REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 31 May 2024 |
for |
Hayhill Developments Ltd |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
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 |
CURRENT ASSETS |
Stock and work in progress | 5 |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 8 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Retained earnings | ( |
) | ( |
) |
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 |
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 |
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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
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 |
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 |
Additions |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
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 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Amounts recoverable on contracts |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 9) |
Trade creditors |
Taxation and social security |
Other creditors |
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) |
9. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |