Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31truetruetruetruetrue02023-04-01falseHousing company working to create homes and places where people want to live0truetruefalse 09805670 2023-04-01 2024-03-31 09805670 2022-04-01 2023-03-31 09805670 2024-03-31 09805670 2023-03-31 09805670 c:Director1 2023-04-01 2024-03-31 09805670 d:FreeholdInvestmentProperty 2023-04-01 2024-03-31 09805670 d:FreeholdInvestmentProperty 2024-03-31 09805670 d:FreeholdInvestmentProperty 2023-03-31 09805670 d:FreeholdInvestmentProperty 2 2023-04-01 2024-03-31 09805670 d:CurrentFinancialInstruments 2024-03-31 09805670 d:CurrentFinancialInstruments 2023-03-31 09805670 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 09805670 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 09805670 d:RevaluationReserve 2023-04-01 2024-03-31 09805670 d:RevaluationReserve 2024-03-31 09805670 d:RevaluationReserve 2023-03-31 09805670 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 09805670 d:RetainedEarningsAccumulatedLosses 2024-03-31 09805670 d:RetainedEarningsAccumulatedLosses 2023-03-31 09805670 d:AcceleratedTaxDepreciationDeferredTax 2024-03-31 09805670 d:AcceleratedTaxDepreciationDeferredTax 2023-03-31 09805670 c:FRS102 2023-04-01 2024-03-31 09805670 c:Audited 2023-04-01 2024-03-31 09805670 c:FullAccounts 2023-04-01 2024-03-31 09805670 c:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 09805670 d:WithinOneYear 2024-03-31 09805670 d:WithinOneYear 2023-03-31 09805670 c:SmallCompaniesRegimeForAccounts 2023-04-01 2024-03-31 09805670 5 2023-04-01 2024-03-31 09805670 f:PoundSterling 2023-04-01 2024-03-31 iso4217:GBP xbrli:pure

Registered number: 09805670
















NOTTINGHAM CITY HOMES ENTERPRISES LIMITED




FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 MARCH 2024


































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NOTTINGHAM CITY HOMES ENTERPRISES LIMITED
REGISTERED NUMBER:09805670

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Investment property
 4 
18,835
24,030

  
18,835
24,030

Current assets
  

Debtors: amounts falling due within one year
 5 
40
62

Cash at bank and in hand
 6 
921
419

  
961
481

Creditors: amounts falling due within one year
 7 
(15,357)
(19,581)

Net current liabilities
  
 
 
(14,396)
 
 
(19,100)

Total assets less current liabilities
  
4,439
4,930

Provisions for liabilities
  

Deferred tax
 10 
(913)
(1,210)

Net assets
  
 
 
3,526
 
 
3,720


Capital and reserves
  

Revaluation reserve
 12 
3,610
4,800

Profit and loss account
 12 
(84)
(1,080)

  
3,526
3,720


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the income statement in accordance with 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: 

Madeleine Foster
Director

Date: 24 September 2024

The notes on pages 2 to 8 form part of these financial statements.
Page 1


NOTTINGHAM CITY HOMES ENTERPRISES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Nottingham City Homes Enterprises Limited (the Company or NCHEL) is a limited company domiciled and incorporated in England in the United Kingdom. The address of the Company's registered office and principal place of business is disclosed on page 1. The Company's principal activities and the nature of the Company's operations are set out in the Directors' report.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

Monetary amounts in these financial statements are rounded to the nearest whole £1,000, except where otherwise indicated. 

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Nottingham City Homes Limited as at 31 March 2024 and these financial statements may be obtained from Companies House.

Page 2


NOTTINGHAM CITY HOMES ENTERPRISES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Going concern

On 11 May 2022, the Council formally issued a notification of termination of the partnership agreement with Nottingham City Homes Limited (NCH) that triggered the transfer of the management of the Council’s housing stock back. This occurred on 1 April 2023. 
NCH Enterprises Limited (NCHEL or the Company) is a for-profit subsidiary of NCH. Its business interests are primarily concerned with the direct letting, management and maintenance of homes for market rent in Nottingham and delivering an operating surplus back to the NCH Group to assist in the delivery of the aims and objectives of the NCH Corporate Plan.
From the start of 2023/24, NCHEL has commenced a process of asset disposal as part of the solution to the repayment of HRA Surplus Funds invested within the NCH group of companies. NCC will continue to offer the necessary financial support (including the deferral of loan repayments) to NCHEL and the wider group to ensure they remain cash solvent during this period of asset disposal.
As a result of the disposal of all the properties within NCHEL, it is the Directors' intention the Company will cease to trade and be wound up. The Board of NCHEL have therefore approved that the accounts are prepared on a basis other than going concern. On the basis that the investment properties are held at a market value, the Directors have determined there to be no change in the valuation of assets associated with this basis of accounting.

 
2.4

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:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

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.

 
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

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 3


NOTTINGHAM CITY HOMES ENTERPRISES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.9

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.10

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
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.

Page 4


NOTTINGHAM CITY HOMES ENTERPRISES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
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.


3.


Employees

The Company has no employees, with the directors on separate Board Member contracts (2023: none).


4.


Investment property


Freehold investment property

£000



VALUATION


At 1 April 2023
24,030


Disposals
(5,330)


Surplus on revaluation
135



AT 31 MARCH 2024
18,835

The 2024 valuations were made by heb Surveyors (Nottingham) LLP, on an open market value for existing use basis. The valuations were performed as at year-end at 31 March 2024.






5.


Debtors

2024
2023
£000
£000


Trade debtors
3
31

Amounts owed by group undertakings
37
31

40
62


Page 5


NOTTINGHAM CITY HOMES ENTERPRISES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Cash and cash equivalents

2024
2023
£000
£000

Cash at bank and in hand
921
419



7.


Creditors: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024
2023
£000
£000

Intercompany loans due within 1 year
14,516
18,606

Trade creditors
11
1

Amounts owed to group undertakings
606
797

Corporation tax
178
-

Other taxation and social security
-
32

Accruals and deferred income
46
145

15,357
19,581



8.


Creditors: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR





9.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£000
£000

AMOUNTS FALLING DUE WITHIN ONE YEAR

Intercompany loans due within 1 year
14,516
18,606


Annuity loans from Nottingham City Council (NCC) are repayable over 40 years with interest set at fixed rates between 4.58% and 4.94%. Loan principal and accrued interest on the outstanding balances are repaid every 6 months. Borrowings are secured against the Investment Properties of the Company.
The loans are recognised as falling due within one year as the Company has prepared its financial statements on a basis other than going concern.



 

Page 6


NOTTINGHAM CITY HOMES ENTERPRISES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Deferred taxation




2024


£000






At beginning of year
(1,210)


Charged to profit or loss
297



AT END OF YEAR
(913)

The provision for deferred taxation is made up as follows:

2024
2023
£000
£000


Accelerated capital allowances
(913)
(1,210)

(913)
(1,210)


11.


Share capital and Reserves


The Company is limited by Ordinary share capital. The class of shareholding is two 1p ordinary shares. 



12.


Reserves

Revaluation reserve

This reserve is used for revalued investment properties in order to track what element remains non-distributable.

Profit and loss account

This reserve includes all current and prior period retained profits and losses.


13.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£000
£000


Not later than 1 year
44
43

44
43

Lease commitments relate to the provision of 10 units of accommodation on Forest Road West by Nottingham City Homes Limited (NCH).

Page 7


NOTTINGHAM CITY HOMES ENTERPRISES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Related party transactions

The Company has related party transactions with NCH, Nottingham City Homes Registered Providers Limited (NCHRP) and Nottingham City Council (NCC). NCH provides lease properties to NCHEL and the charge during the year was £43k (2022/23: £354k which included housing management costs now provided by NCC). NCHEL received lease income of £285k from NCHRP in year (2022/23: £280k). NCC provide a variety of services to NCHEL, such as housing management and support services as well as loans and the charge during the year was £1,565k.
The outstanding balances as at 31 March 2024 are:


2024
NCH
 £000
2023
NCH
£000
2024
NCC
£000
2023
NCC
£000
Trade and other debtors
-
-
38
45
Trade and other creditors
(480)
(369)
(124)
(473)
Intercompany loans (due within 1 year)
-
-
(14,516)
(18,606)
(480)
(369)
(14,602)
(19,034)


15.


Controlling party

The Company is wholly owned by Nottingham City Homes Limited.
The ultimate parent undertaking is Nottingham City Council.


16.


Auditors' information

The auditors' report on the financial statements for the year ended 31 March 2024 was unqualified.

In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to Note 2.3 to the financial statements which explains that the directors intend to liquidate the Company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 2.3. Our opinion is not modified in respect of this matter.

The audit report was signed on 4 October 2024 by Nathan Coughlin FCA (Senior statutory auditor) on behalf of Bishop Fleming LLP.

 
Page 8