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Registered number: 04019224
















WOODSTOCK HOMES (CONSTRUCTION) LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


































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WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
COMPANY INFORMATION


Directors
P K Hurst (resigned 31 December 2023)
M A Newman 
R G Pearce 
J L Hutchinson 
M D Rond (resigned 31 May 2024)
O J Barker 
W L Cole (appointed 6 May 2024)




Company secretary
M A Newman



Registered number
04019224



Registered office
Suite 5b, Westbury Court
Church Road

Westbury-On-Trym

Bristol

BS9 3EF




Independent auditors
Bishop Fleming Bath Limited
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL






WOODSTOCK HOMES (CONSTRUCTION) LIMITED


CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3
Directors' Responsibilities Statement
 
4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Statement of Financial Position
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 19


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their strategic report for the year ended 31st December 2023.

Business review
 
Woodstock Homes (Construction) Limited is a subsidiary company of Woodstock Homes (Group) Limited. The Group trades under the brand names of Woodstock Homes, Woodstock Partnerships and Woodstock Strategic.

The key performance indicators for this company,  Woodstock Homes (Construction) Ltd, which acts as the construction company for developments in the wider Woodstock Homes Group  are as follows:


2023
2022
Turnover:
£8,298,026
£11,069,997
Gross Profit:
£912,121
£1,060,568
Gross Profit Margin:
11.0%
9.6%
Profit Before Tax:
£15,677
£551,189
Net Assets
£732,927
£687,375

As the company is part of the wider Woodstock Homes Group the directors consider it helpful to include with this Strategic Report the financial results and KPI's of the wider group as follows:


2023
2022
Legal Completions:
31
47
Turnover:
£21,571,338
£17,935,914
Gross Profit:
£4,344,488
£5,538,411
Gross Profit Margin:
20.1%
30.9%
Profit Before Tax:
£2,368,030
£3,488,067
Net Assets:
£12,978,089
£11,408,635

The Group delivered a record Turnover this year, however, profitability reduced slightly from last year’s outstanding levels due to the downturn in the housing market as a result rising interest rates plus some inflationary cost increases.

The Group has improved its balance sheet with Net Assets of £12.9m (2022: £11.4m).

The Group has also improved its forward pipeline of immediate and strategic land across the southwest. In total we now have circa 350 plots owned or under control.

Overall, the Directors are pleased with Groups 2023 results and remain on course to deliver upon its growth strategy having already trebled turnover since 2021.

Finally, the Board recognises that the success of the Group is because of the hard work, skill and enthusiasm shown by the team including our own staff, external consultants and sub-contractors. We are very grateful to them for their continued support and valued contributions.

Page 1


WOODSTOCK HOMES (CONSTRUCTION) LIMITED


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
Economic Risk

The Group's principal risk is the housing market in which it operates. The housing market is driven by many factors including interest rates, availability of mortgages, tax legislation, unemployment and political uncertainty which all affect the demand for new houses and are all outside of the Company’s control. The housing market has been more challenging this year due to a lot of the aforementioned factors.

To counteract this risk, the Group decided to launch a new brand, Woodstock Partnerships, this year whereby we build fully affordable housing developments on behalf of Housing Associates for a fixed price contract. These homes are pre-sold, therefore, reduces the Group’s sole reliance on the housing market and helps spread the risk across the Group.

Planning Risk

Planning has become more difficult over the course of this year due to the Government removing mandatory housing targets. The lack of resources within local authorities planning teams has also meant that the time and cost associated with achieving a detailed planning consent has increased. 

Political Risk

The Directors regularly discuss the impact of central and local government politic changes on the Group particularly in relation to planning policy and government backed buyer incentive schemes such as the former Help to Buy scheme.

Financial Risk

The Group ended 2023 with a strong balance sheet of £12.9m with £9.6m cash at the bank.

Due to the careful management of the business over the years our credit rating remains excellent, and we have no problems accessing new products and services.

All land is purchased with internal cash reserves with development finance generally required from the bank in relation to Woodstock Homes open market developments. Woodstock Partnership developments which consist of fully affordable housing are forward funded by the Housing Association so require no bank finance.

We are confident that we have the financial strength, longevity and reputation to continue to purchase attractive land in order to facilitate the Groups continued growth.

Financial key performance indicators
 
The Group's Financial KPI's are turnover, gross profit, gross profit margin and profit before tax. The results relating to these KPI's and their prior year comparatives are summarised above within the business review. 

Other key performance indicators
 
The Group's Non-Financial KPI is legal completions. The results relating to this KPI and its prior year comparative is summarised above within the business review. 


This report was approved by the board on 13 September 2024 and signed on its behalf.



J L Hutchinson
Director
Page 2


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the Year ended 31 December 2023.

Directors

The directors who served during the Year were:

P K Hurst (resigned 31 December 2023)
M A Newman 
R G Pearce 
J L Hutchinson 
M D Rond (resigned 31 May 2024)
O J Barker 
W L Cole (appointed 6 May 2024)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditorsBishop Fleming Bath Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies exemption

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






J L Hutchinson
Director

Date: 13 September 2024

Suite 5b, Westbury Court
Church Road
Westbury-On-Trym
Bristol
BS9 3EF

Page 3


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOODSTOCK HOMES (CONSTRUCTION) LIMITED
Opinion


We have audited the financial statements of Woodstock Homes (Construction) Limited (the 'company') for the Year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the Year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Page 5


WOODSTOCK HOMES (CONSTRUCTION) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOODSTOCK HOMES (CONSTRUCTION) LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial Year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 6


WOODSTOCK HOMES (CONSTRUCTION) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOODSTOCK HOMES (CONSTRUCTION) LIMITED (CONTINUED)

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 an Auditors' Report 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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:
We have considered the nature of the industry and sector, control environment, and business performance.
We have considered the results of enquiries with management and the directors in relation to their own identification and assessment of the risks of irregularities within the entity; and
We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating effectively, in line with documentation.
For any matters identified we have obtained and reviewed the Company’s documentation of their policies and procedures relating to:
°Identifying, evaluating and complying with laws and regulations, including Duty, and whether they were aware of any instances of non-compliance; 
°Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
°The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
 
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut-off.

In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102 and UK tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or avoid a material penalty. These included health and safety regulations and employment law.
Our procedures to respond to risks identified included the following:

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Enquiring of management in relation to actual and potential claims or litigation;
Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Performing detailed testing in relation to the recognition of revenue with a particular focus around the year-end cut off; and
Page 7


WOODSTOCK HOMES (CONSTRUCTION) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOODSTOCK HOMES (CONSTRUCTION) LIMITED (CONTINUED)

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit

.Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.


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 2006Our 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 an Auditors' Report 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.






Simon Morrison FCA (Senior Statutory Auditor)
for and on behalf of
Bishop Fleming Bath Limited
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

20 September 2024
Page 8


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
8,298,026
11,069,997

Cost of sales
  
(7,385,905)
(10,009,429)

Gross profit
  
912,121
1,060,568

Administrative expenses
  
(899,281)
(509,987)

Operating profit
  
12,840
550,581

Interest receivable and similar income
  
3,799
608

Interest payable and similar expenses
  
(962)
-

Profit before tax
  
15,677
551,189

Tax on profit
  
29,875
(106,718)

Profit for the Year
  
45,552
444,471

Other comprehensive income for the Year
  

Total comprehensive income for the Year
  
45,552
444,471

The notes on pages 12 to 19 form part of these financial statements.
Page 9


WOODSTOCK HOMES (CONSTRUCTION) LIMITED
REGISTERED NUMBER:04019224

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
72,847
7,557

Current assets
  

Stocks
  
253,549
78,871

Debtors: amounts falling due within one year
 5 
1,063,238
1,177,493

Cash at bank and in hand
  
67,905
203,654

  
1,384,692
1,460,018

Creditors: amounts falling due within one year
 6 
(724,612)
(780,200)

Net current assets
  
 
 
660,080
 
 
679,818

  

Net assets
  
732,927
687,375


Capital and reserves
  

Called up share capital 
 7 
100,010
100,010

Profit and loss account
  
632,917
587,365

  
732,927
687,375


The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





J L Hutchinson
Director

Date: 13 September 2024

The notes on pages 12 to 19 form part of these financial statements.
Page 10


WOODSTOCK HOMES (CONSTRUCTION) LIMITED


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
100,010
142,894
242,904



Profit for the year
-
444,471
444,471



At 1 January 2023
100,010
587,365
687,375



Profit for the Year
-
45,552
45,552


At 31 December 2023
100,010
632,917
732,927


The notes on pages 12 to 19 form part of these financial statements.
Page 11


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Woodstock Homes (Construction) Limited is a company limited by shares incorporated in England and Wales. The registered office is Suite 5b, Westbury Court, Church Road, Westbury-on-Trym, Bristol, BS9 3EF.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors consider whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the debt is recoverable from group undertakings, so it is reasonable to adopt the going concern policy.
On this basis, the directors have concluded it is appropriate that the financial statements have been prepared on a going concern basis.Enter text here regarding going concern basis.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 12


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

DEFINED CONTRIBUTION PENSION PLAN

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Tangible fixed assets (CONTINUED)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
straight line
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
25%
straight line
Computer equipment
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.10

Work in progress

Work in progress is valued at the lower of cost and net realisable value. Costs includes all direct expenditure and an appropriate proportion of overheads. 
At each reporting date, stocks are assessed for impairment. If work in progress is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Work in progress recognised as an expense in cost of sales based on the proportion of costs incurred in the production of goods sold as a proportion of the estimated total costs of production. 

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provisions of the instrument.
Page 14


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (CONTINUED)


Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not
Page 15


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (CONTINUED)

classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.


3.


Employees

The average monthly number of employees, including the directors, during the Year was as follows:


        2023
        2022
            No.
            No.







Project management
13
8



Finance and support
2
2

15
10

Page 16


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



COST OR VALUATION


At 1 January 2023
33,322
-
4,660
15,377
53,359


Additions
10,100
50,660
-
14,739
75,499



At 31 December 2023

43,422
50,660
4,660
30,116
128,858



DEPRECIATION


At 1 January 2023
31,816
-
4,660
9,326
45,802


Charge for the Year on owned assets
2,464
4,221
-
3,524
10,209



At 31 December 2023

34,280
4,221
4,660
12,850
56,011



NET BOOK VALUE



At 31 December 2023
9,142
46,439
-
17,266
72,847



At 31 December 2022
1,506
-
-
6,051
7,557


5.


Debtors

2023
2022
£
£


Trade debtors
551,482
550,626

Amounts owed by group undertakings
300,000
500,000

Other debtors
197,726
116,255

Prepayments and accrued income
14,030
10,612

1,063,238
1,177,493


Page 17


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Creditors: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
255,272
344,850

Corporation tax
-
103,078

Other taxation and social security
86,477
60,571

Other creditors
238,160
113,188

Accruals and deferred income
144,703
158,513

724,612
780,200



7.


Share capital

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



20,002 (2022: 20,002) L Ordinary shares of £1.00 each
20,002
20,002
80,008 (2022: 80,008) M Ordinary shares of £1.00 each
80,008
80,008

100,010

100,010



8.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £192,213 (2022: £146,046). Contributions totalling £18,016 (2022: £13,476) were payable to the fund at the reporting date and are included in creditors.


9.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
21,530
21,530

Later than 1 year and not later than 5 years
75,355
86,120

Later than 5 years
-
10,765

96,885
118,415

Page 18


WOODSTOCK HOMES (CONSTRUCTION) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 (section 33.1A) from disclosing balances with wholly owned group companies. 
During the year the company made sales totalling £NIL (2022: £70,883) to companies under the common control of the directors. At the year end the company was owed £NIL (2022: £20,678) by these companies. These sales are subject to arms length contracts between the entities involved.
Included in the trade creditors is an amount owed to a director of £NIL (2022: £2,945). The balance related to expenses incurred in the normal course of business.


11.


ULITMATE PARENT UNDERTAKING AND CONTROLLING PARTY

Woodstock Homes (Group) Limited is the parent company of the group which prepare consolidated financial statements and copies can be obtained from Companies House.
Mr M Newman is the ultimate controlling party by virtue of his majority interest in the share capital of Woodstock Homes (Group) Limited.
Page 19