Company registration number 09549665 (England and Wales)
TOTAL DEVELOPMENTS (NW) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
TOTAL DEVELOPMENTS (NW) LTD
COMPANY INFORMATION
Directors
Mr J D Beeson
Mr E C Chantler
Company number
09549665
Registered office
17 Alvaston Business Park
Middlewich Road
Nantwich
Cheshire
CW5 6PF
Auditor
DJH Mitten Clarke Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
TOTAL DEVELOPMENTS (NW) LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Group statement of income and retained earnings
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 25
TOTAL DEVELOPMENTS (NW) LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the period ended 31 March 2023.
Review of the business
The company's principal activity continued to be the development and sale of industrial property.
The company mainly operates across England, acquiring land suitable for the development of industrial units especially for small and medium sized companies. The company will then develop industrial units for sale, or sell the land subject to a development agreement.
During the period to March 2023 there were no sales of land and property, the company did, however, continue to progress the sites that were under development. The company’s largest development having tenants in place and the company deciding to retain the property for the longer term, was transferred from stock and reclassified as an investment property.
The company’s turnover for the year of £1.3m largely consisted of rental income from its investment property.
The market conditions for the sale and letting of industrial units are currently challenging but the directors consider that the company will maintain its strong financial position going forward.
Principal risks and uncertainties
The company’s activities expose it to a number of financial risks and the directors’ review and agree policies for managing these risks.
Liquidity risk
Liquidity risk is the risk that the group will be unable to meet current liabilities as they fall due. The group manages this risk by monitoring cash flow and forecast statements and relies on the continued support from the shareholders.
Property market
The property market for the logistics and industrial sector can be sensitive to changes in the economic environment including interest rates and business growth. The directors continue to monitor this position when assessing new and existing projects.
Mr E C Chantler
Director
28 March 2024
TOTAL DEVELOPMENTS (NW) LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the period ended 31 March 2023.
Principal activities
The group's principal activity is presented in the strategic report.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr J D Beeson
Mr E C Chantler
Auditor
The auditor, DJH Mitten Clarke Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr E C Chantler
Director
28 March 2024
TOTAL DEVELOPMENTS (NW) LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -
The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
TOTAL DEVELOPMENTS (NW) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOTAL DEVELOPMENTS (NW) LTD
- 4 -
Opinion
We have audited the financial statements of Total Developments (NW) Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2023 which comprise the group statement of income and retained earnings, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's profit for the period 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TOTAL DEVELOPMENTS (NW) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOTAL DEVELOPMENTS (NW) LTD
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
TOTAL DEVELOPMENTS (NW) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOTAL DEVELOPMENTS (NW) LTD
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our previous knowledge and experience of the client and businesses in similar sectors;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing legal and professional expenses for potential ongoing litigation work; and
reviewing correspondence with HMRC.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
TOTAL DEVELOPMENTS (NW) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOTAL DEVELOPMENTS (NW) LTD
- 7 -
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 an auditor's report 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.
Robert Morris (Senior Statutory Auditor)
For and on behalf of DJH Mitten Clarke Audit Limited
5 April 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
TOTAL DEVELOPMENTS (NW) LTD
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 31 MARCH 2023
- 8 -
Period
Year
ended
ended
31 March
30 April
2023
2022
Notes
£
£
Turnover
3
1,286,843
40,204,101
Cost of sales
(1,832,215)
(24,773,941)
Gross (loss)/profit
(545,372)
15,430,160
Administrative expenses
(326,927)
(268,538)
Operating (loss)/profit
(872,299)
15,161,622
Interest receivable and similar income
6
1,430
473
Interest payable and similar expenses
7
(1,005,755)
(1,163,361)
Other gains and losses
8
21,360,412
-
Profit before taxation
19,483,788
13,998,734
Tax on profit
9
(3,781,443)
(2,671,207)
Profit for the financial period
21
15,702,345
11,327,527
Retained earnings brought forward
16,746,655
14,783,576
Dividends
(9,364,448)
Retained earnings carried forward
32,449,000
16,746,655
Profit for the financial period is all attributable to the owners of the parent company.
TOTAL DEVELOPMENTS (NW) LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 9 -
Period
Year
ended
ended
31 March
30 April
2023
2022
£
£
Profit for the period
15,702,345
11,327,527
Other comprehensive income
-
-
Total comprehensive income for the period
15,702,345
11,327,527
Total comprehensive income for the period is all attributable to the owners of the parent company.
TOTAL DEVELOPMENTS (NW) LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
31 March 2023
30 April 2022
Notes
£
£
£
£
Fixed assets
Investment property
11
42,680,000
Current assets
Stocks
14
10,582,119
29,389,683
Debtors
15
7,361,518
10,087,508
Cash at bank and in hand
686,066
1,503,416
18,629,703
40,980,607
Creditors: amounts falling due within one year
16
(13,717,673)
(24,233,852)
Net current assets
4,912,030
16,746,755
Total assets less current liabilities
47,592,030
16,746,755
Creditors: amounts falling due after more than one year
17
(15,142,930)
-
Net assets
32,449,100
16,746,755
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
32,449,000
16,746,655
Total equity
32,449,100
16,746,755
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Mr E C Chantler
Director
Company registration number 09549665 (England and Wales)
TOTAL DEVELOPMENTS (NW) LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
31 March 2023
30 April 2022
Notes
£
£
£
£
Fixed assets
Investment property
11
42,680,000
Investments
12
1
42,680,000
1
Current assets
Stocks
14
10,582,119
29,389,683
Debtors
15
7,361,518
10,088,594
Cash at bank and in hand
686,066
1,503,416
18,629,703
40,981,693
Creditors: amounts falling due within one year
16
(13,717,673)
(24,230,539)
Net current assets
4,912,030
16,751,154
Total assets less current liabilities
47,592,030
16,751,155
Creditors: amounts falling due after more than one year
17
(15,142,930)
-
Net assets
32,449,100
16,751,155
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
32,449,000
16,751,055
Total equity
32,449,100
16,751,155
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £15,697,946 (2022 - £11,330,377 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Mr E C Chantler
Director
Company registration number 09549665 (England and Wales)
TOTAL DEVELOPMENTS (NW) LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(1,520,180)
13,363,551
Interest paid
(1,902,892)
(472,634)
Income taxes paid
(1,840,207)
(1,863,636)
Net cash (outflow)/inflow from operating activities
(5,263,279)
11,027,281
Investing activities
Interest received
1,430
473
Net cash generated from investing activities
1,430
473
Financing activities
Proceeds from borrowings
-
5,173,164
Repayment of borrowings
-
(9,694,260)
Proceeds from new bank loans
15,142,930
3,314,849
Repayment of bank loans
(10,698,431)
-
Dividends paid to equity shareholders
(9,364,448)
Net cash generated from/(used in) financing activities
4,444,499
(10,570,695)
Net (decrease)/increase in cash and cash equivalents
(817,350)
457,059
Cash and cash equivalents at beginning of period
1,503,416
1,046,357
Cash and cash equivalents at end of period
686,066
1,503,416
TOTAL DEVELOPMENTS (NW) LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(1,520,180)
13,363,551
Interest paid
(1,902,892)
(472,634)
Income taxes paid
(1,840,207)
(1,863,636)
Net cash (outflow)/inflow from operating activities
(5,263,279)
11,027,281
Investing activities
Interest received
1,430
473
Net cash generated from investing activities
1,430
473
Financing activities
Proceeds from borrowings
-
5,173,164
Repayment of borrowings
-
(9,694,260)
Proceeds from new bank loans
15,142,930
3,314,849
Repayment of bank loans
(10,698,431)
-
Dividends paid to equity shareholders
-
(9,364,448)
Net cash generated from/(used in) financing activities
4,444,499
(10,570,695)
Net (decrease)/increase in cash and cash equivalents
(817,350)
457,059
Cash and cash equivalents at beginning of period
1,503,416
1,046,357
Cash and cash equivalents at end of period
686,066
1,503,416
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information
Total Developments (NW) Ltd (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is 17 Alvaston Business Park, Middlewich Road, Nantwich, Cheshire, CW5 6PF. The principal place of business is 4th Floor, Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN.
The group consists of Total Developments (NW) Ltd and all of its subsidiaries.
1.1
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.
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, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Total Developments (NW) Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Reporting period
The group has prepared financial statements for the 11 month period to 31 March 2023 for administrative reasons. The comparative figures are for the year ended 30 April 2022.
1.5
Turnover
Turnover represents proceeds of sale of property, rents receivable on commercial property prior to sale and revenue from the provision of construction services.
Revenue from contracts for the provision of construction 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 reference to the valuation of contracted work performed by the year end, as a proportion of the total contract sum. 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.
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Stocks
Work in progress is stated at the lower of cost and net realisable value.
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.
1.9
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.10
Financial instruments
The group 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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investment Property
As described in note 11 to the financial statements, investment property is stated at fair value based on the valuation performed by the directors. The directors used observable market prices based on a fully tenanted property. However, the rise in interest rates and inflation has caused significant disruption and uncertainty in the UK property market which has inevitably increased the degree of judgement involved in the property valuation.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Development and sale of land and industrial property
252,193
39,340,980
Rental and related income
1,034,650
863,121
1,286,843
40,204,101
2023
2022
£
£
Other revenue
Interest income
1,430
473
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,250
4,250
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
2
2
2
2
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,430
473
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,430
473
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
913,987
1,156,282
Other finance costs:
Other interest
91,768
7,079
Total finance costs
1,005,755
1,163,361
8
Other gains and losses
2023
2022
£
£
Changes in the fair value of investment properties
21,360,412
-
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,781,443
2,671,207
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 18 -
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
19,483,788
13,998,734
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
3,701,920
2,659,759
Tax effect of expenses that are not deductible in determining taxable profit
79,523
10,906
Unutilised tax losses carried forward
542
Taxation charge
3,781,443
2,671,207
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
-
9,364,448
11
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 May 2022
-
-
Transfers from inventories
21,319,588
21,319,588
Net gains or losses through fair value adjustments
21,360,412
21,360,412
At 31 March 2023
42,680,000
42,680,000
The fair value of investment property has been arrived at by the directors on the basis of open market value.
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
1
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
12
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022
1
Disposals
(1)
At 31 March 2023
Carrying amount
At 31 March 2023
At 30 April 2022
1
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Total Developments (NW2) Ltd
17 Alvaston Business Park, Middlewich Road, Nantwich, Cheshire, CW5 6PF
Ordinary shares
100.00
An application to dissolve Total Developments (NW2) Ltd was lodged at Companies House on 10 March 2023 following its cessation of trade, and the investment written off.
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
10,582,119
29,389,683
10,582,119
29,389,683
The carrying amount of stocks includes £142,930 (2022 - £11,825,960) pledged as security for liabilities.
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 20 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
381,919
286,981
381,919
286,981
Unpaid share capital
100
100
100
100
Amounts owed by group undertakings
-
-
-
820,630
Other debtors
5,547,003
6,058,690
5,547,003
5,239,146
Prepayments and accrued income
1,432,496
3,741,737
1,432,496
3,741,737
7,361,518
10,087,508
7,361,518
10,088,594
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
11,825,960
11,825,960
Other borrowings
18
8,655,562
8,655,562
8,655,562
8,655,562
Trade creditors
223,871
495,024
223,871
493,224
Corporation tax payable
3,781,443
1,840,207
3,781,443
1,840,207
Other taxation and social security
-
667,263
-
667,263
Deferred income
19
313,793
313,793
Other creditors
39,000
39,000
Accruals
743,004
710,836
743,004
709,323
13,717,673
24,233,852
13,717,673
24,230,539
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
15,142,930
15,142,930
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 21 -
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
15,142,930
11,825,960
15,142,930
11,825,960
Loans from related parties
8,655,562
8,655,562
8,655,562
8,655,562
23,798,492
20,481,522
23,798,492
20,481,522
Payable within one year
8,655,562
20,481,522
8,655,562
20,481,522
Payable after one year
15,142,930
15,142,930
The bank loans represent:
Loan finance £15,000,000 (2022 - £nil) secured by the following:
Bridging finance £142,930 (2022 - £11,825,960) secured by the following:
Legal charges over the land and property in work in progress, applicable to the loan applied for
Debentures over the assets of the company
Personal guarantee by the director, Mr J Beeson.
Loans from related parties include £8,655,562 (2022 - £8,655,562) that are interest-free and unsecured.
19
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
313,793
-
313,793
-
20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
50
50
50
50
A Ordinary shares of £1 each
50
50
50
50
100
100
100
100
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 22 -
21
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the period
16,746,655
14,783,576
16,751,055
14,785,126
Profit for the period
15,702,345
11,327,527
15,697,945
11,330,377
Dividends
-
(9,364,448)
-
(9,364,448)
At the end of the period
32,449,000
16,746,655
32,449,000
16,751,055
Group
Company
2023
2022
2023
2022
£
£
£
£
Non-distributable profits included above
At the beginning of the period
-
-
-
-
Non distributable profits in the period
21,360,412
-
21,360,412
-
At the end of the period
21,360,412
-
21,360,412
-
Distributable profits
11,088,588
16,746,655
11,088,588
16,751,055
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 23 -
22
Related party transactions
Transactions with related parties
During the period the group entered into the following transactions with related parties:
Construction and professional services
Interest payable on loans
2023
2022
2023
2022
£
£
£
£
Group
Entities under the control of the directors
3,286,134
14,970,317
-
252,246
Company
Entities under the control of the directors
3,286,134
14,970,317
-
252,246
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Group
Entities under the control of the directors
124,658
257,534
Other related parties
8,655,562
8,655,562
Company
Entities under the control of the directors
124,658
257,534
Other related parties
8,655,562
8,655,562
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities under the control of the directors
5,229,146
5,229,146
Company
Entities under the control of the directors
5,229,146
5,229,146
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 24 -
23
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the period after tax
15,702,345
11,327,527
Adjustments for:
Taxation charged
3,781,443
2,671,207
Finance costs
1,005,755
1,163,361
Investment income
(1,430)
(473)
Fair value gain on investment properties
(21,360,412)
-
Movements in working capital:
(Increase)/decrease in stocks
(2,512,024)
2,625,930
Decrease/(increase) in debtors
2,725,990
(2,049,140)
Decrease in creditors
(1,175,640)
(2,374,861)
Increase in deferred income
313,793
-
Cash (absorbed by)/generated from operations
(1,520,180)
13,363,551
24
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the period after tax
15,697,945
11,330,377
Adjustments for:
Taxation charged
3,781,443
2,671,207
Finance costs
1,005,755
1,163,361
Investment income
(1,430)
(473)
Fair value gain on investment properties
(21,360,412)
-
Other gains and losses
4,839
-
Movements in working capital:
(Increase)/decrease in stocks
(2,512,024)
2,625,930
Decrease/(increase) in debtors
2,722,238
(2,051,703)
Decrease in creditors
(1,172,327)
(2,375,148)
Increase in deferred income
313,793
-
Cash (absorbed by)/generated from operations
(1,520,180)
13,363,551
TOTAL DEVELOPMENTS (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 25 -
25
Analysis of changes in net debt - group
1 May 2022
Cash flows
Other non-cash changes
31 March 2023
£
£
£
£
Cash at bank and in hand
1,503,416
(817,350)
-
686,066
Borrowings excluding overdrafts
(20,481,522)
(2,541,927)
(775,043)
(23,798,492)
(18,978,106)
(3,359,277)
(775,043)
(23,112,426)
26
Analysis of changes in net debt - company
1 May 2022
Cash flows
Other non-cash changes
31 March 2023
£
£
£
£
Cash at bank and in hand
1,503,416
(817,350)
-
686,066
Borrowings excluding overdrafts
(20,481,522)
(2,541,927)
(775,043)
(23,798,492)
(18,978,106)
(3,359,277)
(775,043)
(23,112,426)
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