REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
INGREBOURNE VALLEY LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
INGREBOURNE VALLEY LIMITED |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 | to | 27 |
INGREBOURNE VALLEY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
34-40 High Street |
Wanstead |
London |
E11 2RJ |
BANKERS: |
7B The Water Gardens |
South Gate |
Harlow |
Essex |
CM20 1AB |
SOLICITORS: |
Whitelands |
Terling Road |
Hatfield Peverel |
Essex |
CM3 2AG |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The Directors are pleased to report a continuation in the strong post -Covid recovery, with turnover, gross profit |
margins and operating profits all showing significant increase on the previous year. |
The Company has continued with its core work, that being the restoration of historic brown field sites throughout the |
wider London area as well as the development of new sites. This work is coupled with the extraction of sand and |
gravel which will provide additional restoration opportunities in the longer term. |
On 29 June 2023 the company revalued its freehold land at Harmondsworth by £9,950,000, prior to the transfer of that land into a new trading subsidiary. |
Overall 2022/23 was another successful year for the business, both in terms of financial performance during the |
period and the financial position as at the balance sheet date. |
With the continued opening of the sites the Directors remain confident of the ongoing financial performance of the business. |
The Company's key performance indicators are as follows: |
30 June 2023 | 30 June 2022 |
£ | £ |
Turnover | 18,991,862 | 13,203,998 |
Gross profit | 5,831,621 | 3,001,243 |
Operating profit | 3,857,087 | 1,585,350 |
Net current assets | 26,370,054 | 8,448,382 |
The strong trading performance has enabled the Company to continue to invest in fixed assets and new sites. |
The net assets of the Company are £65.7m at the balance sheet date, up from £53.9m in 2022. This reflects the solid position of the Company from a solvency and liquidity point of view, and this strong balance sheet is the foundation on which the Company can continue to grow and prosper. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the company's strategy are subject to a number of risks. |
The Directors have set out below the principal risks facing the business. |
The Directors are of the opinion that a thorough risk management process is adopted which involves a formal review of all risks identified below. Where possible, processes are in place to mitigate such risks. |
Liquidity Risk |
Due to the capital intensive nature of the work that the Company undertakes, the Directors consider liquidity and cash flow risk to be the major risk facing the business. The Company makes use of bank and asset finance facilities in order to finance long term capital expenditure. The Directors also continually monitor cash flow forecasts in order to further manage liquidity risk. The adjusted debt service ratio at the year end was 2.58 (2022: 1.35). |
Interest rate risk |
Due to the debt profile of the company, the increase in interest rates during the year present a risk to profitability and cashflow. The Company is in the process of renegotiating the repayment profile of its bank debt in order to mitigate this impact. The Company also makes use of fixed interest rate debt where possible and has a continued policy of regular rate monitoring and ongoing dialogue with our lenders to help mitigate this risk. |
Credit Risk |
As with most businesses the Company is exposed to the credit risk of customers and their ability to pay debts on a timely basis. The Directors have continued to be prudent in status checks for new and existing customers, keeping debtor days as low as possible and limiting the dominance of any single customer in the overall turnover of the Company. The Company also takes out credit insurance to further mitigate this risk. |
Regulatory Risk |
Due to the nature of the Company's operations there are a number of operational risks it is exposed to, including non-compliance with Environmental and Health and Safety Legislation and adhering to the terms of planning permissions and royalty agreements. The Directors conduct regular appraisals of compliance in this area and are continually reviewing site procedures to ensure compliance. |
Wages Cost Inflation |
The Company is continually affected by wage cost inflation and pressures within the labour market. The Company monitors the market to ensure complete compliance with labour market regulations, and maintains employment policies, remuneration and benefits packages that are designed to be competitive with other companies and recognise the value and contribution provided by employees, as well as providing colleagues with fulfilling career opportunities which offer progression. The Company regularly reviews pay and benefits. As with most UK based employers there remain ongoing challenges in terms of recruiting and retaining sufficiently capable staff. |
Other inflationary factors |
The Company is also subject to inflationary pressures across its cost base, particularly in the areas of fuel costs and energy. |
ON BEHALF OF THE BOARD: |
5 March 2024 |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of managers and operators of inert and non-hazardous restoration schemes and quarrying. |
DIVIDENDS |
There were no interim or final dividends declared in the current or previous year, as profits are reinvested into the business and the focus being on paying down unpaid dividends from previous years. |
FUTURE DEVELOPMENTS |
The Company continues to search for suitable sites for future development and where inert or non-hazardous waste can be tipped. |
The Directors are confident that focus on the key management policies and the core trading activities will continue to maintain and develop the financial position of the Company during the next financial year. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are 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. They are 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
AUDITORS |
The auditors, THP Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
INGREBOURNE VALLEY LIMITED |
Opinion |
We have audited the financial statements of Ingrebourne Valley Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
INGREBOURNE VALLEY LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including |
fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, |
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with the directors and other |
management, and from our commercial knowledge and experience of the sector in which the company operates; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety legislation and the requirements of royalty agreements and planning permissions; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to |
instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of |
actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 |
were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and any other relevant regulators as required. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations |
are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may |
involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
INGREBOURNE VALLEY LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
34-40 High Street |
Wanstead |
London |
E11 2RJ |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,101,398 | 795,019 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Gain on mineral and void valuation | 7 |
Amortisation of mineral and void reserves | 7 | ( |
) | ( |
) |
4,998,267 | 3,444,046 |
Interest receivable and similar income |
5,149,764 | 3,739,097 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation of mineral and void reserves |
Revaluation shown in profit and loss | ( |
) | ( |
) |
Revaluation of freehold land |
Income tax relating to components of other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 13 |
Debtors: amounts falling due after more than one year |
13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Retained earnings - non-distributable | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2023 |
Called up | Retained |
share | Retained | Share | earnings | Total |
capital | earnings | premium | - non-distributable | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Total comprehensive income | - | - | ( |
) |
Balance at 30 June 2022 |
Changes in equity |
Total comprehensive income | - | - | ( |
) |
Balance at 30 June 2023 |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
Ingrebourne Valley Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about Ingrebourne Valley Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Ingrebourne Valley Holdings Limited, . |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
a) Critical judgements in applying the entity's accounting policies |
There are no specific judgements, apart from those involving estimates as detailed below, that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements. |
b) Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates can differ from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below. |
(i) Valuation of Freehold Land and Investment Properties |
The management use their professional judgement to determine the valuation of the Company's freehold land and investment properties in light of the available evidence and using management experts where necessary. |
(ii) Valuation of Mineral Reserves |
The valuation of mineral reserves is based on cost plus a value per cubic metre attributed to the void space on the site and a value per tonne attributed to the value of minerals that are available for extraction. |
(iii) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
(iv) Impairment of debtors |
The company makes an estimate of the recoverable value of trade, group and other debtors. When assessing their impairment, the management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
(v) Provisions for future costs |
The accounts include provisions for site reinstatement and development costs, as explained in the accounting policies below. |
Revenue recognition |
Revenue is measured at the fair value of consideration received and represents net invoiced sales of inert and non-hazardous waste tipping fees, excluding value added tax. |
Tipping fees are recognised at the point when the materials enter the relevant site operated by the company. |
Sale of minerals are recognised when goods are delivered to the customer, such that the risks and rewards of ownership have passed to them. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
(i) Restoration schemes |
Restoration schemes are included within tangible fixed assets at cost less accumulated depreciation. Cost includes the cost of acquiring, developing and engineering sites, but does not include interest. The cost of the asset, less any residual value, is depreciated over the estimated life of the site on the basis of the usage of the void space. |
(ii) Other tangible fixed assets. |
Fixed assets are included historical cost less accumulated depreciation. |
(iii) Mineral and void reserves |
Mineral reserves and related void space are shown at fair value. This value is derived by placing a nominal value per tonne of the expected volume of minerals in the ground on acquisition and and the expected return on the related void space. |
Any surplus or deficit arising from a change in fair value, is recognised initially in profit or loss as this is necessary to show a true and fair view. The balance, net of deferred tax, is then transferred to a non-distributable reserve called the 'revaluation reserve'. |
(iv) Freehold land represents land assets from which the company carries out its principal activities and is included at fair value, measured on an open market basis. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: |
Plant and machinery | -12.5% on cost |
Fixtures and fittings | -12.5%-20% on cost |
Motor vehicles | -25% on cost |
Mineral Rights | - In line with the usage of the site |
High value washing plant assets are depreciated in line with their usage. |
Mineral and void reserves are amortised over their estimated commercial life on a site by site basis on a unit of production basis. Freehold land is not depreciated. |
Items costing less than £1,000 are not capitalised but written off to the Profit and Loss Account as incurred. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment properties |
Investment property represents land or property assets held for investment purposes of capital growth and/or rental income. Commercial properties are valued at their open market value. Any surplus or deficit arising from changes in fair value is recognised initially in profit or loss. The balance, net of deferred tax, is then transferred to a non-distributable retained earnings reserve. |
Financial instruments |
The Company has chosen to adopt Sections 11 and 12 of FRS102 in respect of financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently carried at this value less any provision for impairment. |
Cash and cash equivalents |
Cash and cash equivalents in the balance sheet represent cash at bank and in hand. |
Short-term debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in profit or loss under operating expenses. |
The carrying value of all short-term financial assets and liabilities are measured at amortised cost. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company provides a range of benefits to employees, including paid holiday arrangements and a defined contribution pension plan. |
(i) Short Term Benefits |
Short term benefits, including holiday pay (where material) and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. |
(ii) Pension Scheme |
The company operates a defined contribution pension scheme for its employees. The contributions are recognised as an expense when they are due. Amounts not paid are shown as a creditor on the balance sheet. The assets of the scheme are held separately from the company in independently administered funds. |
Licence fees |
Licence fees paid in advance for use of a site are charged to the profit and loss account over the economic life of the site. |
Site reinstatement costs |
Provision for the cost of reinstating sites is made over the operational life of each individual site and charged to the profit and loss account on the basis of the usage of the space. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Deferred site development costs |
Site development costs incurred are deferred on the balance sheet until the site is fully operational. Once it is, they are then written off over the life of the site, at a pre-determined rate, in line with the anticipated load capacity to match against future income streams generated therefrom. Development costs in relation to new phases on existing sites are accounted for in the same manner. |
The expected total site development costs to bring new sites into operation under new planning and environmental legislation, whether freehold or leasehold, are charged to the profit and loss account evenly over the expected period prior to the site achieving pre-planning conditions. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received |
Government grants |
Management fees |
755,689 | 790,331 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,615,319 | 2,985,342 |
Social security costs | 498,968 | 376,730 |
Other pension costs | 132,075 | 153,972 |
4,246,362 | 3,516,044 |
The average number of employees during the period was as follows: |
Number | Number |
Administration | 30 | 27 |
Site operatives | 66 | 62 |
Total | 96 | 89 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
The Directors are considered to be the key management for the purposes of disclosure under FRS102. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 781,600 | 353,251 |
Depreciation - assets on hire purchase agreements | 760,616 | 824,773 |
Licence and royalty fees | 2,129,428 | 1,598,090 |
Profit on disposal of fixed assets | (213,511 | ) | (187,442 | ) |
Auditors' remuneration | 19,688 | 18,750 |
Auditors' remuneration for non-audit work | 18,543 | 27,575 |
7. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Gain on mineral and void valuation |
Amortisation of mineral and void reserves | ( |
) | ( |
) |
1,141,180 | 1,858,696 |
The value of minerals and void space is revalued on a periodic basis by the Directors. |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Hire purchase interest |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
Under/(over) provision in |
prior year | - | (42 | ) |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) | ( |
) |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax - accelerated capital allowances | 847,207 | 557,337 |
Deferred tax - revaluation gains | 1,821,927 | 165,036 |
Deferred tax - trading losses | (16,739 | ) | (175,694 | ) |
Total tax charge | 2,652,395 | 546,637 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of mineral and void reserves | - | 2,817,216 |
Revaluation shown in profit and loss | ( |
) | - | (2,817,216 | ) |
Revaluation of freehold land | - | 9,950,001 |
9,950,001 | - | 9,950,001 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of mineral reserve | - | 2,833,432 |
Mineral reserve shown in profit and loss | ( |
) | - | (2,833,432 | ) |
- | - | - |
The Company has corporation tax losses of £769,732 (2022: £857,045) available to offset against future trading profits. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
10. | TANGIBLE FIXED ASSETS |
Mineral |
Freehold | and void | Plant and |
land | reserve | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Revaluations |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
The Directors consider that the above valuations, determined by them on an open market basis and with the assistance of external valuers, including mineral deposits and void space, represent the fair value as at 30 June 2023. |
Items are fair value at 30 June 2023 are represented by: |
Freehold Land | Mineral Reserves |
£ | £ |
Cost | 7,111,529 | 2,734,998 |
Revaluations | 1,955,670 | 41,947,363 |
Fair value cost | 9,067,199 | 44,682,361 |
All other assets are stated at original cost. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 July 2022 |
Additions |
Transfer to ownership | (3,935,348 | ) | - | - | (3,935,348 | ) |
Reclassification | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Transfer to ownership | (1,761,423 | ) | - | - | (1,761,423 | ) |
Reclassification/transfer | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
11. | FIXED ASSET INVESTMENTS |
Shares in | Interest |
group | in joint |
undertakings | venture | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 | 3 |
NET BOOK VALUE |
At 30 June 2023 | 3 |
At 30 June 2022 | 3 |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
(Loss)/profit for the year | ( |
) |
The parent company has given a statutory guarantee, in favour of Aveley Leisure Limited (Company number 07674755), under section 479C of the Companies Act 2006, of all its outstanding liabilities to which the company is subject to as at 30 June 2023. This guarantee has enabled Aveley Leisure Limited to claim exemption from statutory audit. |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
The company made an operating profit of £25,973 (2022: £2,105). The losses for the past two years are due to the write down and usage of the mineral reserve of £848,514 (2022:£1,542,147). |
Joint venture |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
The company made an operating profit of £487,197 (2022: £396,106). The profit for the prior year included an exceptional revaluation of the mineral reserves of £4,040,638. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
The Directors consider that the above valuation, determined by them on an open market basis and with the assistance of external valuers, represents the fair value of the Investment Land and Property as at 30 June 2023. |
Fair value at 30 June 2023 is represented by: |
£ |
Cost | 4,483,341 |
Revaluations | (1,143,341 | ) |
Fair value | 3,340,000 |
13. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by related parties | 1,652,590 | 1,699,783 |
Amounts owed by joint ventures |
Deferred site costs |
Directors' current accounts | - | 3,620 |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Deferred site costs | 10,144,606 | 7,619,775 |
Prepayments and accrued income |
Aggregate amounts |
£268,333 of prepayments in relation to royalties have been reclassified in the prior year to amounts due in more than 1 year, in order to reflect the expected timescale that this asset will be realised. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Amounts owed to related parties | 976,725 | 1,116,865 |
Social security and other taxes |
VAT | 62,638 | 238,210 |
Proposed dividends | 482,346 | 881,103 |
Sales invoice financing |
Directors' current accounts | - | 660 |
Accruals |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
Site reinstatement provisions |
Accruals |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans - less than 1 year |
Amounts falling due between one and two years: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans >5 years payable |
by instalments | 1,541,307 | 2,482,754 |
1,541,307 | 2,482,754 |
The bank loans are subject to fixed and variable rates of interest of between 1.45% and 3.30% above the Bank of England's base rate and are repayable over a total of 10-15 years in equal monthly instalments. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The above commitments predominantly relate to royalties payable on operational sites. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | 5,929,454 | 4,566,288 |
Invoice financing arrangement | 2,302,056 | 1,865,765 |
The bank loans and sales invoice financing are secured by way of fixed and floating charges over the company's assets. |
Hire purchase contracts are secured on the assets to which they relate. |
Advances under the invoice financing arrangement are secured on the sales ledger balances to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Tax losses carried forward | ( |
) | ( |
) |
Accelerated capital allowances | 1,911,433 | 1,064,226 |
Revaluation gains | 9,109,888 | 7,287,961 |
10,828,888 | 8,176,493 |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Accelerated capital allowances | 847,207 |
Revaluation gains | 1,821,927 |
Trading losses | (16,739 | ) |
Balance at 30 June 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
'A' Ordinary | £1 | 100 | 100 |
'B' Ordinary | £1 | 100 | 100 |
200 | 200 |
The 'A' and 'B' shares allow the holders to elect 'A' and 'B' directors respectively. In all other respects the shares rank pari passu. |
21. | RESERVES |
Retained |
Retained | Share | earnings |
earnings | premium | - non-distributable | Totals |
£ | £ | £ | £ |
At 1 July 2022 | 53,830,359 |
Profit for the year |
Transfer of revaluation on disposal | ( |
) |
Revaluation of freehold land | - | - | 9,950,000 | 9,950,000 |
Transfer of revaluation gain (net of deferred tax) |
776,966 |
- |
(776,965 |
) |
1 |
At 30 June 2023 | 65,711,082 |
22. | ULTIMATE PARENT COMPANY |
Ingrebourne Valley Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
The registered office of Ingrebourne Valley Holdings Limited is Cecil House, Foster Street, Harlow, Essex, CM17 9HY. Copies of the consolidated accounts of Ingrebourne Valley Holdings Limited may be obtained from Companies House. |
23. | CONTINGENT LIABILITIES |
There is a composite company unlimited multilateral guarantee between Ingrebourne Valley Limited and Harleyford Valley Limited. |
There is also a composite company unlimited multilateral guarantee between Ingrebourne Valley Holdings Limited, Ingrebourne Valley Limited, R.J.D. Ltd, Aveley Leisure Limited and Ingrebourne PFA Limited. |
The company has given guarantees in the form of bonds totalling £879,848 (2022: £859,143) to third parties in respect of existing sites. These bonds have been guaranteed by the principal bankers. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
24. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
The commitments relate to purchases of plant and machinery that the company will 90% finance via hire purchase agreements. |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 June 2023 and 30 June 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
26. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
INGREBOURNE VALLEY LIMITED (REGISTERED NUMBER: 02848746) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
26. | RELATED PARTY DISCLOSURES - continued |
C J Pryor (Plant) Limited (in liquidation) - a company in which C J Pryor and R G Pryor were Directors and Shareholders. |
Following their appointment as administrators on 1 March 2016, on 1 March 2017 FRP Advisory LLP were subsequently appointed as liquidators in order to wind the company up. |
At the balance sheet date the Company was owed £1,652,590 (2022: £1,699,783) by the above company. |
During the prior year, a settlement was reached between the Company and C J Pryor and R G Pryor to repay the debt, plus interest, in full. R G Pryor has settled the agreed element during the year. |
Interest of £90,452 (2022: £45,379) was charged on the outstanding balance in the year. |
Harleyford Valley Limited (HVL) - a company in which Ingrebourne Valley Limited holds 50% of the issued share capital |
During the year the Company made sales of £782,608 (2022: £578,642) to HVL and made purchases of £804,502 (2022: £1,382,513) from HVL. At the balance sheet date the Company was owed £665,002 (2022: £1,324,250). |
This balance is repayable on demand and interest of £60,150 (2022: £27,277) was charged in the year. |
Ahern Land Reclamation Limited - a company with common Directors and Shareholders |
During the year the Company was charged £nil (2022: £nil) in land management charges and at the balance sheet date owed £956,000 (2022: £1,080,000) to Ahern Land Reclamation Limited. |
C.J Pryor (Plant) Limited 1984 Retirement Benefits Scheme - a pension scheme for the benefit of certain Directors of the company |
During the year the Company paid rent of £62,962 (2022: £60,000) to the scheme and at the balance sheet date the Company was owed £nil (2022: £nil). |
PF Ahern (London) Limited - a company with common Directors and Shareholders |
During the year the Company made purchases of £83,252 (2022: £53,125) from PF Ahern (London) Limited. The company made sales of £12,578 (2022: £nil) to PF Ahern (London) Limited. At the year end the Company owed them £20,725 (2022: £36,865). |
Company Directors |
At the year end the company owed certain Directors £nil (2022: £660) in expenses that have yet to be reimbursed. |
27. | POST BALANCE SHEET EVENTS |
On 25 August 2023 the Company transferred the investment property and its associated assets to a group company at their book value of £3,514,798. |
28. | ULTIMATE CONTROLLING PARTY |
The ultimate parent company that draws up consolidated accounts is Ingrebourne Valley Holdings Limited, whose registered office and place of business is the same as Ingrebourne Valley Limited. Copies of the consolidated accounts are available at Companies House. |
There is no overall controlling party. |