Caseware UK (AP4) 2023.0.135 2023.0.135 2022-12-312022-12-3138truetrue2022-01-01falseNo description of principal activity30truetrueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. SC514186 2022-01-01 2022-12-31 SC514186 2021-01-01 2021-12-31 SC514186 2022-12-31 SC514186 2021-12-31 SC514186 c:Director2 2022-01-01 2022-12-31 SC514186 c:Director3 2022-01-01 2022-12-31 SC514186 c:RegisteredOffice 2022-01-01 2022-12-31 SC514186 d:MotorVehicles 2022-01-01 2022-12-31 SC514186 d:FurnitureFittings 2022-01-01 2022-12-31 SC514186 d:FurnitureFittings 2022-12-31 SC514186 d:FurnitureFittings 2021-12-31 SC514186 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 SC514186 d:OfficeEquipment 2022-01-01 2022-12-31 SC514186 d:OfficeEquipment 2022-12-31 SC514186 d:OfficeEquipment 2021-12-31 SC514186 d:OfficeEquipment d:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 SC514186 d:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 SC514186 d:ComputerSoftware 2022-12-31 SC514186 d:ComputerSoftware 2021-12-31 SC514186 d:OtherResidualIntangibleAssets 2022-01-01 2022-12-31 SC514186 d:CurrentFinancialInstruments 2022-12-31 SC514186 d:CurrentFinancialInstruments 2021-12-31 SC514186 d:Non-currentFinancialInstruments 2022-12-31 SC514186 d:Non-currentFinancialInstruments 2021-12-31 SC514186 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 SC514186 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 SC514186 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 SC514186 d:Non-currentFinancialInstruments d:AfterOneYear 2021-12-31 SC514186 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-12-31 SC514186 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2021-12-31 SC514186 d:ShareCapital 2022-12-31 SC514186 d:ShareCapital 2021-12-31 SC514186 d:RetainedEarningsAccumulatedLosses 2022-12-31 SC514186 d:RetainedEarningsAccumulatedLosses 2021-12-31 SC514186 c:OrdinaryShareClass1 2022-01-01 2022-12-31 SC514186 c:OrdinaryShareClass1 2022-12-31 SC514186 c:OrdinaryShareClass1 2021-12-31 SC514186 c:FRS102 2022-01-01 2022-12-31 SC514186 c:AuditExempt-NoAccountantsReport 2022-01-01 2022-12-31 SC514186 c:FullAccounts 2022-01-01 2022-12-31 SC514186 c:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 SC514186 2 2022-01-01 2022-12-31 SC514186 6 2022-01-01 2022-12-31 SC514186 d:ComputerSoftware d:OwnedIntangibleAssets 2022-01-01 2022-12-31 iso4217:GBP xbrli:shares xbrli:pure


Registered number: SC514186












SAFE AS HOUSES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

 

SAFE AS HOUSES LIMITED

CONTENTS



Page
Company information
 
1
Balance sheet
 
2 - 3
Notes to the financial statements
 
4 - 12


 

SAFE AS HOUSES LIMITED
 
COMPANY INFORMATION


Directors
J Fairweather 
D Ritchie 




Registered number
SC514186



Registered office
Unit 38 Enterprise House
Springkerse Business Park

Stirling

Scotland

FK7 7UF




Accountants
Blick Rothenberg Limited
Chartered Accountants

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1


 
REGISTERED NUMBER:SC514186
SAFE AS HOUSES LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 4 
-
6,370

Tangible assets
 5 
13,430
13,241

Investments
 6 
2
2

  
13,432
19,613

Current assets
  

Stocks
  
1,841,345
1,207,249

Debtors: amounts falling due within one year
 7 
260,629
340,505

Cash at bank and in hand
  
35,745
40,192

  
2,137,719
1,587,946

Creditors: amounts falling due within one year
 8 
(12,973,725)
(8,866,027)

Net current liabilities
  
 
 
(10,836,006)
 
 
(7,278,081)

Total assets less current liabilities
  
(10,822,574)
(7,258,468)

Creditors: amounts falling due after more than one year
 9 
-
(250,000)

  

Net liabilities
  
(10,822,574)
(7,508,468)


Capital and reserves
  

Called up share capital 
 11 
3
3

Profit and loss account
  
(10,822,577)
(7,508,471)

Total equity
  
(10,822,574)
(7,508,468)


Page 2


 
REGISTERED NUMBER:SC514186
SAFE AS HOUSES LIMITED
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022

The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




D Ritchie
Director

Date: 8 March 2024

The notes on pages 4 to 12 form part of these financial statements.

Page 3

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Safe as Houses Limited is a private company limited by shares incorporated in Scotland. The address of its registered office is Unit 38 Enterprise House, Springkerse Business Park, Stirling, Scotland, FK7 7UF.

The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The company, and the group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and group are considered eligible for the exemption to prepare consolidated accounts.

 
2.3

Going concern

The financial statement have been prepared on a going concern basis.
The loss for the year was £3,311,665 (2021: £2,974,697) and the Company had net liabilities of £10,820,133 (2021: £7,508,468) and net current liabilities of £10,833,565 (2021: £7,278,081).
The Directors have prepared cashflow forecasts for the three years to 31 December 2025 and considered carefully the future prospects of the Company. The results subsequent to the year end, having navigated a prolonged period of unprecedented economic turmoil have been positive.
The Company has an extensive pipeline of opportunities as the sole provider of construction management services to Safe As Houses Investment Plc, company with common control.
The directors have negotiated a repayment plan for the outstanding loan notes and believes that the Company, with continued support from Safe As Houses Investment Plc, will have sufficient cash to make these repayments. The directors of Safe As Houses Investment Plc have confirmed that this support will be forthcoming for a period of at least 12 months from the date of signing of these financial statements. 
The directors of Safe As Houses Investment Plc have identified a material uncertainty in relation to going concern, as a result of a loan note that is repayable in December 2023. Based on the expected future trading cashflows, the Company would not be able to repay these loan notes and therefore an extension or alternative financing is required. As at the date of signing, negotiations of an extension or conversion of the loan notes to equity are ongoing.
 
Page 4

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.3
Going concern (continued)

The directors of Safe As Houses Limited have considered a scenario in which negotiations with the loan note holders are not successful and the loan note holder demands full repayment of the loan note. In this event, the Safe As Houses Investment Plc would not be a going concern and would not be in a position to provide the financial support required for Safe As Houses Limited to repay the loan note holders. Therefore, the directors consider that there is a material uncertainty in relation to going concern as the financial support is contingent on Safe As Houses Investment Plc renegotiating their loan notes and having sufficient working capital to provide the necessary financial support and  development management pipeline. 

 
2.4

Revenue

Revenue comprises sales of stock property and development management services.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 5

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.9

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
 
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.


 The estimated useful lives range as follows:

Website development
-
4
years

Page 6

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Motor vehicles
-
25%
Fixtures and fittings
-
25%
Office equipment
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase and any additional work applied to the stock. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.


2.15

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

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. 
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Page 7

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)





Financial instruments (continued)

Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Page 8

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)





Financial instruments (continued)

Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

3.


Employees

The average monthly number of employees, including directors, during the year was 38 (2021 - 30).


4.


Intangible assets




Website development

£



Cost


At 1 January 2022
25,478



At 31 December 2022

25,478



Amortisation


At 1 January 2022
19,108


Charge for the year on owned assets
6,370



At 31 December 2022

25,478



Net book value



At 31 December 2022
-



At 31 December 2021
6,370

Page 9

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Tangible fixed assets





Fixtures and fittings
Office equipment
Total

£
£
£



Cost


At 1 January 2022
1,500
18,836
20,336


Additions
-
6,169
6,169



At 31 December 2022

1,500
25,005
26,505



Depreciation


At 1 January 2022
594
6,501
7,095


Charge for the year on owned assets
375
5,605
5,980



At 31 December 2022

969
12,106
13,075



Net book value



At 31 December 2022
531
12,899
13,430



At 31 December 2021
906
12,335
13,241


6.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 January 2022
2



At 31 December 2022
2






Page 10

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Debtors

2022
2021
£
£


Amounts owed by related parties
112,001
112,001

Other debtors
71,809
165,485

Prepayments and accrued income
47,513
33,713

Tax recoverable
29,306
29,306

260,629
340,505



8.


Creditors: amounts falling due within one year

2022
2021
£
£

Other loans
870,000
1,380,000

Trade creditors
125,040
572,995

Amounts owed to related parties
11,420,525
6,435,175

Other taxation and social security
68,230
47,064

Other creditors
1,182
1,183

Accruals and deferred income
488,748
429,610

12,973,725
8,866,027



9.


Creditors: amounts falling due after more than one year

2022
2021
£
£

Other loans
-
250,000


Page 11

 

SAFE AS HOUSES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Other loans
870,000
1,380,000

Amounts falling due 1-2 years

Other loans
-
250,000



870,000
1,630,000


On 29 July 2022, the company entered into a new agreement which provides the property Abbey Lodge as security for the loan balance. The loans bear interest at 8% per annum. They are repayable in monthly instalments of £100,000.


11.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



3 (2021 - 3) Ordinary shares of £1 each
3
3



12.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.
During the year the company received £7,821,000 from Safe as Houses Investment Plc (2021: £6,225,000) and paid construction costs on its behalf, under the development management agreement, of £3,469,433 (2021: £3,955,620). Interest of £633,783 (2021: £388,685) was charged at a rate of 8.5%. The balance outstanding at the year end was £11,420,525 (2021: £6,435,175). The balance is unsecured and repayable on demand.
During the year, a loan of £nil (2021: £nil) was provided to a related party by virtue of common trustees at the transaction date. Interest of £3,600 (2021: £3,600) was charged at an interest rate of 12%. £30,000 (2021: £30,000) was outstanding at year end and is included within debtors and £12,835 (2021: £9,235) relating to interest is included within accrued income.
During the year £18,000 (2021: £18,000) of consultancy services were provided by a related company by virtue of common partners and director. There was no balance outstanding at year end or in the prior year.
During the year, loans of £nil (2021: £nil) were provided to shareholders of Safe As Houses Limited. The loans incurred interest of £8,961 (2021: £8,961) at an interest rate of 8%. £112,001 (2021: £112,001) was outstanding at year end and is included within amounts owed by related parties and £30,858 (2021: £21,898) is included within accrued income.

 
Page 12