Registration number:
Providence Place Limited
for the Year Ended 30 November 2023
Providence Place Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Statement of Income and Retained Earnings |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Statement of Financial Position |
|
Consolidated Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Providence Place Limited
Company Information
Director |
A Stewart-Clark |
Registered office |
|
Auditors |
|
Providence Place Limited
Strategic Report for the Year Ended 30 November 2023
The director presents his strategic report for the year ended 30 November 2023.
Principal activity
The principal activity of the group is in investment property companies, a timber and building materials business, a manufacture and resale of garden buildings business and farming.
Fair review of the business
The results for the group show a loss after tax for the year of £452,053 (2022: £216,746). Tough trading conditions for the group's timber and building materials business has impacted on the results for the year.
In November 2021, Providence Place Ltd was incorporated as parent company for the group. The introduction of a holding company constitutes a Group reconstruction and has been accounted for using merger accounting principles. Therefore, although the Group reconstruction did not become effective until November 2021, the consolidated financial statements of Providence Place Ltd are presented as if Providence Place Ltd and all of its subsidiaries had always been part of the same Group. Accordingly, the results of the Group for the entire period ended 30 November 2023 and 30 November 2022 are shown in the consolidated accounts.
The consolidated financial statements include the results of Providence Place Ltd and all its subsidiary undertakings made up to the same accounting date.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£ |
5,762,337 |
7,390,834 |
Increase / (Decrease) |
% |
(22) |
20 |
Gross profit |
£ |
2,993,501 |
3,497,540 |
(Loss)/Profit before tax |
£ |
(479,689) |
299,722 |
Shareholders funds |
£ |
8,413,527 |
8,865,580 |
Principal risks and uncertainties
The group's operations expose it to a variety of financial risks including the effect of changes in interest rates on debt, credit risk, price risk and liquidity risk,
The group's financial assets consist of trade, stock and other receivables. After initial recognition, at transaction price, these are measured at amortised cost using the effective interest rate method, less provision for impairment. The credit risk is primarily attributable to its trade debtors. The risk is managed by maintaining a strict credit policy.
The group's timber operations are exposed to price risk and pressure on margins with a number of materials being susceptible to volatility which could impact on margins. Contracts with suppliers helps to mitigate price fluctuations where possible.
The group's financial liabilities include borrowings, trade and other payables which are measured initially at transaction price and subsequently at amortised cost using the effective interest rate method.
The directors recognise the impact of such risks and this is regularly reviewed. The group has solid reporting systems and produces timely and accurate management information which is regularly reviewed by the management and director.
Approved and authorised by the
Providence Place Limited
Strategic Report for the Year Ended 30 November 2023
......................................... |
Providence Place Limited
Director's Report for the Year Ended 30 November 2023
The director presents his report and the for the year ended 30 November 2023.
Director of the group
The director who held office during the year was as follows:
Information included in the Strategic Report
Certain information is not shown in the Director's Report because it is shown in the Strategic Report instead. The Strategic Report includes a business review and information about the group's principal risks and uncertainties and information about the group's key performance indicators.
Future developments
The group has a clear strategy in place to expand and achieve continued growth across all subsidiaries to create a strong profitable performance for the forseeable future.
Going concern
The director has a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt a going concern basis in preparing the financial statements.
Disclosure of information to the auditor
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved and authorised by the
......................................... |
Providence Place Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and 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 financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Providence Place Limited
Independent Auditor's Report to the Members of Providence Place Limited
Opinion
We have audited the financial statements of Providence Place Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Statement of Financial Position, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 30 November 2023 and of the group's 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 group 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Providence Place Limited
Independent Auditor's Report to the Members of Providence Place Limited
Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's 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 Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept 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 director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is 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 director determines 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 director is 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 director either intends 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 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.
• |
Obtaining an understanding of the legal and regulatory frameworks that the entity operates in, focusing on those laws and regulations that had a direct effect on the financial statements; |
• |
Enquiry of management about any instances of non-compliance with laws and regulations; |
• |
Enquiry of management to identify any instances of known or suspected instances of fraud; |
• |
Enquiry of management and those charged with governance around actual and potential litigation and claims; |
• |
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; |
Providence Place Limited
Independent Auditor's Report to the Members of Providence Place Limited
• |
Reviewing minutes of meetings of those charged with governance; and |
• |
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.
|
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.
......................................
For and on behalf of
Wiston House
1 Wiston Avenue
West Sussex
BN14 7QL
Providence Place Limited
Consolidated Statement of Income and Retained Earnings for the Year Ended 30 November 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
- |
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(413,499) |
(190,669) |
||
(Loss)/profit before tax |
( |
|
|
Taxation |
|
( |
|
(Loss)/profit for the financial year |
( |
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
( |
|
|
Retained earnings brought forward |
4,275,857 |
4,059,111 |
|
Retained earnings carried forward |
3,823,804 |
4,275,857 |
Providence Place Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 November 2023
2023 |
2022 |
|
(Loss)/profit for the year |
( |
|
Total comprehensive income for the year |
( |
|
Total comprehensive income attributable to: |
||
Owners of the company |
( |
|
Providence Place Limited
(Registration number: 13738600)
Consolidated Balance Sheet as at 30 November 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
4,589,723 |
4,589,723 |
|
Retained earnings |
3,823,804 |
4,275,857 |
|
Equity attributable to owners of the company |
8,413,527 |
8,865,580 |
|
Shareholders' funds |
8,413,527 |
8,865,580 |
Approved and authorised by the
......................................... |
Providence Place Limited
(Registration number: 13738600)
Statement of Financial Position as at 30 November 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
- |
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current (liabilities)/assets |
( |
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
4,589,723 |
4,589,723 |
|
Retained earnings |
101 |
101 |
|
Shareholders' funds |
4,589,824 |
4,589,824 |
The company made no profit or loss after tax for the financial year of £- (2022 - loss of £-).
Approved and authorised by the
......................................... |
Providence Place Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 November 2023
Equity attributable to the parent company
Share capital |
Retained earnings |
Total |
Total equity |
|
At 1 December 2022 |
|
|
|
|
Loss for the year |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
Share capital |
Retained earnings |
Total |
Total equity |
|
At 1 December 2021 |
|
|
|
|
Profit for the year |
- |
|
|
|
New share capital issued |
|
- |
|
|
At 30 November 2022 |
|
|
|
|
Providence Place Limited
Consolidated Statement of Cash Flows for the Year Ended 30 November 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
( |
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Increase in trade debtors |
( |
( |
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes (paid)/received |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
- |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Acquisition of intangible assets |
( |
( |
|
Proceeds from sale of intangible assets |
|
- |
|
Acquisition of investment properties |
- |
( |
|
Proceeds from sale of investment properties |
- |
|
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from issue of ordinary shares, net of issue costs |
- |
|
|
Proceeds from bank borrowing draw downs |
- |
|
|
Repayment of bank borrowing |
( |
- |
|
Net cash flows from financing activities |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 December |
|
|
|
Cash and cash equivalents at 30 November |
670,244 |
1,299,093 |
Providence Place Limited
Statement of Cash Flows for the Year Ended 30 November 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit/(loss) for the year |
- |
- |
|
Working capital adjustments |
|||
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisition of subsidiaries |
( |
( |
|
Cash flows from financing activities |
|||
Proceeds from issue of ordinary shares, net of issue costs |
- |
|
|
Net increase/(decrease) in cash and cash equivalents |
- |
- |
|
Cash and cash equivalents at 1 December |
- |
- |
|
Cash and cash equivalents at 30 November |
- |
- |
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
The company's registered number is 13738600.
These financial statements were authorised for issue by the
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 years 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.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2023.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
In November 2021, Providence Place Ltd was incorporated as parent company for the group.
The introduction of a holding company constitutes a Group reconstruction and has been accounted for using merger accounting principles. Therefore, although the Group reconstruction did not become effective until November 2021, the consolidated financial statements of Providence Place Ltd are presented as if Providence Place Ltd and all of its subsidiaries had always been part of the same Group. Accordingly, the results of the Group for the entire period ended 30 November 2023 and 30 November 2022 are shown in the consolidated accounts.
The consolidated financial statements include the results of Providence Place Ltd and all its subsidiary undertakings made up to the same accounting date. Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Going concern
The financial statements have been prepared on a going concern basis as the directors believe that no material uncertainties exist. The director has considered the level of reserves held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the group and company to be able to continue as a going concern.
Key sources of estimation uncertainty
Management is required to make key decisions and judgements in the process of applying the group’s accounting policies. The most significant areas where such judgements have been necessary is the valuation of investment properties. Where judgement has been applied, the key factors taken into consideration are disclosed in the accounting policies and the appropriate note in these financial statements.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.. The carrying amount is £12,916,435 (2022 -£12,916,435).
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 group's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The group 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 group's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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.
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
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 |
Freehold property |
over 50 years |
Short leasehold property |
over 14 years |
Plant and machinery |
20% reducing balance/over 4 years |
Fixtures, fittings and equipment |
33% reducing balance |
Motor vehicles |
25% reducing balance |
Investment property
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
over 5 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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 group will not be able to collect all amounts due according to the original terms of the receivables.
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average cost 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 group 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
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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 group 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.
Financial instruments
Classification
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Revenue |
The analysis of the group's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Rendering of services |
|
|
Rental income from investment property |
|
|
Commissions received |
|
- |
Other revenue |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Miscellaneous other operating income |
|
- |
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2023 |
2022 |
|
Gain on disposal of property, plant and equipment |
|
- |
Operating (loss)/profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
- |
Write-down of stocks to net realisable value |
|
- |
Research and development cost |
|
- |
Profit on disposal of property, plant and equipment |
( |
- |
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
- |
|
88,606 |
84,574 |
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
23,007 |
21,178 |
Other fees to auditors |
||
All other non-audit services |
|
|
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
- |
|
Deferred taxation |
||
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
(27,636) |
10,892 |
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
Effect of tax losses |
( |
( |
Tax decrease from effect of capital allowances and depreciation |
- |
( |
Tax (decrease)/increase from other short-term timing differences |
( |
|
Total tax (credit)/charge |
( |
|
From 1 April 2023, the rate of corporation tax will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, whereas taxable profits between £50,000 and £250,000, the higher 25% rate will apply but with marginal relief applying as profits increase. With associated companies the lower and upper limits are divided by the number of associated companies. These changes may affect the tax charge in the future for the group.
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 December 2022 |
|
|
At 30 November 2023 |
|
|
Amortisation |
||
Amortisation charge |
|
|
At 30 November 2023 |
|
|
Carrying amount |
||
At 30 November 2023 |
|
|
At 30 November 2022 |
|
|
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||||
At 1 December 2022 |
|
|
|
|
|
Additions |
|
|
- |
- |
|
Disposals |
- |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 December 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
|
Carrying amount |
|||||
At 30 November 2023 |
|
|
|
|
|
At 30 November 2022 |
|
|
|
|
|
Included within the net book value of land and buildings above is £1,967,214 (2022 - £1,966,432) in respect of freehold land and buildings and £Nil (2022 - £Nil) in respect of short leasehold land and buildings.
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Restriction on title and pledged as security
Investment properties |
Group
2023 |
|
At 1 December |
|
At 30 November |
|
The 2023 valuation was undertaken by the director, at open market value and the director is satisfied that the current open market value is not materially different from the value included within the financial statements.
The historical cost is £12,890,435 (2022: £12,890,435)
Investment properties with a fair value of £12,916,435 has been pledged as secuirty for borrowings.
Investments |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 December 2022 |
|
Additions |
|
At 30 November 2023 |
|
Provision |
|
Carrying amount |
|
At 30 November 2023 |
|
At 30 November 2022 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
50 Station Road, Stoke D'abernon. Cobham, Surrey, KT11 3BN England |
|
|
|
|
Sinclaire Cottage Portsmouth Road, Ripley, Woking, Surrey, GU23 6EW England |
|
|
|
|
Sinclaire Cottage Portsmouth Road, Ripley, Woking, Surrey, GU23 6EW England |
|
|
|
|
Sinclaire Cottage Portsmouth Road, Ripley, Woking, Surrey, GU23 6EW England |
|
|
|
|
Sinclaire Cottage Portsmouth Road, Ripley, Woking, Surrey, GU23 6EW England |
|
|
|
|
C/O Fbr Seed Ltd, Abbey Row, Kelso, TD5 7JF Scotland |
|
|
|
|
Sinclaire Cottage Portsmouth Road, Ripley, Woking, Surrey, GU23 6EW England |
|
|
|
|
Sinclaire Cottage Portsmouth Road, Ripley, Woking, Surrey, GU23 6EW England |
|
|
|
Subsidiary undertakings |
Challenge Fencing Ltd The principal activity of Challenge Fencing Ltd is |
Titan Garden Buildings Ltd The principal activity of Titan Garden Buildings Ltd is |
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Lucas Green Yard Ltd The principal activity of Lucas Green Yard Ltd is |
Marlin Mansion Ltd The principal activity of Marlin Mansion Ltd is |
Lian Yard Ltd The principal activity of Lian Yard Ltd is |
Humbie Farm Ltd The principal activity of Humbie Farm Ltd is |
Lasch Ltd The principal activity of Lasch Ltd is |
Valentine Farm Ripley Ltd The principal activity of Valentine Farm Ripley Ltd is |
Subsidiary undertakings |
|
For the year ending 30 November 2023 the subsidiary Lucas Green Yard Ltd (Company number: 13740665) was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Work in progress |
- |
|
- |
- |
Other inventories |
|
|
- |
- |
|
|
- |
- |
Debtors |
Group |
Company |
|||
Current |
2023 |
2022 |
2023 |
2022 |
Trade debtors |
|
|
- |
- |
Other debtors |
|
|
- |
|
Prepayments |
|
|
- |
- |
|
|
- |
|
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
- |
- |
Short-term deposits |
|
|
- |
- |
|
|
- |
- |
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
- |
- |
|
Income tax liability |
41,117 |
72,084 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Other non-current financial liabilities |
- |
|
|
|
|
|
|
|
|
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 December 2022 |
|
|
Unused provision reversed |
( |
( |
At 30 November 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
4,589,723 |
4,589,723 |
4,589,723 |
4,589,723 |
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
National Westminster bank has provided two loans to Challenge Fencing Ltd which are secured on the freehold and investment property held by the company.
The bank loans are denominated in Sterling with a interest rate between 2.61% and 2.65% over base. The carrying amount at the end of the year is £2,209,527 (2022 £2,312,839).
The Agricultural Mortgage Corporation PLC (AMC) has provided two loans to Challenge Fencing Ltd which are secured on the freehold and investment properties held by Humbie Farm Ltd.
The bank loan is denominated in Sterling with a interest rate between 1.9% and 3.05% over base. The carrying amount at the end of the year is £2,295,698 (2022 £2,393,830).
Aldermore bank has provided one loan to Valentine Farm Ripley Ltd and has a fixed and floating charge over the assets of the company.
The bank loan is denominated in Sterling with a interest rate of 3.95% over base. The carrying amount at the end of the year is £1,668,977 (2022 £1,756,391)
Landbay Partners Ltd has provided a mortgage to Marlin Mansion Ltd which is charged on that company's investment property.
The mortgage is denominated in Sterling and is an interest only mortgage. Interest is charged at 3.49%. The carrying amount at the end of the year is £888,125 (2022 £888,125).
Included in the loans and borrowings are the following amounts due after more than five years:
2023 |
2022 |
|
After more than five years by instalments |
|
|
After more than five years not by instalments |
|
|
5,618,029 |
5,703,185 |
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Borrowings due after five years
NatWest bank loan of £1,160,000. The bank loan is repayable over 120 months from October 2019. Interest is charged at 2.61% over base. At 30 November 2023 £59,160 (2022 £74,650) is due in less than 1 year and £890,078 (2022 £933,747) is due after more than 1 year.
NatWest bank loan of £1,400,000. The bank loan is repayable over 240 months from April 2021. Interest is charged at 2.65% over base. At 30 November 2023 £44,152 (2022 £60,000) is due in less than 1 year and £1,216,137 (2022 £1,244,442) is due after more than 1 year.
AMC bank loan of £1,295,419. The bank loan is repayable over 76 months from April 2019. Interest is charged at 1.9% over base. At 30 November 2023 £40,953 (2022 £63,000) is due in less than 1 year and £1,112,840 (2022 £1,131,745) is due after more than 1 year.
AMC bank loan of £1,296,374. The bank loan is repayable over 76 months from April 2019. Interest is charged at 3.05% over base. At 30 November 2023 £57,180 (2022 £42,000) is due in less than 1 year and £1,084,725 (2022 £1,157,085) is due after more than 1 year.
Aldermore bank loan of £1,750,000. The bank loan is repayable over 112 months from August 2022. Interest is charged at 3.95%.above base. At 30 November 2023 £87,414 (2022 £89,950) is due in less than 1 year and £1,581,563 (2022 £1,666,441) is due after more than 1 year.
Landbay Partners Ltd mortgage of £888,125. The bank loan is an interest only mortgage. The loan start date was June 2021 with the remaining loan term being 219 months from this date. Interest is charged at 3.49%. At 30 November 2023 the balance on the loan is £888,125. Early repayment charges of 3% of the account balance are in place until June 2026.
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Contingent liabilities |
Group
Titan Garden Buildings Ltd (subsidiary) is contesting a personal injury damages claim arising out of an accident which occurred in May 2022. The amount of the claim has not been quantified.
Providence Place Limited
Notes to the Financial Statements for the Year Ended 30 November 2023
Related party transactions |
Group
Transactions with the director |
2023 |
At 1 December 2022 |
Repayments by director |
At 30 November 2023 |
A Stewart-Clark |
|||
Directors loan |
( |
( |
( |
2022 |
At 1 December 2021 |
Repayments by director |
At 30 November 2022 |
A Stewart-Clark |
|||
Directors loan |
( |
( |
( |
At 30 November 2023 the director has a balance in credit of £48,577 (2022 £44,857)
Director guarantees |
|
Financial instruments |
Group
Categorisation of financial instruments
2023 |
2022 |
|
Financial assets measured at fair value |
|
|
Financial liabilities measured at fair value |
|
|
APB Ethical Standards relevant circumstances |
In common with many other businesses of our size and nature we use our auditors for the preparation of the financial statements.