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Registrar

Registration number: 09879535

Birchwood Capital Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Birchwood Capital Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 11

 

Birchwood Capital Limited

Company Information

Directors

N A Brooks

D C Foreman

Registered office

3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

Bankers

HSBC
Stevenage Town Centre
Danestreet
Stevenage
Hertfordshire
SG1 1BY

Accountants

Lambert Chapman LLP
Chartered accountants
3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

 

Birchwood Capital Limited

(Registration number: 09879535)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

1,633

3,277

Investment property

6

3,855,351

3,855,351

Investments

7

4,821

4,821

 

3,861,805

3,863,449

Current assets

 

Debtors

9

990,012

3,141,189

Other financial assets

8

665,599

787,140

Cash at bank and in hand

28,696

102,724

 

1,684,307

4,031,053

Creditors: Amounts falling due within one year

11

(754,850)

(959,536)

Net current assets

 

929,457

3,071,517

Total assets less current liabilities

 

4,791,262

6,934,966

Creditors: Amounts falling due after more than one year

11

(5,918,748)

(6,458,679)

Provisions for liabilities

(408)

(819)

Net (liabilities)/assets

 

(1,127,894)

475,468

Capital and reserves

 

Called up share capital

12

100

100

Retained earnings

(1,127,994)

475,368

Shareholders' (deficit)/funds

 

(1,127,894)

475,468

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 16 September 2024 and signed on its behalf by:
 

N A Brooks
Director

 

Birchwood Capital Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is: 3 Warners Mill, Silks Way, Braintree, Essex, CM7 3GB.

The principal place of business is: 100 Birchwood Road, Wilmington, Dartford, Kent, DA2 7HG.

These financial statements were authorised for issue by the Board on 16 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are presented in Sterling (£), which is the company's functional currency.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration receivable for the renting of investment properties and management of associated companies in the ordinary course of the company’s activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Current Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

33% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Financial Assets

Financial assets are classified as available for sale financial assets where changes in fair value are charged to the profit and loss account. Realised and unrealised gains and losses arising from the sale and changes in the fair value of the financial assets are included in the period in which they arise.

Financial assets are classified as current if they are expected to be realised within 12 months of the balance sheet date.

Investments

The Company’s investments are stated at cost less provision for impairment. Any impairment is charged to the profit and loss account as it arises.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for renting investment properties and managing associated companies in the ordinary course of business.

Trade debtors are recognised initially at transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivable.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are paid.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2022 - 4).

4

Exceptional item

The Company lent money to multiple related parties to undertake a joint venture development. The projects have not gone to plan and the directors have made provisions against the unrecoverable amount at the balance sheet date.
 

 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

5

Tangible assets

Office equipment
 £

Total
£

Cost or valuation

At 1 January 2023

9,902

9,902

Additions

804

804

At 31 December 2023

10,706

10,706

Depreciation

At 1 January 2023

6,625

6,625

Charge for the year

2,448

2,448

At 31 December 2023

9,073

9,073

Carrying amount

At 31 December 2023

1,633

1,633

At 31 December 2022

3,277

3,277

6

Investment properties

2023
£

At 1 January

3,855,351

At 31 December

3,855,351

The director considers the value of investment property held in the accounts not to be materially different from the market value.

 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

7

Investments

2023
£

2022
£

Investments in associates

4,821

4,821

Associates

£

Cost

At 1 January 2023

4,821

Additions

-

At 31 December 2023

4,821

Provision

At 1 January 2023

-

Provision

-

At 31 December 2023

-

Carrying amount

At 31 December 2023

4,821

At 31 December 2022

4,821

8

Financial assets

Financial assets at fair value through profit and loss
£

Total
£

Current financial assets

Cost or valuation

At 1 January 2023

787,140

787,140

Additions

16,802

16,802

Disposals

(35,912)

(35,912)

Fair value adjustments

(102,431)

(102,431)

At 31 December 2023

665,599

665,599

Carrying amount

At 31 December 2023

665,599

665,599

 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

9

Debtors

2023
£

2022
£

Trade debtors

4,666

14,948

Other debtors

980,346

3,109,519

Prepayments and accrued income

5,000

16,722

990,012

3,141,189

Included within other debtors are loans to related parties that are repayable on demand. However it is unlikely that they will be received in full during the coming year.

10

Cash and cash equivalents

2023
£

2022
£

Cash at bank

28,696

102,724

Bank overdrafts

(8,034)

(11,214)

Cash and cash equivalents in statement of cash flows

20,662

91,510

Balances held by the company that are not available for use by the company

2023
£

2022
£

Balances held by the company that are not available for use by the company

18,655

16,735


This amount is committed for investment by the company in their existing investment portfolios.

 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

11

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

7,861

4,433

Loans and borrowings

13

737,523

438,439

Taxation and social security

 

1,029

17,055

Other creditors

 

556

490,610

Accruals and deferred income

 

7,881

8,999

 

754,850

959,536


Creditors include bank loans and overdrafts which are secured of £8,034 (2022 - £11,214).

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

13

5,918,748

6,458,679

Creditors include bank borrowings which are secured of £895,474 (2022 - £1,425,474).

12

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

       
 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

13

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Bank borrowings

9,931

9,687

Bank overdrafts

8,034

11,214

Directors loan

719,558

417,538

737,523

438,439

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

918,748

1,458,679

Directors loan

5,000,000

5,000,000

5,918,748

6,458,679

14

Related party transactions

Loans to related parties

2023

Associates
£

Other related parties
£

Total
£

At start of period

12,000

3,102,319

3,114,319

Advanced

-

539,921

539,921

Repaid

(12,000)

(910,570)

(922,570)

Interest transactions

-

14,262

14,262

Impairment

-

(1,772,787)

(1,772,787)

At end of period

-

973,145

973,145

2022

Associates
£

Other related parties
£

Total
£

At start of period

114,888

2,977,962

3,092,850

Advanced

12,000

1,059,049

1,071,049

Repaid

(143,274)

(11,919)

(155,193)

Interest transactions

28,386

2,227

30,613

Impairment

-

(925,000)

(925,000)

At end of period

12,000

3,102,319

3,114,319

Terms of loans to related parties

During the year interest received on loans made to associates totalled £nil (2022 - £28,386). This interest was accrued at a market rate over the whole life of the loan as has been repaid to the company upon completion.
 

 

Birchwood Capital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

Loans from related parties

2023

Other related parties
£

Total
£

At start of period

(490,308)

(490,308)

Advanced

(311,000)

(311,000)

Repaid

815,570

815,570

Interest transactions

(14,262)

(14,262)

At end of period

-

-

2022

Other related parties
£

Total
£

Advanced

(500,000)

(500,000)

Repaid

11,919

11,919

Interest transactions

(2,227)

(2,227)

At end of period

(490,308)

(490,308)

Terms of loans from related parties

During the year the company withdrew a further £311,000 (2022 - £500,000) from its pension scheme by way of a loan.The amount outstanding at the year end was £nil (2022 - £490,308) after interest and capital repayments.