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REGISTERED NUMBER: 05650127 (England and Wales)















Unaudited Financial Statements for the Year Ended 31 May 2024

for

Hayhill Developments Ltd

Hayhill Developments Ltd (Registered number: 05650127)






Contents of the Financial Statements
for the Year Ended 31 May 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Hayhill Developments Ltd

Company Information
for the Year Ended 31 May 2024







DIRECTORS: S J Crane
I H Gibson





SECRETARY: D F Campbell





REGISTERED OFFICE: 61 Bridge Street
Kington
Herefordshire
HR5 3DJ





REGISTERED NUMBER: 05650127 (England and Wales)





ACCOUNTANTS: Jeffrey Crawford & Co
Chartered Accountants
25 Castle Terrace
Edinburgh
EH1 2ER

Hayhill Developments Ltd (Registered number: 05650127)

Balance Sheet
31 May 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 247,476 245,803

CURRENT ASSETS
Stock and work in progress 5 3,918,335 2,137,267
Debtors 6 3,712,580 3,790,931
Cash at bank 690,030 519,894
8,320,945 6,448,092
CREDITORS
Amounts falling due within one year 7 7,675,030 5,852,625
NET CURRENT ASSETS 645,915 595,467
TOTAL ASSETS LESS CURRENT
LIABILITIES

893,391

841,270

CREDITORS
Amounts falling due after more than one year 8 (101,889 ) (124,041 )

PROVISIONS FOR LIABILITIES (45,742 ) (22,205 )
NET ASSETS 745,760 695,024

CAPITAL AND RESERVES
Called up share capital 2,300,204 2,300,204
Share premium 59,819 59,819
Retained earnings (1,614,263 ) (1,664,999 )
745,760 695,024

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Hayhill Developments Ltd (Registered number: 05650127)

Balance Sheet - continued
31 May 2024


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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2024 and were signed on its behalf by:





S J Crane - Director


Hayhill Developments Ltd (Registered number: 05650127)

Notes to the Financial Statements
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

Hayhill Developments Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The company made a profit of £50,736 (2023: loss of £1,728,827) and had year end net assets of £745,760 (2023: £695,024). Net current assets are £645,915 (2023: £595,467). The company has invested in systems to improve cost control and budgeting with the continued emphasis on completing existing projects before starting new projects in response to the economic downturn and unpredictable sales has turned the company round to a profit making position again.

In the prior year the directors critically reviewed the carrying value of work in progress in response to the market downturn due to increased post covid cost of materials and rise in interest rates to provide fully for anticipated irrecoverable costs which resulted in the significant loss being recognised in the previous year.

The company is dependent upon the continued financial support of the majority shareholder and director through a related company cash investment to continue in operational existence for the foreseeable future. The directors believe, after reviewing the company's forecasts and projections that there are adequate resources available and the company therefore continues to adopt the going concern basis in preparing its financial statements.

The financial statements do not include any adjustments that would be required if the company was unable to continue as a going concern.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Significant judgement is required in determining the stage of completion, the extent of cost incurred, the estimated future revenue and cost, as well as the recoverability of work in progress. Any costs which are deemed to be in excess of recoverable amounts are charged to expenses in the year.The directors have used their experience and knowledge of the market, current market conditions and detailed recording of costs to assess the value and future recoverability of stocks and work in progress.

Revenue
Revenue represents the amounts (excluding VAT) derived from the sale of new homes. Revenue from home sales represents the selling price of the unit and is recognised on legal completion and receipt of cash or, where a sales contract is in place, in line with the stage of completion.

Hayhill Developments Ltd (Registered number: 05650127)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Tenant improvements - 40% on cost
Plant and machinery - 25% to 33% on cost

Impairment of tangible fixed assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

Stock and work in progress
Stock is valued at the lower of cost and net realisable value.
Cost includes all labour, purchase, and direct costs in bringing stock to its location and condition.
Contract work in progress is shown within debtors as amounts recoverable on contract and is stated at cost incurred plus attributable profit after deducting foreseeable losses and payments on account not matched with revenue. Where payments on account exceed the value of work certified at the balance sheet date, this is shown within other creditors.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, directors loan and bank loan.

Directors' loan (being repayable on demand), related parties' loans which attract a 5% interest per anum and trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Other operating income
Other income relates to government grants and finance interest.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 23 (2023 - 25 ) .

Hayhill Developments Ltd (Registered number: 05650127)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

4. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 June 2023 176,108 27,773 178,010 30,281 412,172
Additions 34,725 68,489 - 3,325 106,539
At 31 May 2024 210,833 96,262 178,010 33,606 518,711
DEPRECIATION
At 1 June 2023 81,944 26,431 34,930 23,064 166,369
Charge for year 49,768 9,221 40,023 5,854 104,866
At 31 May 2024 131,712 35,652 74,953 28,918 271,235
NET BOOK VALUE
At 31 May 2024 79,121 60,610 103,057 4,688 247,476
At 31 May 2023 94,164 1,342 143,080 7,217 245,803

Included within Motor Vehicles are assets held under hire purchase agreements and finance leases. The cost of these assets is £160,095 (2023: £160,095) and accumulated depreciation of £34,030 (2023: £17,015). Depreciation charged in the year was £17,015 (2023: £17,015).

5. STOCK AND WORK IN PROGRESS
2024 2023
£    £   
Work-in-progress 3,918,335 2,137,267

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Amounts recoverable on contracts 3,210,330 3,356,351
Other debtors 502,250 434,580
3,712,580 3,790,931

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 9) 22,152 22,535
Trade creditors 1,593,108 390,846
Taxation and social security 51,888 33,821
Other creditors 6,007,882 5,405,423
7,675,030 5,852,625

Hayhill Developments Ltd (Registered number: 05650127)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Included in other creditors is a loan of £4,450,000 (2023: £3,575,000) from Castle Operations Ltd, a company controlled by the majority shareholder and director of Hayhill Developments Ltd. This loan is unsecured, repayable on demand and interest is charged at base plus 3.5% per annum. Capital repayments are made from a share of the property sales proceeds. In addition a loan of £1,165,148 (2023: £834,762) from the related company pension scheme was advanced is secured against the assets of the company, interest is payable at 8.24% per annum.

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Hire purchase contracts (see note 9) 101,889 124,041

9. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 22,152 22,535
Between one and five years 101,889 124,041
124,041 146,576