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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

FOR

MORRISH HOMES

MORRISH HOMES (REGISTERED NUMBER: 01633471)






CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 30 September 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Notes to the Financial Statements 10


MORRISH HOMES

COMPANY INFORMATION
For The Year Ended 30 September 2023







DIRECTORS: D Morrish
E J C Rapson
P M Kneafsey
S O Clarke
D J Green
T P Bishop





SECRETARY: S O Clarke





REGISTERED OFFICE: Unit 5
Upton Industrial Estate
Upton
Poole
Dorset
BH16 5SL





REGISTERED NUMBER: 01633471 (England and Wales)





AUDITORS: Schofields
Chartered Accountants and Statutory Auditors
5th Floor
Waverley House
115 - 119 Holdenhurst Road
Bournemouth
Dorset
BH8 8DY

MORRISH HOMES (REGISTERED NUMBER: 01633471)

STRATEGIC REPORT
For The Year Ended 30 September 2023

The directors present their strategic report for the year ended 30 September 2023.

REVIEW OF BUSINESS
The results for the year are set out on page 7.

The key financial highlights of the business are as follows:

2023 2022 2021 2020
£ £ £ £

Turnover 25,989,660 30,811,785 36,340,357 31,019,131
Profit on ordinary activities before taxation 1,113,068 2,387,317 1,4639,524 1,434,092

% % % %
Turnover growth (15.65) (15.21) 17.15 2.22
Gross profit margin 19.30 19.97 13.08 15.16

The company experienced a slight reduction in turnover during the year which was predominantly driven by market conditions that were affected by both the rising cost of living and increases in mortgage rates. The gross profit margin was maintained due to the sales mix achieved on multiple sites during the year. We continue to pursue development opportunities throughout our region to secure long-term future supply.

PRINCIPAL RISKS AND UNCERTAINTIES
The company is a homebuilder and developer and as such is reliant on the availability of mortgage products to fund its purchasers, funding lines to support its activities, and a ready supply of land supported by a fluent planning process.

The company requires a pipeline of land and future projects to enable its business and consequently funding lines are required to support this. The relationship with, and the support of the company's funders is strong and sufficient facilities are in place to support its current and future development programme.

The company seeks to maintain a spread of development sites, to enable it to offer a range of products to the market. The planning process remains cumbersome which, coupled with the nutrient issues imposed on the industry in our operating region, impacts the company's ability to bring current and future developments to the market in an orderly fashion.

ON BEHALF OF THE BOARD:





E J C Rapson - Director


23 February 2024

MORRISH HOMES (REGISTERED NUMBER: 01633471)

REPORT OF THE DIRECTORS
For The Year Ended 30 September 2023

The directors present their report with the financial statements of the company for the year ended 30 September 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of property developer and homebuilder.

DIVIDENDS
An interim dividend of £1,500,000 was paid during the year. The directors recommend a final dividend of £869,728.

FUTURE DEVELOPMENTS
The company continues to develop its land bank but inevitably planning delays have restricted the delivery of homes to the market. The company in addition to its consortia commitments continues to actively pursue the extension of its existing land stocks through acquisition and the securing of longer term options.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report.

D Morrish
E J C Rapson
P M Kneafsey
S O Clarke
D J Green

Other changes in directors holding office are as follows:

T P Bishop was appointed as a director after 30 September 2023 but prior to the date of this report.

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank loans and overdrafts, trade creditors, other loans and finance lease agreements. The main purpose of these instruments is to provide funds for the company's working capital requirements and to finance company operations.

Funding for current and future development sites are financed via a long-term bank facility, which ensures continuity of funding. The day to day fluctuations in working capital requirements are funded via an overdraft.

The directors continue to closely monitor the company's required financing via its banking facilities. The company is a lessee in respect of finance lease assets. The liquidity risk in respect of these is managed in the same way as bank overdrafts and the loans above. Trade creditors liquidity risk is managed by ensuring there are sufficient funds available to the company to meet these amounts as they fall due.

HEALTH AND SAFETY
The company continues to pursue a vigorous monitoring of its health and safety obligations.

ENVIRONMENTAL ISSUES
The company's policy on environmental issues is to assess their impact and whenever practical and cost effective to incorporate those within new sustainable developments.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MORRISH HOMES (REGISTERED NUMBER: 01633471)

REPORT OF THE DIRECTORS
For The Year Ended 30 September 2023


AUDITORS
The auditors, Schofields, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





E J C Rapson - Director


23 February 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MORRISH HOMES

Opinion
We have audited the financial statements of Morrish Homes (the 'company') for the year ended 30 September 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 September 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
MORRISH HOMES


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

An understanding of the legal and regulatory framework the company operates in was obtained through discussions with directors and other management in addition to our general industry and sector experience. The most significant laws and regulations identified, being those that have a direct effect on material amounts and disclosures in the financial statements, are FRS 102, Companies Act 2006 and HM Revenue & Customs (HMRC) Tax Legislation.

We also considered other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate, or to avoid material penalty. These included the requirements of the various Health and Safety Regulations.

Audit procedures were performed to obtain sufficient evidence regarding compliance. These procedures include making enquiries to directors and other management in addition to the inspection of applicable regulatory and legal correspondence. Financial statement disclosures were reviewed and tested to supporting documentation.

Enquiries were also made to the directors and other management to assess the company's internal control environment and their policies and procedures on fraud risk. The company's systems and controls were documented, and audit procedures were designed to test these controls. Further, the risk of management override of controls was addressed through testing journal entries and other adjustments for appropriateness. The judgements made in making accounting estimates were assessed for any indication of potential bias, and the business rationale of significant transactions outside the normal course of the business was evaluated.

We have properly planned and performed the audit in accordance with auditing standards and all members of the engagement team have the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. However, the inherent nature of the audit, and the limited procedures performed, means there is an unavoidable risk that some irregularities may have gone undetected. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

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.




Mr P J Schofield FCA (Senior Statutory Auditor)
for and on behalf of Schofields
Chartered Accountants and Statutory Auditors
5th Floor
Waverley House
115 - 119 Holdenhurst Road
Bournemouth
Dorset
BH8 8DY

23 February 2024

MORRISH HOMES (REGISTERED NUMBER: 01633471)

STATEMENT OF COMPREHENSIVE INCOME
For The Year Ended 30 September 2023

2023 2022
Notes £    £   

TURNOVER 3 25,989,660 30,811,780

Cost of sales (20,974,233 ) (24,657,395 )
GROSS PROFIT 5,015,427 6,154,385

Administrative expenses (3,051,396 ) (3,418,642 )
OPERATING PROFIT 5 1,964,031 2,735,743

Interest receivable and similar income - 5
1,964,031 2,735,748

Interest payable and similar expenses 6 (850,963 ) (348,431 )
PROFIT BEFORE TAXATION 1,113,068 2,387,317

Tax on profit 7 (243,340 ) (458,382 )
PROFIT FOR THE FINANCIAL YEAR 869,728 1,928,935

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

869,728

1,928,935

MORRISH HOMES (REGISTERED NUMBER: 01633471)

BALANCE SHEET
30 September 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 164,497 199,516
Investment property 10 537,125 1,679,250
701,622 1,878,766

CURRENT ASSETS
Stocks 11 47,141,755 34,777,243
Debtors 12 3,035,414 823,465
Cash at bank and in hand 13,408 53,754
50,190,577 35,654,462
CREDITORS
Amounts falling due within one year 13 47,944,721 33,078,891
NET CURRENT ASSETS 2,245,856 2,575,571
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,947,478

4,454,337

PROVISIONS FOR LIABILITIES 17 24,943 31,802
NET ASSETS 2,922,535 4,422,535

CAPITAL AND RESERVES
Called up share capital 18 2,014,798 2,014,798
Non-distributable revaluation reserve 19 15,102 17,109
Retained earnings 19 892,635 2,390,628
SHAREHOLDERS' FUNDS 2,922,535 4,422,535

The financial statements were approved by the Board of Directors and authorised for issue on 23 February 2024 and were signed on its behalf by:




D Morrish - Director



E J C Rapson - Director


MORRISH HOMES (REGISTERED NUMBER: 01633471)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 30 September 2023

Called up Non-distributable
share Retained revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 October 2021 2,014,798 2,389,994 17,743 4,422,535

Changes in equity
Dividends - (1,928,935 ) - (1,928,935 )
Total comprehensive income - 1,929,569 (634 ) 1,928,935
Balance at 30 September 2022 2,014,798 2,390,628 17,109 4,422,535

Changes in equity
Dividends - (2,369,728 ) - (2,369,728 )
Total comprehensive income - 871,735 (2,007 ) 869,728
Balance at 30 September 2023 2,014,798 892,635 15,102 2,922,535

MORRISH HOMES (REGISTERED NUMBER: 01633471)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 September 2023

1. STATUTORY INFORMATION

Morrish Homes is a private, unlimited company with share capital, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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 3.17(d).

Related party exemption
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.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenue and expenses during the year. However the nature of estimation means the actual outcomes could differ from those involving estimates. The company constantly re-evaluates these significant factors and makes adjustments where facts and circumstances dictate.

The directors have made the following judgements and estimates deemed applicable to the financial statements:

Construction contracts
When the outcome of a construction contract can be estimated reliably, contract revenue and costs associated with the construction contract are recognised by reference to the stage of completion of the contract activity at the reporting date.

Outcomes of construction contracts are estimated using internally generated detailed costings. The stage of completion is measured using surveys of the work performed, undertaken by third party quantity surveyors.

Investment property valuation
Investment properties are valued annually based on their fair value, being the directors' estimate of the amounts for which the properties could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Site infrastructure costs
Costs incurred relating to the construction of development infrastructure such as road, drainage and services are held in work-in-progress and expensed on an average basis across the residential plots on each development.

Future site-infrastructure costs in respect to sold plots are estimated using internally generated detailed costings, and presented within creditors.

Turnover
Turnover is recognised when economic benefits flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding value added tax and other sales taxes. Turnover from property sales is recognised on completion.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - at varying rates on cost
Fixtures and fittings - at varying rates on cost
Motor vehicles - 20% on cost
Computer equipment - at varying rates on cost

Investment property
Investment properties are revalued annually based on their fair value. Changes to fair value go through the income statement. Gains are not realised and as such are not subject to current tax and are regarded as non-distributable. Depreciation is not provided.

MORRISH HOMES (REGISTERED NUMBER: 01633471)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Stocks and construction contracts
Stocks and work in progress are valued at the lower of cost and net realisable value. Costs comprise direct materials and, where applicable, direct labour and those overheads that have been incurred in bringing the inventories to their present location and condition.

When the outcome of a construction contract can be estimated reliably, contract revenue and costs associated with the construction contract are recognised by reference to the stage of completion of the contract activity at the reporting date. When it is probable that total contract costs will exceed total contract revenue on a construction contract, the expected loss is recognised as an expense immediately.

Recorded turnover in excess of payments on account are classified as amounts recoverable on contracts and are separately disclosed within debtors. The balance of payments on account are classified as payments on account and separately disclosed within creditors.

The stage of completion of a construction contract is measured using surveys of the work performed.

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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments
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 the profit and loss account.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured as amortised cost using the effective interest rate method, less impairment.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sale of properties (external) 21,974,200 24,980,292
Sale of properties (internal) - 753,125
Construction contracts 3,850,553 4,895,188
Net rental income 82,472 97,783
Sundry income 82,435 85,392
25,989,660 30,811,780

MORRISH HOMES (REGISTERED NUMBER: 01633471)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 September 2023

4. EMPLOYEES AND DIRECTORS

20232022
££

Wages and salaries3,352,9732,938,687
Social security costs446,813374,663
Pension costs108,33491,059
3,908,1203,404,409


The average monthly number of employees during the year was as follows:
20232022

Administration5146
Production2020
7166

2023 2022
£    £   
Directors' remuneration 519,674 584,873

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 4

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 153,750 155,000

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 91,011 157,971
Loss/(profit) on disposal of fixed assets 50 (7,837 )
Auditors' remuneration 22,500 21,500

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest and charges 850,963 348,431

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 250,199 468,027

Deferred tax (6,859 ) (9,645 )
Tax on profit 243,340 458,382

MORRISH HOMES (REGISTERED NUMBER: 01633471)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 September 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,113,068 2,387,317
Profit multiplied by the standard rate of corporation tax in the UK of 22.008% (2022
- 19%)

244,964

453,590

Effects of:
Expenses not deductible for tax purposes 653 -
Capital allowances in excess of depreciation (1,458 ) (2,841 )
Deferred tax rate differential (819 ) 7,633
Total tax charge 243,340 458,382

UK corporation tax has been charged at 22% (2022- 19%). Deferred tax has been charged at 25% (2022 - 25%)

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Final 869,728 1,928,935
Interim 1,500,000 -
2,369,728 1,928,935

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 October 2022 272,068 167,334 287,474 115,145 842,021
Additions 29,780 10,450 - 15,812 56,042
Disposals (10 ) (15,896 ) - (5,872 ) (21,778 )
At 30 September 2023 301,838 161,888 287,474 125,085 876,285
DEPRECIATION
At 1 October 2022 220,525 155,706 191,005 75,269 642,505
Charge for year 24,627 5,825 37,162 23,397 91,011
Eliminated on disposal (10 ) (15,882 ) - (5,836 ) (21,728 )
At 30 September 2023 245,142 145,649 228,167 92,830 711,788
NET BOOK VALUE
At 30 September 2023 56,696 16,239 59,307 32,255 164,497
At 30 September 2022 51,543 11,628 96,469 39,876 199,516

MORRISH HOMES (REGISTERED NUMBER: 01633471)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 September 2023

10. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 October 2022 1,679,250
Disposals (1,142,125 )
At 30 September 2023 537,125
NET BOOK VALUE
At 30 September 2023 537,125
At 30 September 2022 1,679,250

Fair value at 30 September 2023 is represented by:
£   
Valuation in 2023 537,125

If the investment properties had not been revalued they would have been included at the following historical cost:

2023 2022
£    £   
Cost 519,382 1,661,507

Investment properties were valued at 30 September 2023 by the directors, who have concluded that there has been no change to the value of the property portfolio since the previous balance sheet date. The valuations were undertaken with reference being made to valuations previously provided by professionally qualified external valuers.

The fair value of the investment properties has primarily been determined using a market approach, which has provided an indication of value by comparing the subject asset with similar assets for which price information is available. Other factors were also considered when deriving fair value, these include, but are not limited to, rental yields and lease terms.

11. STOCKS
2023 2022
£    £   
Stock of land 13,322,851 15,095,469
Work-in-progress 33,818,904 19,681,774
47,141,755 34,777,243

Stock of land and work-in-progress recognised in cost of sales during the year as an expense amounted to £20,974,233 (2022 - £24,657,395).

All stock has been pledged as security by way of fixed and floating charges.

12. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 354,519 374,653
Amounts recoverable on contracts 2,167,915 -
Value added tax 335,181 287,545
Prepayments and accrued income 177,799 123,267
3,035,414 785,465

Amounts falling due after more than one year:
Trade debtors - 38,000

Aggregate amounts 3,035,414 823,465

MORRISH HOMES (REGISTERED NUMBER: 01633471)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 September 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 16,082,201 1,071,516
Trade creditors 7,076,506 8,424,478
Amounts owed to group undertakings 23,736,071 22,183,468
Corporation tax 43,344 255,250
Social security and other taxes 160,167 140,407
Accruals and deferred income 846,432 1,003,772
47,944,721 33,078,891

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 3,082,201 71,516
Bank loans 13,000,000 1,000,000
16,082,201 1,071,516

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 200,218 85,381
Between one and five years 335,983 238,207
536,201 323,588

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 3,082,201 71,516
Bank loans 13,000,000 1,000,000
Owed to group undertakings 22,866,343 22,183,468
38,948,544 23,254,984

All of the above debts are secured by way of fixed and floating charges over all property or undertaking of the company.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 24,943 31,802

Deferred
tax
£   
Balance at 1 October 2022 31,802
Provided during year (6,859 )
Balance at 30 September 2023 24,943

MORRISH HOMES (REGISTERED NUMBER: 01633471)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 September 2023

17. PROVISIONS FOR LIABILITIES - continued

The deferred tax provision is analysed as follows:

20232022

Accelerated capital allowances22,30229,161
Investment property revaluation2,6412,641
24,94331,802


18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2,014,798 Ordinary £1 2,014,798 2,014,798

19. RESERVES
Non-distributable
Retained revaluation
earnings reserve Totals
£    £    £   

At 1 October 2022 2,390,628 17,109 2,407,737
Profit for the year 869,728 869,728
Dividends (2,369,728 ) (2,369,728 )
Transfer to retained earnings from
non-distributable revaluation reserve

2,007

(2,007

)

-

At 30 September 2023 892,635 15,102 907,737

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

The non-distributable revaluation reserve represents the cumulate effect of revaluations of investment property, to assist with the identification of profits available for distribution.

20. ULTIMATE PARENT COMPANY

Morrish Group Limited is both the company's ultimate parent company and the parent undertaking of the group for which consolidated financial statements are prepared. These financial statements, along with registered office details, are available at Companies House.

21. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Sales 310,000 -

Other related parties
2023 2022
£    £   
Management fees received 13,554 13,339
Rent paid 52,381 69,310

During the year, a total of key management personnel compensation of £ 560,452 (2022 - £ 623,681 ) was paid.