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Registration number: 10192568

Prepared for the registrar

Swedish Lifestyle Homes No.2 Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Swedish Lifestyle Homes No.2 Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 6

 

Swedish Lifestyle Homes No.2 Limited

Company Information

Directors

J Harris

D Fish

Registered office

York House
41 Sheet Street
Windsor
SL4 1DD

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Swedish Lifestyle Homes No.2 Limited

(Registration number: 10192568)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Current assets

 

Debtors

4

36,918

33,618

Creditors: Amounts falling due within one year

5

(288,021)

(223,550)

Total assets less current liabilities

 

(251,103)

(189,932)

Provisions

 

-

(21,000)

Net liabilities

 

(251,103)

(210,932)

Capital and reserves

 

Called up share capital

1

1

Profit and loss account

(251,104)

(210,933)

Shareholders' deficit

 

(251,103)

(210,932)

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 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 21 August 2024 and signed on its behalf by:
 


D Fish
Director

 

Swedish Lifestyle Homes No.2 Limited

Notes to the 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:
York House
41 Sheet Street
Windsor
SL4 1DD

 

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' .

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

Following the completion of site development and sales of plots in previous years, the company intends to cease trading as soon as the opportunity exists. Accordingly, the directors do not consider it appropriate to prepare the financial statements on a going concern basis.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

Management provide for the cost of remedials work required on completed plots. The carrying value of the remedials provision is £nil (2022 - £21,000).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and the 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 and profit on sale of development properties at the point of legal completion. Profit is recognised on a plot by plot basis, by reference to the margin forecast across the relevant development site. Due to the development cycle often exceeding one financial year, plot margins are forecast, taking in to account the allocation of site-wide development costs such as infrastructure, and estimates required for the cost to complete such developments.

 

Swedish Lifestyle Homes No.2 Limited

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

Key sources of estimation uncertainty

Due to the nature of development activity and, in particular, the length of the development cycle, the Company has to allocate site wide development costs between being built and/or completed in the current year and those for future years. It also has to make estimates of the cost to compete such developments. These estimates are reflected in the margin recognised on developments in relation to sales recognised in the current and future years. There is a degree of inherent uncertainty in making such estimates. The Company has established internal controls that are designed to ensure an effective assessment of estimates of the costs to complete on longer term site to have greater estimation than sites of shorter duration. If forecast costs were expected to be high than the net realisable value of work in progress, an impairment of inventory could arise.

The company's margin recognition policy is based on the margin forecast for each site. These margins reflect estimated sales prices and costs for each site. This is a method of allocating total forecast costs, representing both land and build costs, of a site to each individual unit. Sales prices and build costs are inherently uncertain as they are influenced by changes in external market factors, such as, the availability and affordability of mortgages, changes in customer demand or build cost inflation.

Management have implemented internal procedures to assess site acquisition and forecasting to assist financial appraisal processes. Site appraisals are prepared on a regular basis to account for any changes in sales price or forecast build costs, and this the margin on the site. The carrying amount of work in progress is £nil (2022 - £nil).

Tax

The tax expense for the year comprises current tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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.

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.

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

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.

 

Swedish Lifestyle Homes No.2 Limited

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

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 2).

 

4

Debtors

2023
 £

2022
 £

Trade debtors

906

906

Other debtors

36,012

32,712

 

36,918

33,618

 

5

Creditors

2023
 £

2022
 £

Due within one year

Amounts due to group undertakings

281,121

109,568

Other creditors

-

105,082

Accrued expenses

6,900

8,900

288,021

223,550

 

6

Provisions

Remedials
£

At 1 January 2023

21,000

Provisions used

(21,000)

At 31 December 2023

-

 

Swedish Lifestyle Homes No.2 Limited

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

The remedials provision has been calculated based on managements best estimate of the remedials costs to be incurred on a limited number of completed sites.

 

7

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Share Capital of £1 each

1

1

1

1

         
 

8

Parent and ultimate parent undertaking

The Company is a subsidiary of Sӧdra Trivselhus Holdings AB. Sӧdra Trivselhus Holdings AB is a subsidiary undertaking of Sӧdra Skogsӓgarna Ekonomisk Fӧrening, the ultimate controlling party, who consolidates the results of the entire group.

The consolidated financial statements of the group are available to the public and may be obtained from Skogsudden, SE-351 89 Vӓxjӧ, Sweden.


 

 

9

Audit report

The Independent Auditor's Report was unqualified. We draw attention to Note 2 in the financial statements which explains that the company is planning to cease operations and the directors do not consider it 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. The name of the Senior Statutory Auditor who signed the audit report on 21 August 2024 was Rebecca Copping , who signed for and on behalf of Hazlewoods LLP.