Company registration number NI613956 (Northern Ireland)
TAGGART HOMES LIMAVADY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
TAGGART HOMES LIMAVADY LTD
CONTENTS
Page
Strategic report
1
Director's report
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
TAGGART HOMES LIMAVADY LTD
COMPANY INFORMATION
Director
Nicolas Taggart
Company number
NI613956
Registered office
Taggart Residential Sales
1 Crescent Link Road
Derry
BT47 5AB
Auditor
PFS & Partners Limited
16 Main Street
Limavady
BT49 0EU
Bankers
Santander
Bootle
Merseyside
L30 4GB
Solicitors
Shean Dickson Merrick
38-42 Hill Street
Belfast
BT1 2LB
O'Hare Solicitors
St George's Building
37-41 High Street
Belfast
BT1 2EA
TAGGART HOMES LIMAVADY LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents the strategic report for the year ended 31 December 2022.

Review of the business

The company is a Northern Ireland based construction company and its principal activities continue to be the construction of residential developments.

Principal risks and uncertainties

The Company continually assesses significant risks faced and takes any action to mitigate their potential impact.

 

Economic and commercial risks

The current economic outlook for the United Kingdom as a whole is uncertain due to high inflation rates and high interest rates affecting mortgages and particularly house sales.

 

Financial risk

The company is dependent on continuing financial support from its funders and negotiations are ongoing with a view to providing sufficient working capital and/or future funding for the foreseeable future.

Key performance indicators

The turnover of the company has decreased to £9.6m (2021: £16.6m) due to a decrease in the number of houses sold during the year, particularly as a result of the increases in cost of living and interest rates.

 

The gross profit margin has increased by 3.91% from 2021 and is now 7.29%.

 

The director is satisfied with the company's performance during the year despite tough market conditions.

On behalf of the board

Nicolas Taggart
Director
17 November 2023
TAGGART HOMES LIMAVADY LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Results and dividends

The results for the year are set out on page 6.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Nicolas Taggart
Brendan Cunnane
(Appointed 1 March 2022 and resigned 31 October 2023)
Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Nicolas Taggart
Director
17 November 2023
TAGGART HOMES LIMAVADY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TAGGART HOMES LIMAVADY LTD
- 3 -
Opinion

We have audited the financial statements of Taggart Homes Limavady Ltd (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

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 Auditor's 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 UK, including the FRC’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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

TAGGART HOMES LIMAVADY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TAGGART HOMES LIMAVADY LTD
- 4 -
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 director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

TAGGART HOMES LIMAVADY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TAGGART HOMES LIMAVADY LTD
- 5 -

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 2006. Our 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 auditor's 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 Daniel Brolly
Senior Statutory Auditor
For and on behalf of PFS & Partners Limited
17 November 2023
Chartered Certified Accountants
Statutory Auditor
16 Main Street
Limavady
BT49 0EU
TAGGART HOMES LIMAVADY LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2022
2021
Notes
£
£
Turnover
3
9,679,623
16,686,617
Cost of sales
(8,973,740)
(16,122,961)
Gross profit
705,883
563,656
Administrative expenses
(928,125)
(1,205,865)
Other operating income
634,384
993,133
Operating profit
4
412,142
350,924
Interest receivable and similar income
7
9,243
6,113
Interest payable and similar expenses
8
(89,827)
(42,827)
Profit before taxation
331,558
314,210
Tax on profit
9
(83,312)
(51,106)
Profit for the financial year
248,246
263,104

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TAGGART HOMES LIMAVADY LTD
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 7 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
403,892
469,468
Current assets
Stocks
11
6,810,336
6,726,038
Debtors
12
1,885,454
1,590,795
Cash at bank and in hand
32,390
50,733
8,728,180
8,367,566
Creditors: amounts falling due within one year
13
(2,253,344)
(1,506,774)
Net current assets
6,474,836
6,860,792
Total assets less current liabilities
6,878,728
7,330,260
Creditors: amounts falling due after more than one year
14
(4,041,405)
(4,749,953)
Provisions for liabilities
Deferred tax liability
17
70,387
61,617
(70,387)
(61,617)
Net assets
2,766,936
2,518,690
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
2,766,836
2,518,590
Total equity
2,766,936
2,518,690

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 17 November 2023 and are signed on its behalf by:
Nicolas Taggart
Director
Company registration number NI613956 (Northern Ireland)
TAGGART HOMES LIMAVADY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
100
2,255,486
2,255,586
Year ended 31 December 2021:
Profit and total comprehensive income
-
263,104
263,104
Balance at 31 December 2021
100
2,518,590
2,518,690
Year ended 31 December 2022:
Profit and total comprehensive income
-
248,246
248,246
Balance at 31 December 2022
100
2,766,836
2,766,936
TAGGART HOMES LIMAVADY LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
843,467
7,298,590
Interest paid
(89,827)
(42,827)
Income taxes (paid)/refunded
(65,287)
45,816
Net cash inflow from operating activities
688,353
7,301,579
Investing activities
Purchase of tangible fixed assets
-
0
(145,395)
Proceeds from disposal of tangible fixed assets
-
0
150,203
Repayment of loans
(128,336)
(131,668)
Interest received
9,243
6,113
Net cash used in investing activities
(119,093)
(120,747)
Financing activities
Repayment of bank loans
(595,951)
(7,459,225)
Payment of finance leases obligations
8,348
227,424
Net cash used in financing activities
(587,603)
(7,231,801)
Net decrease in cash and cash equivalents
(18,343)
(50,969)
Cash and cash equivalents at beginning of year
50,733
101,702
Cash and cash equivalents at end of year
32,390
50,733
TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Company information

Taggart Homes Limavady Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is Taggart Residential Sales, 1 Crescent Link Road, Derry, BT47 5AB.

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.

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. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

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
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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.

TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -

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:

Leasehold land and buildings
4% straight line
Plant and equipment
25% reducing balance
Motor vehicles
25% reducing balance

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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.

1.7
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.

TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
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
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
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
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Construction contracts
9,679,623
16,686,617
2022
2021
£
£
Other revenue
Interest income
9,243
6,113
Grants received
-
236,516

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(236,516)
Fees payable to the company's auditor for the audit of the company's financial statements
13,750
13,000
Depreciation of owned tangible fixed assets
80,572
23,736
Depreciation of tangible fixed assets held under finance leases
-
75,315
Profit on disposal of tangible fixed assets
-
(13,062)
5
Employees

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

2022
2021
Number
Number
Administrative staff
9
8
Construction staff
15
16
Total
24
24
TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
936,514
916,757
6
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
76,585
60,000
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
9,243
6,113
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
12,800
27,687
Other finance costs:
Interest on finance leases and hire purchase contracts
41,235
12,116
Other interest
35,792
3,024
89,827
42,827
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
74,542
51,761
Deferred tax
Origination and reversal of timing differences
8,770
(655)
Total tax charge
83,312
51,106
TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
331,558
314,210
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
62,996
59,700
Tax effect of expenses that are not deductible in determining taxable profit
11,546
(5,457)
Tax effect of income not taxable in determining taxable profit
-
0
(2,482)
Permanent capital allowances in excess of depreciation
8,770
(655)
Taxation charge for the year
83,312
51,106
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2022
253,400
433,482
161,847
848,729
Additions
-
0
-
0
14,996
14,996
At 31 December 2022
253,400
433,482
176,843
863,725
Depreciation and impairment
At 1 January 2022
50,680
252,383
76,198
379,261
Depreciation charged in the year
10,136
45,275
25,161
80,572
At 31 December 2022
60,816
297,658
101,359
459,833
Carrying amount
At 31 December 2022
192,584
135,824
75,484
403,892
At 31 December 2021
202,720
181,099
85,649
469,468

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2022
2021
£
£
Plant and equipment
91,718
80,441
Motor vehicles
58,573
63,102
150,291
143,543
TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
11
Stocks
2022
2021
£
£
Finished goods and goods for resale
6,810,336
6,726,038
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
-
0
39,644
Gross amounts owed by contract customers
317,757
611,187
Other debtors
1,501,554
905,752
Prepayments and accrued income
66,143
34,212
1,885,454
1,590,795
13
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
15
149,302
64,589
Obligations under finance leases
16
200,457
149,229
Trade creditors
680,310
376,733
Corporation tax
214,769
205,514
Other taxation and social security
492,130
344,419
Other creditors
109,101
235,539
Accruals and deferred income
407,275
130,751
2,253,344
1,506,774
14
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
15
3,757,754
4,438,418
Obligations under finance leases
16
283,651
311,535
4,041,405
4,749,953
TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
15
Loans and overdrafts
2022
2021
£
£
Bank loans
3,907,056
4,503,007
Payable within one year
149,302
64,589
Payable after one year
3,757,754
4,438,418
16
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
261,476
175,501
In two to five years
316,190
370,466
577,666
545,967
Less: future finance charges
(93,558)
(85,203)
484,108
460,764
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
70,387
61,617
2022
Movements in the year:
£
Liability at 1 January 2022
61,617
Charge to profit or loss
8,770
Liability at 31 December 2022
70,387

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2022
2021
£
£
Entities over which the entity has control, joint control or significant influence
210,604
415,304

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
100
100
Entities over which the entity has control, joint control or significant influence
621,089
410,485
20
Directors' transactions

Dividends totalling £0 (2021 - £0) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Director loan
2.50
250,631
128,336
378,967
250,631
128,336
378,967
21
Ultimate controlling party

The parent company of Taggart Homes Limavady Ltd is Woodvale Investments Ltd which is incorporated and has its registered office address at 16 Main Street, Limavady, BT49 0EU.

The ultimate controlling party is Nicolas Taggart who owns 100% of the shares of Woodvale Investments Ltd, the parent company of Taggart Homes Limavady Ltd.

TAGGART HOMES LIMAVADY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
22
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
248,246
263,104
Adjustments for:
Taxation charged
83,312
51,106
Finance costs
89,827
42,827
Investment income
(9,243)
(6,113)
Gain on disposal of tangible fixed assets
-
(13,062)
Depreciation and impairment of tangible fixed assets
80,572
99,051
Movements in working capital:
(Increase)/decrease in stocks
(84,298)
6,641,211
(Increase)/decrease in debtors
(166,323)
154,239
Increase in creditors
601,374
66,227
Cash generated from operations
843,467
7,298,590
23
Analysis of changes in net debt
1 January 2022
Cash flows
Acquisitions and disposals
New finance leases
31 December 2022
£
£
£
£
£
Cash at bank and in hand
50,733
(18,343)
-
-
32,390
Borrowings excluding overdrafts
(4,503,007)
595,951
-
-
(3,907,056)
Obligations under finance leases
(460,764)
202,852
(211,200)
(14,996)
(484,108)
(4,913,038)
780,460
(211,200)
(14,996)
(4,358,774)
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