Sixty Bricks Limited 10593957 false 2023-04-01 2024-06-30 2024-06-30 The principal activity of the company is to provide new build housing. Digita Accounts Production Advanced 6.30.9574.0 true true true true false 10593957 2023-04-01 2024-06-30 10593957 2024-06-30 10593957 bus:Director2 2024-06-30 10593957 bus:Director3 2024-06-30 10593957 bus:Director4 2024-06-30 10593957 bus:Director7 2024-06-30 10593957 bus:Director8 2024-06-30 10593957 bus:OrdinaryShareClass1 2024-06-30 10593957 core:RetainedEarningsAccumulatedLosses 2024-06-30 10593957 core:ShareCapital 2024-06-30 10593957 core:CurrentFinancialInstruments 2024-06-30 10593957 core:CurrentFinancialInstruments core:WithinOneYear 2024-06-30 10593957 core:CurrentFinancialInstruments core:WithinOneYear 2 2024-06-30 10593957 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-06-30 10593957 core:FurnitureFittingsToolsEquipment 2024-06-30 10593957 bus:FRS102 2023-04-01 2024-06-30 10593957 bus:Audited 2023-04-01 2024-06-30 10593957 bus:FullAccounts 2023-04-01 2024-06-30 10593957 bus:RegisteredOffice 2023-04-01 2024-06-30 10593957 bus:CompanySecretary1 2023-04-01 2024-06-30 10593957 bus:Director2 2023-04-01 2024-06-30 10593957 bus:Director3 2023-04-01 2024-06-30 10593957 bus:Director4 2023-04-01 2024-06-30 10593957 bus:Director5 2023-04-01 2024-06-30 10593957 bus:Director6 2023-04-01 2024-06-30 10593957 bus:Director7 2023-04-01 2024-06-30 10593957 bus:Director8 2023-04-01 2024-06-30 10593957 bus:OrdinaryShareClass1 2023-04-01 2024-06-30 10593957 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-06-30 10593957 core:RetainedEarningsAccumulatedLosses 2023-04-01 2024-06-30 10593957 core:ShareCapital 2023-04-01 2024-06-30 10593957 core:ComputerSoftware 2023-04-01 2024-06-30 10593957 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-04-01 2024-06-30 10593957 core:FurnitureFittingsToolsEquipment 2023-04-01 2024-06-30 10593957 core:OfficeEquipment 2023-04-01 2024-06-30 10593957 core:UKTax 2023-04-01 2024-06-30 10593957 1 2023-04-01 2024-06-30 10593957 1 2023-04-01 2024-06-30 10593957 countries:EnglandWales 2023-04-01 2024-06-30 10593957 2023-03-31 10593957 core:RetainedEarningsAccumulatedLosses 2023-03-31 10593957 core:RetainedEarningsAccumulatedLosses core:PreviouslyStatedAmount 2023-03-31 10593957 core:RetainedEarningsAccumulatedLosses core:PriorPeriodIncreaseDecrease 2023-03-31 10593957 core:ShareCapital 2023-03-31 10593957 core:ShareCapital core:PreviouslyStatedAmount 2023-03-31 10593957 core:ShareCapital core:PriorPeriodIncreaseDecrease 2023-03-31 10593957 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-03-31 10593957 core:FurnitureFittingsToolsEquipment 2023-03-31 10593957 core:PreviouslyStatedAmount 2023-03-31 10593957 core:PriorPeriodIncreaseDecrease 2023-03-31 10593957 2022-04-01 2023-03-31 10593957 2023-03-31 10593957 bus:OrdinaryShareClass1 2023-03-31 10593957 core:CurrentFinancialInstruments 2023-03-31 10593957 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 10593957 core:CurrentFinancialInstruments core:WithinOneYear 2 2023-03-31 10593957 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-03-31 10593957 core:FurnitureFittingsToolsEquipment 2023-03-31 10593957 bus:OrdinaryShareClass1 2022-04-01 2023-03-31 10593957 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 10593957 core:ShareCapital 2022-04-01 2023-03-31 10593957 core:UKTax 2022-04-01 2023-03-31 10593957 2022-03-31 10593957 core:RetainedEarningsAccumulatedLosses 2022-03-31 10593957 core:ShareCapital 2022-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 10593957

Sixty Bricks Limited

Annual Report and Financial Statements

for the Period from 1 April 2023 to 30 June 2024

 

Sixty Bricks Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 26

 

Sixty Bricks Limited

Company Information

Directors

J C Turnbull

S J Parsons

J L Martin

Company secretary

E H J Mannan

Registered office

The North West Wing
2nd Floor, Town Hall
Fellowship Square
London
E17 4JF

Auditors

Williamson & Croft Audit Ltd
Statutory Auditor
York House
20 York Street
Manchester
M2 3BB

 

Sixty Bricks Limited

Strategic Report for the Period from 1 April 2023 to 30 June 2024

The directors present their strategic report for the period from 1 April 2023 to 30 June 2024.

Principal activity

The principal activity of the company is to provide new build housing.

Objectives and Strategies

Sixty Bricks Limited is a local authority-controlled trading company (LATC) of the London Borough of Waltham Forest (“The Council”) and is limited by shares.

It was established by the Council to deliver both social and economic benefits to the local community and the Council as shareholder. Specifically, Sixty Bricks would:

• Respond to housing need by building quality homes and of these homes a significant amount of “affordable” homes for local people in the greatest need

• Create a commercial entity that will deliver a significant amount of new homes on council owned land making better use of council assets.

• Retain council control over housing delivery and accountability.

• Deliver Carbon Neutral Homes for residents.

The 10-Year Business Plan, which is reported to the Council’s Shareholders Committee, set the housing delivery and financial performance targets for the company, and established a series of principles which underpin the planning and execution of the company’s Business.

Sixty Bricks business objectives were to:

• Be Waltham Forest Council’s housing developer of choice.

• Deliver 20% to 25% of the housing growth strategy in the Borough over the next 10 years, the Sixty Bricks target will be 5,000 new homes.

• Become an award winning, national leader in achieving a net zero carbon development business and providing net zero carbon, environmentally positive, social housing schemes.

• Achieve excellence in tender blind design to create mutually supportive mixed communities with shared infrastructure.

• Maximise opportunities for residents to gain employment, apprenticeships, and training through our investments in the Borough and gain skills in building zero carbon developments.

• Promote the 15-minute neighbourhood, by working with the Council to ensure appropriate facilities and infrastructure are available.

The Company offered housing new build, acquisition, and refurbishment on Council owned sites but also on sites purchased or provided as part of partnerships with the Company’s main client being the London Borough of Waltham Forest.

 

Sixty Bricks Limited

Strategic Report for the Period from 1 April 2023 to 30 June 2024

Fair review of the business

Sixty Bricks has now completed all five schemes in Phase 1, delivering 301 homes. The Sixty Bricks owned sites (Centenary House, Essex Close and South Grove) delivered 50% affordable homes on a habitable room basis while development agency schemes (at Hyland Road and Sansom Road) is 100% social rent.

The private homes in Centenary House, Essex Close and South Grove were all sold by 30 June 2024.

The company's key financial and other performance indicators during the period were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

7,958,722

38,460,395

Schemes under development (WIP)

£

-

6,445,808

(Loss) / Profit before taxation

£

(363,416)

3,332,757

Net assets

£

1,215,698

2,131,347

Principal risks and uncertainties

There are risks associated with conducting a property development business, such as increasing construction costs, changes in interest rates, legislation, increased insurance premiums and changes in the property sales and rental markets. In particular the impact of Brexit and the war in Ukraine has caused inflationary pressures on material and labour.

The risks are managed through preventative due diligence undertaken and the governance and controls in place.

The Company also developed a Recovery Plan. The purpose of the Sixty Bricks Recovery Plan was twofold:

• First, as a wholly owned local authority trading company, Sixty Brick's Recovery Plan will contribute directly to the Council's Economic Recovery Action Plan

• Second, the Recovery Plan takes proactive action at an organisational, project and programmatic level to ensure Sixty Bricks remains commercially sustainable and continues to deliver the shareholder's priorities for the local community.

Sixty Bricks Recovery Plan was structured to deliver the Council’s three phase Respond, Resilience and Recovery model – while also continuing to actively review aspects of the Company’s business continuity plan in response to national and local pandemic guidance.

The Audit and Risk Assurance Committee oversaw the Company’s governance controls and risk management during the period.

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
J C Turnbull
Director

 

Sixty Bricks Limited

Directors' Report for the Period from 1 April 2023 to 30 June 2024

The directors present their report and the financial statements for the period from 1 April 2023 to 30 June 2024.

Directors of the company

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

P G Lowenberg (ceased 26 May 2024)

R J Manning (ceased 30 April 2023)

J C Turnbull (appointed 13 July 2023)

S J Parsons

J L Martin

J J Anderson (ceased 26 May 2024)

S A Wall (ceased 26 May 2024)

Dividends

The directors recommend a final dividend payment of £1,000,000 be made in respect of the financial period ended 30 June 2024. This dividend has not been recognised as a liability in the financial statements.

Information included in the Strategic Report

The Group has chosen, in accordance with Companies Act 2006, s.141C (11), to set out in the Group's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2006, Sch.7 to be contained in the Directors' Report.

Going concern

During the current period, the decision was made to transfer all activities and assets of the Company to the parent entity, London Borough of Waltham Forest, such that the Company will cease trading as at 30 June 2024 and will thereafter become dormant for the foreseeable future.

Accordingly, the Company is not a going concern and these accounts have not been prepared on a going concern basis but rather on the basis that the Company is ceasing trade. All assets and liabilities of the Company are, therefore, classified as due within one year and are included in the balance sheet at their expected recoverable amount, whilst any known post year-end costs relating to the trade have been accrued within these financial statements.

Disclosure of information to the auditors

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 auditors

During the year Williamson & Croft Audit Limited were re-appointed as auditors to the company based on the 3-year contract award.

 

Sixty Bricks Limited

Directors' Report for the Period from 1 April 2023 to 30 June 2024

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
J C Turnbull
Director

 

Sixty Bricks Limited

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.

 

Sixty Bricks Limited

Independent Auditor's Report to the Members of Sixty Bricks Limited

Opinion

We have audited the financial statements of Sixty Bricks Limited (the 'company') for the period from 1 April 2023 to 30 June 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 30 June 2024 and of its loss for the period then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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.

Emphasis of matter - financial statements prepared on a basis other than going concern

We draw attention to Note 2 to the financial statements which explains that the Company will cease trading at 30 June 2024 and transfer its assets and trade to the parent entity and therefore the directors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 2. Our opinion is not modified in respect of this matter.

Other information

The directors are 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.

 

Sixty Bricks Limited

Independent Auditor's Report to the Members of Sixty Bricks 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 Directors' Report for the financial period 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 where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have given consideration to the control environment (including management's own process for identifying and assessing risks) as well as the nature of the entity, the industry in which it operates and the underlying performance. Consideration was also given to the attitudes and incentives of management to commit fraud. We determined that the greatest potential for fraud existed in the following areas: timing of recognition of income; value of investment properties; and posting of unusual journals and complex transactions. In line with all audits performed under International Standards on Auditing (UK), we planned and performed specific procedures to respond to the risk of management override of controls.

 

Sixty Bricks Limited

Independent Auditor's Report to the Members of Sixty Bricks Limited

 

We also obtained an understanding of the applicable laws and regulations that the company has to abide by, through discussions with management and those charged with governance, as well as commercial knowledge of the sector and statutory legislation. We paid particular focus to those laws and regulations that had the potential to materially impact the amounts and disclosures within the financial statements. The key laws and regulations we identified were the UK Companies Act, health and safety, tax legislation, building regulations and construction industry laws and regulations.

 

After our initial risk assessment, we performed the following procedures to detect material misstatements in respect of irregularities arising due to fraud or error:

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

Reviewing financial statement disclosures and testing these against supporting documentation to assess compliance with applicable laws and regulations.

Assessing key accounting estimates within the financial statements in order to assess their reasonableness and determine whether there were any indications of management bias in the estimates.

Reviewing minutes of meetings of those charged with governance; and

Making enquiries of management as to whether they are aware of any alleged, suspected, or actual fraud during the year.

 

We also performed procedures to satisfy ourselves regarding compliance with applicable laws and regulations, including:

Making enquiries of management and those charged with governance if there were any actual and potential litigation and claims.

Reviewing legal and professional fees incurred in the year for indicators of any litigation or claims against the company.

Reviewing minutes of meetings of those charged with governance; and

Reviewing correspondence with relevant legal authorities.

 

All audit team members were made aware of the applicable laws and regulations, as well as potential fraud risks during the planning stage of the audit and this was discussed at the audit team planning meeting. It was therefore determined that team members all had the relevant awareness and competence to identify any instances of non-compliance with relevant laws and regulations or fraud.

 

There are, however, inherent limitations to our above audit procedures. Auditing standards only require us to enquire of the Directors and management regarding non-compliance with laws and regulations, as well as review regulatory and legal correspondence (if there is any). It is therefore possible that instances of non-compliance could be missed, particularly where the law in itself is far removed from any financial transactions.

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.

 

Sixty Bricks Limited

Independent Auditor's Report to the Members of Sixty Bricks Limited

......................................
Tor Stringfellow FCA (Senior Statutory Auditor)
For and on behalf of Williamson & Croft Audit Ltd, Statutory Auditor

York House
20 York Street
Manchester
M2 3BB

31 July 2024

 

Sixty Bricks Limited

Profit and Loss Account for the Period from 1 April 2023 to 30 June 2024

Note

Period ended
30 June
2024
£

(As restated)
Year ended
31 March
2023
£

Turnover

3

7,958,722

38,591,891

Cost of sales

 

(8,178,458)

(33,610,842)

Gross (loss)/profit

 

(219,736)

4,981,049

Administrative expenses

 

(1,903,582)

(1,713,406)

Operating (loss)/profit

4

(2,123,318)

3,267,643

Net gain on write-off of loans

5

1,745,432

-

Other interest receivable and similar income

6

56,592

8,428

Interest payable and similar expenses

7

(42,122)

(110,550)

   

1,759,902

(102,122)

(Loss)/profit before tax

 

(363,416)

3,165,521

Tax on (loss)/profit

10

26,241

(265,000)

(Loss)/profit for the financial period

 

(337,175)

2,900,521

The above results were derived from discontinuing operations.

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

 

Sixty Bricks Limited

Statement of Comprehensive Income for the Period from 1 April 2023 to 30 June 2024

Period ended
30 June
2024
£

(As restated)
Year ended
31 March
2023
£

(Loss)/profit for the period

(337,175)

2,900,521

Total comprehensive income for the period

(337,175)

2,900,521

 

Sixty Bricks Limited

(Registration number: 10593957)
Balance Sheet as at 30 June 2024

Note

30 June
2024
£

(As restated)

31 March
2023
£

Fixed assets

 

Intangible assets

11

-

6,146

Tangible assets

12

-

7,842

 

-

13,988

Current assets

 

Stocks

13

-

6,445,808

Debtors

14

823,291

1,280,302

Cash at bank and in hand

 

491,202

12,303,039

 

1,314,493

20,029,149

Creditors: Amounts falling due within one year

16

(98,795)

(18,079,026)

Net current assets

 

1,215,698

1,950,123

Net assets

 

1,215,698

1,964,111

Capital and reserves

 

Called up share capital

100

411,338

Retained earnings

1,215,598

1,552,773

Shareholders' funds

 

1,215,698

1,964,111

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
J C Turnbull
Director

 

Sixty Bricks Limited

Statement of Changes in Equity for the Period from 1 April 2023 to 30 June 2024

Share capital
£

Retained earnings
£

Total
£

At 1 April 2023

411,338

1,720,009

2,131,347

Prior period adjustment

-

(167,236)

(167,236)

At 1 April 2023 (As restated)

411,338

1,552,773

1,964,111

Loss for the period

-

(337,175)

(337,175)

Other share capital movements

(411,238)

-

(411,238)

At 30 June 2024

100

1,215,598

1,215,698


 

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

411,338

(1,347,748)

(936,410)

Profit for the period

-

2,900,521

2,900,521

At 31 March 2023

411,338

1,552,773

1,964,111

 

Sixty Bricks Limited

Statement of Cash Flows for the Period from 1 April 2023 to 30 June 2024

Note

Period ended
30 June
2024
£

(As restated)
Year ended
31 March
2023
£

Cash flows from operating activities

(Loss)/profit for the period

 

(337,175)

2,900,521

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

15,935

3,860

Finance income

6

(1,802,024)

(8,428)

Finance costs

7

42,122

110,550

Income tax expense

10

(26,241)

265,000

Write-off of amounts owed to group undertakings

 

1,745,432

-

 

(361,951)

3,271,503

Working capital adjustments

 

Decrease/(increase) in stocks

13

6,445,808

(5,038,341)

Decrease/(increase) in debtors

14

554,807

(532,944)

(Decrease)/increase in creditors

16

(17,715,231)

9,357,998

Cash generated from operations

 

(11,076,567)

7,058,216

Income taxes paid

10

(336,555)

-

Net cash flow from operating activities

 

(11,413,122)

7,058,216

Cash flows from investing activities

 

Interest received

6

56,592

8,428

Acquisitions of tangible assets

-

(9,149)

Acquisition of intangible assets

11

(1,947)

-

Net cash flows from investing activities

 

54,645

(721)

Cash flows from financing activities

 

Interest paid

7

(42,122)

(110,550)

Repayment of share capital

 

(411,238)

-

Net cash flows from financing activities

 

(453,360)

(110,550)

Net (decrease)/increase in cash and cash equivalents

 

(11,811,837)

6,946,945

Cash and cash equivalents at 1 April

 

12,303,039

5,356,094

Cash and cash equivalents at 30 June

 

491,202

12,303,039

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

1

General information

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

The address of its registered office is:
The North West Wing
2nd Floor, Town Hall
Fellowship Square
London
E17 4JF

These financial statements were authorised for issue by the Board on 31 July 2024.

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 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 presented in sterling which is the functional currency of the company.

Disclosure of long or short period

The current period was extended so as to end on 30 June 2024 and so is for a period of 15 months. Therefore, the comparative period of 12 months may not be entirely comparable on this basis.

Going concern

During the current period, the decision was made to transfer all activities and assets of the Company to the parent entity, London Borough of Waltham Forest, such that the Company will cease trading as at 30 June 2024 and will thereafter become dormant for the foreseeable future.

Accordingly, the Company is not a going concern and these accounts have not been prepared on a going concern basis but rather on the basis that the Company is ceasing trade. All assets and liabilities of the Company are, therefore, classified as due within one year and are included in the balance sheet at their expected recoverable amount, whilst any known post year-end costs relating to the trade have been accrued within these financial statements.

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

Prior period errors

On review of the costs incurred on property developments in the current period it was noted that there are total scheme development costs of £298,732 which should have been correctly recognised in the prior period and so the comparatives have been adjusted to reflect the accrual of these costs.

In addition, as a result of these additional accrued costs, there is an additional £131,496 of income which should have been accrued in respect of HRA income on these developments and so the comparatives have also been adjusted to reflect these amounts.

The total impact of these adjustments on the comparative period is to reduce profit reported in the year by £167,236 and to reduce net assets as at 31 March 2023 by the same amount.

Judgements

Capitalisation of certain costs included within stock and work in progress: the Company uses their judgement in capitalising certain costs within work in progress, specifically Agency Staff and Service Level Agreement costs. The Company capitalizes these on an agreed apportioned basis, with a certain agreed percentage of the cost capitalized, and the balance expensed to the profit and loss account. The apportionment is based on the judgement of the project management team.

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 sales/value added tax, returns, rebates and discounts.

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.

Tax

The tax expense for the period comprises current 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 company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet 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.

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

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

Office equipment

33% straight line

Intangible assets

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

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

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

Website development

20% straight line

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.

Stocks

Stock comprises of property held for short-term development and resale. The cost included in stock includes all purchases and developments made on the property during the period. All purchases have been included at their original cost price.

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

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

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.

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.

3

Turnover

Turnover is derived from one class of business, sale of property developed by the company, and is entirely within the United Kingdom

4

Operating (loss)/profit

Arrived at after charging/(crediting)

1 April 2023 to 30 June 2024
 £

Year ended 31 March 2023
 £

Depreciation expense

7,842

2,324

Amortisation expense

8,093

1,536

5

Other gains and losses

The analysis of the company's other gains and losses for the period is as follows:

1 April 2023 to 30 June 2024
 £

Year ended 31 March 2023
 £

Amounts written off loans owed to group undertakings

1,745,432

-

6

Other interest receivable and similar income

1 April 2023 to 30 June 2024
 £

Year ended 31 March 2023
 £

Other interest receivable

56,592

8,428

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

7

Interest payable and similar expenses

1 April 2023 to 30 June 2024
 £

Year ended 31 March 2023
 £

Other loan interest payable

42,122

110,550

8

Staff costs

The average number of persons employed by the company (including directors) during the period, was 18 (2023: 19).

The staff costs of the company are included on the payroll of the parent entity, The London Borough of Waltham Forest, and then are recharged by that entity to the company.

During the year total net recharged staff costs of £1,294,414 (2023: £1,093,842) were included within administrative expenses in the profit and loss account. Recharged staff costs of £784,082 (2023: £749,380) were capitalised within stock in respect of the development of properties during the year.

Directors were remunerated total amounts of £79,274 (2023: £54,589) by the parent entity in the year in respect of their roles as Directors.

Key management personnel of the company were remunerated a total of £728,458 (2023: £685,102) by the parent entity during the year, which includes remuneration for their roles undertaken on behalf of the company.

9

Auditors' remuneration

1 April 2023 to 30 June 2024
 £

Year ended 31 March 2023
 £

Audit of the financial statements

15,500

14,500

Other fees to auditors

Taxation compliance services

750

750

All other non-audit services

2,000

-

2,750

750


 

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

10

Taxation

Tax charged/(credited) in the income statement

1 April 2023 to 30 June 2024
 £

Year ended 31 March 2023
 £

Current taxation

UK corporation tax

(66,021)

265,000

UK corporation tax adjustment to prior periods

39,780

-

(26,241)

265,000

The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

1 April 2023 to 30 June 2024
 £

(As restated)
Year ended 31 March 2023
 £

(Loss)/profit before tax

(363,416)

3,165,521

Corporation tax at standard rate

(90,854)

601,449

Tax increase (decrease) from effect of capital allowances and depreciation

3,984

(1,526)

Tax decrease from utilisation of tax losses

-

(292,142)

Further item of tax increase (decrease)

-

(42,781)

Increase (decrease) in current tax from adjustment for prior periods

39,780

-

Tax increase (decrease) from effect of different UK tax rates applicable

20,849

-

Total tax (credit)/charge

(26,241)

265,000

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

11

Intangible assets

Website development
 £

Total
£

Cost or valuation

At 1 April 2023

10,288

10,288

Additions acquired separately

1,947

1,947

Disposals

(12,235)

(12,235)

At 30 June 2024

-

-

Amortisation

At 1 April 2023

4,142

4,142

Amortisation charge

8,093

8,093

Amortisation eliminated on disposals

(12,235)

(12,235)

At 30 June 2024

-

-

Carrying amount

At 30 June 2024

-

-

At 31 March 2023

6,146

6,146

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

12

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 April 2023

11,425

11,425

Disposals

(11,425)

(11,425)

At 30 June 2024

-

-

Depreciation

At 1 April 2023

3,583

3,583

Charge for the period

7,842

7,842

Eliminated on disposal

(11,425)

(11,425)

At 30 June 2024

-

-

Carrying amount

At 30 June 2024

-

-

At 31 March 2023

7,842

7,842

13

Stocks

30 June 2024
 £

31 March 2023
 £

Work in progress - schemes under development

-

6,445,808

14

Debtors

Current

Note

30 June
2024
£

(As restated)

31 March
2023
£

Trade debtors

 

17,912

705,400

Amounts owed by group undertakings

19

707,583

411,266

Other debtors

 

-

32,140

Accrued income

 

-

131,496

Income tax asset

10

97,796

-

   

823,291

1,280,302

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

15

Cash and cash equivalents

30 June 2024
 £

31 March 2023
 £

Cash on hand

92

-

Cash at bank and in hand

491,110

12,303,039

491,202

12,303,039

16

Creditors

Note

30 June 2024
 £

(As restated)
31 March 2023
 £

Due within one year

 

Trade creditors

 

18,227

270,798

Amounts owed to group undertakings

19

-

17,244,496

Social security and other taxes

 

22,610

-

Accrued expenses

 

57,958

298,732

Income tax liability

10

-

265,000

 

98,795

18,079,026

17

Share capital

Allotted, called up and fully paid shares

30 June
2024

31 March
2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

411,338

411,338

       

On 27 June 2024 the Company reduced it share capital from £411,338 to £100 by cancelling and extinguishing 411,238 of the issued Ordinary shares of £1 each in the Company and and subsequently repaid £411,238 to its shareholders accordingly.

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

18

Dividends

Recommended final dividends paid and not recognised in the accounts

The directors are recommending the following final dividends:

£10,000.00 (2023 - £-) per each Ordinary share totalling £1,000,000 (2023 - £-)

These dividends have not been accrued in the balance sheet.

19

Related party transactions

At the year-end £Nil (2023: £17,244,496) was owed to its parent entity, The London Borough of Waltham Forest (LBWF) included in creditors as amounts owed to group undertakings.

The above amount comprised as follows:

£Nil (2023: £1,998,659) related to working capital loan agreements. Interest is charged on these loans at 4% plus LIBOR. Interest of £42,077 (2023: £110,550) was charged to the company in relation to these loans.

£Nil (2023: £11,237,982) in respect of a General Fund Loans. Interest charged on these loans is between 6.5% and 8% per annum. Interest of £429,790 (2023: £1,452,430) was charged to the company in relation to these loans. The interest has been capitalised in schemes under developments within stock.

£Nil (2023: £4,007,855) in respect of a General Funding Equity Loan, both agreed under a development facility loan agreement. This loan is interest free.

During the year the parent entity recharged expenses of £377,025 (2023: £341,277) to the company.

Details of the remuneration of Directors and key management personnel is included within Note 8.

There is an amount of £707,583 (2023: £Nil) due from LBWF included in debtors as amounts due from group undertakings in respect of amounts receivable for HRA commissions and developments sold to LBWF, less outstanding costs on projects owed by the company.

Included within trade debtors are amounts totalling £17,912 (2023: £Nil) due from LBWF and included within trade creditors are amounts totalling £21,296 (2023: £253,440) owed to LBWF in addition to £9,000 (2023: £Nil) of costs included within accruals owed to LBWF. Included within debtors are amounts totalling £Nil (2023: £411,266) due from LBWF in respect of issued share capital. These amounts are provided unsecured, interest free and payable on demand.

 

Sixty Bricks Limited

Notes to the Financial Statements for the Period from 1 April 2023 to 30 June 2024

20

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is The London Borough of Waltham Forest.

 The most senior parent entity producing publicly available financial statements is The London Borough of Waltham Forest. These financial statements are available upon request from https://www.walthamforest.gov.uk/council-and-elections/about-us/council-budgets-and-spending/council-finances.