBER 2022
- 8 -
4
Tangible fixed assets
Land and buildings Freehold
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2021
4,534,075
105,997
998,553
111,439
5,750,064
Disposals
-
0
-
0
-
0
(29,944)
(29,944)
Transfer to investment property
(4,534,075)
(44,928)
-
0
-
0
(4,579,003)
At 30 October 2022
-
0
61,069
998,553
81,495
1,141,117
Depreciation and impairment
At 1 November 2021
1,018,470
49,698
822,879
67,393
1,958,440
Depreciation charged in the Period
56,676
4,498
43,820
10,520
115,514
Eliminated in respect of disposals
-
0
-
0
-
0
(26,861)
(26,861)
Transfer to investment property
(1,075,146)
(30,902)
-
0
-
0
(1,106,048)
At 30 October 2022
-
0
23,294
866,699
51,052
941,045
Carrying amount
At 30 October 2022
-
0
37,775
131,854
30,443
200,072
At 31 October 2021
3,515,604
56,298
175,674
44,046
3,791,622

 

5
Investment property
2022
£
Fair value
At 1 November 2021
-
0
Additions
1,685,000
Transfers
3,472,955
Revaluations
2,792,045
At 30 October 2022
7,950,000

The fair value of the investment property has been arrived at on the basis of a valuation as advised by Phillips, Smith and Dunn, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

BOWEN HOMES LTD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 OCTOBER 2022
- 9 -
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,411
52,343
Other debtors
11,574
644,382
Prepayments and accrued income
-
0
97,722
12,985
794,447
7
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
16,031
146,808
Corporation tax
59,618
237,547
Other taxation and social security
-
0
3,003
Other creditors
301,655
405,292
Accruals and deferred income
4,011
14,067
381,315
806,717

The company gave a guarantee on 14 August 2020 for an amount of £1,475,000 for a partnership which the shareholders are also partners. This has superseded the previous company guarantees of £800,000 given by the company.

 

Natwest Bank has a debenture given by the company and this has been in place since 1 March 2006.

8
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
In one to five years
4,000
54,000
9
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary of £1 each
1,000
1,000
10
Related party transactions
BOWEN HOMES LTD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 OCTOBER 2022
10
Related party transactions
(Continued)
- 10 -

During the year the company leased premises off it's director and paid market rents totalling £44,500 (2021 £71,500).

 

At the year end, the company wrote off the full balance of £426,581 owed to a connected company in which the shareholder used to be a shareholder of. The amount owing at 31 October 2021 was £303,577. No interest was charged on this loan.

 

During the the partnership assets and liabilities (excluding two properties) were transferred into the company from a partnership that the directors are also partners of.

11
Directors' transactions

Bowen Homes Ltd has given a guarantee, supported by a debenture and 1st legal charge over the freehold properties it owns and their associated assets over a £1,475,000 loan taken out by the shareholder. This loan was taken out as part of the business restructure.

 

As at 31 October 2021 one of the shareholders had an overdrawn loan account, at 30 October 2022 this was in credit by £139,902 (2021 overdrawn by £468,118). Interest of 2% per annum has been charged on the overdrawn amount.

 

 

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