Company registration number 14201304 (England and Wales)
ORCHARD FARM DEVELOPMENTS LTD
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ORCHARD FARM DEVELOPMENTS LTD
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
ORCHARD FARM DEVELOPMENTS LTD
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 1 -
2023
Notes
£
£
Current assets
Stocks
5,256,663
Debtors
4
77,286
Cash at bank and in hand
93,860
5,427,809
Creditors: amounts falling due within one year
5
(5,742,129)
Net current liabilities
(314,320)
Capital and reserves
Called up share capital
6
2
Profit and loss reserves
(314,322)
Total equity
(314,320)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 April 2024 and are signed on its behalf by:
G Andrew
S Branton
Director
Director
Company registration number 14201304 (England and Wales)
ORCHARD FARM DEVELOPMENTS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 28 June 2022
-
Period ended 30 November 2023:
Loss and total comprehensive income
-
(314,322)
(314,322)
Other movements
2
-
2
Balance at 30 November 2023
2
(314,322)
(314,320)
ORCHARD FARM DEVELOPMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 3 -
1
Accounting policies
Company information
Orchard Farm Developments Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Extension Suite Alma House, Alma Road, Reigate, Surrey, England, RH2 0AX.
1.1
Reporting period
This is the company's first reporting period: no comparative figures are presented. The company was incorporated on the 28 June 2022 and the directors decided on a reporting period end date of 30 November 2023. The reporting period is 17 months long.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
At the balance sheet date, there were net liabilities of £314,320 . Included in other creditors are amounts totalling £1,545,499 due to shareholders and/or their related parties (JV Parties). The JV Parties are committed to leaving these funds in the company for the foreseeable future. On the basis of this continued support, the directors consider that the company will be able to meet all external liabilities as they fall due and any resulting net loss will be borne by the JV Parties. Accordingly, it is appropriate to prepare these financial statements on a going concern basis.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
ORCHARD FARM DEVELOPMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Stocks
Stocks consists of property in the course of development and is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises associated acquisition costs, direct materials, subcontract work, other direct costs, capitalised interest and those overheads that have been incurred in bringing the stocks to their present location and condition.
Interest has been capitalised into stock as it relates to bringing the asset into its final marketable form. Net realisable value is the estimated selling price at completion less the estimated costs of completion including the estimated costs necessary to make the sale. Net realisable value was assessed by estimating selling prices and cost (including sales and marketing expenses), taking into account current market conditions at the balance sheet date.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
ORCHARD FARM DEVELOPMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (excluding directors) employed by the company during the period was:
2023
Number
Total
4
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
2,600
Other debtors
74,686
77,286
ORCHARD FARM DEVELOPMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
£
Bank loans
3,875,829
Trade creditors
82,523
Taxation and social security
23,356
Other creditors
1,760,421
5,742,129
6
Called up share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
2
2
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
James Card FCCA
Statutory Auditor:
Hewitt Card Ltd
Date of audit report:
17 April 2024
8
Financial commitments, guarantees and contingent liabilities
Loans were secured by fixed and floating charges over the company's freehold land and property.
ORCHARD FARM DEVELOPMENTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 7 -
9
Related party transactions
During the period the following transactions were undertaken with related parties:
One of the shareholders made loans and incurred expenses on behalf of the company totalling £302,361 of which £38,762 has been repaid. At the period end the outstanding loan balance is £263,599.
A company under the control of one of the directors loaned the company a total of £1,188,211. At the period end the outstanding loan balance is £1,188,211.
A related company under common control and over which the directors exercise significant influence, loaned the company £237,664 of which £185,120 has been repaid. At the period end the outstanding loan balance is £52,544.
A related company under common control and over which the directors exercise significant influence, loaned and incurred expenses on behalf of the company totalling £224,222 of which £183,077 has been repaid. At the period the outstanding loan balance is £41,145.
All of the above loans are repayable on demand however the parties will continue to provide loans to the company until the company has adequate funds to repay all or part of the loans.