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REGISTERED NUMBER: 09725702 (England and Wales)














AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

FOR

CHAPTER HOMES DURHAM LIMITED

CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


CHAPTER HOMES DURHAM LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: A P Palmer
P J Cooper
D R Knowd
M D Laing



REGISTERED OFFICE: County Hall
Durham
Durham
DH1 5UL



REGISTERED NUMBER: 09725702 (England and Wales)



SENIOR STATUTORY AUDITOR: David Holloway BA FCA DChA



AUDITORS: Sumer Auditco Limited
The Beehive Building
Beehive Ring Road
Crawley
Gatwick
RH6 0PA

CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)

BALANCE SHEET
31 MARCH 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Investment property 4 765,000 895,000

CURRENT ASSETS
Stocks 5 3,405,064 7,052,790
Debtors 6 155,183 133,290
Cash at bank 3,857,556 800,302
7,417,803 7,986,382
CREDITORS
Amounts falling due within one year 7 845,506 1,434,799
NET CURRENT ASSETS 6,572,297 6,551,583
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,337,297

7,446,583

CREDITORS
Amounts falling due after more than one
year

8

(132,390

)

(1,193,120

)

PROVISIONS FOR LIABILITIES 10 (34,855 ) (35,062 )
NET ASSETS 7,170,052 6,218,401

CAPITAL AND RESERVES
Called up share capital 11 3,000,000 3,000,000
Retained earnings 12 4,170,052 3,218,401
SHAREHOLDERS' FUNDS 7,170,052 6,218,401

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 9 July 2024 and were signed on its behalf by:





P J Cooper - Director


CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1. STATUTORY INFORMATION

Chapter Homes Durham Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose any and all related party transactions between the parent company and any wholly owned subsidiaries within the group.

Turnover
Turnover from private housing sales is recognised as the consideration received or receivable on legal completion, net of incentives.

Turnover on affordable housing contracts is recognised by reference to the stage of completion of the contract activity where the outcome of the contract can be reasonably estimated.

Rental income represents the amount of rental income falling due during the year, including rental income due but not received until after the year end.

Profit recognition
Profit arising from the sale of private residential properties is taken on legal completion. Residential development profit is calculated based on total expected revenues less total expected costs. Profit on affordable housing is only recognised by reference to the stage of completion when the outcome of the contract can be reasonably estimated. When it is probable that total costs will exceed total turnover the expected loss is recognised immediately.

Investment property
Investment property is shown at most recent valuation. The basis of valuation is open market value. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Income and Retained Earnings.

Stocks and work in progress
Stocks are stated at the lower of cost and net realisable value. Costs comprise direct materials and, where applicable, direct labour costs and those overheads which have been incurred in bringing the stocks to their present location and condition. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.


CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued
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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to Statement of Income and Retained Earnings on a straight line basis over the period of the lease.

Going concern
The directors assess whether the use of the going concern basis is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast doubt on the ability of the company to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date on which the financial statements are approved.

The directors have prepared financial forecasts for a period in excess of 12 months from the date of this report. Whilst there is uncertainty around the global and national economy, the directors believe that it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements due to the level of reserves and expected future trading prospects.

CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instrument.

Financial instruments are recognised in the company's balance sheet when the company becomes party to contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, other loans and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2023 - NIL).

4. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2023 895,000
Disposals (150,000 )
Revaluations 20,000
At 31 March 2024 765,000
NET BOOK VALUE
At 31 March 2024 765,000
At 31 March 2023 895,000

CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

4. INVESTMENT PROPERTY - continued

Fair value at 31 March 2024 is represented by:
£   
Valuation in 2024 765,000

If the investment properties had not been revalued they would have been included at the following historical cost:

2024 2023
£    £   
Cost 614,937 742,577

Investment properties were valued on an open market basis on 31 March 2024 by Wisemove Land & Property Consultants Ltd .

5. STOCKS
2024 2023
£    £   
Completed properties 3,110,162 6,877,688
Work-in-progress 294,902 175,102
3,405,064 7,052,790

6. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors - 132
Other debtors 47,183 73,158
47,183 73,290

Amounts falling due after more than one year:
Other debtors 108,000 60,000

Aggregate amounts 155,183 133,290

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors - 233,155
Tax 334,092 39,793
Deferred income 3,771 31,916
Accrued expenses 507,643 1,129,935
845,506 1,434,799

CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Other loans - 1,000,000
Accrued expenses 132,390 193,120
132,390 1,193,120

Amounts falling due in more than five years:

Repayable otherwise than by instalments
Other loans - 1,000,000

Other loans represent an unsecured interest bearing flexible funding facility provided by the company's ultimate parent. This facility was repaid before 30 September 2023.

9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 6,932 1,530
Between one and five years 11,378 -
18,310 1,530

10. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 34,855 35,062

Deferred
tax
£   
Balance at 1 April 2023 35,062
Charge/(credit) on deferred
tax due on fair value change
of investments (207 )
Balance at 31 March 2024 34,855

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
3,000,000 Ordinary £1.00 3,000,000 3,000,000

CHAPTER HOMES DURHAM LIMITED (REGISTERED NUMBER: 09725702)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

12. RESERVES

Included within retained earnings is £115,208 of un-distributable reserves (2023: £117,361). This £115,208 of un-distributable reserves relates to the increase in fair value of the investment properties, less any deferred tax, which under FRS102 are recognised through the profit and loss accounts.

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

David Holloway BA FCA DChA (Senior Statutory Auditor)
for and on behalf of Sumer Auditco Limited

14. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose all related party transactions between the parent company and any wholly owned subsidiaries within the group.

The company is a wholly owned subsidiary of Durham County Council. Their registered office is:

County Hall
Durham
County Durham
DH1 5UQ