REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2023 |
FOR |
HARDROCK DEVELOPMENTS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2023 |
FOR |
HARDROCK DEVELOPMENTS LIMITED |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Income Statement | 7 |
Other Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
HARDROCK DEVELOPMENTS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Dean House |
94 Whiteladies Road |
Clifton |
Bristol |
BS8 2QX |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
The director presents his strategic report for the year ended 30 November 2023. |
REVIEW OF BUSINESS |
The principal activities of the business continues to be the construction and sale of 198 residential properties at Holburne Park, Bath. |
The loss for the year of £8,573,276 arose from increased interest costs forecast to the end of the development caused by an extended selling period. |
Up to the year end the company has sold 107 open market homes at an average selling price of £955,292 and 29 affordable homes to a Registered Social Landlord at an average selling price of £140,931. |
At the year end, 5 open market homes were reserved or exchanged by purchasers with a further 57 homes to sell. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks identified by the director relate to further inflationary cost pressures and the potential slow down in the housing market which could result from the recent increases in interest rates. |
SECTION 172(1) STATEMENT |
Our key stakeholder groups are our customers, supply chain, local government and our parent company. Throughout the year we have engaged with our stakeholders to ensure we are acting in line with our responsibilities under s.172 of the Companies Act 2006. |
Customers - we engage with our customers throughout the period from initial reservation through to moving in and then following up to ensure customer satisfaction and to receive and respond to feedback. |
Supply chain - engagement is an essential part of the company's product delivery and this is achieved by regular meetings both before and during the construction phases. |
Local government - the company has engaged with the local authority in order to negotiate a planning permission for the development which meets the demands for both private and social housing. Regular liaison has continued during the year where minor variations to the planning consent has been required. |
Parent company - ICG Longbow Development Debt Company Limited is the company's principal lender and engagement takes place on a regular basis including formal monthly meetings where decisions concerning the property development are reviewed and ratified. |
FUTURE DEVELOPMENTS |
The company anticipates that sales will be completed later than originally forecast due to build delays resulting in more homes being delivered towards the end of the construction contract. |
ON BEHALF OF THE BOARD: |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
The director presents his report with the financial statements of the company for the year ended 30 November 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 November 2023. |
DIRECTOR |
DISCLOSURE IN THE STRATEGIC REPORT |
Future developments of the business are discussed in the Strategic Report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the 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 auditors are aware of that information. |
AUDITORS |
The auditors, Gordon Wood Scott & Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARDROCK DEVELOPMENTS LIMITED |
Opinion |
We have audited the financial statements of Hardrock Developments Limited (the 'company') for the year ended 30 November 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 November 2023 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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. |
Material uncertainty relating to going concern |
We draw attention to note 2 in the financial statement, which indicates that the company forecasts significant future losses and is dependent upon support from its principal lender to enable it to meet its financial obligations as they fall due. As stated in note 2, these events and conditions indicate that a material uncertainty exists which may cast doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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. |
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 in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARDROCK DEVELOPMENTS LIMITED |
Matters on which we are required to report by exception |
In the light of the 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 or the Report of the Director. |
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 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 director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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 has no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management and from our commercial knowledge and experience of the residential property sector; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, environmental, and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by; |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARDROCK DEVELOPMENTS LIMITED |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; |
- | reviewing the company's legal expenses. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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 |
Statutory Auditors |
Dean House |
94 Whiteladies Road |
Clifton |
Bristol |
BS8 2QX |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( | ) | ( | ) |
GROSS LOSS | ( | ) | ( | ) |
Administrative expenses | ( | ) | ( | ) |
(8,575,197 | ) | (10,588,932 | ) |
Other operating income |
OPERATING LOSS | 4 | ( | ) | ( | ) |
Interest receivable and similar income |
LOSS BEFORE TAXATION | ( | ) | ( | ) |
Tax on loss | 6 |
LOSS FOR THE FINANCIAL YEAR | ( | ) | ( | ) |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ |
LOSS FOR THE YEAR | ( | ) | ( | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( | ) | ( | ) |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
BALANCE SHEET |
30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 | ( | ) | ( | ) |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( | ) | ( | ) |
CREDITORS |
Amounts falling due after more than one year | 11 | ( | ) | ( | ) |
NET LIABILITIES | ( | ) | ( | ) |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Share premium | 14 |
Other reserves | 14 |
Retained earnings | 14 | ( | ) | ( | ) |
( | ) | ( | ) |
The financial statements were approved by the director and authorised for issue on |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 December 2021 | ( | ) | ( | ) |
Changes in equity |
Total comprehensive income | - | ( | ) | - | ( | ) |
Balance at 30 November 2022 | ( | ) | ( | ) |
Changes in equity |
Total comprehensive income | - | ( | ) | - | ( | ) |
Balance at 30 November 2023 | ( | ) | ( | ) |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( | ) | ( | ) |
Net cash from operating activities | ( | ) | ( | ) |
Cash flows from investing activities |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
New loans in year |
Net cash from financing activities |
Decrease in cash and cash equivalents | ( | ) | ( | ) |
Cash and cash equivalents at beginning of year | 2 | 8,200,667 |
Cash and cash equivalents at end of year | 2 | 4,318,085 | 6,911,998 |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.11.23 | 30.11.22 |
£ | £ |
Loss before taxation | ( | ) | ( | ) |
Depreciation charges |
Finance income | (1,921 | ) | (1,535 | ) |
(8,575,056 | ) | (10,575,330 | ) |
Increase in stocks | ( | ) | ( | ) |
Decrease/(increase) in trade and other debtors | ( | ) |
(Decrease)/increase in trade and other creditors | ( | ) |
Cash generated from operations | ( | ) | ( | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 November 2023 |
30.11.23 | 1.12.22 |
£ | £ |
Cash and cash equivalents | 4,318,085 | 6,911,998 |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 6,911,998 | 8,200,667 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.12.22 | Cash flow | At 30.11.23 |
£ | £ | £ |
Net cash |
Cash at bank | 6,911,998 | (2,593,913 | ) | 4,318,085 |
6,911,998 | ( | ) | 4,318,085 |
Total | 6,911,998 | (2,593,913 | ) | 4,318,085 |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
1. | STATUTORY INFORMATION |
Hardrock Developments Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The director considers that there are material uncertainties regarding the continued use of the going concern basis of accounting, however having carefully considered the matters referred to below, he has concluded that the going concern basis continues to be appropriate. |
The company's business plan has been severely impacted by two issues: |
1. Increased build costs arising from inflation, poor ground conditions and delays partly caused by the planning system. |
2. Increased interest costs caused by the extended development programme. |
The company forecasts significant future losses which have been recognised in the accounts for this year and the previous year. It is currently unlikely that the shareholders will recover any of their equity or loan investments and it also unlikely that the company's principal lender will recover all of their loan. |
The principal lender exercised their step-in rights on 17th September 2020 as a result of Events of Default as defined within the Facility Agreement governing its loan arrangements. The loan balance outstanding at the year end was £98,198,626. |
The principal lender has confirmed to the director its present intention to continue to lend financial support to the company, which it is able to do, to enable the company to meet its financial obligations as they fall due for a period of at least 12 months from the date of signature of these financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Where turnover relates to house sales, profit is taken on legal completion. |
Tangible fixed assets |
Computer equipment | - |
Stocks |
Work-in-progress is valued at the lower of cost and net realisable value. |
Cost includes all direct expenditure, an appropriate proportion of fixed and variable overheads and capitalised borrowing costs. |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors. |
Short term debtors are measured at transaction price less any impairment. |
Short term creditors are measured at transaction price. |
Cash is represented by deposits with financial institutions repayable without penalty on notice of not more than 24 hours. |
Other financial liabilities, including borrowings are initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method, with interest expense recognised on an effective yield basis. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
3. | EMPLOYEES AND DIRECTORS |
There were no staff costs for the year ended 30 November 2023 nor for the year ended 30 November 2022. |
The average number of employees during the year was NIL (2022 - NIL). |
The director received remuneration amounting to £120,000 (2022: £120,000) from amounts paid to connected parties. |
4. | OPERATING LOSS |
The operating loss is stated after charging: |
30.11.23 | 30.11.22 |
£ | £ |
Depreciation - owned assets |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
5. | AUDITORS' REMUNERATION |
30.11.23 | 30.11.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements | 10,805 | 9,095 |
Taxation compliance services |
Other non- audit services |
6. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 30 November 2023 nor for the year ended 30 November 2022. |
7. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
DEPRECIATION |
At 1 December 2022 |
Charge for year |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
8. | STOCKS |
30.11.23 | 30.11.22 |
£ | £ |
Work-in-progress |
Work-in-progress includes capitalised interest of £nil (2022 - £nil). The total value of work-in-progress is pledged as security for liabilities. |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.23 | 30.11.22 |
£ | £ |
Other debtors |
VAT |
Called up share capital not paid |
Prepayments and accrued income |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.23 | 30.11.22 |
£ | £ |
Payments on account |
Trade creditors |
Amounts owed to group undertakings |
Accruals and deferred income |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.11.23 | 30.11.22 |
£ | £ |
Directors' loan accounts | 1,944,922 | 1,944,922 |
12. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.11.23 | 30.11.22 |
£ | £ |
Owed to group undertakings | 98,198,626 | 88,280,157 |
The loan is secured by a fixed legal charge over the land and buildings at Warminster Road, Bath, a debenture over the company's assets, charges over the company's bank accounts and charges over the "A" shares, "C" shares and "D" shares. |
13. | CALLED UP SHARE CAPITAL |
Allotted, Called Up and Fully Paid: |
Number: | Class: | Nominal | 30.11.22 | 30.11.21 |
Value | £ | £ |
766,000 | A Ordinary | £1 | 766,000 | 766,000 |
1 | B Ordinary | £1 | 1 | 1 |
219,472 | C Ordinary | £1 | 219,472 | 219,472 |
233,814 | D Ordinary | £1 | 233,814 | 233,814 |
Total | 1,219,287 | 1,219,287 |
A Ordinary, C Ordinary and D Ordinary Shares |
Each share has one vote and the rights to dividends. Rights to distributions after distributions to the B shareholder.The shares lose their voting rights after the B Share Notice has been served on the company. |
B Ordinary Share |
No right to vote until such time as a B Share Notice has been executed and served on the company. No rights to received dividends. Priority rights to distribution. |
The B Share Notice was served on the company on 17th September 2020. |
HARDROCK DEVELOPMENTS LIMITED (REGISTERED NUMBER: 09860229) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
14. | RESERVES |
Retained | Share | Other |
earnings | premium | reserves | Totals |
£ | £ | £ | £ |
At 1 December 2022 | ( | ) | (68,977,901 | ) |
Deficit for the year | ( | ) | ( | ) |
At 30 November 2023 | ( | ) | (77,551,177 | ) |
15. | RELATED PARTY DISCLOSURES |
Shareholders who were formerly directors of the company were owed £1,944,922 (2022: £1,944,922) at the year end and other shareholders who were not former directors were owed £337,966 (2022: £337,966) by the company. The loans are repayable after repayment of the company's loan from its principle lender. In accordance with the requirements of FRS102, the loans from shareholders who were not directors of the company at the time the loans were issued have been discounted with the resulting notional interest treated as a capital contribution which is included within "Other reserves". As the repayment of these loans is unlikely, the discounted value of the loans is reduced to £nil and the corresponding capital contribution is £337,966. |
The company purchased development management services during the year amounting to £120,000 (2022: £120,000) from a company controlled by the director, at the year end the amount outstanding was £12,000 (2022: £12,000). |
The loan from the controlling entity is referred to in Notes 10 & 12 above, the interest charged during the year was £13,082,056 (2022: £11,535,683). |
16. | ULTIMATE CONTROLLING PARTY |
The controlling party is ICG Longbow Development Debt Company Limited. |
The ultimate controlling party is |