for the Period Ended 31 December 2023
Directors report | |
Profit and loss | |
Balance sheet | |
Additional notes | |
Balance sheet notes |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 31 December 2023
Principal activities of the company
Additional information
RESULTS AND DIVIDENDS The loss for the year amounted to £442,102. The directors do not recommend a dividend for the period. POSSIBLE FUTURE DEVELOPMENTS The Company has received financial support from Preferred Housing Living Limited that will allow it to purchase, by way of Forward Sale Agreements (“FSA”), at least 8 Extra Care schemes across England. At the year-end two schemes had been purchased using FSA’s, one expected to be delivered prior to 31st December 2024 and the other to be delivered in the first quarter of 2025. A further one had been purchased by the signing date of this report with that expected to be delivered by the end of the first quarter of 2026. It is expected that a further five schemes will be purchased by way of FSA’s before the 31st December 2024 to be delivered prior to the 4th quarter of 2026. POST BALANCE SHEET EVENTS On 31st May 2024 the Company entered a Forward Sale Agreement with PHL Nottingham Limited for the acquisition of a completed 73 unit Extra Care scheme at Watnall Road, Hucknall, Nottinghamshire. The scheme is expected to be delivered prior to 31st March 2026. No further events occurred after the statement of financial position date that have a material impact on the financial statements. The Directors have not received any further information as at the approval date which has not been reflected in the financial statements presented. GOING CONCERN The Company’s business activities, its current financial position and factors likely to affect its future development are set out within the strategic report of the Board. The Company has a long-term business plan which shows that it can fund its development programme and its day to day operations. This business plan includes a debt facility from Preferred Housing Living Limited, which provides adequate resources to finance its day to day operation and a commitment from Preferred Housing Living Limited funding its committed development programmes. The Board is satisfied that its business plan demonstrates sufficient financial strength to conclude that the Company is a going concern. In reaching this decision, the Board has noted that the business plan meets the key rules for effective financial management. On this basis, the Board has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the report and financial statements are signed. For this reason, it continues to adopt the going concern basis in the financial statements. RISK MANAGEMENT Management considers financial risk management at a Company level. Management consider that the Company has the following risks: Liquidity risk Market risk Credit risk Geopolitical instability and inflation risk Liquidity Risk The Company is exposed to liquidity risk which is the risk that the Company will have insufficient cash resources to meet its obligations as they fall due. Management manage liquidity risk by performing cash flow forecasting in the operating entities of the Company. Forecasts of liquidity requirements are monitored to ensure the Company has sufficient cash to meet its operational needs. Given the ultimate support from Preferred Housing Living Limited and its parent structure the liquidity risk is seen as minimal for the Company. Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company's market risks arise from (a) a significant reduction in income and valuation to a financial asset or liability and (b) a significant reduction in the market value of the properties. Credit Risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Given the ultimate support from Preferred Housing Living Limited and its parent structure the credit risk is seen as minimal for the Company. No financial assets are deemed to be impaired or past due at period end. Geopolitical instability and inflation risk When Russia invaded Ukraine, the worldwide impact on inflation and rates expectations resulted in a challenging period for assets globally and this risk continues. This geopolitical instability has caused commodity prices to increase rapidly with an impact on the development costs. It also caused inflation to rise and the end to the period of historically low interest rates for the global economy with a direct impact on the access and the cost of borrowing. This outlook will impact investor sentiment regarding investments, but the full impact is still to be seen. Whilst not expected to be material, the Company continues to monitor the impact on its business, results of its operations, investments, and cash flows. FINANCIAL INSTRUMENTS The Company’s Treasury Management policy has rules to effectively manage credit risk, liquidity risk and cash flow risk and has been complied with. The Company has one financial instrument in the form of loan facility from Preferred Housing Living Limited. Since the year end the Company has not entered any new financial instruments. EXTERNAL AUDITOR PricewaterhouseCoopers LLP were appointed as auditors during the year. Pursuant to Section 485 of the Companies Act 2006, PricewaterhouseCoopers LLP will be deemed to be reappointed and will continue in office. DISCLOSURE OF INFORMATION TO THE AUDITORS All of the current Directors have taken all the steps that they ought to have taken to make themselves aware of any information needed by the Company’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Directors are not aware of any relevant audit information of which the auditors are unaware. STRATEGIC REPORT A strategic report has not been included in these audited financial statements as the Company qualifies for exemption under Section 414B of the Companies Act 2006 relating to small entities.
Directors
The directors shown below have held office during the whole of the period from
1 January 2023
to
31 December 2023
The director shown below has held office during the period of
1 January 2023
to
19 January 2023
The director shown below has held office during the period of
19 January 2023
to
31 December 2023
Secretary
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
And signed on behalf of the board by:
Name:
Status: Director
for the Period Ended
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Distribution costs: |
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Administrative expenses: |
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Operating profit(or loss): |
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Interest receivable and similar income: |
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Interest payable and similar charges: |
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Profit(or loss) before tax: |
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Tax: |
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Profit(or loss) for the financial year: |
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As at
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Called up share capital not paid: |
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Intangible assets: |
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Tangible assets: | 3 |
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Investments: |
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Stocks: |
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Debtors: | 4 |
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Cash at bank and in hand: |
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Investments: |
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Total current assets: |
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Prepayments and accrued income: |
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Creditors: amounts falling due within one year: | 5 |
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Net current assets (liabilities): |
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Total assets less current liabilities: |
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Creditors: amounts falling due after more than one year: | 6 |
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Provision for liabilities: |
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Accruals and deferred income: |
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Total net assets (liabilities): |
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Profit and loss account: |
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Total Shareholders' funds: |
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The notes form part of these financial statements
This report was approved by the board of directors on
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 31 December 2023
Basis of measurement and preparation
Turnover policy
Tangible fixed assets depreciation policy
Other accounting policies
for the Period Ended 31 December 2023
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for the Period Ended 31 December 2023
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At 31 December 2022 |
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for the Period Ended 31 December 2023
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Debtors due after more than one year: |
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for the Period Ended 31 December 2023
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Other creditors |
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Total |
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for the Period Ended 31 December 2023
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Other creditors |
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Total |
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for the Period Ended 31 December 2023
for the Period Ended 31 December 2023