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Registration number: 02296424

Parham Development Limited

Annual Report and Unaudited Financial Statements Year Ended 31 December 2023

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Chartered Accountants

 

Parham Development Limited

Contents

Company Information

1

Accountants' Report

2

Balance Sheet

3

Notes to the Unaudited Financial Statements

4 to 9

 

Parham Development Limited

Company Information

Directors

Mr J R Drax

Mr P S Dove

Mr E Q Drax

Mrs L H Catford

Company secretary

Mr J R Drax

Registered office

Unity Chambers
34 High East Street
Dorchester
Dorset
DT1 1HA

Accountants

Edwards and Keeping
Chartered Accountants
Unity Chambers
34 High East Street
Dorchester
Dorset
DT1 1HA

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Parham Development Limitedfor the Year Ended 31 December 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Parham Development Limited for the year ended 31 December 2023 as set out on pages 3 to 9 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Parham Development Limited, as a body, in accordance with the terms of our engagement letter dated 5 July 2023. Our work has been undertaken solely to prepare for your approval the accounts of Parham Development Limited and state those matters that we have agreed to state to the Board of Directors of Parham Development Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Parham Development Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Parham Development Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Parham Development Limited. You consider that Parham Development Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Parham Development Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.






Edwards and Keeping
Chartered Accountants
Unity Chambers
34 High East Street
Dorchester
Dorset
DT1 1HA

27 August 2024

 

Parham Development Limited

(Registration number: 02296424)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Investment property

5

9,700,000

9,700,000

Current assets

 

Stocks

6

6,935,000

8,521,240

Debtors

7

5,613,448

5,554,526

 

12,548,448

14,075,766

Creditors: Amounts falling due within one year

8

(14,908,131)

(14,894,357)

Net current liabilities

 

(2,359,683)

(818,591)

Net assets

 

7,340,317

8,881,409

Capital and reserves

 

Called up share capital

10

5,000,000

5,000,000

Retained earnings

2,340,317

3,881,409

Shareholders' funds

 

7,340,317

8,881,409

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 23 August 2024 and signed on its behalf by:
 



Mrs L H Catford
Director

 

Parham Development Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023

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:
Unity Chambers
34 High East Street
Dorchester
Dorset
DT1 1HA
England

The principal place of business is:
3rd Floor
18 Wells Street
London
W1T 3PG

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

Going concern

The balance sheet indicates net current liabilities at the balance sheet date, arising from loan balances between the group companies. The company has the continuing support of its fellow group companies to ensure that it is able to meet its debts as they fall due.

Exemption from preparing group accounts

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small sized group.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of properties and rents receivable on properties held within stock in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

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.

 

Parham Development Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023

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.

Investment property

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

Stocks

Stocks include property held for development and resale and are stated at the lower of cost and estimated selling price less costs to complete and sell.

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 debtors

Trade debtors are amounts due for rent receivable 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.

Trade creditors

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

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

Borrowings

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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Parham Development Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023

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

Staff numbers

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

4

Loss/profit before tax

Included within other income is £nil (2022 - £9,700,000) relating to the fair value of properties (fair value at date of appropriation) held within trading stock at the start of the year, that were subsequently appropriated to fixed assets during the year.

5

Investment properties

2023
£

At 1 January

9,700,000

At 31 December

9,700,000

During the prior year a property was appropriated from stock to investment properties at fair value of £9,700,000.

The investment properties class of fixed assets was revalued on 31 July 2023 by Colliers International Property Consultants Limited who are external to the company. The basis of this valuation was market value.

The directors consider the value of the investment property at 31 December 2023 to be unchanged from the valuation figure provided by Colliers International on 31 July 2023. This class of asset has a current market value of £9,700,000 (2022 - £9,700,000).

6

Stocks

2023
£

2022
£

Other inventories

6,935,000

8,521,240

During the prior year a property was appropriated to fixed asset investment properties as mentioned in note 5.

Impairment of stocks

The amount of impairment loss included in profit or loss is £1,663,562 (2022 - £20,034). The amount of reversal of impairment recognised in profit or loss is £Nil (2022 - £343,643).

The carrying amount of stocks pledged as security for liabilities amounted to £6,935,000 (2022 - £8,521,240).

 

Parham Development Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023

7

Debtors

Current

Note

2023
£

2022
£

Amounts owed by related parties

12

5,417,827

5,356,166

Prepayments

 

189,553

193,872

Other debtors

 

6,068

4,488

 

5,613,448

5,554,526

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

1,000,000

1,000,000

Amounts owed to group undertakings and undertakings in which the company has a participating interest

12

13,665,327

13,662,823

Taxation and social security

 

-

58,295

Other creditors

 

242,804

173,239

 

14,908,131

14,894,357

9

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Redeemable preference shares

1,000,000

1,000,000

Other borrowings

Redeemable deferred ordinary shares; redeemable at the option of the company or holder.
They are redeemable at £1 per share and carry no voting rights. On a winding up of the company the
holders of the shares have a right to receive assets of the company pari passu with holders of
ordinary shares. The redeemable deferred ordinary shares are presented as a liability within creditors
and accordingly are excluded from called up share capital in the balance sheet. Winding up value for
redeemable preference shares is £1.

10

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

5,000,000

5,000,000

5,000,000

5,000,000

Redeemable deferred ordinary shares of £1 each

1,000,000

1,000,000

1,000,000

1,000,000

6,000,000

6,000,000

6,000,000

6,000,000

 

Parham Development Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of guarantees not included in the balance sheet is £21,750,000 (2022 - £22,750,000). The group has a bank loan facility; the loan capital is secured on the investment and development properties held within the group and the investment in shares of the subsidiary companies held by Parham Holdings Limited.

12

Related party transactions

Summary of transactions with parent

Parham Holdings Limited - 100% parent company
 Inter company loan account.
 Balance with parent - is repayable on demand
 

Summary of transactions with subsidiaries

Parham Investment Limited - another 100% subsidiary of Parham Holdings Limited
 Inter-company loan account
Transfer of property

 Balance with subsidiaries is repayable on demand
 

Expenditure with and payables to related parties

2023

Parent
£

Rendering of services

163,000

2022

Parent
£

Rendering of services

280,000

Loans to related parties

2023

Parent
£

Total
£

At start of period

5,356,166

5,356,166

Advanced

502,661

502,661

Repaid

(163,000)

(163,000)

Interest transactions

(278,000)

(278,000)

At end of period

5,417,827

5,417,827

2022

Parent
£

Total
£

At start of period

4,748,508

4,748,508

Advanced

1,067,658

1,067,658

Repaid

(280,000)

(280,000)

Interest transactions

(180,000)

(180,000)

At end of period

5,356,166

5,356,166

 

Parham Development Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023

Loans from related parties

2023

Subsidiary
£

Total
£

At start of period

13,662,822

13,662,822

Advanced

2,505

2,505

At end of period

13,665,327

13,665,327

2022

Subsidiary
£

Total
£

At start of period

13,648,396

13,648,396

Advanced

14,426

14,426

At end of period

13,662,822

13,662,822

Terms of loans from related parties

Balance with parent - is repayable on demand
 Balance with subsidiaries - is repayable on demand
 

13

Parent and ultimate parent undertaking

100% subsidiary

 The company's immediate parent is Parham Holdings Limited, incorporated in England and Wales. The immediate parent company is exempt from preparing consolidated group accounts as the group is small.

 The ultimate parent is Beaulieu Property Management Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Beaulieu Property Management Limited. These financial statements are available upon request from Companies House. The ultimate parent company is exempt from preparing consolidated group accounts as the group is small.

 The ultimate controlling party is Mr J R Drax (Director).