Company registration number SC254742 (Scotland)
CAMPION HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
CAMPION HOMES LIMITED
COMPANY INFORMATION
Directors
Mr P Bell
Mr A Chalmers
Mr A Graham
Mr D Herd
Mrs S Jackson
Mr J Cassie (Non Executive)
Secretary
Mrs S Jackson
Company number
SC254742
Registered office
Pitreavie Drive
Pitreavie Business Park
Dunfermline
Fife
KY11 8US
Auditor
Thomson Cooper
3 Castle Court
Carnegie Campus
Dunfermline
Fife
KY11 8PB
Business address
Pitreavie Drive
Pitreavie Business Park
Dunfermline
Fife
KY11 8US
Bankers
The Royal Bank of Scotland
52-54 East Port
Dunfermline
Fife
KY12 7HB
Solicitors
Addleshaw Goddard
Exchange Tower
19 Canning Street
Edinburgh
EH3 8EH
CAMPION HOMES LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Profit and loss account
11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 32
CAMPION HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
The principal activity of the Company (Campion Homes Limited) continued to be that of constructing residential houses within the private and affordable housing markets.
Despite continued challenging conditions the company returned to profitable trading this year with a gross margin of 16.8% (FY23 9.4%). This was achieved by a steady level of private house sales in the year, continued strong activity levels within the company’s affordable housing division, the relative reduction in the impact of cost inflation on materials and labour and recovery of costs written off in previous years on prospective jobs. Turnover levels have returned to levels commensurate with the overhead base. The company has a strong balance sheet with net assets of £12.6m at 30 June 2024.
The underlying financial strength and longevity of the business, continued excellent relationships with clients and suppliers, together with the hard work and dedication of staff and subcontractors, has ensured the business has withstood the very difficult trading conditions of the previous three years and returned a good year financially.
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Operating Profit/(Loss) % | | |
For the 12 months to June 2024 gross profit increased by 122% compared with the prior year. Turnover increased by 24%. Net assets increased by £2.0m.
During the year the company progressed with its private housing developments at Oak Bank, Glenrothes and Strathearn Gait, Crieff, where sales levels remain steady in what are still challenging and competitive market areas. A total of 36 handovers were achieved in the financial year.
The company is launching a new development in the autumn of 2024 at Strathmore Meadows in Meigle, Perthshire. We also have full planning consent for our site at the Temple, Balcurvie and one further private development site at the final stages of the planning process. This will provide the company with a steady pipeline of private development sites over the coming years. The Board is monitoring closely the current market conditions of continued high interest rates, mortgage affordability and levels of homebuyer confidence as it plans ahead for the launch of future sites.
CAMPION HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Fair Review of the Business (continued)
During the year the Company handed over 93 homes to Housing Association and Local Authority clients and commenced construction on 178 homes. 260 affordable homes were under construction at the year end.
The Company continues to focus on its partnership relationships with Registered Social Landlord (RSL) clients and Local Authorities. The approach of identifying suitable land opportunities and, working with all partners, bringing them forward for development continues to strengthen these relationships. The Company also continues to bid for competitive tenders for Affordable Housing Contracts and has successfully grown its client base within the Affordable Housing market through this approach.
The Company recognises the exceptional response that all its employees, subcontractors and suppliers have given again this year. Once again the Company has demonstrated that its people and relationships and the quality of its product are integral to the success of its business. Going forward the Company will continue to recruit locally where possible to invest in the team. The Company is focused on supporting the development of young people and is proud to have provided five new apprenticeship opportunities this year across several different trades, bringing the total number of apprentices employed at the year end to 21.
Continuous improvements are being driven throughout the company on all health and safety, quality and environmental areas. During the year the Company UKAS accreditation was recertified for ISO9001 (Quality Management), ISO14001 (Environmental Management) and ISO45001 (Health and Safety Management).
The Company was extremely sad to announce the passing in June 2024 of one of the founding members of Campion Homes. Marjorie Scott was an integral member of the Campion Homes family since the company’s inception in 1989.
Principal risks and uncertainties
The Company’s financial and operational performance is subject to a number of risks and as a result the Board seeks to ensure that appropriate processes are put in place to manage, monitor and mitigate these risks. The principal risks and uncertainties facing the company are:
Resources risk
The direct and indirect labour market has eased over the last 12 months following several years of very challenging times. Certain trades and expertise however remain scarce. This environment continues to put pressure on the margins achievable on fixed price contract work and makes recruitment of high-quality labour more challenging.
The Company mitigates against this risk through regular communication with major suppliers and regular monitoring of market rates for sub-contract labour.
Internally the Company has strategies in place to continue its strong relationship with employees and maintain its historically low rate of staff turnover. These include consistent benchmarking of remuneration and reward against others in the industry and developing the workforce through training, further education, or apprenticeships. The Company utilises the Investors in People frameworks to ensure there is continuous improvement in employee engagement, learning effectiveness and organisation performance driven by the relevant accreditations. The company has introduced a long service award scheme during this financial year and was delighted to recognise a significant number of staff members who had been with the business for 10 years plus.
CAMPION HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Principal Risks and Uncertainties (continued)
Land Supply and Planning risks
Consistent with the whole housebuilding market, development of land for homes remains challenging, The extent of information available, growing number of statutory consultees and uncertainties about utility providers' capacity in Scotland are delaying the Company's ability to bring land forward for development.
The Company maintains strong relationships with key stakeholders across the land sector to ensure appropriate supply opportunities are regularly brought to the Board. As the time taken to achieve planning and the required statutory consents continues to be protracted, this is factored into all forecasts for future development and contract delivery. The risk of securing sufficient land has been reduced during FY24 by the growing supply of land owned or secured under contract by the Company.
The Company recognises the risk to land supply in the short to medium term whilst Local Development Plans are progressed through the planning process. The company has a number of land options that will be promoted for inclusion in upcoming LDPs and has taken into consideration the significant changes to the planning process.
Price and demand risk
Within its Private Housing division, the company undertakes regular reviews of market conditions, product range and pricing. Consideration is given to geographical spread to ensure the right homes are delivered for the relevant area. The principal risk in this division is a reduction in sales volumes driven by the macroeconomic environment, namely continuing higher interest rates, the availability of mortgage finance for house purchases and inflation. The Board continuously considers economic risk within this market and remains flexible to adapt plans if required. A weekly review of key trading indicators, including visitor levels, reservations and competitor activity, is undertaken.
The Company continues to mitigate against its exposure to demand risk by the spread of work between private housebuilding and social housing contracts. The Company works hard to maintain its strong partnerships with a wide variety of Housing Associations and Local Authorities, whilst actively working on expanding its client base.
The Company acknowledges that medium term planning of affordable housing developments and the resources required to build them is becoming more challenging as public funding is squeezed further. This is not a new risk and is being felt across the industry. This has been further exacerbated by the continued cuts to this area despite the Housing Emergency within Scotland.
The Company continues to work closely with its RSL and Local Authority clients to ensure its pipeline of developments are immediately ready to progress when grant funding becomes available. As a trusted family-owned business, every housing development we deliver achieves industry building standards, exceeding customer expectations in design, quality, sustainability and satisfaction.
In May 2024, the Company was delighted to be recognised as joint winner at the Homes for Scotland Awards with Kingdom Housing Association for “Development of the Year - Medium” for the 60 new homes at Primrose Street, Alloa. The development also won the “Excellence in Accessibility & Inclusion” award at the 2024 Scottish Home Awards.
Our forward-thinking approach means every house we build is designed with the future in mind. We offer cutting-edge solutions to reduce carbon footprints and ensure every house we build remain a valuable asset for its owners and for generations to come.
The company gives the highest priority to customer service, high product quality and customer satisfaction across both divisions, enhancing the strong reputation of the company.
CAMPION HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Promoting the success of the company
As Directors of the Company we have acted, and continue to act, in a way that we consider to be most likely to promote the continuing success of the Company for the benefits of its members. In doing so we have had regard, amongst other matters, to:
The likely consequences of any decision in the long term; The Directors continue to take a long-term view on the business, looking at market conditions and adapting future plans accordingly where required.
The interests of the Company’s employees; The Company is proud of its long standing, committed workforce. It invests heavily in regulatory Health and Safety training and wider training enabling all employees to develop in their roles. It offers competitive remuneration packages and has developed a wide-ranging benefits package with a variety of offerings available to all employees.
The need to foster the Company’s business relationships with suppliers, customers and others; The Company’s relationships with customers and suppliers are critical to maintaining high-quality standards that the Company prides itself on. The Company engages closely with its RSL clients to ensure their requirements are met on a partnership basis across all contracts.
The impact of the Company’s operations on the community and the environment; The Company is committed to engaging with all the communities within which it builds. It has a long history of investing in those communities and commits funds each year to support local good causes, including foodbanks, various charities and local sports teams. The Company is committed to reducing its carbon footprint utilising best working practices to enhance the environment for the future.
The desirability of the Company maintaining a reputation for high standards of business conduct; The Directors continuously review quality and safety in the workplace and ensure compliance with all main regulatory requirements.
The need to act fairly as between members of the company; The Board of Directors meet quarterly during which key strategic, operational and business risks are discussed. In addition, the Executive team meet bi-weekly to discuss and plan for key strategic and operational activities of the business.
Mr P Bell
Director
24 September 2024
CAMPION HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity continued to be that of constructing residential houses.
Results and dividends
The results for the year are set out on page 11.
No ordinary dividends were paid.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P Bell
Mr A Chalmers
Mr A Graham
Mr D Herd
Mrs S Jackson
Mrs M Scott
(Deceased 4 June 2024)
Mr J Cassie (Non Executive)
Auditor
In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
Energy and carbon report
The Company’s energy use includes purchased electricity, gas and fuel for company transport and was collated by gathering information from sites and suppliers. Meter readings were predominantly used for gas and electricity and fuel data was gathered from mileage data and fuel spend. Where actual data was not readily available, estimates have been used. The conversion factors used to calculate the emissions are those published in UK government GHG Conversion Factors for Company Reporting 2024, published June 2024.
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
64,494
58,298
- Electricity purchased
167,628
106,991
- Fuel consumed for transport
2,400,737
2,223,604
2,632,859
2,388,893
CAMPION HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
11.80
10.49
- Fuel consumed for owned transport
584.69
508.28
596.49
518.77
Scope 2 - indirect emissions
- Electricity purchased
34.71
22.16
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
26.75
28.58
Total gross emissions
657.95
569.51
Intensity ratio
tCO2 e per £m of turnover
14.62
15.66
Quantification and reporting methodology
Intensity measurement
The reporting intensity ratio used is tonnes of CO2 per £m turnover. It is considered that this provides the best representation of activity across the Company and comparison through the industry.
Measures taken to improve energy efficiency
The Company is committed to making progress to improve the environmental management of its operation and build a sustainable environment as evidenced by its ISO14001 Environmental Management System accreditation (recertified July 22 and successful annual surveillance audit June 24). The Company is also committed to embedding a culture of measurement and reporting in this area in order to drive a reduction in emissions going forward. This has been developed further this year with all sites now reporting energy consumption on a monthly basis.
It is the Company’s policy to help reduce the impact that our products have on the environment as well as reduce the direct impact of the Company’s own business activities on the environment. Recent examples of carbon reducing activities include:
- Use of air source heat pumps and electric charging points in house build;
- Completion of Net-zero homes at a development;
- Installation of EV charging points for clients in developments;
- Continued excellent uptake of EV company car scheme for eligible employees;
- Installation of site compound EV charging points;
- Extensive use of PV panels on developments;
- Highly insulated external envelope on all build;
- Use of recycled material products. Recycling of waste at Head Office and on site, where waste reports are reviewed monthly with site management and compared to target figures;
- Awaiting assessment (29th October) to become MCS accredited, which will enable Campion Homes to test and commission PV's.
- We have become a member of the RECC (Renewable Energy Consumer Code);
- Buying local where possible;
- Engineering sites for cut & fill balance;
- Purchase of timber from sustainable sources;
CAMPION HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 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 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
Mr P Bell
Director
24 September 2024
CAMPION HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMPION HOMES LIMITED
- 8 -
Opinion
We have audited the financial statements of Campion Homes Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 30 June 2024 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.
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 Auditor's 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 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
CAMPION HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMPION HOMES LIMITED (CONTINUED)
- 9 -
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 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 directors' responsibilities statement, 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.
Auditor's 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 auditor's 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was capable of detecting irregularities, including fraud
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, misstatement of work in progress, posting of unusual journals along with complex transactions and manipulating the Company’s key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, reviewed a sample of contracts focussing on cut off, tested a sample of journals to confirm they were appropriate, read minutes of Board meetings and reviewed areas of judgement for indicators of management bias to address these risks.
We reviewed areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards). Whilst the company is subject to many laws and regulations, we did not identify any others where the consequence of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.
We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
CAMPION HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMPION HOMES LIMITED (CONTINUED)
- 10 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's 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.
Alan Mitchell (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditors
Dunfermline
24 September 2024
CAMPION HOMES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
45,007,971
36,376,110
Cost of sales
(37,432,518)
(32,962,205)
Gross profit
7,575,453
3,413,905
Administrative expenses
(4,968,594)
(4,265,048)
Operating profit/(loss)
4
2,606,859
(851,143)
Interest receivable and similar income
8
90,500
35,928
Interest payable and similar expenses
9
(70,685)
(48,856)
Profit/(loss) before taxation
2,626,674
(864,071)
Tax on profit/(loss)
10
(674,505)
135,126
Profit/(loss) for the financial year
1,952,169
(728,945)
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
CAMPION HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
£
£
Profit/(loss) for the year
1,952,169
(728,945)
Other comprehensive income
-
-
Total comprehensive income for the year
1,952,169
(728,945)
CAMPION HOMES LIMITED
BALANCE SHEET
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
19,048
Tangible assets
13
1,173,086
1,340,405
Investments
14
80,100
80,100
1,253,186
1,439,553
Current assets
Stocks
17
10,192,093
8,058,622
Debtors
18
4,966,718
4,761,568
Cash at bank and in hand
7,511,600
4,128,251
22,670,411
16,948,441
Creditors: amounts falling due within one year
19
(10,558,345)
(7,051,620)
Net current assets
12,112,066
9,896,821
Total assets less current liabilities
13,365,252
11,336,374
Creditors: amounts falling due after more than one year
20
(582,449)
(470,259)
Provisions for liabilities
Deferred tax liability
23
145,549
181,030
(145,549)
(181,030)
Net assets
12,637,254
10,685,085
Capital and reserves
Called up share capital
25
1,111,300
1,111,300
Share premium account
26
97,250
97,250
Capital redemption reserve
27
726,621
726,621
Profit and loss reserves
28
10,702,083
8,749,914
Total equity
12,637,254
10,685,085
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
Mr P Bell
Director
Company registration number SC254742 (Scotland)
CAMPION HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Share premium account
Capital redemption reserve
Other reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2022
1,111,300
97,250
726,621
(2,259)
9,704,668
11,637,580
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
-
-
(728,945)
(728,945)
Dividends
11
-
-
-
-
(225,809)
(225,809)
Other movements
-
-
-
2,259
-
2,259
Balance at 30 June 2023
1,111,300
97,250
726,621
-
8,749,914
10,685,085
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
-
1,952,169
1,952,169
Balance at 30 June 2024
1,111,300
97,250
726,621
-
10,702,083
12,637,254
CAMPION HOMES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
34
3,594,577
(5,463,880)
Interest paid
(70,685)
(48,856)
Corporate taxes refunded
107,596
11,727
Net cash inflow/(outflow) from operating activities
3,631,488
(5,501,009)
Investing activities
Purchase of tangible fixed assets
(214,059)
(24,857)
Proceeds from disposal of tangible fixed assets
93,055
31,501
Interest received
90,500
35,928
Net cash (used in)/generated from investing activities
(30,504)
42,572
Financing activities
Repayment of borrowings
(271,598)
(1,492,500)
Proceeds from new bank loans
323,000
Repayment of bank loans
(71,389)
(29,955)
Payment of finance leases obligations
(197,648)
(222,274)
Dividends paid
(225,809)
Net cash used in financing activities
(217,635)
(1,970,538)
Net increase/(decrease) in cash and cash equivalents
3,383,349
(7,428,975)
Cash and cash equivalents at beginning of year
4,128,251
11,557,226
Cash and cash equivalents at end of year
7,511,600
4,128,251
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
1
Accounting policies
Company information
Campion Homes Limited is a private company limited by shares incorporated in Scotland. The registered office is Pitreavie Drive, Pitreavie Business Park, Dunfermline, Fife, KY11 8US.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Any consideration of the foreseeable future involves making a judgement, at a particular point in time, about future events which are inherently uncertain. At the date of approval of the accounts, the directors are aware of the squeeze in public funding for affordable housing developments which makes the medium term planning of these developments more challenging. The directors are actively taking all steps to mitigate any impact this may have on the company however it is difficult to assess the full implications for the company at this time. At truethe time of approving the financial statements, the directors consider that the company has adequate resources to continue in operational existence for a period of not less than twelve months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover from sale of private houses are recognised for accounts purposes when consideration is received or receivable on legal completion.
Turnover on affordable housing contracts is recognised according to the stage of completion of the contract when the outcome can be reasonably estimated.
1.4
Intangible fixed assets - goodwill
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Goodwill - 5% Straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% Straight line
Plant and machinery
25% Straight line
Fixtures, fittings & equipment
25% Straight line
Motor vehicles
25% Straight line
Tenant's Imp.
10% Straight line
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Work In Progress
The timing of revenue recognition on long-term contracts depends on the assessed stage of completion of contract activity at the balance sheet date. This assessment requires the expected total contract revenues and costs to be valued based on the current progress of the contract.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Property and land sales
44,983,063
36,350,391
Rental income
24,908
25,719
45,007,971
36,376,110
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
45,007,971
36,376,110
2024
2023
£
£
Other revenue
Interest income
90,500
35,928
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
216,237
176,769
Depreciation of tangible fixed assets held under finance leases
171,475
214,318
Profit on disposal of tangible fixed assets
(48,509)
(27,277)
Amortisation of intangible assets
19,048
19,055
Operating lease charges
88,461
89,078
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,500
21,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
37
39
Cost of sales
104
110
Total
141
149
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
6,262,259
6,089,362
Social security costs
641,841
627,907
Pension costs
306,886
212,739
7,210,986
6,930,008
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
848,294
802,024
Company pension contributions to defined contribution schemes
70,354
37,144
918,648
839,168
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Directors' remuneration
(Continued)
- 23 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
210,604
196,827
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
86,697
32,519
Other interest income
3,803
3,409
Total income
90,500
35,928
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
86,697
32,519
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
17,427
16,367
Other interest
53,258
32,489
70,685
48,856
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
706,408
Adjustments in respect of prior periods
3,578
(114,810)
Total current tax
709,986
(114,810)
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
2024
2023
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
(35,481)
(20,316)
Total tax charge/(credit)
674,505
(135,126)
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
2,626,674
(864,071)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
656,669
(216,018)
Tax effect of expenses that are not deductible in determining taxable profit
5,386
(6,819)
Tax effect of utilisation of tax losses not previously recognised
146,283
Adjustments in respect of prior years
(3,454)
Permanent capital allowances in excess of depreciation
6,291
68,459
Under/(over) provided in prior years
2,741
Deferred tax
3,418
(12,403)
Tax losses carried back
(111,174)
Taxation charge/(credit) for the year
674,505
(135,126)
11
Dividends
2024
2023
£
£
Final paid
225,809
Dividends are paid in respect of profits earned in the prior year.
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
684,310
Amortisation and impairment
At 1 July 2023
665,262
Amortisation charged for the year
19,048
At 30 June 2024
684,310
Carrying amount
At 30 June 2024
At 30 June 2023
19,048
13
Tangible fixed assets
Freehold property
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Tenant's Imp.
Total
£
£
£
£
£
£
Cost
At 1 July 2023
625,000
2,212,476
199,347
294,724
72,452
3,403,999
Additions
123,450
32,756
108,733
264,939
Disposals
(205,971)
(37,486)
(243,457)
At 30 June 2024
625,000
2,129,955
232,103
365,971
72,452
3,425,481
Depreciation and impairment
At 1 July 2023
59,375
1,572,164
163,044
226,144
42,867
2,063,594
Depreciation charged in the year
12,500
289,444
21,259
57,264
7,245
387,712
Eliminated in respect of disposals
(161,425)
(37,486)
(198,911)
At 30 June 2024
71,875
1,700,183
184,303
245,922
50,112
2,252,395
Carrying amount
At 30 June 2024
553,125
429,772
47,800
120,049
22,340
1,173,086
At 30 June 2023
565,625
640,312
36,303
68,580
29,585
1,340,405
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
306,898
504,580
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Tangible fixed assets
(Continued)
- 26 -
Freehold property land and buildings with a carrying amount of £553,125 (2023 - £565,625) have been pledged as security against the bank loan.
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
80,100
80,100
15
Subsidiaries
The subsidiary company is a small dormant company. Under s405 (2) of the Companies Act 2006, there is no requirement to produce group accounts.
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Campion Homes Holdings Limited
Scotland
Ordinary
100.00
16
Financial instruments
Financial assets includes trade debtors, other debtors and cash at bank, however excludes work in progress.
Financial liabilities includes trade creditors, accruals, hire purchase creditors and other loans.
17
Stocks
2024
2023
£
£
Work in progress
9,877,093
8,058,622
Finished goods and goods for resale
315,000
10,192,093
8,058,622
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,756,483
3,833,374
Corporation tax recoverable
111,175
Other debtors
1,210,235
817,019
4,966,718
4,761,568
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
19
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
21
46,377
337,962
Obligations under finance leases
22
139,604
159,384
Other borrowings
21
32,420
Trade creditors
1,935,526
1,455,679
Amounts owed to group undertakings
80,100
80,100
Corporation tax
706,407
Other taxation and social security
291,315
245,032
Accruals and deferred income
7,326,596
4,773,463
10,558,345
7,051,620
20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
21
271,598
Obligations under finance leases
22
137,024
264,012
Other borrowings
21
173,827
206,247
582,449
470,259
21
Loans and overdrafts
2024
2023
£
£
Bank loans
317,975
337,962
Preference shares
32,420
32,420
Other loans
173,827
173,827
524,222
544,209
Payable within one year
78,797
337,962
Payable after one year
445,425
206,247
Other loans include director Peter Bell's loan notes of £173,827 (2023 - £173,827) are repayable on demand, with interest payable at a rate of 11.5%.
The bank loan is secured over Communications House, Pitreavie Drive, Dunfermline. The bank loan was re-financed in the year and is repayable over 10 years. Interest is charged at 2.5% over base rate.
Preference shares represent non-equity interests stated at par value. The shares are redeemable, have priority over ordinary shares in the event of winding up and have no voting rights.
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
22
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
139,604
159,416
In two to five years
137,024
263,980
276,628
423,396
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
23
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
145,549
181,030
2024
Movements in the year:
£
Liability at 1 July 2023
181,030
Credit to profit or loss
(35,481)
Liability at 30 June 2024
145,549
The deferred tax liability set out above is expected to reverse within 36 months and relates to accelerated capital allowances that are expected to mature within the same period.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
306,886
212,739
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
100,100
100,100
100,100
100,100
Ordinary 'B' shares of £1 each
20,000
20,000
20,000
20,000
Ordinary 'C' shares of £1 each
3,000
3,000
3,000
3,000
123,100
123,100
123,100
123,100
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
12.5% Cumulative preference shares of £1 each
988,200
988,200
988,200
988,200
Preference shares classified as equity
988,200
988,200
Total equity share capital
1,111,300
1,111,300
26
Share premium account
2024
2023
£
£
At the beginning and end of the year
97,250
97,250
27
Capital redemption reserve
2024
2023
£
£
At the beginning and end of the year
726,621
726,621
28
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
8,749,914
9,704,668
Profit/(loss) for the year
1,952,169
(728,945)
Dividends declared and paid in the year
-
(225,809)
At the end of the year
10,702,083
8,749,914
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
29
Contingent liabilities
As previously disclosed, in July 2023 an incident occurred at one of our sites which resulted in one employee sustaining injuries. This incident is subject to an ongoing investigation however it is too early to assess if there will be a financial impact on the company.
Standard securities have been granted to the vendor over certain land which has been acquired for development.
30
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
1,236
2,786
Between two and five years
331,331
404,428
In over five years
17,848
60,685
350,415
467,899
Lessor
The company rents out part of Communications House to a tenant. Rental and service charge income earned during the year amounted to £24,911 (2023 - £24,911).
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Between two and five years
58,125
80,625
31
Events after the reporting date
Since the year end the company purchased back redeemable preference shares in the amount of £32,420. The company is also currently in negotiation to buy back A and B shares held by the Executors of the late Mrs M Scott. Due to the early stages of discussion, it is not appropriate to disclose the buy back price.
32
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, who are also directors, is as follows.
2024
2023
£
£
Aggregate compensation
960,252
885,828
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
32
Related party transactions
(Continued)
- 31 -
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Key management personnel
2,704
1,042
88,461
88,461
During the year, the company provided goods and services to directors on commercial terms of £2,704 (2023 - £1,042).
The company paid rental of £88,461 (2023 - £88,461) for its head office property which is owned by director, Peter Bell. At the year end, £26,700 (2023 - £28,999) was included in creditors due less than one year.
Included in creditors greater than one year is £173,827 (2023 - £173,827) due to a director.
33
Ultimate controlling party
For the two years ended 30 June 2024, director Peter Bell, controlled the company by virtue of a controlling interest of 99.9% of the issued 'A' ordinary share capital.
34
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit/(loss) for the year after tax
1,952,169
(728,945)
Adjustments for:
Taxation charged/(credited)
674,505
(135,126)
Finance costs
70,685
48,856
Investment income
(90,500)
(35,928)
Gain on disposal of tangible fixed assets
(48,509)
(27,277)
Amortisation and impairment of intangible assets
19,048
19,055
Depreciation and impairment of tangible fixed assets
387,712
391,087
Movements in working capital:
Increase in stocks
(2,133,471)
(3,518,691)
(Increase)/decrease in debtors
(316,325)
852,470
Increase/(decrease) in creditors
3,079,263
(2,329,381)
Cash generated from/(absorbed by) operations
3,594,577
(5,463,880)
CAMPION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
35
Analysis of changes in net funds
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
4,128,251
3,383,349
-
7,511,600
Borrowings excluding overdrafts
(544,209)
19,987
-
(524,222)
Obligations under finance leases
(423,396)
197,648
(50,880)
(276,628)
3,160,646
3,600,984
(50,880)
6,710,750
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