REGISTERED NUMBER: |
CARFORD DEVELOPMENTS LIMITED |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
REGISTERED NUMBER: |
CARFORD DEVELOPMENTS LIMITED |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 August 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
Chartered Accountants' Report | 9 |
CARFORD DEVELOPMENTS LIMITED |
COMPANY INFORMATION |
for the year ended 31 August 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants |
Ashbourne House |
The Guildway |
Old Portsmouth Road |
Guildford |
Surrey |
GU3 1LR |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
BALANCE SHEET |
31 August 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investment property | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 8 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 12 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Non-distributable reserves |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
BALANCE SHEET - continued |
31 August 2023 |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 August 2023 |
1. | STATUTORY INFORMATION |
Carford Developments Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions od Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
The accounts have been prepared on a going concern basis. The directors and shareholders have confirmed they will continue to support the company for the foreseeable future, if and when the need arises. |
Turnover |
Turnover represents rents receivable from the letting of property, excluding value added tax where applicable. The impact of rent free periods offered as lease incentives to tenants are spread evenly throughout the life of the lease. |
Rent concessions granted in relation to Covid-19 are recognised over the period in which the concession is intended to compensate. |
Tangible fixed assets |
Tangible fixed assets are stated at their historic cost price less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for use. The asset's residual values, useful lives and depreciation methods are reviewed if there is an indication of significant change since the last reporting date. |
Plant and machinery etc | - 25% on reducing balance |
On disposal the difference between the net proceeds and carrying amount of the item sold is recognised in profit or loss, and included in administrative expenses. |
Investment property |
Investment properties are properties held to earn rentals and/or for capital appreciation and are accounted for in accordance with FRS 102 Section 16 "Investment Property." Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties are measured at fair value. |
Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period which they arise. Any gains are subsequently transferred to a non-distributable reserve. The company has applied S841 of the Companies Act 2006 allowing provisions for diminution in value to be grouped with overall net unrealised gains. Any losses are therefore only transferred to the non-distributable reserve as far as they can be matched against overall net unrealised gains. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Financial instruments are classified as basic or non-basic following the conditions on FRS 102 Section 11. Basic financial instruments are initially measured at transaction price and subsequently recognised at amortised cost using the effective interest method. The company does not have any financial non-basic instruments. |
Expenditure |
Expenditure includes irrecoverable VAT. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2023 |
5. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 September 2022 |
Additions |
Change in fair value | (8,326 | ) |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
The director has valued the properties at 31 August 2023 at £2,830,000 (2022: £2,290,000); this is deemed by the director to represent an appropriate fair value at the year end and be equivalent to the open market value. |
If all the properties were sold at their open market value at the balance sheet date, there would be an estimated tax liability arising of £60,774 (2022: £63,100) at the enacted tax rate. A deferred tax liability has been recognised in respect of this at the rate of 25% less estimated marginal relief and has been transferred in full to non-distributable reserves. |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 9) |
Taxation and social security |
Other creditors |
Included within other creditors are amounts owed to the directors. Details of this loan are set out in note 15. |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 9) |
Other creditors |
Included within other creditors are amounts owed to the directors. Details of this loan are set out in note 15. |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2023 |
9. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
At the balance sheet date there were two bank loans outstanding, which attracted interest at 3.03% above the Bank of England Base Rate. Under the terms of the loan quarterly capital and interest payments are made. There were changes to the loans following the year end and further information is provided in note 16. |
10. | LEASING AGREEMENTS |
The company has a number of operating leases relating to its investment property. |
The minimum rent receivable under non-cancellable operating leases are as follows: |
2023 | 2022 |
£ | £ |
Within one year | 129,767 | 109,514 |
Between one and five years | 243,802 | 204,086 |
In more than five years | 646,989 | 697,933 |
1,020,558 | 1,011,533 |
11. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank Loans | 1,277,000 | 911,000 |
Bank loans at 31 August 2023 due to Svenska Handelsbanken AB (publ) are secured by way of fixed charges over the properties at 71a, 73a and 89 High Street, Banstead, Surrey and Flat 5, 9 Cannon Close, Reigate and 4 Water Mead, Chipstead which are included within investment property. |
The bank also holds a floating charge over all assets of the company, with rental income also being assigned to the bank. |
The directors have provided security for the bank loans totalling £100,000 plus interest and costs by way of a personal guarantee. The directors have also subordinated £696,000 of their directors loan due to them in favour of the bank. |
CARFORD DEVELOPMENTS LIMITED (REGISTERED NUMBER: 08649164) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2023 |
12. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 61,984 | 64,310 |
Deferred |
tax |
£ |
Balance at 1 September 2022 |
Change in fair value | (2,326 | ) |
Balance at 31 August 2023 |
The deferred tax balance at 31 August 2023 is represented by the following:- |
- Liability relating to potential gains on property revaluation of £60,774 (2022: £63,100). |
- Liability in respect of accelerated capital allowances of £1,210 (2022: £1,210). |
The deferred tax liability has been recognised at the enacted rate of 25% less estimated marginal relief. |
13. | NON-DISTRIBUTABLE RESERVES |
Non-distributable reserves |
£ |
At 1 September 2022 | 255,285 |
Transfer - change in fair value | (8,326 | ) |
Transfer - deferred tax on change in fair value | 2,326 |
At 31 August 2023 | 249,285 |
The non-distributable reserves represent fair value adjustments arising on investment properties which have previously been taken to the profit and loss account in the period they arose. The carrying value is after a provision has been made for deferred tax where relevant. |
14. | RELATED PARTY DISCLOSURES |
Included within other creditors falling due within one year is £364,945 (2022: £204,788) owed to the directors. The loan is repayable on demand and interest free. |
Included within other creditors falling due after more than one year is a loan of £696,000 owed to the directors. This loan is subordinated in favour of the bank and is therefore not repayable whilst the first bank loan secured against 89 High Street as set out in note 12 remains outstanding. |
15. | POST BALANCE SHEET EVENTS |
Following the year end there was a part repayment of the existing bank loans and a new loan was drawn with Aldermore Bank PLC which will be secured by a fixed charge over 5 of the existing properties owned by the company. |
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS |
ON THE UNAUDITED FINANCIAL STATEMENTS OF |
CARFORD DEVELOPMENTS LIMITED |
The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Carford Developments Limited for the year ended 31 August 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
This report is made solely to the Board of Directors of Carford Developments Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Carford Developments Limited and state those matters that we have agreed to state to the Board of Directors of Carford Developments Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Carford Developments Limited and its Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that Carford Developments 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 Carford Developments Limited. You consider that Carford Developments Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of Carford Developments 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. |
This report should not be regarded as suitable to be used or relied on by any other party wishing to acquire any rights against Bessler Hendrie LLP for any purpose or in any context. Any party, other than the Directors which obtain access to this report or a copy and chooses to rely on this report (or any part of it) will do so at its own risk. |
Chartered Accountants |
Ashbourne House |
The Guildway |
Old Portsmouth Road |
Guildford |
Surrey |
GU3 1LR |