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Registration number: 02731058

Rivergreen Developments PLC

Annual Report and Financial Statements

for the Year Ended 31 October 2023

 

Rivergreen Developments PLC

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Income Statement

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 25

 

Rivergreen Developments PLC

Company Information

Directors

P H Candler

P A Ganley

M I Candler

Company secretary

J C Candler

Registered office

The Farm House & Byre
Aykley Heads Farm
Aykley Heads
Durham
DH1 5AN

Auditor

Azets Audit Services
Chartered Accountants & Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

 

Rivergreen Developments PLC

Strategic Report for the Year Ended 31 October 2023

The directors present their strategic report for the year ended 31 October 2023.

Principal activity

The principal activities of the company throughout the year continued to be those of property development, investment and project management.

Fair review of the business

Turnover decreased to £99,720 (2022 - £100,245) during the period and the operating loss was £170,971 (2022 - £324,534).

Exceptional administrative expenses during the period amounted to £158,888 (2022 - £168,723) relating to doubtful debt provisions made against related party balances.

The overall loss before tax was £32,471. Excluding the impact of the exceptional impairment of the related party balances the company would have reported a profit of £126,417.

Marketing of the unlet unit at the Rivergreen Centre in Hartlepool continued throughout the period and resulted in a successful sale.

The company is open to new development opportunities and continues to generate rental income from its remaining units in Hartlepool.

Financial KPI's
As part of its continuous improvement and quality programme, the company monitors a range of key performance indicators and the directors are pleased to comment on a number of these as follows:

 

Unit

2023

2022

Gross profit margin

%

73.70

79.52

Principal risks and uncertainties

The principal risks identified by the management team to meet the long-term strategy are in relation to employee retention, interest rates and liquidity. The company is continuing to monitor these risks and develop safeguards in order to sufficiently aide with the growth plans.

Approved and authorised for issue by the Board on 30 July 2024 and signed on its behalf by:

.........................................
P H Candler
Director

.........................................
P A Ganley
Director

 
     
 

Rivergreen Developments PLC

Directors' Report for the Year Ended 31 October 2023

The directors present their report and the financial statements for the year ended 31 October 2023.

Directors of the company

The directors who held office during the year were as follows:

P H Candler

P A Ganley

M I Candler

Financial instruments

Objectives and policies

The company finances its activities with a combination of intercompany loans, cash and short term deposits. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.

Price risk, credit risk, liquidity risk and cash flow risk

Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company also utilises insurance policies to protect against non-payment of debt. The company does not consider that it is materially exposed to credit risk.

Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the company is deemed sufficient to minimise the company's exposure to cash flow and liquidity risk.

Future developments

See disclosures within the Strategic Report regarding future developments of the company.

Going concern

The directors have prepared the financial statements on a going concern basis.

The company meets its day to day working capital requirements through cash generated from operations, intercompany borrowings and external borrowings.

The company has net current liabilities of £1,530,701 and net liabilities of £847,030. The period end position has been impacted by a bad debt provision against related parties and group undertakings of £158,888.

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and from having continued group support.

 

Rivergreen Developments PLC

Directors' Report for the Year Ended 31 October 2023 (continued)

The ability of the company to continue as a going concern is reliant on the continuing support of its ultimate parent company, Rivergreen Limited and therefore expects to retain sufficient financial resources to continue meeting its liabilities as they fall due.

Rivergreen Limited has confirmed it is their intention to support the company for a period of at least twelve months from the date of approval of these financial statements.

On the basis that group support has been obtained, the directors believe they are well placed to manage its business risks, and are satisfied that there is no material uncertainty in relation to going concern and it therefore remains appropriate to adopt the going concern basis in preparing its financial statements.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised for issue by the Board on 30 July 2024 and signed on its behalf by:

.........................................
P H Candler
Director

.........................................
P A Ganley
Director

 
     
 

Rivergreen Developments PLC

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Rivergreen Developments PLC

Independent Auditor's Report to the Members of Rivergreen Developments PLC

Opinion

We have audited the financial statements of Rivergreen Developments PLC (the 'company') for the year ended 31 October 2023, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, 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 company's affairs as at 31 October 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 auditor 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 director's 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 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.

 

Rivergreen Developments PLC

Independent Auditor's Report to the Members of Rivergreen Developments PLC (continued)

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and 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, 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 5], 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 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.

Auditor 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.

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:

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;

enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;

 

Rivergreen Developments PLC

Independent Auditor's Report to the Members of Rivergreen Developments PLC (continued)

challenging assumptions and judgements made by management in their significant accounting estimates;

reviewing financial statement disclosures and testing to support documentation.

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 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.

......................................
Brian Laidlaw BA CA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
Statutory Auditor
Chartered Accountants
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

31 July 2024

Azets Audit Services is a trading name of Azets Audit Services Limited

 

Rivergreen Developments PLC

Income Statement for the Year Ended 31 October 2023

Note

31 October
2023
£

31 October
2022
£

Turnover

3

99,720

100,245

Cost of sales

 

(26,226)

(20,530)

Gross profit

 

73,494

79,715

Administrative expenses

 

(85,577)

(235,976)

Exceptional administrative expenses

5

(158,888)

(168,273)

Operating loss

4

(170,971)

(324,534)

Other interest receivable and similar income

6

174,045

96,753

Interest payable and similar expenses

7

(35,545)

(29,499)

Loss before tax

 

(32,471)

(257,280)

Taxation

11

(610,254)

341,393

(Loss)/profit for the financial year

 

(642,725)

84,113

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Rivergreen Developments PLC

(Registration number: 02731058)
Statement of Financial Position as at 31 October 2023

Note

31 October
2023
£

31 October
2022
£

Fixed assets

 

Tangible assets

12

13,874

16,011

Investment property

13

900,000

1,214,405

 

913,874

1,230,416

Current assets

 

Debtors

14

893

638,997

Cash at bank and in hand

 

108,358

73,311

 

109,251

712,308

Creditors: Amounts falling due within one year

15

(1,639,952)

(2,147,029)

Net current liabilities

 

(1,530,701)

(1,434,721)

Total assets less current liabilities

 

(616,827)

(204,305)

Creditors: Amounts falling due after more than one year

15

(230,203)

-

Net liabilities

 

(847,030)

(204,305)

Capital and reserves

 

Called up share capital

18

50,000

50,000

Profit and loss account

19

(897,030)

(254,305)

Total equity

 

(847,030)

(204,305)

Approved and authorised for issue by the Board on 30 July 2024 and signed on its behalf by:
 

.........................................
P H Candler
Director

.........................................
P A Ganley
Director

 
     
 

Rivergreen Developments PLC

Statement of Changes in Equity for the Year Ended 31 October 2023

Share capital
£

Retained earnings
£

Total
£

At 1 November 2021

50,000

(338,418)

(288,418)

Profit for the year

-

84,113

84,113

At 31 October 2022

50,000

(254,305)

(204,305)

Share capital
£

Profit and loss account
£

Total
£

At 1 November 2022

50,000

(254,305)

(204,305)

Loss for the year

-

(642,725)

(642,725)

Total comprehensive income

-

(642,725)

(642,725)

At 31 October 2023

50,000

(897,030)

(847,030)

 

Rivergreen Developments PLC

Statement of Cash Flows for the Year Ended 31 October 2023

Note

31 October
2023
£

31 October
2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(642,725)

84,113

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

2,137

5,056

Changes in fair value of investment property

13

(47,158)

-

Loss from sales of investment properties

41,563

-

Finance income

6

(174,045)

(96,753)

Finance costs

7

35,545

29,499

Income tax expense

11

610,254

(341,393)

 

(174,429)

(319,478)

Working capital adjustments

 

Decrease in trade debtors

14

27,850

670,057

Increase/(decrease) in trade creditors

15

43,184

(789,320)

Net cash flow from operating activities

 

(103,395)

(438,741)

Cash flows from investing activities

 

Interest received

6

174,045

96,753

Proceeds from sale of investment properties

 

320,000

-

Net cash flows from investing activities

 

494,045

96,753

Cash flows from financing activities

 

Interest paid

7

(35,545)

(29,323)

Repayment of bank borrowing

 

(320,058)

-

Net cash flows from financing activities

 

(355,603)

(29,323)

Net increase/(decrease) in cash and cash equivalents

 

35,047

(371,311)

Cash and cash equivalents at 1 November

 

73,311

444,622

Cash and cash equivalents at 31 October

 

108,358

73,311

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023

1

General information

The company is a public company limited by share capital, incorporated in England and Wales.

The address of its registered office is The Farm House & Byre, Aykley Heads Farm, Aykley Heads, Durham, DH1 5AN.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The directors have prepared the financial statements on a going concern basis.

The company meets its day to day working capital requirements through cash generated from operations, intercompany borrowings and external borrowings.

The company has net current liabilities of £1,530,701 and net liabilities of £847,030. The period end position has been impacted by a bad debt provision against related parties and group undertakings of £158,888.

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and from having continued group support.

The ability of the company to continue as a going concern is reliant on the continuing support of its ultimate parent company, Rivergreen Limited and therefore expects to retain sufficient financial resources to continue meeting its liabilities as they fall due.

Rivergreen Limited has confirmed it is their intention to support the company for a period of at least twelve months from the date of approval of these financial statements.

On the basis that group support has been obtained, the directors believe they are well placed to manage its business risks, and are satisfied that there is no material uncertainty in relation to going concern and it therefore remains appropriate to adopt the going concern basis in preparing its financial statements.

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

2

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There are considered to be no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which effect the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Valuation of investment property - Investment property is carried at fair value. Market value is considered to be same as fair value. The market value is assessed by the directors at each reporting date, with any changes being recognised in the income statement. Where appropriate, the use of an independent professional adviser has been utilised to determine valuations for each asset category. In all cases, forming these valuations inherently includes elements of judgement and subjectivity with regard to the selection of unobservable inputs. The methodology for the valuation process is based on reflecting the prevailing market conditions as at the reporting date. The carrying amount is £900,000 (2022 - £1,214,405).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Rental income is recognised in the accounts according to the period in which the income covers with accruals and prepayments being recognised as appropriate.

Property sales are recognised on legal completion.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants received relating to costs incurred by the company are recognised in the income and expenditure account over the period necessary to match them with the costs that they are intended to compensate. Government grants are presented separately and disclosed in other income.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

2

Accounting policies (continued)

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

 

Asset class

Depreciation method and rate

 

Plant and machinery

15% reducing balance

 

Equipment, fixtures and fittings

15% reducing balance

 

Motor vehicles

25% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

2

Accounting policies (continued)

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

2

Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

31 October
2023
£

31 October
2022
£

Rendering of services

-

1,232

Rental income from investment property

99,720

98,821

Other revenue

-

192

99,720

100,245

The analysis of the company's Turnover for the year by market is as follows:

31 October
2023
£

31 October
2022
£

UK

99,720

100,245

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

4

Operating loss

Arrived at after charging/(crediting)

31 October
2023
£

31 October
2022
£

Depreciation expense

2,137

5,056

Operating lease expense - plant and machinery

-

40

5

Exceptional items

2023
 £

31 October
2022
£

Exceptional administrative expenses

158,888

168,273

The exceptional administrative expenses relate to doubtful debt provisions made against related party loan balances following an assessment of recoverability by management.

6

Other interest receivable and similar income

31 October
2023
£

31 October
2022
£

Other finance income

174,045

96,753

Other interest receivable relates to interest on a loan with a related party, Hotel Operations Limited. This interest is not considered to be recoverable and as such has been included within bad debts provided for in the current and prior year respectively. Following the change in ownership of the related party on 13 October 2023, the loan balances were formally waived.

7

Interest payable and similar expenses

31 October
2023
£

31 October
2022
£

Interest on bank overdrafts and borrowings

35,545

29,210

Interest expense on other finance liabilities

-

289

35,545

29,499

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

-

228,973

Social security costs

-

45,947

Other short-term employee benefits

-

4,502

Pension costs, defined contribution scheme

-

3,605

-

283,027

The average number of persons employed by the company (including directors) during the year, was 0 (2022 - 4).

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

-

143,961

Contributions paid to money purchase schemes

-

1,761

-

145,722

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
 No.

2022
 No.

Accruing benefits under money purchase pension scheme

-

2

In respect of the highest paid director:

2023
 £

2022
 £

Remuneration

-

80,000

Company contributions to money purchase pension schemes

-

881

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

10

Auditor's remuneration

31 October
2023
£

31 October
2022
£

Audit of the financial statements

13,750

7,750


 

11

Taxation

Tax charged/(credited) in the income statement

31 October
2023
£

31 October
2022
£

Deferred taxation

Arising from origination and reversal of timing differences

610,254

(259,458)

Arising from changes in tax rates and laws

-

(81,935)

Total deferred taxation

610,254

(341,393)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 22.52% (2022 - 19%).

The differences are reconciled below:

31 October
2023
£

31 October
2022
£

Loss before tax

(32,471)

(257,280)

Corporation tax at standard rate

(7,312)

(48,883)

Tax increase from effect of capital allowances and depreciation

9,359

-

Effect of expense not deductible in determining taxable profit (tax loss)

(10,619)

1,058

Decrease from tax losses for which no deferred tax asset was recognised

-

(211,633)

Increase in UK and foreign current tax from unrecognised temporary difference from a prior period

662,463

-

Deferred tax credit relating to changes in tax rates or laws

-

(81,935)

Tax decrease from other tax effects

(38,454)

-

Further item of tax decrease

(5,183)

-

Total tax charge/(credit)

610,254

(341,393)

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

11

Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

31 October
2023

Asset
£

Accelerated capital allowances

(24,266)

Losses

24,266

Capital gains & losses

-

 

-

31 October
2022

Asset
£

Accelerated capital allowances

(24,596)

Losses

656,681

Capital gains & losses

(21,831)

 

610,254

There are £2,663,469 of unused gross tax losses (2022 - £Nil) for which no deferred tax asset is recognised in the statement of financial position.

12

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 November 2022

78,803

100,369

179,172

At 31 October 2023

78,803

100,369

179,172

Depreciation

At 1 November 2022

67,686

95,475

163,161

Charge for the year

1,403

734

2,137

At 31 October 2023

69,089

96,209

165,298

Carrying amount

At 31 October 2023

9,714

4,160

13,874

At 31 October 2022

11,117

4,894

16,011

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

13

Investment properties

£

At 1 November 2022

1,214,405

Disposals

(361,563)

Fair value adjustments

47,158

At 31 October 2023

900,000

Included within Investment properties at the year end is a commercial property.

The commercial property was valued at an open market basis by Greig Cavey on 31 October 2023.

Taking the disposal values into consideration, the directors are of the opinion that there has been no significant change in the market value since the last external valuation.

Had investment properties been measured on a historical cost basis, the carrying value would have been £691,576 (2022 - £984,770).

14

Debtors

Note

31 October
2023
£

31 October
2022
£

Trade debtors

 

243

243

Other debtors

 

650

28,500

Deferred tax assets

11

-

610,254

 

893

638,997

15

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

16

-

550,261

Trade creditors

 

116,789

116,789

Amounts owed to group undertakings

22

1,436,845

1,453,630

Social security and other taxes

 

66,566

-

Other creditors

 

6,002

17,504

Accrued expenses

 

13,750

8,845

 

1,639,952

2,147,029

Due after one year

 

Loans and borrowings

16

230,203

-

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

16

Loans and borrowings

2023
 £

2022
 £

Current loans and borrowings

Bank borrowings

-

550,261

2023
 £

2022
 £

Non-current loans and borrowings

Bank borrowings

230,203

-

Bank borrowings

The Atom Bank loan is denominated in Sterling with a nominal interest rate of base rate + 2.20%, and the final instalment is due on 22 August 2028. The carrying amount at year end is £230,203 (2022 - £550,261).

The loan is unsecured.

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £Nil (2022 - £3,605).

18

Share capital

Allotted, called up and fully paid shares

 

31 October
2023

31 October
2022

 

No.

£

No.

£

Ordinary shares of £1 each

50,000

50,000

50,000

50,000

         
 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

19

Reserves

Profit and loss account

This reserve records retained earnings, gains and losses on asset revaluations and accumulated losses.

20

Contingent liabilities

In respect of one of its development projects the company has received grants from the following organisation which may be repayable in full or in part under certain conditions. Grants in the sum of £1,121,148 from the Secretary of State for the Environment under Section 5(2) of the Regional Development Agencies Act 1998. The company has given an unlimited multilateral guarantee to its bankers in respect of the facilities of its parent company Rivergreen Limited. No liability is expected to arise as a result of this guarantee.

21

Analysis of changes in net debt

At 1 November 2022
£

Financing cash flows
£

Other non-cash changes
£

At 31 October 2023
£

Cash and cash equivalents

Cash

73,311

35,047

-

108,358

Borrowings

Long term borrowings

-

-

(230,203)

(230,203)

Short term borrowings

(550,261)

320,058

230,203

-

(550,261)

320,058

-

(230,203)

 

(476,950)

355,105

-

(121,845)

22

Related party transactions

Hotel Operations Limited is a related party by virtue of common directorship and shareholders of P H Candler and P A Ganley. Net loan movements during the period, excluding interest, totalled £nil (2022 - £nil). At the period end, included within debtors before provision is an amount of £1,601,874 (2022 - £1,427,829) due to the company. The loan balance is subject to an interest charge of 2.0% above the bank base rate on a cumulative basis. During the period the company charged loan interest of £174,045 (2022 - £96,753), all of which along with the entire amount due of £1,601,874 was provided against as a bad debt provision as the directors do not consider the amounts to be recoverable. On 13 October 2023, these debts were formally written off in full with no recovery.

 

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

22

Related party transactions (continued)

Jesmond Dene House Limited is a 100% subsidiary of Hotel Operations Limited. During the period the company made net purchases totalling £15,157 (2022 - £(71,520)). At the period end the balance owed from Jesmond Dene House Limited, was £(56,363) (2022 - £(71,520)). At the period end, included within debtors before any provision is an amount of £1,287,699 (2022 - £1,287,699) due to the company. A net provision of £1,231,336 has been made against this debtor as the directors do not consider the amounts to be recoverable. On 13 October 2023, these debts were formally written off in full with no recovery.

Rivergreen Management Pension Scheme is a related party by virtue of common directorships of P H Candler and P A Ganley. At the period end, included within trade creditors is an amount of £93,700 (2022 - £93,700) due to the company in respect of guaranteed rental income.

23

Parent and ultimate parent undertaking

The company's immediate parent is Rivergreen Limited, incorporated in England and Wales.

 The ultimate controlling party is considered to be P H Candler and P A Ganley.