REGISTERED NUMBER: 08031459 (England and Wales) |
SIGMA HOMES LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
REGISTERED NUMBER: 08031459 (England and Wales) |
SIGMA HOMES LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
SIGMA HOMES LIMITED |
COMPANY INFORMATION |
for the year ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Ashbourne House |
The Guildway |
Old Portsmouth Road |
Guildford |
Surrey |
GU3 1LR |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The principal activity of the group continues to be residential development, currently operating throughout the South East of England, particularly in Sussex and Surrey with planned expansion into both Hampshire and Berkshire. |
The year ending 31st March 2024 was certainly a very difficult year for the housebuilding sector and as a SME developer we were particularly badly affected. As we entered the new financial year interest rates had already risen to 4.25% but would continue upwards to a peak of 5.25%. Fixed rate mortgages hovered around 5% for the year, and whilst not high by historic standards, were twice what they had been twelve months earlier. This coupled with continuing concern over inflation rates had the compound effect of significantly reducing the number of proceedable home buyers. The net effect being that we were substantially down on our budgeted volume. |
Given the market difficulties, the group completed on 25 units, selling 12 private homes and 13 affordable homes (48 sales in the year ended 31 March 2023) representing turnover for the year ended 31 March 2024 of £10.9m (year ended 31 March 2023 - £20.2m) and loss before tax of £2.28m (12 months to 31 March 2023: profit £1.15m). Consolidated net assets at 31 March 2024 were £12.7m (2023: net assets £15.1m). |
MISSION STATEMENT |
"To improve the lives of everybody who encounters a Sigma Home, our customers, our local communities and our environment." |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks faced by the group are the continued uncertainty surrounding interest rates on a macro level, and on a micro level, the recent anti-development approach of the previous UK government manifesting itself through a reduced supply of consented development opportunities, along with delays in clearing prestart conditions. In addition, the last twelve months has seen severe delays in getting new power supplies to new homes, with UKPN having insufficient local capacity to serve new homes.This has increased power needs through air source heat pumps and electric car charging points, necessitating nearly all developments to require a substation. |
Despite the concerns over the impact of higher interest rates and inflation, buyers' interest in new homes and the benefits they bring remain relatively robust, but the current lack of proceedable buyers is of concern. By and large prices have peaked, and with proceedable buyers being in short supply, discounting and the use of financial incentives is becoming more commonplace. |
Land supply, as mentioned above, remains challenging caused by the lack of supply of consented sites into the market. Following the Written Ministerial Statement of December 2022, even with a significant change in Government policy, the lack of planning applications being approved since then, suggests a continuing lack of supply over the coming months. |
The previously reported shortage of both materials and skills seems to have abated for now in part because of a reduced rate of sales/build by the major housebuilders. Any significant upturn in demand for either skilled labour, or materials may bring a return of some cost pressures. |
QUALITY AND CUSTOMER SERVICE |
Location, Quality and Design are the three pillars of Sigma's brand, we take special care to select prime locations for our sites, and pay real attention to detail to attain the best design, layout, and quality of finish to every Sigma Home. |
We are very proud of the houses we build and work hard to satisfy our customers. Our customer care team are performing well and adding to the strength of the Sigma brand. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2024 |
PEOPLE |
In recent years people have been one of our biggest investments. We believe that a strong team, with good experience, who work well together is one of, if not our biggest assets. As mentioned above we continue to strengthen the teams where necessary with recent additions to both sales and finance. |
We are proud of our people and believe that we now have an excellent team in place to deliver strong results going forward. Our focus is now on retaining, training, and developing our staff, and attracting new members as needed in a diverse and inclusive culture. |
LAND AND PLANNING |
Our Land Team is actively seeking and bidding on new land across the Southeast of England. Focusing on prime locations that would attract the Sigma premium, predominantly in West Sussex, Surrey, parts of East Sussex and Kent, and recently in Hampshire and Berkshire. Given previous comments on the lack of consented sites coming to the market land values continue to attract very high levels of interest and prices. |
We have an appetite for both short and medium-term land, and currently have a number of sites under control on a subject to planning contract, which in part will satisfy our need for land in the coming two years. |
We are also working together with Sigma Strategic Land Limited to identify potential strategic land suitable for our needs in the coming 3 to 5 years and beyond. |
SUSTAINABILITY |
The Environment has always been part Sigma's work principles. In early 2017 we opted to use Timber Frame construction to embed sustainability as part of our Company ethos. Timber Frame is arguably the only 100% sustainable construction material with sustainable forestry practices and the added benefit of being much greener than masonry houses on a CO2 measure. |
Additionally, we continue to work on improving the SAP rating of our homes, and whilst currently achieving SAP rating of B under the more demanding 2022 regulations, we are looking at ways of achieving an A rating, although with due regard for cost v benefit. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2024 |
EXPECTATIONS |
With the continuing backdrop of relatively high interest rates the UK housing market remains sluggish with little evidence of a significant increase in the number of proceedable buyers and with those that are in that position seeking a discount from the advertised asking price. It remains a buyers' market. |
However we have currently seen a new Labour government elected with promises of a substantial reform to the currently broken planning system in order to "get Britain building". This should ease, in due course, the chronic shortage of planning permissions, thus alleviating one of the major constraints to growth. |
With the very recent cut in interest rates, resulting in 5 year fixed mortgages being available at under 4%, along with a positive outlook for some house price inflation being reported in the national press, it is anticipated that we can look forward to a traditionally strong Autumn market. |
Our forecast for FY ending March 2025 promises to deliver an improvement in our year end results. We are expecting to increase the number of sales completions to 79 units. |
On the basis of the planned land acquisitions the business plan for FY2025 and 2026 projects an increase in the number of completions to 100 in FY2026. |
ON BEHALF OF THE BOARD: |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was that of residential property development. |
The principal activity of the company in the period under review was central purchasing and administration, and management of group companies and property resources. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
Following the year, P A Wills resigned as a director. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2024 |
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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Bessler Hendrie LLP, has indicated its willingness to continue in office. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SIGMA HOMES LIMITED |
Opinion |
We have audited the financial statements of Sigma Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 March 2024 and of the group's loss 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 |
SIGMA HOMES LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 five, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SIGMA 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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud, and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with management. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our approach was as follows: |
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates and determined that the significant frameworks, which are directly relevant to specific assertions in the financial statements, are those that relate to the reporting framework (FRS 102 including the Companies Act 2006) and the relevant tax regulations in the UK. This included discussions amongst the members of the audit team and tax specialists. |
- We understood how the company is complying with that framework through enquiry with management and those charged with governance. |
- We assessed the risks related to the control environment and in particular those related to management override of controls given the size of the business. |
- We considered the opportunities and incentives that may exist within the organisation for fraud. |
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. |
Our procedures involved the following: |
- Inquire of the directors regarding their knowledge and actions relating to any non-compliance with laws and regulations that could affect the financial statements. |
- Reviewing the financial statement disclosures and testing supporting documentation. |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
- Reading minutes of meetings of the board of directors. |
- Obtaining and reading correspondence from legal and regulatory bodies including HMRC. |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of accounting |
policies, journal adjustments, accounting estimates and judgements made. |
- Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SIGMA HOMES LIMITED |
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 |
Chartered Accountants |
Statutory Auditor |
Ashbourne House |
The Guildway |
Old Portsmouth Road |
Guildford |
Surrey |
GU3 1LR |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
CONSOLIDATED INCOME STATEMENT |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 10,902,962 | 20,211,193 |
Cost of sales | (9,937,709 | ) | (16,814,689 | ) |
GROSS PROFIT | 965,253 | 3,396,504 |
Administrative expenses | (2,710,693 | ) | (2,216,498 | ) |
OPERATING (LOSS)/PROFIT | 6 | (1,745,440 | ) | 1,180,006 |
Interest receivable and similar income | 8 | 5,800 | 3,769 |
(1,739,640 | ) | 1,183,775 |
Interest payable and similar expenses | 9 | (544,657 | ) | (32,852 | ) |
(LOSS)/PROFIT BEFORE TAXATION | (2,284,297 | ) | 1,150,923 |
Tax on (loss)/profit | 10 | (150,871 | ) | (37,580 | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (2,435,168 | ) | 1,113,343 |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (2,435,168 | ) | 1,113,343 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(2,435,168 |
) |
1,113,343 |
Total comprehensive income attributable to: |
Owners of the parent | (2,435,168 | ) | 1,113,343 |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
CONSOLIDATED BALANCE SHEET |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | - | - |
Tangible assets | 13 | 106,359 | 104,837 |
Investments | 14 | - | - |
106,359 | 104,837 |
CURRENT ASSETS |
Stocks | 15 | 36,244,153 | 21,708,910 |
Debtors | 16 | 2,610,548 | 2,387,999 |
Cash at bank | 424,098 | 1,393,889 |
39,278,799 | 25,490,798 |
CREDITORS |
Amounts falling due within one year | 17 | (25,940,272 | ) | (7,061,910 | ) |
NET CURRENT ASSETS | 13,338,527 | 18,428,888 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 13,444,886 | 18,533,725 |
CREDITORS |
Amounts falling due after more than one year | 18 | (443,348 | ) | (3,356,556 | ) |
PROVISIONS FOR LIABILITIES | 21 | (273,437 | ) | (13,900 | ) |
NET ASSETS | 12,728,101 | 15,163,269 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 4,242 | 4,242 |
Share premium | 23 | 17,420,946 | 17,420,946 |
Retained earnings | 23 | (4,697,087 | ) | (2,261,919 | ) |
SHAREHOLDERS' FUNDS | 12,728,101 | 15,163,269 |
The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2024 and were signed on its behalf by: |
G F Potton - Director |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
COMPANY BALANCE SHEET |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Stocks | 15 |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 18 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (2,598,407 | ) | (1,233,556 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 | 4,242 | (3,375,262 | ) | 17,420,946 | 14,049,926 |
Changes in equity |
Total comprehensive income | - | 1,113,343 | - | 1,113,343 |
Balance at 31 March 2023 | 4,242 | (2,261,919 | ) | 17,420,946 | 15,163,269 |
Changes in equity |
Total comprehensive income | - | (2,435,168 | ) | - | (2,435,168 | ) |
Balance at 31 March 2024 | 4,242 | (4,697,087 | ) | 17,420,946 | 12,728,101 |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 March 2023 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 March 2024 | ( |
) |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (15,670,231 | ) | (10,140,472 | ) |
Interest paid | (69,264 | ) | (27,552 | ) |
Net cash from operating activities | (15,739,495 | ) | (10,168,024 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (23,631 | ) | (4,354 | ) |
Interest received | 2,032 | 429 |
Net cash from investing activities | (21,599 | ) | (3,925 | ) |
Cash flows from financing activities |
New loans in year | 20,669,618 | 7,948,301 |
Loan repayments in year | (5,864,412 | ) | (246,770 | ) |
Loan to parent | (13,903 | ) | (13,243 | ) |
Net cash from financing activities | 14,791,303 | 7,688,288 |
Decrease in cash and cash equivalents | (969,791 | ) | (2,483,661 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,393,889 |
3,877,550 |
Cash and cash equivalents at end of year | 2 | 424,098 | 1,393,889 |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 March 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit before taxation | (2,284,297 | ) | 1,150,923 |
Depreciation charges | 21,519 | 26,062 |
Loss on disposal of fixed assets | 590 | 357 |
Amortisation charges | - | 55,907 |
Other provisions | 259,537 | 13,900 |
Finance costs | 544,657 | 32,852 |
Finance income | (5,800 | ) | (3,769 | ) |
(1,463,794 | ) | 1,276,232 |
Increase in stocks | (14,535,243 | ) | (11,431,785 | ) |
(Increase)/decrease in trade and other debtors | (349,798 | ) | 622,332 |
Increase/(decrease) in trade and other creditors | 678,604 | (607,251 | ) |
Cash generated from operations | (15,670,231 | ) | (10,140,472 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 424,098 | 1,393,889 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 1,393,889 | 3,877,550 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank | 1,393,889 | (969,791 | ) | 424,098 |
1,393,889 | (969,791 | ) | 424,098 |
Debt |
Debts falling due within 1 year | (5,189,341 | ) | (11,988,956 | ) | (17,178,297 | ) |
Debts falling due after 1 year | (214,375 | ) | 183,750 | (30,625 | ) |
(5,403,716 | ) | (11,805,206 | ) | (17,208,922 | ) |
Total | (4,009,827 | ) | (12,774,997 | ) | (16,784,824 | ) |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Sigma Homes Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the results of Sigma Homes Limited and all of its subsidiary and associated undertakings as at 31 March 2024 using the acquisition method. Where the acquisition method is used, the results of subsidiary undertakings are included from the date of acquisition, being the date on which the group obtained control. Control comprises of the ability to govern the financial and operating policies of the undertaking to obtain benefit from its activities. Upon disposal, the results of the subsidiary will be consolidated until the date of disposal and such control ceases. |
All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. |
The consolidated statements also include the share of profits of the associate, Sigma Strategic Land Limited, using the equity method. Where the equity method is used the investment is initially recorded at cost and adjusted thereafter for the post-acquisition share of changes in the net assets of the associate. |
Going concern |
The directors have reviewed the company strategic plans and are satisfied that sufficient funds are available to the company from existing sources to meet liabilities, including those of the subsidiaries, as they fall due. On this basis they continue to adopt the going concern basis in the preparation of the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from management services to subsidiary undertakings is recognised on reaching agreement with the subsidiary for any amounts to be charged. |
Revenue from residential property sales is recognised at the completion date. |
Revenue from long term contracts is recognised by reference to the stage of completion of the development determined by the value of the services provided at the balance sheet date as a proportion of the total value of the development. |
Goodwill |
Intangible assets relate to Goodwill, being the amount paid in connection with the acquisition of a subsidiary, Welland House Ltd, on 5 April 2019, is being amortised evenly over its estimated useful life of ten years, or proportionately on the sale of development properties by the subsidiary, whichever is the earlier. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at their historic cost price less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for use. The asset's residual values, useful lives and depreciation methods are reviewed if there is an indication of significant change since the last reporting date. |
Depreciation is provided at the following rates in order to write off each asset over its useful life. |
Plant and machinery etc - 20% on cost |
On disposal the difference between the net proceeds and carrying amount of the item sold is recognised in the profit or loss account, and included in administrative expenses. |
The Ground leases have been granted for a period of 150 years. The value has been calculated using a discounted cash flow of the annual rent expected over the period of the lease. |
Depreciation is provided over the period of the lease. |
Stocks |
Stock and work in progress is valued at the lower of cost (including direct costs, directly attributable overheads and finance costs) and net realisable value. Where a development is in process, net realisable value is assessed by considering the expected future revenues and the total costs to complete the development. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
All financial assets and liabilities are initially measured at transaction price and subsequently measured at amortised cost. The group has no financial assets nor liabilities which are measured at fair value through consolidated income statement. |
Trade and other debtors are recognised and carried forward at invoiced amounts less provision for any doubtful debts. Bad debts are written off when identified. |
Cash and cash equivalents comprise of cash at bank and in hand, and are included in the balance sheet at cost. |
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method. |
Finance leases are included in the balance sheet net of the finance charge allocated to future periods. |
The group has no non-basic financial instruments. |
Holiday pay |
The group recognises an accrual for holiday entitlement earned by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the subsequent financial year. The provision is measured at the salary cost payable for the period of absence including employers pension and national insurance costs. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
Operating leases |
Rentals paid under operating leases are charged to income statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to income statement in the period to which they relate. |
Investments in associates |
Investments in associate undertakings are recognised at cost less impairment. |
Investments in subsidiary undertakings are recognised at cost less impairment and eliminated upon consolidation. |
Provisions for liabilities |
Provisions are made against loans to subsidiaries when there is doubt that the loan will be paid back based on the performance and balance sheet position of the related company. |
Provisions are charged as an expense to administrative expenses within the statement of comprehensive income. Upon settlement, the provision is utilised against the expense and released to the comprehensive income statement. |
Customer care |
The group undertakes to make good, by repair or replacement, manufacturing defects that become apparent within two years from the date of sale. These costs are recognised in the period in which they arise. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
3. | SIGNIFICANT JUDGEMENTS AND ESTIMATES |
The preparation of the financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect reported amounts of assets, liabilities and profit and loss. In preparing these financial statements, management have made the following key judgements and estimates which are significant to the financial statements: |
Impairment of stock and work-in-progress |
Management have made key assumptions in determination of the expected costs to complete work-in-progress and the expected future revenue in order to assess the net realisable value of stock. |
Recoverability of intercompany balances |
Management considers the recoverability of intercompany debts annually based on the related company performance and the balance sheet position as well as managements experience to determine whether a provision is required against any related party debt. It has been determined that a provision of £1,280,933 (2023: £1,874,747) is deemed appropriate and all remaining inter company debt included in the balance sheet is considered recoverable in full. The provision is removed on consolidation. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group being that of residential property development. |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,602,441 | 1,231,008 |
Social security costs | 200,976 | 168,985 |
Other pension costs | 22,957 | 16,809 |
1,826,374 | 1,416,802 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration |
Key management personnel are the directors of the company. |
2024 | 2023 |
£ | £ |
Directors' remuneration | 167,476 | 164,580 |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging: |
2024 | 2023 |
£ | £ |
Other operating leases | 67,723 | 60,032 |
Depreciation - owned assets | 21,519 | 26,062 |
Loss on disposal of fixed assets | 590 | 357 |
Goodwill amortisation | - | 55,907 |
Auditor's remuneration (note 7) | 85,880 | 71,059 |
Pension costs | 22,957 | 16,809 |
7. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditor for the audit of the company's annual accounts |
34,300 |
34,300 |
Tax compliance services | 6,500 | 6,500 |
Other non-audit services | 45,080 | 30,259 |
85,880 | 71,059 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Deposit account interest | 2,032 | - |
Loan interest | 3,768 | 3,769 |
5,800 | 3,769 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Loan interest payable | 544,657 | 32,852 |
During the year, interest on amounts provided by related parties have been recognised within loan interest payable, instead of within cost of sales as per the prior year. The change of recognition is on the basis that the loans represent funding to the Group as a whole, rather than a direct cost of developments. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 1,051 | - |
Deferred tax | 149,820 | 37,580 |
Tax on (loss)/profit | 150,871 | 37,580 |
UK corporation tax has been charged at 25 % (2023 - 19 %). |
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: |
2024 | 2023 |
£ | £ |
(Loss)/profit before tax | (2,284,297 | ) | 1,150,923 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
(571,074 |
) |
218,675 |
Effects of: |
Expenses not deductible for tax purposes | 12,317 | 18,833 |
Depreciation in excess of capital allowances | 2,460 | 3,943 |
Utilisation of tax losses | (30,955 | ) | (241,552 | ) |
Adjustments to tax charge in respect of previous periods | 1,050 | - |
Tax losses carried forward | 587,186 | 152,931 |
Other short term timing differences | 67 | 100 |
Change in tax rate | - | (115,350 | ) |
Reversal of temporary timing differences | 149,820 | - |
Total tax charge | 150,871 | 37,580 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2023 | 782,693 |
Disposals | (782,693 | ) |
At 31 March 2024 | - |
AMORTISATION |
At 1 April 2023 | 782,693 |
Eliminated on disposal | (782,693 | ) |
At 31 March 2024 | - |
NET BOOK VALUE |
At 31 March 2024 | - |
At 31 March 2023 | - |
13. | TANGIBLE FIXED ASSETS |
Group |
Ground | Improvements | Plant and |
leases | to property | machinery | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 | 78,300 | - | 125,969 | 204,269 |
Additions | - | 11,360 | 12,271 | 23,631 |
Disposals | - | - | (3,977 | ) | (3,977 | ) |
At 31 March 2024 | 78,300 | 11,360 | 134,263 | 223,923 |
DEPRECIATION |
At 1 April 2023 | 1,725 | - | 97,707 | 99,432 |
Charge for year | 523 | 3,901 | 17,095 | 21,519 |
Eliminated on disposal | - | - | (3,387 | ) | (3,387 | ) |
At 31 March 2024 | 2,248 | 3,901 | 111,415 | 117,564 |
NET BOOK VALUE |
At 31 March 2024 | 76,052 | 7,459 | 22,848 | 106,359 |
At 31 March 2023 | 76,575 | - | 28,262 | 104,837 |
There are fixed and floating charges provided as security for bank liabilities over the group's assets including all tangible fixed assets with a carrying amount of £106,359 (2023: £104,837). |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Plant and |
to property | machinery | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Included within the carrying amount of plant and machinery there is an amount of £nil (2023: £7,173) relating to assets classified as finance leases. |
14. | FIXED ASSET INVESTMENTS |
Company |
Interest in | Unlisted |
associate | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
and 31 March 2024 | 786,149 |
NET BOOK VALUE |
At 31 March 2024 | 786,149 |
At 31 March 2023 | 786,149 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
Associated company |
Registered office: Ashbourne House, The Guildway,Old Portsmouth Road, Guildford, Surrey GU3 1LR |
Nature of business: |
% |
Class of shares: | holding |
15. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Work-in-progress | 36,244,153 | 21,708,910 |
Finance costs of £1,321,506 were included in group work-in-progress (Company: £nil) during the year (2023: Group £353,595, Company £nil). For properties that have been sold the relevant portion of these finance costs has been recognised in cost of sales, calculated by reference to sales proceeds realised. |
There are fixed and floating charges over stocks with a carrying amount of £36,244,153 (2023: £21,708,910) as security for the bank loans. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
16. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 352,225 | 765,953 |
Amounts owed by group undertakings | - | - |
Other debtors | 132,491 | 565,510 |
Directors' current accounts | 202,048 | 198,280 | 202,048 | 198,280 |
Tax debtor | - | 1,050 |
VAT | 223,324 | 264,792 |
Deferred tax asset | 330,809 | 480,629 | 330,809 | 480,629 |
Prepayments and accrued income | 1,249,435 | 111,785 |
2,490,332 | 2,387,999 |
Amounts falling due after more than one year: |
Trade debtors | 120,216 | - |
Aggregate amounts | 2,610,548 | 2,387,999 |
Deferred tax asset |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 330,809 | 480,629 | 330,809 | 480,629 |
Included in other debtors is an amount of £43,808 (2023: £29,905) due from the ultimate parent company Woodsford Homes Limited that is interest free and repayable on demand. |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 19) | 17,178,297 | 5,189,341 |
Trade creditors | 574,863 | 1,096,793 |
Amounts owed to group undertakings | 5,951 | - |
Social security and other taxes | 69,606 | 56,127 |
Other creditors | 7,558,192 | 397,804 |
Accruals and deferred income | 553,363 | 321,845 |
25,940,272 | 7,061,910 |
Included in other creditors is a loan from a related party amounting to £6,342,982 (2023: £Nil) that is subject to interest at SONIA on drawdown plus 5% per annum. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 19) | 30,625 | 214,375 |
Other creditors | 412,723 | 3,142,181 |
443,348 | 3,356,556 |
Included in other creditors are subcontractor retentions that are payable in 1-2 years. No interest is charged on this amount. |
Included in other creditors is a loan from a related party amounting to £Nil (2023: £3,000,000) that is subject to interest at SONIA on drawdown plus 5% per annum. |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 17,178,297 | 5,189,341 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 30,625 | 183,750 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 30,625 |
Included in bank loans is an amount of £14,559,170 (2023: £4,067,290) due to Close Brothers Limited. The loan is secured by way of a fixed and floating charge over any properties and undertaking of the company. This bank loan is subject to interest rates from 4% to 4.75% over the official bank rate of interest which was 5.25% as at 31 March 2024. The amount borrowed will be repayable in full on demand. |
Within bank loans for the company, there is a Coronavirus Business Interruption Loan Scheme for £214,375 (2023: £398,125) which attracts interest at 3.39% above base rate. The loan is secured by way of a fixed and floating charge over the assets of the company and repayable in May 2025. |
Within bank loans is an amount of £2,435,377 (2023: £938,301) due to Lloyds Bank plc. This loan is secured by way of a fixed and floating charge over any properties and undertaking of Sigma Homes (Angmering) Limited. This bank loan is subject to interest at 5.69% over the official bank rate of interest which was 5.25% as at 31 March 2024. The amount is repayable on demand. |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
Group |
Non-cancellable |
operating leases |
2024 | 2023 |
£ | £ |
Within one year | 35,650 | 35,650 |
Between one and five years | 17,825 | 53,475 |
53,475 | 89,125 |
Company |
Non-cancellable |
operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
Lease payments of £36,731 (2023: £38,773) have been recognised as an expense during the period. |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Other provisions | 273,437 | 13,900 | 53,489 | - |
Aggregate amounts | 273,437 | 13,900 | 53,489 | - |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 April 2023 | (480,629 | ) | 13,900 |
Provided during year | - | 259,537 |
Charge to Income Statement during year | 149,820 | - |
Balance at 31 March 2024 | (330,809 | ) | 273,437 |
Company |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 April 2023 | ( |
) |
Provided during year |
Charge to Income Statement during year |
Balance at 31 March 2024 | ( |
) |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
21. | PROVISIONS FOR LIABILITIES - continued |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Development costs of unfulfilled sites | 53,489 | - | 53,489 | - |
Legal and professional | 219,948 | - | - | - |
Manufacturing defects | - | 13,900 | - | - |
273,437 | 13,900 | 53,489 | - |
Legal and professional fees relate to potential unpaid costs arising from the acquisition of land. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 4,242 | 4,242 |
The company has one class of ordinary shares which carry full voting rights together with rights to income and capital distributions. |
23. | RESERVES |
Retained earnings includes all current period and prior period profits and losses which are distributable. |
Share premium represents the amount paid for ordinary shares in excess of the nominal value. |
24. | PENSION COMMITMENTS |
The group makes payments into a pension fund on behalf of employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge of £22,957 (2023: £16,809) represents contributions payable by the company to the fund. There were outstanding contributions at the year end of £5,903 (2023: £5,081) included in the balance sheet. |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2024 and 31 March 2023: |
2024 | 2023 |
£ | £ |
G F Potton |
Balance outstanding at start of year | 198,280 | 194,940 |
Amounts advanced | 3,768 | 3,340 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 202,048 | 198,280 |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
At the year end, G F Potton owed the company £202,048 (2023: £198,280). This amount is shown within other debtors due within one year with interest charged at 2.25%. |
26. | RELATED PARTY DISCLOSURES |
Company |
Included in amounts owed to group undertakings falling due within one year is £6,492,367 (2023: £7,038,918) due to the subsidiary companies. The balance is interest free and repayable on demand. |
Included in amounts owed by group undertakings falling due within one year net of associated provisions is £16,528,046 (2023: £15,720,008) owed by the subsidiary companies. During the year interest of £Nil (2023: £94,021) was received by Sigma Homes Limited in respect of this balance.. |
Summarised below are amounts due from group undertakings and the associated provisions: |
2024 | 2023 |
Balance | Provision | Balance | Provision |
£ | £ | £ | £ |
Sigma Homes (Haywards Heath) Limited | 2,750,135 | 213,803 | 3,201,656 | 401,151 |
Sigma Homes (Angmering) Limited | 5,334,680 | 148,164 | 6,345,950 | 519,399 |
Sigma Homes (Horsham) Limited | 3,045,336 | 396,936 | 848,964 | 390,080 |
Sigma Homes (Cuckfield) Limited | 3,171,009 | 522,030 | 3,611,642 | 564,117 |
Sigma Homes (Thames Ditton) Limited | 3,507,819 | - | 3,586,543 |
17,808,979 | 1,280,933 | 17,594,755 | 1,874,747 |
During the year Sigma Homes Limited recharged costs of £395,453 (2023: £249,076) to group undertakings. All recharged costs were made on an arms length basis. |
These balances and transactions are eliminated upon consolidation. |
Transactions with related parties |
Consulting services rendered with a related party by means of directorship amounted to £17,820, with no amounts outstanding at the year end. Other consulting services rendered provided by a company under common control amounted to £29,080 during the year. An amount of £7,920 was outstanding at the year end, no interest is charged on this balance. |
27. | POST BALANCE SHEET EVENTS |
Included in bank loans falling due within one year, is an amount of £6,342,982 that was refinanced in July 2024 until October 2026. |
28. | ULTIMATE CONTROLLING PARTY |
The SCOP 2003 Trust registered in the Switzerland, has been the ultimate controlling party for the duration of the accounting period. |
SIGMA HOMES LIMITED (REGISTERED NUMBER: 08031459) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
29. | IMMEDIATE PARENT COMPANY |
The immediate parent company is Woodsford Homes Limited, a company registered in England and Wales. The consolidated financial statements for Woodsford Homes Limited can be obtained from the immediate parent's registered office: 8 Bloomsbury Street, London, WC1B 3SR. |