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REGISTERED NUMBER: 02582221 (England and Wales)















NEWLAND HOMES LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023






NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023










Page

Company Information 1

Strategic Report 2 to 4

Report of the Directors 5 to 7

Report of the Independent Auditors 8 to 11

Statement of Comprehensive Income 12

Statement of Financial Position 13

Statement of Changes in Equity 14

Statement of Cash Flows 15

Notes to the Statement of Cash Flows 16

Notes to the Financial Statements 17 to 25


NEWLAND HOMES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: Mr D Foreman
Mr J N McCreadie
Mr J D Drew
Mrs M B Foreman



SECRETARY: Mr D Foreman



REGISTERED OFFICE: Brighouse Court
Barnett Way
Barnwood
GLOUCESTER
Gloucestershire
GL4 3RT



REGISTERED NUMBER: 02582221 (England and Wales)



AUDITORS: Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG



BANKERS: Nat West Bank Plc
24-30 The Parade
Swindon
Wiltshire
SN1 5NW

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their strategic report for the year ended 31st December 2023.

REVIEW OF BUSINESS
Newland Homes Limited continues to operate as a residential developer in the speculative new-build market.

The key financial results for 2023 in comparison to 2022 are as follows:

2023 2022
£    £   

Turnover 48,622 67,092
Gross profit 6,318 (12.99%) 13,958 (20.80%)
Operating profit 3,709 (7.63%) 11,474 (17.10%)
Profit before tax 3,838 (7.90%) 11,323 (16.88%)

Shareholders' funds 55,853 55,742

In our Review of Business last year, we said: "For 2023 we anticipate a reduction in both Turnover and Profit due to the slower market, combined with delayed site starts due to continuing difficulties with the broken planning system."

As it has transpired, our prediction was substantially correct, we did experience a slower market throughout 2023, and we continue to be extremely frustrated by the vagaries and inadequacy of the planning process.

All key national statistics for 2023 did confirm a depressed market, with substantially fewer house start registrations, significantly reduced completions and little or no rise in house prices.

When viewed against this gloomy environment for new house building, we believe that our performance was more than satisfactory and fared favourably when compared with the performance of our local competitors and the wider housing industry.

Our Gross Profit margin reduction from 20.8% in 2022 to 12.99% in 2023 was due to a higher proportion of lower margin sites selling in 2023, and the impact of escalation of material and subcontract prices in the period.


NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Competitive Risks

The housing market struggled throughout 2023, when confidence had been eroded by economic uncertainty combined with high inflation and correspondingly high mortgage rates.

Inflation had peaked at 11.1% in October 2022 which came down to an annual rate of 7.3% in 2023. In mid 2024 the rate of inflation has come down to close to the governments target of 2% and mortgage rates have started to edge down.

With the government's apparent commitment to increase the number of new homes to be built we believe the market will improve.

We are now committed to, whenever possible, building Zero Carbon developments, and having completed more than one hundred Zero Carbon homes, feel we have a competitive edge over other developers as our offering is being well received by our purchasers.

Cost inflation for both labour and materials has slowed, and availability is not currently a problem. Our excellent credit rating and good reputation as a company to work with, encourage us to believe we are well placed to continue to trade effectively.

Legislative Risks

We are not aware of any pending legislation that might adversely affect the Company.

We are hopeful that the new governments commitment to introduce new legislation to free up and encourage the granting of planning permissions will assist us to acquire new sites.

Financial Risks

Shareholders' Funds have increased marginally to £55.82m from £55.72 at the end of 2022. This increase is after the £2.8m dividend paid in 2023.

At the end of the 2023 we had no borrowings and £6.16m in the bank.

Our £25m RCF expired in June 2022, and we have been in a cash positive position since then.

We have observed a pickup in the market in the first half of 2024 and have been pleased with the increased rate of sale and prices we have been able to achieve.

After long delays, we have achieved some success in obtaining full planning permissions, which combined with several planning applications we believe are now close to a positive resolution, means we will need a new RCF to be in place towards the end of 2024.

The terms of a £25m RCF have been agreed with NatWest, legals have been instructed, and site valuations have been carried out in advance of the provision of the necessary legal charges.

Our credit rating continues to be excellent and provides us with no problems accessing new sources of products and services.

We are confident we have the financial strength and demonstrated bank support, to cope comfortably with the current market and to allow us to purchase the sites needed for our planned steady growth.



NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

SECTION 172(1) STATEMENT
We believe we have established an excellent reputation as an organisation to do business with or to buy a home from.

We continue to strive to "Be the Best" we can be in the following areas:

- As an employer
- For our customers
- For the environment
- For the local community
- As a business partner
- For diversity and inclusion
- For profit

We believe our excellent staff retention rates reflect the high satisfaction levels of our employees. We are continuing to recruit apprentices / trainees to our various departments.

Our business continues to be focused on the needs and aspirations of all our house purchasers, and we constantly seek and react to feed back.

All of the homes on our new sites are effectively Zero Carbon in their use. All our current planning applications are for Zero Carbon homes. Since 2022 we have only added all-electric cars to our fleet.

We continue to consult with local communities and their representatives before concluding any planning application and have received numerous commendations from planning committees for this approach. We seek to make a positive contribution wherever we develop.

As a company we are committed to building an inclusive, varied workplace for people of all backgrounds. We also believe it is very important to work positively and fairly with all external parties we engage with.

Our business continues to be profitable, and we seek to provide our shareholders with dividends that are fair and reasonable while endeavouring to continually strengthen the balance sheet.

ON BEHALF OF THE BOARD:





Mr D Foreman - Secretary


3rd September 2024

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31st December 2023.

DIVIDENDS
Interim dividends totalling £2,800 per share were paid during the year. The directors recommend that no final dividend is to be paid.

The total distribution of dividends for the year ended 31st December 2023 is £2,800,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2022 to the date of this report.

Mr D Foreman
Mr J N McCreadie (Non-Executive Director)
Mr J D Drew
Mrs M B Foreman (Non-Executive Director)

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
This has been referred to in the Section 172 (1) statement included within the Strategic Report.

STREAMLINED ENERGY AND CARBON REPORTING
Executive Summary
Newland Homes Limited disclose our energy use and greenhouse gas (GHG) emissions that Newland Homes Limited are responsible for in line with the requirements of the Companies Act 2006 (Strategic and Directors' Reports) Regulations 2013 and latest 2018 regulations. While the regulations set out a legal requirement to report on emissions, Newland Homes Ltd continue to take proactive and urgent action to reduce their emissions.



FY 2023
UK
Consumption
(kWh)
UK
Emissions
(tCO2e)
Scope 1 1,189,786 147.62
Scope 2 355,769 79.79
Scope 3 81,064 20.33

Total Scopes 1-3 1,626,619 247.74

Intensity Ratio
Revenue £m £49.057
Carbon Intensity tCO2e/£m
revenue


5.05

Explanation:
Scope 1 = Gas for heating, petrol & diesel used in company car transport, diesel & HVO used in site operations
Scope 2 = Electricity purchased for own use (location based included, market based excluded)
Scope 3 = Petrol & diesel used in grey fleet transport



FY 2022
UK
Consumption
(kWh)
UK
Emissions
(tCO2e)
Scope 1 1,917,429 147.62
Scope 2 316,995 79.79
Scope 3 156,578 20.33

Total Scopes 1-3 2,391,002 247.74

Intensity Ratio
Revenue £m £68,292
Carbon Intensity tCO2e/£m
revenue


6.97

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023



Energy Efficiency Narrative
Planned energy use changes in 2023 demonstrated the significant effect that no longer installing gas boilers in our new homes, switching to EVs and HVO has on our carbon footprint.

We will continue to work towards constructing sustainable low carbon properties on all our developments with the installation of air source heat pumps and solar PV panels with optional battery storage as standard. This is in addition to the higher than required levels of insulation and air-tightness that are already incorporated into our homes. Our new developments at Cheltenham, Malmesbury and Yate are all Net Zero Carbon Homes.

We continue to implement new policies for the purpose of increasing our energy efficiency during the financial year 2023.

- Of the 34 vehicles on our current fleet 26 are EVs, 76% (up from 65% in 2022)
- Planned acquisition of a further 4 EVs in 2024 to replace ICE powered cars
- Continued review and develop our Corporate Environment Strategy
- Planning for a 40kW Solar PV installation on our Head Office roof in 2024 (delayed from 2023).
- Avoiding using our inefficient gas boiler at Head Office by making better use of the air conditioning system which will be partly powered by Solar PV.

Newland Homes Ltd will continue to implement further energy conservation measures in the next 12-month period. However, the significant reduction of nearly 48% in carbon emissions from 475.70 tCO2e in 2022 to 247.74 tCO2e in 2023 is unlikely to be repeated as it will be harder to find ways to reduce these in future years.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


AUDITORS
The auditors, Morris Owen, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Mr D Foreman - Secretary


3rd September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWLAND HOMES LIMITED


Opinion
We have audited the financial statements of Newland Homes Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 31st December 2023 and of its profit 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.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWLAND HOMES 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 Directors.

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 six, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWLAND HOMES LIMITED


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 through the audit planning process;
- 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 company's
industry;
- 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,
taxation legislation, employment, 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 this 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; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws
and regulations.

As a result of the company having a small management and finance team, we identified a risk of fraud through management bias and ability to override of controls, including lack of segregation of duties, which could lead to a misappropriation of cash and other assets. To address this we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries and sales credit notes to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set
out in note two were indicative of potential bias; and
- 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;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HM Revenue & Customs (HMRC) and any legal and other regulatory
correspondence;
- reviewing board meeting minutes; and
- making enquiries of the company's solicitors.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWLAND HOMES LIMITED

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. 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.




Mr Alan John Barlow (Senior Statutory Auditor)
for and on behalf of Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG

11th September 2024

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 48,622,184 67,092,347

Cost of sales 42,303,757 53,133,963
GROSS PROFIT 6,318,427 13,958,384

Administrative expenses 2,609,277 2,484,527
OPERATING PROFIT 6 3,709,150 11,473,857

Interest receivable and similar income 153,059 8,146
3,862,209 11,482,003

Interest payable and similar expenses 8 24,579 159,244
PROFIT BEFORE TAXATION 3,837,630 11,322,759

Tax on profit 9 907,614 2,158,165
PROFIT FOR THE FINANCIAL YEAR 2,930,016 9,164,594

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,930,016

9,164,594

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

STATEMENT OF FINANCIAL POSITION
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 861,953 932,068

CURRENT ASSETS
Stocks 12 56,274,545 53,261,148
Debtors 13 1,080,252 501,989
Cash at bank 6,166,190 13,249,590
63,520,987 67,012,727
CREDITORS
Amounts falling due within one year 14 6,931,726 10,047,309
NET CURRENT ASSETS 56,589,261 56,965,418
TOTAL ASSETS LESS CURRENT
LIABILITIES

57,451,214

57,897,486

CREDITORS
Amounts falling due after more than
one year

15

(1,410,334

)

(2,004,530

)

PROVISIONS FOR LIABILITIES 19 (188,169 ) (170,261 )
NET ASSETS 55,852,711 55,722,695

CAPITAL AND RESERVES
Called up share capital 20 1,000 1,000
Retained earnings 21 55,851,711 55,721,695
SHAREHOLDERS' FUNDS 55,852,711 55,722,695

The financial statements were approved by the Board of Directors and authorised for issue on 3rd September 2024 and were signed on its behalf by:




Mr D Foreman - Director



Mr J D Drew - Director


NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st January 2022 1,000 50,557,101 50,558,101

Changes in equity
Profit for the year - 9,164,594 9,164,594
Total comprehensive income - 9,164,594 9,164,594
Dividends - (4,000,000 ) (4,000,000 )
Balance at 31st December 2022 1,000 55,721,695 55,722,695

Changes in equity
Profit for the year - 2,930,016 2,930,016
Total comprehensive income - 2,930,016 2,930,016
Dividends - (2,800,000 ) (2,800,000 )
Balance at 31st December 2023 1,000 55,851,711 55,852,711

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (2,340,874 ) 15,420,537
Interest paid - (148,086 )
Interest element of hire purchase
payments paid

(24,579

)

(12,939

)
Tax paid (1,783,248 ) (2,515,538 )
Net cash from operating activities (4,148,701 ) 12,743,974

Cash flows from investing activities
Purchase of tangible fixed assets (219,588 ) (549,501 )
Sale of tangible fixed assets 156,355 38,664
Interest received 153,059 8,146
Net cash from investing activities 89,826 (502,691 )

Cash flows from financing activities
Capital repayments in year (224,525 ) 312,868
Equity dividends paid (2,800,000 ) (4,000,000 )
Net cash from financing activities (3,024,525 ) (3,687,132 )

(Decrease)/increase in cash and cash equivalents (7,083,400 ) 8,554,151
Cash and cash equivalents at
beginning of year

2

13,249,590

4,695,439

Cash and cash equivalents at end
of year

2

6,166,190

13,249,590

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit for the financial year 2,930,016 9,164,594
Depreciation charges 264,856 179,892
Profit on disposal of fixed assets (85,608 ) (18,792 )
Finance costs 24,579 159,244
Finance income (153,059 ) (8,146 )
Taxation 907,614 2,158,165
3,888,398 11,634,957
(Increase)/decrease in stocks (3,013,397 ) 4,802,801
(Increase)/decrease in trade and other debtors (578,263 ) 1,120,963
Decrease in trade and other creditors (2,637,612 ) (2,138,184 )
Cash generated from operations (2,340,874 ) 15,420,537

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 6,166,190 13,249,590
Year ended 31st December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 13,249,590 4,695,439


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.1.23 Cash flow changes At 31.12.23
£    £    £    £   
Net cash
Cash at bank 13,249,590 (7,083,400 ) 6,166,190
13,249,590 (7,083,400 ) 6,166,190
Debt
Finance leases (454,516 ) 224,525 - (275,891 )
(454,516 ) 224,525 - (275,891 )
Total 12,795,074 (6,858,875 ) - 5,890,299

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. GENERAL INFORMATION

The company is a private company limited by shares and incorporated in England and Wales.

The registered office address is Brighouse Court, Barnett Way, Barnwood, Gloucester, Gloucestershire, GL4 3RT.

These financial statements are presented in British Pounds (GBP) rounded to the nearest pound, which is the company's functional and presentational currency.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the date of the statement of financial position, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following estimates have had the most significant effect on amounts recognised in the financial statements:

- Work in progress £56,274,545 (2022: £53,261,148)

The significant judgements are in estimating the expected profit margin on a site, which is determined by expected sales prices less estimated costs to complete. The expected site margin is then applied to the total revenue received at the yearend to attribute and recognise a proportion of the expected profit on the site, with the work in progress being adjusted accordingly. If the market were to change beyond expectations in the future, adjustments to the work in progress may be required.

Turnover
Turnover is recognised at completion of the property for open market units, and comprises the total proceeds for the property, net of incentives and net of value added tax. For affordable housing units turnover is recognised in accordance with surveyor valuations at various stages of the build, and comprises the valuation proceeds, net of value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.


Plant and machinery - 25% on reducing balance
Furniture and equipment - 15% on reducing balance or straight line over 10 years
Motor vehicles - 33% on reducing balance

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Stock and work in progress
Stock is valued at the lower of cost and net realisable value and represents properties that have been part exchanged.

Work in progress is valued at cost or on an attributable profit basis. Where the site has started to generate revenue the estimated profit margin on the site is applied to the total revenue received at the yearend to attribute and recognise a proportion of the site profit, with the work in progress being adjusted accordingly. Costs are made up of direct materials, direct labour and attributable overheads based on a normal level of activity. Management assesses the cost held and where necessary will write down the work in progress to it's net realisable value.

The company allocates development costs on a site by site basis between units built in the current year and in future years, as well as estimating costs to complete on these developments. In making these assessments there is a degree of uncertainty, however the company has internal controls to assess this on a continuing basis.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Financial instruments
Financial instruments are classified by the directors as basic or advanced following the conditions in FRS 102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method.

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sale of land and housing 48,622,184 67,092,347
48,622,184 67,092,347

4. EMPLOYEES AND DIRECTORS

20232022
££


Wages and salaries4,892,3925,271,049
Social security costs576,149661,043
Pension costs293,622295,946
5,762,1636,228,038

The average monthly number of employees during the year was as follows:
20232022


Admin staff109
Direct staff6465
7474

5. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 442,778 541,571
Directors' pension contributions to money purchase schemes 11,821 10,981

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 264,778 376,721
Pension contributions to money purchase schemes 11,821 10,981

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 84,227 21,087
Depreciation - owned assets 104,487 78,192
Depreciation - assets on hire purchase contracts 160,369 101,700
Profit on disposal of fixed assets (85,608 ) (18,792 )
Operating lease payments 246,918 94,084

7. AUDITORS' REMUNERATION
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the
company's financial statements

30,935

34,555
Taxation compliance services 1,296 1,600
Other non- audit services 22,038 17,526

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest - 144,639
Corporation tax interest payable - 1,666
Hire purchase 24,579 12,939
24,579 159,244

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 889,706 2,028,248

Deferred tax 17,908 129,917
Tax on profit 907,614 2,158,165

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 3,837,630 11,322,759
Profit multiplied by the standard rate of corporation tax in the UK
of 23.500% (2022 - 19%)

901,843

2,151,324

Effects of:
Expenses not deductible for tax purposes 7,781 6,693
Income not taxable for tax purposes (20,135 ) (3,569 )
Depreciation in excess of capital allowances 33,101 13,946
Land remediation relief (2,206 ) (45,103 )
Super deduction (12,770 ) (5,989 )
Deferred tax change in tax rates - 40,863
Total tax charge 907,614 2,158,165

10. DIVIDENDS
2023 2022
£    £   
Interim 2,800,000 4,000,000

11. TANGIBLE FIXED ASSETS
Furniture
Plant and and Motor
machinery equipment vehicles Totals
£    £    £    £   
COST
At 1st January 2023 48,453 769,136 993,674 1,811,263
Additions - 219,588 45,900 265,488
Disposals - (42,129 ) (294,279 ) (336,408 )
At 31st December 2023 48,453 946,595 745,295 1,740,343
DEPRECIATION
At 1st January 2023 47,209 398,573 433,413 879,195
Charge for year 311 77,615 186,930 264,856
Eliminated on disposal - (28,791 ) (236,870 ) (265,661 )
At 31st December 2023 47,520 447,397 383,473 878,390
NET BOOK VALUE
At 31st December 2023 933 499,198 361,822 861,953
At 31st December 2022 1,244 370,563 560,261 932,068

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


11. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1st January 2023 624,093
Additions 45,900
Disposals (31,795 )
Transfer to ownership (39,980 )
At 31st December 2023 598,218
DEPRECIATION
At 1st January 2023 132,974
Charge for year 160,369
Eliminated on disposal (26,061 )
Transfer to ownership (20,148 )
At 31st December 2023 247,134
NET BOOK VALUE
At 31st December 2023 351,084
At 31st December 2022 491,119

12. STOCKS
2023 2022
£    £   
Work-in-progress 56,274,545 53,261,148

The total amount of work in progress on sites pledged as security is £21,727,752 (2022: £19,799,884).

13. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 37,474 357,433
Other debtors 396 5,020
VAT 817,845 -
Prepayments and accrued income 223,037 138,036
1,078,752 500,489

Amounts falling due after more than one year:
Trade debtors 1,500 1,500

Aggregate amounts 1,080,252 501,989

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 16) 171,043 203,487
Trade creditors 4,408,229 5,984,455
Corporation tax 184,706 1,078,248
Social security and other taxes 311,655 443,308
VAT - 29,871
Other creditors 7,682 18,594
Accruals and deferred income 1,848,411 2,289,346
6,931,726 10,047,309

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 16) 104,848 251,029
Trade creditors 1,136,520 1,194,547
Accruals and deferred income 168,966 558,954
1,410,334 2,004,530

The terms of the hire purchase agreements for the above balance have repayments in equal instalments ending between May 2024 and October 2025, at interest rates that vary between 5.19% and 9.03%.

The total interest charge can be found in note 8.

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 171,043 203,487
Between one and five years 104,848 251,029
275,891 454,516

Non-cancellable operating leases
2023 2022
£    £   
Within one year 260,088 158,731
Between one and five years 593,231 513,295
853,319 672,026

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 275,891 454,516

National Westminster Bank Plc hold the following assets as security:

Unscheduled mortgage debentures incorporating fixed and floating charges over all assets of the company.

Legal Mortgage over land at Bishops Road, Claverham
Legal Mortgage over land at Station Road, Westbury
Legal Mortgage over land at Tickenham, Clevedon

Newbridge Construction Ltd holds a legal charge over the freehold property known as Parklands Farm, Whitminster.

D Febry and S Mallon hold a legal charge over land at Engine Common Lane, Yate.

J Langley holds a legal charge over the property known as 276 North Road, Yate.

Hire purchase agreements are secured on the assets concerned.

18. FINANCIAL INSTRUMENTS

The company does not have any financial assets or liabilities measured at fair value through profit and loss at the reporting date (2022: £nil).

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 188,169 170,261

Deferred
tax
£   
Balance at 1st January 2023 170,261
Provided during year 17,908
Balance at 31st December 2023 188,169

The net reversal of deferred tax expected to occur during the year to 31 December 2024 is £42,457 relating to the reversal of existing timing differences on fixed assets.

In addition to the deferred tax above there is also a capital loss carried forward of £45,103 (2022: £45,103).

Accelerated capital allowances have been calculated using a corporation tax rate of 25%.

NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000

Ordinary shares have full voting rights.

21. RESERVES
Retained
earnings
£   

At 1st January 2023 55,721,695
Profit for the year 2,930,016
Dividends (2,800,000 )
At 31st December 2023 55,851,711

22. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge is partly represented by contributions paid by the company to the fund and amounted to £219,949 for the year (2022: £219,290).

The company also operates a statutory auto enrolment workplace pension scheme. The pension cost charge is partly represented by contributions paid by the company to this fund and amounted to £74,202 for the year (2022: £77,656).

At the year end, the amount outstanding and not yet paid over total £4,266 (2022: £5,561) and are shown in other creditors.

23. RELATED PARTY DISCLOSURES

Key management personnel is considered to be the directors (see note 6).

24. ULTIMATE CONTROLLING PARTY

The directors consider there to be no ultimate controlling party.