REGISTERED NUMBER: 08257384 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
INGREBOURNE VALLEY HOLDINGS LTD |
REGISTERED NUMBER: 08257384 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
INGREBOURNE VALLEY HOLDINGS LTD |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 | to | 33 |
INGREBOURNE VALLEY HOLDINGS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Andrew Green LLB FCA |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
34-40 High Street |
Wanstead |
London |
E11 2RJ |
BANKERS: | HSBC Bank PLC |
7B The Water Gardens |
South Gate |
Harlow |
Essex |
CM20 1AB |
SOLICITORS: |
Whitelands |
Terling Road |
Hatfield Peverel |
Essex |
CM3 2AG |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their strategic report of the company and the group 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. |
In the prior year, the profit before tax benefited from an exceptional gain on mineral valuations in the year of £1,570,284 as the Directors re-appraised the available volumes of minerals and void spaces and the expected revenue that will be achieved. The Group results in 2022 also benefitted from a significant increase in the net assets of its joint venture, Harleyford Valley Limited, which was also mainly due to the revaluation of mineral rights. |
Trading at the Ingrebourne Links Golf Course and Clubhouse, operated through the subsidiary company Aveley Leisure Limited, continued to improve and is now producing an operating profit before group charges. The Directors have implemented a plan to continue to deliver profits from this activity in the the medium term. |
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. |
The Group continues to strive to ensure that only non-hazardous waste is accepted onto any of the sites under its control. We also seek to charge competitive market rate on all waste and quarrying operations, to ensure each site is profitable. |
The Group 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. |
The Directors are pleased to report that the sale of the mineral Pulverised Fly Ash through its subsidiary company Ingrebourne PFA Ltd is trading in line with expectations, which is being impacted by the proposed new Lower Thames Crossing. |
On 29 June 2023 the group revalued its freehold land at Harmondsworth by £9,950,000, prior to the transfer of that land into a new trading subsidiary. |
Overall, with the continued strong trade in the Group's core businesses, coupled with the opening of new sites and income streams, the Directors remain confident of the ongoing financial performance of the business. |
The Group's key performance indicators are as follows: |
30 June 2023 | 30 June 2022 |
£ | £ |
Turnover | 24,665,772 | 19,039,628 |
Gross profit | 7,301,559 | 4,906,838 |
Operating profit | 3,457,254 | 1,813,759 |
Net current assets/(liabilities) | 5,247,122 | 769,755 |
The strong trading performance has enabled the Group to continue to invest in fixed assets and new investment land, quarry and property sites. |
The net assets of the Group are £65.2m at the balance sheet date, up from £57.1m in 2022. This reflects the solid position of the Group from a solvency and liquidity point of view, and this strong balance sheet is the foundation on which the Group can continue to grow and prosper. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
GROUP 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 Group undertakes, the Directors consider liquidity and cash flow risk to be the major risk facing the business. The Group 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 (when applied to the accounts of Ingrebourne Valley Limited) at the year end was 2.58 (2022: 1.35). |
Interest rate risk |
Due to the debt profile of the Group, the increase in interest rates during the year present a risk to profitability and cashflow. The Group is in the process of renegotiating the repayment profile of its bank debt in order to mitigate this impact. The Group 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 Group 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 Group. The Group also takes out credit insurance to further mitigate this risk. |
Regulatory Risk |
Due to the nature of the Group'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 Group is continually affected by wage cost inflation and pressures within the labour market. The Group 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 Group 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 Group 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 HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023. |
PRINCIPAL ACTIVITIES |
The principal activity of the company in the year under review was that of holding investment in group companies. |
The principal activities of the subsidiary companies are disclosed in note 14. |
DIVIDENDS |
Interim dividends of £nil (2022: £nil) were declared during the year. The Directors have declared a final dividend of £nil (2022: £nil). |
FUTURE DEVELOPMENTS |
The Group continues to search for suitable sites for future development where minerals are available for extraction and where inert and non-hazardous waste can be tipped. The Group are also actively divesting non-core assets from the main trading company in order to maximise their value in the medium to long term. |
The Directors are confident that focus on the key management policies will continue to maintain and develop the financial position of the Group during the next financial year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
STREAMLINED ENERGY AND CARBON REPORTING |
Although the Group does not fall within the SECR regime, we recognize the importance of reporting our Carbon emissions and the steps that are being taken to reduce them. |
Annual Quantity of CO2/£m Emissions: |
2023 | 2022 |
CO2/Tonnes for Vehicle Fuel | 69 | 150 |
CO2/Tonnes for Site Plant and Machinery | 4,478 | 4,463 |
CO2/Tonnes for Electricity | 27 | 13 |
Total Annual CO2 in Tonnes | 4,574 | 4,626 |
Turnover | 24,665,772 | 19,039,628 |
CO2/£m of Turnover | 185.18 | 242.97 |
The Group's CO2 emissions are mainly generated by mobile plant used in operations. The Group has a vehicle and plant replacement policy and is always striving to purchase the most up to date and fuel efficient machines. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
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 HOLDINGS LTD |
Opinion |
We have audited the financial statements of Ingrebourne Valley Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 group's and of the parent company affairs as at 30 June 2023 and of the group's loss 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
INGREBOURNE VALLEY HOLDINGS LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
INGREBOURNE VALLEY HOLDINGS LTD |
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 group 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 group, 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 group'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 HOLDINGS LTD |
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 HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 24,665,772 | 19,039,628 |
Cost of sales | 17,364,213 | 14,132,790 |
GROSS PROFIT | 7,301,559 | 4,906,838 |
Administrative expenses | 4,053,570 | 3,509,254 |
3,247,989 | 1,397,584 |
Other operating income | 5 | 209,265 | 416,175 |
OPERATING PROFIT | 7 | 3,457,254 | 1,813,759 |
Group | 8 |
Gain on mineral and void valuation | 2,834,856 | 1,570,284 |
Amortisation of mineral and void reserve | (2,638,752 | ) | (1,255,840 | ) |
Joint ventures |
Share of profit of joint venture | (17,346 | ) | 1,530,745 |
3,636,012 | 3,658,948 |
Interest receivable and similar income | 151,497 | 295,051 |
3,787,509 | 3,953,999 |
Interest payable and similar expenses | 9 | 592,376 | 374,602 |
PROFIT BEFORE TAXATION | 3,195,133 | 3,579,397 |
Tax on profit | 10 | 5,114,533 | 317,169 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME |
Revaluation of freehold land | 9,950,001 | - |
Revaluation of minerals and void | 2,834,856 | 1,570,284 |
Revaluation included in profit and loss | (2,834,856 | ) | (1,570,284 | ) |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
9,950,001 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
8,030,601 |
3,262,228 |
(Loss)/profit attributable to: |
Owners of the parent | (1,919,400 | ) | 3,262,228 |
Total comprehensive income attributable to: |
Owners of the parent | 8,030,601 | 3,262,228 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 1,006,020 | 1,181,835 |
Tangible assets | 13 | 81,697,654 | 70,967,724 |
Investments | 14 |
Interest in joint venture |
Share of gross assets | 8,534,232 | 7,770,223 |
Share of gross liabilities | (5,307,945 | ) | (4,526,590 | ) |
85,929,961 | 75,393,192 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 15 | 11,794,665 | 7,712,037 |
Debtors: amounts falling due after more than one year |
15 |
10,614,606 |
7,893,042 |
Cash at bank and in hand | 461,981 | 308,208 |
22,871,252 | 15,913,287 |
CREDITORS |
Amounts falling due within one year | 16 | 17,624,130 | 15,143,532 |
NET CURRENT ASSETS | 5,247,122 | 769,755 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
91,177,083 |
76,162,947 |
CREDITORS |
Amounts falling due after more than one year | 17 | (12,393,036 | ) | (10,524,034 | ) |
PROVISIONS FOR LIABILITIES | 21 | (13,624,118 | ) | (8,509,585 | ) |
NET ASSETS | 65,159,929 | 57,129,328 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 1,000 | 1,000 |
Retained earnings - non-distributable | 23 | 30,646,646 | 31,919,439 |
Merger Reserves | 23 | 5,745,021 | 5,745,021 |
Retained earnings | 23 | 28,767,262 | 19,463,868 |
SHAREHOLDERS' FUNDS | 65,159,929 | 57,129,328 |
The financial statements were approved by the Board of Directors and authorised for issue on 5 March 2024 and were signed on its behalf by: |
K S Benge - Director |
A S Clark - Director |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
COMPANY BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2023 |
Called up | Retained |
share | Retained | earnings | Merger | Total |
capital | earnings | - non-distributable | Reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2021 | 1,000 | 13,252,295 | 34,868,784 | 5,745,021 | 53,867,100 |
Changes in equity |
Total comprehensive income | - | 6,211,573 | (2,949,345 | ) | - | 3,262,228 |
Balance at 30 June 2022 | 1,000 | 19,463,868 | 31,919,439 | 5,745,021 | 57,129,328 |
Changes in equity |
Total comprehensive income | - | 9,303,394 | (1,272,793 | ) | - | 8,030,601 |
Balance at 30 June 2023 | 1,000 | 28,767,262 | 30,646,646 | 5,745,021 | 65,159,929 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Balance at 30 June 2022 |
Changes in equity |
Balance at 30 June 2023 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 28 | 386,260 | 2,388,914 |
Interest paid | (363,325 | ) | (220,018 | ) |
Interest element of hire purchase payments paid |
(229,051 |
) |
(154,584 |
) |
Tax paid | - | (487,031 | ) |
Net cash from operating activities | (206,116 | ) | 1,527,281 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (520,579 | ) | (1,021,304 | ) |
Sale of tangible fixed assets | 1,436,758 | 844,359 |
Sale of investment property | - | 4,179,080 |
Interest received | 151,497 | 295,051 |
Net cash from investing activities | 1,067,676 | 4,297,186 |
Cash flows from financing activities |
New loans in period | 2,000,000 | 800,000 |
Loan repayments in period | (1,154,996 | ) | (4,161,106 | ) |
HP loans less capital repayments in year | (1,555,751 | ) | (2,945,593 | ) |
Amount introduced by directors | 3,620 | 660 |
Amount withdrawn by directors | (660 | ) | (758 | ) |
Net cash from financing activities | (707,787 | ) | (6,306,797 | ) |
Increase/(decrease) in cash and cash equivalents | 153,773 | (482,330 | ) |
Cash and cash equivalents at beginning of year |
29 |
308,208 |
790,538 |
Cash and cash equivalents at end of year | 29 | 461,981 | 308,208 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
Ingrebourne Valley Holdings Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements represent the results of the company and its subsidiaries, all of whom are 100% owned, made up to 30 June 2023. All accounting policies as detailed below are applied consistently across the Group. |
All intra-group transactions and balances are eliminated on consolidation. |
The subsidiary undertakings, Aveley Leisure Limited, Ingrebourne Links Limited and R.J.D. Ltd. have claimed exemption from audit under Section 479A of the Companies Act 2006. |
The parent company has taken the exemption from preparing its own cashflow statement. |
Joint ventures |
The group accounts for its investments in jointly controlled entities using the cost model and consolidates using the equity method. The investment is initially measured at transaction price (cost) and is then subsequently adjusted to reflect the group's share of profits and equity in the entity. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED 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 Group 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 Group's freehold land and investment properties in light of the available evidence and using management experts where necessary. |
(ii) Valuation of Mineral and Void 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 th physical condition of the assets. |
(iv) Impairment of debtors |
The group makes an estimate of the recoverable value of trade 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. |
(vi) Useful economic lives of goodwill and other intangible assets |
Goodwill and intangible assets are amortised over their useful economic lives and are assessed annually for indications of impairment. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
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. |
Income from golf course operations is recognised on a receivable basis. |
Sales of minerals are recognised when goods are delivered to the customer, such that the risks and rewards of ownership have passed to them. |
Site contracts |
The "goodwill" on the purchase of R.J.D. Ltd, the difference between the consideration paid and the fair value of net assets, represents an intangible asset in respect of the future value of site contracts held by that company. This asset is being written off, in accordance with FRS102, over the period that each site is expected to be active, which range from 1 to 25 years. |
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'. |
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 and Void Rights | - In line with the usage of the site |
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. |
High value washing plant assets are depreciated in line with their usage. |
Items costing less than £1,000 are not capitalised but written off to the Profit and Loss Account as incurred. |
Investment property |
Residential and 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 reserve. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
The group 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 group 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 group in independently administered funds. |
License 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. |
Insurance claims |
The Group recognises insurance claims in relation to the compensation for business interruption when it has an unconditional right to receive the compensation. This is typically when the insurer has accepted liability and confirmed that payment will be made. |
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. |
Deferred site development costs |
Site development costs incurred are deferred on the balance sheet until the site is 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. |
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. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Minerals and tipping | 22,600,978 | 17,135,577 |
Golf course and country club | 2,064,794 | 1,654,051 |
Promotion agreement | - | 250,000 |
24,665,772 | 19,039,628 |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received | 86,265 | 126,413 |
Government grants | - | 8,097 |
Management fees | 123,000 | 13,200 |
Insurance claim | - | 268,465 |
209,265 | 416,175 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,786,491 | 3,872,173 |
Social security costs | 498,968 | 376,730 |
Other pension costs | 138,279 | 158,030 |
5,423,738 | 4,406,933 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administrative | 30 | 27 |
Site operatives | 123 | 104 |
The average number of employees by undertakings that were proportionately consolidated during the year was 153 (2022 - 131 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 338,879 | 355,146 |
Directors' pension contributions to money purchase schemes | 12,852 | 32,667 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 3 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 188,302 | 194,796 |
Pension contributions to money purchase schemes | 9,415 | 29,056 |
The Directors are considered to be the key management for the purposes of disclosure under FRS102. |
7. | OPERATING PROFIT |
The operating profit is stated after charging(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 871,244 | 495,579 |
Depreciation - assets on hire purchase agreements | 916,321 | 1,021,808 |
Site contract amortisation | 175,815 | 175,815 |
Licence and royalty fees | 2,548,589 | 2,202,392 |
Profit on disposal of fixed assets | (194,373 | ) | (163,329 | ) |
Auditors' remuneration | 34,650 | 31,550 |
Auditors' remuneration for non-audit work | 11,592 | 11,197 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
8. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Gain on mineral and void valuation | 2,834,856 | 1,570,284 |
Amortisation of mineral and void reserve | (2,638,752 | ) | (1,255,840 | ) |
Share of joint venture profit | (17,346 | ) | 1,530,745 |
178,758 | 1,845,189 |
The value of minerals and void space is revalued on a periodic basis by the Directors and in light of new sites that are acquired. The mineral reserves are released to the profit and loss account in line with their usage. |
These items have been shown as exceptional items due to their size. |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 363,325 | 220,018 |
Hire purchase interest | 229,051 | 154,584 |
592,376 | 374,602 |
10. | 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 | 5,114,533 | 317,211 |
Tax on profit | 5,114,533 | 317,169 |
UK corporation tax has been charged at 19 % (2022 - 19 %). |
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 | 3,195,133 | 3,579,397 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
607,075 |
680,085 |
Effects of: |
Expenses not deductible for tax purposes | 3,091 | (45,403 | ) |
Income not taxable for tax purposes | (552,035 | ) | (538,352 | ) |
Capital allowances in excess of depreciation | (102,352 | ) | (478,960 | ) |
Utilisation of tax losses | 76,533 | 382,630 |
Adjustments to tax charge in respect of previous periods | - | (42 | ) |
Deferred tax timing differences | 847,207 | 685,496 |
Deferred tax on revalued property (see note 20) | 4,251,753 | (192,591 | ) |
Deferred tax on losses | (16,739 | ) | (175,694 | ) |
Total tax charge | 5,114,533 | 317,169 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
10. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold land | 9,950,001 | - | 9,950,001 |
Revaluation of minerals and void | 2,834,856 | - | 2,834,856 |
Revaluation included in profit and loss | (2,834,856 | ) | - | (2,834,856 | ) |
9,950,001 | - | 9,950,001 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold land |
Revaluation of minerals and void | 1,570,284 | - | 1,570,284 |
Revaluation included in profit and loss | (1,570,284 | ) | - | (1,570,284 | ) |
- | - | - |
The Group has corporation tax losses of £1,151,325 (2022: £924,972) to utilise against future trading profits. |
11. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
12. | INTANGIBLE FIXED ASSETS |
Group |
Site |
contracts |
£ |
COST OR VALUATION |
At 1 July 2022 |
and 30 June 2023 | 2,474,028 |
AMORTISATION |
At 1 July 2022 | 1,292,193 |
Amortisation for year | 175,815 |
At 30 June 2023 | 1,468,008 |
NET BOOK VALUE |
At 30 June 2023 | 1,006,020 |
At 30 June 2022 | 1,181,835 |
Minerals rights are valued on the same basis as minerals held on land that is owned. This being the expected return from the extraction and sale of the minerals in the ground. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
13. | TANGIBLE FIXED ASSETS |
Group |
Mineral |
Freehold | and void | Plant and |
land | reserve | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 | 19,922,174 | 45,178,316 | 17,086,224 |
Additions | - | - | 3,466,339 |
Disposals | - | - | (3,003,583 | ) |
Revaluations | 9,950,000 | 2,834,856 | - |
At 30 June 2023 | 29,872,174 | 48,013,172 | 17,548,980 |
DEPRECIATION |
At 1 July 2022 | - | 4,608,386 | 7,058,679 |
Charge for year | - | 2,638,751 | 1,632,364 |
Eliminated on disposal | - | - | (1,763,886 | ) |
At 30 June 2023 | - | 7,247,137 | 6,927,157 |
NET BOOK VALUE |
At 30 June 2023 | 29,872,174 | 40,766,035 | 10,621,823 |
At 30 June 2022 | 19,922,174 | 40,569,930 | 10,027,545 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 | 315,542 | 591,971 | 83,094,227 |
Additions | 25,835 | 121,603 | 3,613,777 |
Disposals | - | (49,411 | ) | (3,052,994 | ) |
Revaluations | - | - | 12,784,856 |
At 30 June 2023 | 341,377 | 664,163 | 96,439,866 |
DEPRECIATION |
At 1 July 2022 | 203,417 | 256,021 | 12,126,503 |
Charge for year | 22,261 | 132,942 | 4,426,318 |
Eliminated on disposal | - | (46,723 | ) | (1,810,609 | ) |
At 30 June 2023 | 225,678 | 342,240 | 14,742,212 |
NET BOOK VALUE |
At 30 June 2023 | 115,699 | 321,923 | 81,697,654 |
At 30 June 2022 | 112,125 | 335,950 | 70,967,724 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
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 and Void Reserves |
£ | £ |
Cost | 19,259,464 | 4,242,998 |
Revaluations | 10,612,710 | 43,770,174 |
Fair value cost | 29,872,174 | 48,013,172 |
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 |
At 1 July 2022 | 10,704,493 | - | - | 10,704,493 |
Additions | 3,355,638 | - | 97,103 | 3,452,741 |
Disposals | (118,000 | ) | - | - | (118,000 | ) |
Transfer to ownership | (3,935,348 | ) | - | - | (3,935,348 | ) |
Reclassification | (36,075 | ) | 36,075 | - | - |
At 30 June 2023 | 9,970,708 | 36,075 | 97,103 | 10,103,886 |
DEPRECIATION |
At 1 July 2022 | 2,811,270 | - | - | 2,811,270 |
Charge for year | 897,385 | 4,510 | 14,426 | 916,321 |
Eliminated on disposal | (52,363 | ) | - | - | (52,363 | ) |
Transfer to ownership | (1,761,423 | ) | - | - | (1,761,423 | ) |
Reclassification/transfer | (1,277 | ) | 1,277 | - | - |
At 30 June 2023 | 1,893,592 | 5,787 | 14,426 | 1,913,805 |
NET BOOK VALUE |
At 30 June 2023 | 8,077,116 | 30,288 | 82,677 | 8,190,081 |
At 30 June 2022 | 7,893,223 | - | - | 7,893,223 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
14. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in joint |
venture |
£ |
COST |
At 1 July 2022 | 3,243,633 |
Share of profit/(loss) | (17,346 | ) |
At 30 June 2023 | 3,226,287 |
NET BOOK VALUE |
At 30 June 2023 | 3,226,287 |
At 30 June 2022 | 3,243,633 |
Interest in joint venture |
The Group owns 50% in a joint venture entity, Harleyford Valley Limited. It's share of the profit (loss) of this company for the year ended 30 June 2023 was £(17,346) (2022: £1,530,745). The profit for the previous year included an exceptional revaluation of mineral reserves of £3,888,995. |
The Group's share of equity at the balance sheet date is £3,226,287 (2022: £3,243,632). |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
The group or 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 |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
Aveley Leisure Limited has claimed exemption from audit under section 479A of the Companies Act 2006. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
R.J.D. Ltd. has claimed exemption from audit under section 479A of the Companies Act 2006. |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
Ingrebourne Links Ltd. has claimed exemption from audit under section 479A of the Companies Act 2006. |
Registered office: Cecil House, Foster Street, Harlow, Essex, CM17 9HY |
Nature of business: |
% |
Class of shares: | holding |
15. | DEBTORS |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 3,884,522 | 3,264,237 |
Amounts owed by related parties | 1,652,590 | 1,699,884 |
Amounts owed by joint ventures | 665,002 | 1,324,250 |
Deferred site costs | 801,666 | 866,363 |
Directors' current accounts | - | 3,620 |
Prepayments and accrued income | 4,790,885 | 553,683 |
11,794,665 | 7,712,037 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
15. | DEBTORS - continued |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due after more than one | year: |
Deferred site costs | 10,144,606 | 7,619,775 |
Prepayments and accrued income | 470,000 | 273,267 |
10,614,606 | 7,893,042 |
Aggregate amounts | 22,409,271 | 15,605,079 |
£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. |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,455,852 | 1,099,649 |
Hire purchase contracts (see note 19) | 2,420,581 | 2,148,768 |
Trade creditors | 5,659,158 | 4,498,517 |
Amounts owed to group undertakings | - | - |
Amounts owed to related parties | 976,726 | 1,096,682 | - | - |
Social security and other taxes | 1,174,139 | 869,971 |
VAT | 136,654 | 230,101 | - | - |
Proposed dividends | 482,346 | 881,103 | 482,346 | 881,103 |
Sales invoice financing | 2,314,259 | 2,185,882 |
Directors' current accounts | - | 660 | - | - |
Accruals | 3,004,415 | 2,132,199 |
17,624,130 | 15,143,532 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 18) | 7,189,383 | 6,700,582 |
Hire purchase contracts (see note 19) | 4,210,646 | 2,945,012 |
Site reinstatement costs | 88,696 | 197,758 |
Accruals and deferred income | 904,311 | 680,682 |
12,393,036 | 10,524,034 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans - less than 1 year | 1,455,852 | 1,099,649 |
Amounts falling due between one and two | years: |
Bank loans | 1,471,595 | 1,136,581 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 4,176,481 | 3,081,247 |
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 varying rates of floating interest of between 1.45% and 3.00% above the Bank of England's base rate and are repayable over a total of 10-15 years in equal monthly instalments. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 2,420,581 | 2,148,768 |
Between one and five years | 4,210,646 | 2,945,012 |
6,631,227 | 5,093,780 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 781,500 | 734,750 |
Between one and five years | 2,425,300 | 2,254,000 |
In more than five years | 3,520,000 | 3,520,000 |
6,726,800 | 6,508,750 |
The above commitments predominantly relate to royalties payable on operational sites. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 8,645,235 | 7,800,231 |
Hire purchase contracts | 6,631,227 | 5,093,780 |
Invoice financing arrangement | 2,302,056 | 2,168,689 |
17,578,518 | 15,062,700 |
The bank loans and sales invoice financing are secured by way of fixed and floating charges over the group's assets. |
Hire purchase contracts are secured on the assets to which they relate. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Tax losses carried forward | (192,433 | ) | (175,694 | ) |
Accelerated capital allowances | 2,029,580 | 1,125,618 |
Revaluation gains | 11,786,971 | 7,559,661 |
13,624,118 | 8,509,585 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2022 | 8,509,585 |
Accelerated capital allowances | 903,962 |
Revaluation gains | 4,227,310 |
Trading losses | (16,739 | ) |
Balance at 30 June 2023 | 13,624,118 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 500 | 500 |
Ordinary B | £1 | 250 | 250 |
Ordinary C/D | £1 | 250 | 250 |
1,000 | 1,000 |
The ordinary A,B,C and D shares all have equal voting rights and are entitled to income. They all have equal rights on a winding up. |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
23. | RESERVES |
Group |
Retained |
Retained | earnings | Merger |
earnings | - non-distributable | Reserves | Totals |
£ | £ | £ | £ |
At 1 July 2022 | 19,463,868 | 31,919,439 | 5,745,021 | 57,128,328 |
Deficit for the year | (1,919,400 | ) | (1,919,400 | ) |
Transfer of revaluation on disposal | 9,704,163 | (9,704,163 | ) | - | - |
Revaluation of land | - | 9,950,000 | - | 9,950,000 |
Transfer of revaluation gain (net of deferred tax) |
1,518,631 |
(1,518,630 |
) |
- |
1 |
At 30 June 2023 | 28,767,262 | 30,646,646 | 5,745,021 | 65,158,929 |
Company |
Retained |
earnings |
£ |
At 1 July 2022 |
Profit for the year |
At 30 June 2023 |
24. | 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 Group 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. |
25. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 2,074,950 | 1,780,250 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
26. | RELATED PARTY DISCLOSURES |
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 Group was owed £1,652,590 (2022: £1,699,783) by the above company. |
During the prior year a settlement was reached between the Group 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 Group 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 Group 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 Group 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 Group paid rent of £62,962 (2022: £60,000) to the scheme and at the balance sheet date the Group was owed £nil (2022: £nil). |
PF Ahern (London) Limited - a company with common Directors and Shareholders |
During the year the Group made purchases of £83,252 (2022 : £53,125) from PF Ahern (London) Limited. At the year end the Group owed them £20,725 (2022 : £36,865). |
Group Directors |
At the year end the Group owed certain Directors £nil (2022: £660) in expenses that have yet to be reimbursed. |
27. | ULTIMATE CONTROLLING PARTY |
There is no overall controlling party. |
28. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 3,195,133 | 3,579,397 |
Depreciation charges | 1,963,382 | 1,663,203 |
Profit on disposal of fixed assets | (194,373 | ) | (163,329 | ) |
Revaluation gains | (196,104 | ) | (314,444 | ) |
Share of joint entity loss | 17,346 | (1,530,745 | ) |
Finance costs | 592,376 | 374,602 |
Finance income | (151,497 | ) | (295,051 | ) |
5,226,263 | 3,313,633 |
Increase in trade and other debtors | (6,807,910 | ) | (1,535,769 | ) |
Increase in trade and other creditors | 1,967,907 | 611,050 |
Cash generated from operations | 386,260 | 2,388,914 |
INGREBOURNE VALLEY HOLDINGS LTD (REGISTERED NUMBER: 08257384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
29. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 461,981 | 308,208 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 308,208 | 790,538 |
30. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 308,208 | 153,773 | 461,981 |
308,208 | 153,773 | 461,981 |
Debt |
Finance leases | (5,093,780 | ) | (1,537,447 | ) | (6,631,227 | ) |
Debts falling due within 1 year | (1,099,649 | ) | (356,203 | ) | (1,455,852 | ) |
Debts falling due after 1 year | (6,700,582 | ) | (488,801 | ) | (7,189,383 | ) |
(12,894,011 | ) | (2,382,451 | ) | (15,276,462 | ) |
Total | (12,585,803 | ) | (2,228,678 | ) | (14,814,481 | ) |