REGISTERED NUMBER: |
NEWLAND HOMES LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
BANKERS: |
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: |
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: |
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. |
for and on behalf of |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
3,862,209 | 11,482,003 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
NEWLAND HOMES LIMITED (REGISTERED NUMBER: 02582221) |
STATEMENT OF FINANCIAL POSITION |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Profit for the year | - | 9,164,594 | 9,164,594 |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31st December 2022 |
Changes in equity |
Profit for the year | - | 2,930,016 | 2,930,016 |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31st December 2023 |
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 | ( |
) |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 24,579 | 159,244 |
Finance income | (153,059 | ) | (8,146 | ) |
Taxation |
3,888,398 | 11,634,957 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
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 | ( |
) | 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 |
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 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,892,392 | 5,271,049 |
Social security costs | 576,149 | 661,043 |
Pension costs | 293,622 | 295,946 |
5,762,163 | 6,228,038 |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
Admin staff | 10 | 9 |
Direct staff | 64 | 65 |
74 | 74 |
5. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
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 |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Operating lease payments |
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 |
Other non- audit services |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Corporation tax interest payable |
Hire purchase |
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 |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
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 |
11. | TANGIBLE FIXED ASSETS |
Furniture |
Plant and | and | Motor |
machinery | equipment | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
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 |
Additions |
Disposals | ( |
) |
Transfer to ownership | (39,980 | ) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
Transfer to ownership | (20,148 | ) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Work-in-progress |
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 |
Other debtors |
VAT |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Trade debtors |
Aggregate amounts |
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) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | - | 29,871 |
Other creditors |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Accruals and deferred income |
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 |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
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 |
Provided during year |
Balance at 31st December 2023 |
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: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
Ordinary shares have full voting rights. |
21. | RESERVES |
Retained |
earnings |
£ |
At 1st January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31st December 2023 |
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. |