REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2023 |
for |
ASHILL LAND LIMITED |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2023 |
for |
ASHILL LAND LIMITED |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
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 | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Statement of Cash Flows | 12 |
Notes to the Financial Statements | 13 |
ASHILL LAND LIMITED |
Company Information |
for the year ended 30 September 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
Aissela |
46 High Street |
Esher |
Surrey |
KT10 9QY |
Solicitors: |
50 Broadway |
London |
SW1H 0BL |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Strategic Report |
for the year ended 30 September 2023 |
The directors present their annual report on the affairs of the company, together with the financial statements and auditors' report, for the period ended 30 September 2023. |
Review of business |
This review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced by the company. |
The principal activity of the company is property development and strategic land promotion. The principal activity will remain unchanged for the foreseeable future. |
The company's trading results for the year and its financial position at the end of the period are shown in the attached financial statements. |
The company realised zero sites during the year but has continued to spend on their current portfolio of sites which are due to be sold in the future. |
The directors are pleased with the results of the year and anticipate continued success and profitability for the year ending 30 September 2024. |
Principal risks and uncertainties |
The principal risks facing the company are securing sites, particularly when the housing market is buoyant, avoiding an extended planning process and a decline in the housing market. Maintaining a strong network of contacts in the market and early enquiries relating to the relevant local authority requirements help mitigate these risks. |
Key performance indicators |
The directors consider that the key performance indicator is a simple monitor of the number of developments completed in the year. Due to the reduced number of developments held, none were realised in the year, however the directors anticipate completion on two developments in the next 12 months. |
Future developments |
The directors anticipate an increased level of activity during the forthcoming year, with anticipated sales of two sites. The directors continue to seek opportunities to realise sales on speculative sites, where costs have been incurred but the site may not proceed to development. |
On behalf of the board: |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
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 strategic land promotion and property development. |
Dividends |
Interim dividends totalling £13,568 and £0.5427 per share were paid on the B Redeemable shares during the year. No dividends were paid on any other classes of shares. |
The total distribution of dividends for the year ended 30 September 2023 will be £13,568. |
Directors |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue in operation existence for the foreseeable future. Thus they have adopted the going concern basis in preparing the annual financial statements. |
Disclosure in the strategic report |
Disclosures relating to future developments have been included in the strategic report in accordance with section 414C of The Companies Act 2006. |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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. |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Report of the Directors |
for the year ended 30 September 2023 |
Auditors |
The audit business of Haines Watts Kingston LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts Kingston LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. |
The auditors, Cooper Parry Group 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 |
Ashill Land Limited |
Opinion |
We have audited the financial statements of Ashill Land Limited (the 'company') for the year ended 30 September 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 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 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. |
Report of the Independent Auditors to the Members of |
Ashill Land Limited |
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. |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation. |
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
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 |
Ashill Land Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Aissela |
46 High Street |
Esher |
Surrey |
KT10 9QY |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Statement of Comprehensive |
Income |
for the year ended 30 September 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover |
Cost of sales | ( |
) |
Gross profit |
Administrative expenses |
(148,996 | ) | 7,455,822 |
Other operating income |
Operating profit | 5 |
Interest receivable and similar income |
118,235 | 7,760,985 |
Interest payable and similar expenses | 6 |
(Loss)/profit before taxation | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(Loss)/profit for the financial year | ( |
) |
Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
) |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Statement of Financial Position |
30 September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 9 |
Current assets |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
Creditors |
Amounts falling due within one year | 12 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
Provisions for liabilities | 17 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 18 |
Imputed capital contribution |
reserve | 19 |
Retained earnings | 19 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Statement of Changes in Equity |
for the year ended 30 September 2023 |
Imputed |
Called up | capital |
share | Retained | contribution | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Imputed loan interest transfer | - | 160,333 | (160,333 | ) | - |
Balance at 30 September 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Imputed loan interest transfer | - | 173,124 | (173,124 | ) | - |
Balance at 30 September 2023 |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Statement of Cash Flows |
for the year ended 30 September 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Deferred Taxation |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Sale of tangible fixed assets | ( |
) |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,877,497 |
Cash and cash equivalents at end of year | 2 | 1,915,604 | 3,707,229 |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Statement of Cash Flows |
for the year ended 30 September 2023 |
1. | Reconciliation of (loss)/profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Decrease in provisions | (17,529 | ) | (11,481 | ) |
Finance costs | 354,949 | 4,042,935 |
Finance income | (51,423 | ) | - |
77,629 | 7,758,046 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 September 2023 |
30/9/23 | 1/10/22 |
£ | £ |
Cash and cash equivalents | 1,915,604 | 3,707,229 |
Year ended 30 September 2022 |
30/9/22 | 1/10/21 |
£ | £ |
Cash and cash equivalents | 3,707,229 | 3,877,497 |
3. | Analysis of changes in net debt |
At 1/10/22 | Cash flow | At 30/9/23 |
£ | £ | £ |
Net cash |
Cash at bank | 3,707,229 | (1,791,625 | ) | 1,915,604 |
3,707,229 | ( |
) | 1,915,604 |
Debt |
Debts falling due after 1 year | (4,097,583 | ) | (354,948 | ) | (4,452,531 | ) |
(4,097,583 | ) | (354,948 | ) | (4,452,531 | ) |
Total | (390,354 | ) | (2,146,573 | ) | (2,536,927 | ) |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements |
for the year ended 30 September 2023 |
1. | Statutory information |
Ashill Land Limited is a private company limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the company information page. The company's principal place of business is Scott House, Suite 1, The Concourse, Waterloo Station, London, SE1 7LY. |
2. | Accounting policies |
Basis of preparing the financial statements |
Going Concern |
The company's forecasts and projections, taking account of reasonably foreseeable changes in trading performance, show that the company should be able to meet its obligations as they fall due. |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
Key source of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
a) Stock |
There is estimation uncertainty in relation to stock impairment. Management estimate future costs to be incurred for each site and its predicted sales price. A review of the sites held within stock at the year end is also carried out to ensure that they are stated at the lower of cost and net realisable value. |
There is also an assessment of the likelihood of planning being obtained on each site in order to determine whether costs incurred are recoverable. This requires an element of professional judgement to be exercised by the directors who are knowledgeable and experienced in this field. |
b) Imputed interest |
There was significant uncertainty in calculating the present value of an interest free loan creditor, principally due to difficulty in ascertaining a market interest rate for a comparable debt instrument for discounting purposes and the uncertainties affecting the predicted timing of the loan repayments under the loan terms. |
The inherent uncertainties of predicting the timing of future repayments under the terms of the loan also leads to judgements concerning the amount of the discount to be recognised on an amortised cost basis for the financial year. |
c) Fair Value of loans |
There is estimation uncertainty in determining the fair value of certain loans. Some loans are linked to specific sites held in stock and part of the return on the loan is linked to the profit on sale of that site. These are therefore non basic financial instruments and need to be recognised at fair value. The judgement required is in determining the likely future cash flows to be discounted in order to estimate the fair value. |
Turnover |
Turnover is derived from the company's principal activity, being strategic land promotion and property development. |
Turnover represents amounts receivable for goods and services provided in the normal course of business net of any discounts, value added tax and other sales-related taxes. All revenue is anticipated to be generated in the UK. Site development sales are recognised upon legal completion. |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
2. | Accounting policies - continued |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Computer equipment | - |
Tangible fixed assets are recognised at cost less accumulated depreciation. |
Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Stocks |
Stocks are stated at the lower of cost and net realisable value. Cost includes the acquisition cost and other fees directly attributable to the development of the site, or the fees payable for land options. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Acquisitions of sites are recognised upon exchange of contracts when a binding undertaking is entered into. The balance of exchange monies payable are shown as a creditor until legal completion and the balance of monies are paid. |
The company incurs expenditure on speculative sites which may or may not proceed to development. At the year end, the directors assess the likelihood of such sites proceeding to the development stage. Expenditure incurred on sites which are deemed by the directors to be less than probable in being taken forward are expensed through the statement of comprehensive income. Included in the statement of comprehensive income is £27,334 (2022: £202,501) for expenditure incurred on speculative sites which may or may not proceed to development. £328,333 (2022: £Nil) relating to expenditure previously recognised in the statement of comprehensive income where the site is now considered likely to proceed to development was credited to the statement of comprehensive income during the period. Stock included on the statement of financial position therefore includes costs relating to sites which the directors are confident will move to the development phase. |
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts. |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
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 statement of financial position date. |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
2. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Investments in subsidiaries and joint ventures |
Investments in subsidiaries and joint ventures are recognised at cost. Details of subsidiaries and joint ventures are disclosed in the notes to the financial statements. |
Pensions |
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. |
Finance costs |
Finance costs of financial liabilities are recognised in the profit and loss account over the term of such instruments at a constant rate on the carrying amount. |
Financial instruments |
Basic financial assets and liabilities, including trade and other receivables, trade and other payables, cash and bank balances are recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts or payments discounted at a market rate of interest. |
In respect of loans from companies with common control, which do not have a market rate of interest applied to them, the liability has been calculated at the net present value of future payments discounted at a market rate of interest applicable to similar debt instruments. |
A reserve has been created in equity with the difference between the loan nominal value and the present value of anticipated future loan repayments being credited to equity as a deemed capital contribution. |
An imputed interest expense is included in the financial statements as the discount is unwound. The directors have elected to make a transfer between the new reserve and retained earnings equal to the amount charged against profit and loss each year. |
Long term loans which have an exit coupon attached to them are determined to be non basic financial instruments and are held at fair value. The fair value gain or loss is included within work in progress as a cost of the related development. |
3. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
3. | Employees and directors - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 4 | 4 |
Administration | 1 | 2 |
4. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration | 162,880 | 860,867 |
Directors' pension contributions to money purchase schemes | 7,362 | 8,292 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 4 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 97,097 | 475,531 |
Directors' pension contributions to money purchase schemes | 7,362 | - |
5. | Operating profit |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Auditors remuneration non-audit |
6. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Loan stock interest payable |
Imputed loan interest on |
interest free loans |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
7. | Taxation |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year tax adjustment | - | 950 |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/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 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Over provision prior year | - | 950 |
Imputed loan interest | 32,894 | 30,463 |
Losses Carried Forwards | 5,383 | - |
Deferred Tax | (5,386 | ) | (1,623 | ) |
Total tax (credit)/charge | (5,386 | ) | 741,822 |
8. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary shares of 1p each |
Interim |
B Redeemable shares of 1p each |
Interim |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
9. | Tangible fixed assets |
Fixtures |
Improvements | and | Computer |
to property | fittings | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 October 2022 |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 30 September 2023 |
Depreciation |
At 1 October 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 30 September 2023 |
Net book value |
At 30 September 2023 |
At 30 September 2022 |
10. | Stocks |
2023 | 2022 |
£ | £ |
Work-in-progress |
11. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments |
12. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
13. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Other loans (see note 14) |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
14. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
Other loans falling due for repayment within 2 to 5 years include the following: |
Interest free loans | Interest bearing loans held at fair value | Total |
£ | £ | £ |
Loan capital | 2,500,000 | 1,806,000 | 4,306,000 |
Interest | - | 303,412 | 303,412 |
Fair value adjustment - interest free loans | (156,881 | ) | - | (156,881 | ) |
Fair value adjustment - interest bearing loans | - | - | - |
Carrying amount at 30 September 2023 | 2,343,119 | 1,927,588 | 4,452,531 |
Loans of £1,806,000 accrue interest at a rate of 6% above the Bank of England base rate under the terms of the loan agreements. These loan agreements also require the payment of an exit coupon, based on the profit earned on the disposal of the site associated with the loans. The fair value of the loan is determined by considering the arms length value of the loan as at the reporting date. |
Interest free loans of £2,500,000 are repayable when the site associated with these loans are sold. These loans have been discounted using an effective interest rate of 8% over a period of 5 years. The imputed loan interest charged to profit and loss this year amounts to £173,124. An amount equal to the imputed loan interest charge has been transfered between Retained Earnings and the Imputed Capital Contribution Reserve as shown in the Statement of Changes in Equity. |
15. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
16. | Secured debts |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Other loans |
Other loans are secured by way of fixed and floating charges over all property and undertakings of the company. Loans are stated in the financial statements at fair value. See note 15 for detail of the original transaction value of the loans. |
There is a fixed charge in favour of the company's lenders, over the company's rights in respect of a land promotion agreement entered into on 17 August 2018. |
17. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax |
Capital Allowances | - | 5,386 |
Other provisions | 68,848 | 85,150 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 October 2022 |
Provided during year | ( |
) | ( |
) |
Balance at 30 September 2023 |
Other provisions are the discounted cost of an onerous lease contract, which runs until July 2028. |
The lease has been sub let, however the annual cost exceeds the income receivable. |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1p | 2,500 | 2,500 |
A Redeemable | 1p | 1,537 | 1,537 |
B Redeemable | 1p | 10 | 10 |
D Redeemable | 1p | 1 | 1 |
100 | E Redeemable | 1p | 1 | 1 |
190,000 | C Ordinary | 1p | 1,900 | 1,900 |
5,949 | 5,949 |
ASHILL LAND LIMITED (REGISTERED NUMBER: 08680344) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
19. | Reserves |
Retained earnings | Imputed capital contribution reserve | Totals |
£ | £ | £ |
At 1 October 2022 | 2,597,443 | 330,004 | 2,927,447 |
Profit for the year | (215,532 | ) | - | (215,532 | ) |
Dividends | (13,568 | ) | - | (13,568 | ) |
Imputed loan interest transfer | 173,124 | (173,124 | ) | - |
At 30 September 2023 | 2,541,468 | 156,881 | 2,698,347 |
The imputed capital contribution reserve was created when the company's long term, interest free debt was recognised in the balance sheet at net present value. An annual transfer to retained earnings is recognised, equivalent to the related interest expense recognised through profit and loss. An adjustment was made to the reserve this year following the directors' reassessment of the fair value of the loans at the year end date. |
20. | Pension commitments |
The company operates a defined contribution scheme. Contributions paid in the period amounted to £11,695 (2022: £14,839). |
21. | Related party disclosures |
At the balance sheet date the company owed entities under the control of the directors a total amount of £2,500,000 (2022: £2,500,000) in respect of interest free loans.. These loans are stated in the financial statements at fair value of £2,343,119 (2022: £2,169,995). Imputed interest of £173,124 was expensed during the year (2022: £160,332). |
At the balance sheet date the company owed entities under the control of the directors £2,109,412 (2022: £1,927,588) in respect of loans subject to an interest rate of 6% above the Bank of England Base Rate. Interest of £181,825 (2022: £3,882,602) was expensed during the year. These loans are stated at fair value of £2,109,412. |
There are no key management employees other than the directors. Details of their remuneration can be found in note 4 to the financial statements. |
During the year the company received Management charges from entities under the control of the directors totalling £24,000 (2022: £15,667). |