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REGISTERED NUMBER: 06028016 (England and Wales)














Unaudited Financial Statements

for the Year Ended 31 December 2023

for

Wombwell Homes (Lostwithiel) Limited

Wombwell Homes (Lostwithiel) Limited (Registered number: 06028016)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3

Chartered Accountants' Report 6

Wombwell Homes (Lostwithiel) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: J D Wombwell
R F Gilley





REGISTERED OFFICE: Wombwell Homes Office
Grenville Road
Lostwithiel
Cornwall
PL22 0EP





REGISTERED NUMBER: 06028016 (England and Wales)





ACCOUNTANTS: Lanham and Company Limited
Chartered Accountants
9 Great Chesterford Court
London Road
Great Chesterford
Essex
CB10 1PF

Wombwell Homes (Lostwithiel) Limited (Registered number: 06028016)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £   
CURRENT ASSETS
Stocks 4,538,461 4,616,529
Debtors 4 3,321 331,640
Cash at bank 747,570 239,647
5,289,352 5,187,816
CREDITORS
Amounts falling due within one year 5 9,412,879 6,713,034
NET CURRENT LIABILITIES (4,123,527 ) (1,525,218 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(4,123,527

)

(1,525,218

)

CREDITORS
Amounts falling due after more than one
year

6

31,789

37,745
NET LIABILITIES (4,155,316 ) (1,562,963 )

CAPITAL AND RESERVES
Called up share capital 9 100 100
Retained earnings (4,155,416 ) (1,563,063 )
SHAREHOLDERS' FUNDS (4,155,316 ) (1,562,963 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2024 and were signed on its behalf by:




J D Wombwell - Director


Wombwell Homes (Lostwithiel) Limited (Registered number: 06028016)

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

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

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

Going concern
The Directors recorded a busy year enabling the construction team to complete block one of phase two to 100%, block two to 90% with landscaping and waring coat to roads outstanding. At the year end the company had completed on the sale of two apartments in block one with three reservations in place. At the time of signing these accounts the building works, road work and landscaping are 100% completed, four apartments are sold and there is a further reservation with an ongoing strong marketing, advertising, and sales program in place.

On completion of the sales in phase 2, the directors intend to proceed with phase 3 (the Duchy site) for which planning has been granted for four houses and four apartments.

The Directors are aware that Homes England, the main funders to date, will be concluding their support once the sales of phase two is completed. The directors are in discussion with Homes England regarding the terms for the final financial settlement, but this is unlikely to be agreed until all sales in phase 2 are complete. Once the agreement with Homes England is in place the directors believe that separate funding could be made available for phase 3 maximising the site's potential for which the infrastructure is already in place and creating a surplus to enable the company to settle other financial development loans which remain in place.

For reasons outlined above, there is significant uncertainty about the company's ability to complete phase 3 and settle all its liabilities and the directors have therefore taken a prudent approach in preparing these financial statements. Costs in opening work in progress relating to phase 3 of £923,819 have not been included in closing work in progress carried forward and the deferred tax asset brought forward of £325,420 relating to trading losses has been reversed and not carried forward.

However, the directors hold a positive outlook that an agreement will be reached with Homes England and other funders to settle all loans and accrued interest owed to them which at the balance sheet date amounted to £8,444,820. This would see charges over the development site released and enable the directors to secure funding for phase 3. Having taken advice on this and after careful consideration of all factors, the directors have concluded that the company can effectively manage its business risks and have therefore continued to adopt the going concern basis of accounting in preparing these financial statements.

Turnover
Revenue is measured at the fair value of the consideration received net of discounts and incentives.

Revenue from the sale of development property is recognised on unconditional exchange of contracts.

Work in progress
Work in progress is valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all direct expenditure plus overheads and finance costs incurred during the development period up to the point of practical completion but not including those finance costs incurred between phases where no development is taking place.


Wombwell Homes (Lostwithiel) Limited (Registered number: 06028016)

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

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Financial instruments
Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Trade debtors and creditors are classed as basic financial instruments and are initially measured at transaction price.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and short-term deposits with an original maturity date of three months or less.

Loans and borrowings are classified as basic financial instruments and are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a financing transaction it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument, unless exempt from such treatment

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2022 - NIL).

4. DEBTORS
31.12.23 31.12.22
£    £   
Amounts falling due within one year:
Trade debtors 65 175
Other debtors 3,256 6,045
3,321 6,220

Amounts falling due after more than one year:
Other debtors - 325,420

Aggregate amounts 3,321 331,640

Wombwell Homes (Lostwithiel) Limited (Registered number: 06028016)

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

5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts 5,956 5,883
Trade creditors 193,356 142,006
Taxation and social security 1,798 -
Other creditors 9,211,769 6,565,145
9,412,879 6,713,034

6. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Bank loans 31,789 37,745

7. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Other loans 7,698,963 5,157,229

The other loans are secured as follows:

A legal charge dated 30 October 2015 over the property known as Land at Brunel Quays, Lostwithiel, Cornwall, which is being developed by the company and included in work in progress; and

Fixed and floating charges over all of the company's assets contained in a debenture dated 30 October 2015.

8. DEFERRED TAX
£   
Balance at 1 January 2023 (325,420 )
Charge to Statement of Income and Retained Earnings during year 325,420
Balance at 31 December 2023 -

9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
100 Ordinary £1 100 100

10. RELATED PARTY AND DIRECTOR DISCLOSURES

During the year the company had current account balances with directors/controlling parties and other companies under their control. At the year end the net amount owed by the company was £379,187 (2022: £383,544).

11. ULTIMATE CONTROLLING PARTY

The controlling party is J D Wombwell.

Chartered Accountants' Report to the Board of Directors
on the Unaudited Financial Statements of
Wombwell Homes (Lostwithiel) Limited

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Wombwell Homes (Lostwithiel) Limited for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

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

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

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






Lanham and Company Limited
Chartered Accountants
9 Great Chesterford Court
London Road
Great Chesterford
Essex
CB10 1PF


13 September 2024