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Registered number: 06362844










Pentland Homes (Holdings) Limited










Annual Report and Financial Statements

For the Year Ended 31 January 2024

 
Pentland Homes (Holdings) Limited
 

Company Information


Directors
P N Tory 
J N Tory 
P J Rosbrook 




Company secretary
P J Rosbrook



Registered number
06362844



Registered office
The Estate Office
Canterbury Road, Etchinghill

Folkestone

Kent

CT18 8FA




Independent auditors
Kreston Reeves LLP
Chartered Accountants & Statutory Auditor

37 St Margaret's Street

Canterbury

Kent

CT1 2TU




Bankers
Lloyds Bank Plc
43 Sandgate Road

Folkestone

Kent

CT20 1RZ




Solicitors
Knights
34 Pocklington Walk

Leicester

Leicestershire

LE1 6BU





 
Pentland Homes (Holdings) Limited
 

Contents



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 6
Independent Auditors' Report
 
7 - 10
Consolidated Statement of Comprehensive Income
 
11
Consolidated Balance Sheet
 
12
Company Balance Sheet
 
13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16
Notes to the Financial Statements
 
17 - 38


 
Pentland Homes (Holdings) Limited
 

Group Strategic Report
For the Year Ended 31 January 2024

Introduction
 
The directors present their strategic report for the year ended 31 January 2024. 

Business review
 
The main activity of the group was the building of new housing in the Southeast of England.
Pentland Homes (Holdings) Limited have traditionally had a large presence in East Kent, and this will continue to be a key area for the group. The new management teams have plans to further expand the group westwards into the wider Kent Market.
Planning delays have had the biggest impact on the results of the group with under resourced local authorities and continuing government tinkering failing to resolve the fundamental shortage of new homes in the country.
The new management team took the decision to standardise the product range and replan 3 consented sites. These consents took far longer than anticipated and site starts were considerably delayed as a result.
The replanned sites have now commenced and should see the group returning to profit in the new financial year with a significant upturn in profitability forecast in the following year.
In addition to planning delays, the weakening of the housing market has also contributed to these losses with slower sales rates and some reductions in prices impacting on margins.
The replanned sites have commenced and will see the business return to profitability in the financial year ended 31st January 2025 with a significant upturn in profitabilty in the year ended 31st January 2026.
There are improvements being seen in the housing market, inflation is heading in the right direction and the expectations of a summer 2024 reduction in interest rate remains. 
We have commenced construction on 3 new developments (89 units) in the year with plans to start a further 3 in the second half of 2024 (252 units). These will give a sound base to increase turnover and improve profitability.
Our land bank with associated companies totals 2,956 units. This is an Increase of 206 units in the year.
The Directors are positive about the future growth of the business. There are improvements being seen in the housing market as inflation is getting under control along with the expectation that interest rates will start to fall later in 2024.
 
Page 1

 
Pentland Homes (Holdings) Limited
 

Group Strategic Report (continued)
For the Year Ended 31 January 2024


Key Financial Performance Indicators
ole2ee4.png
The  balance  sheet  remains  strong  with  Shareholders  funds  at  £29m. 
Retention  and  development  of  staff  is  extremely  important  to  the  business,  We  have  completed  the  rollout  of  a market  leading  incentive  package  that  will  help  us  retain  and  attract  the  best  people  in  our  industry.  We  are  also implementing  a  management  development  programme  for  our  middle  managers. 
The  Directors  are  positive  about  the  future  growth  of  the  group.  There  are  improvements  being  seen  in  the housing  market  as  inflation  is  getting  under  control along  with  the  expectation  that  interest  rates  will  start  to  fall later  in  2024. 

Principal risks and uncertainties
 
There  are  signs  of  improvement  in  the  economy  that  should  see  the  demand  for  housing  improving  in  the  next year. The  biggest  impact  on  the  company’s  results  was  the  lack  of  supply  brought  on  by  planning  delays. The commencement  of  the  new  sites  will  reduce  this  risk  and  improve  the  profitability  of  the  business. 
The  group  builds  good  quality  housing  that  remains  in  short  supply  in  the  Southeast  and  we  are  confident  that there  will  remain  a  demand  for  this.  There  are  currently  4  sites  in  build  with  3  new  sites  due  to  commence  in  the next  year.  The  new  sites  benefit  from  outline  planning  permissions  but  are  awaiting  reserved  matters  approvals. 
Interest Rate Risk
At  the  time  of  writing  the  group  had  drawn  £14m  under  its  £25m  Revolving  Credit  Facility  (RCF)  with  Lloyds Bank.  In  June  2022  the  directors  took  the  decision  to  enter  into  an  interest  rate  cap  for  £10m  at  a  SONIA  rate  of 4%.  The  directors  are  satisfied  that  this  provides  adequate  protection  against  future  interest  rate  rises. 
Liquidity Risk
The  group  is  well  funded  with  a  strong  balance  sheet  with  shareholder  funds  at  £29m  and  a  market  leading  RCF (Revolving  Credit  Facility)  from  Lloyds  Bank.  This  leaves  it  in  a  strong  capital  position  to  deal  with  any  downturn in  the  market  and  sufficient  capital  to  pursue  new  land  opportunities. 

Page 2

 
Pentland Homes (Holdings) Limited
 

Group Strategic Report (continued)
For the Year Ended 31 January 2024

Directors' statement of compliance with duty to promote the success of the Group
 
Directors have acted and continue to act in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: 
a) the likely consequences of any decision in the long term, 
b) the interests of the Group's employees, 
c) the need to foster the Group's business relationships with suppliers, customers and others, 
d) the impact of the Group's operations on the community and the environment, 
e) the desirability of the Group maintaining a reputation for high standards of business conduct, and 
f) the need to act fairly as between members of the Group. 
In doing so, the directors have encouraged good relationships with all of its stakeholders, and in particular: 
 
with local communities during the planning stages of new developments, holding meetings to encourage contributions from local authorities, parish councils and the public;
with local charities both directly and through the associated charitable foundation, to contribute to their valuable work; 
with contractors on sites to ensure that the works have as little impact on local residents as practicable, with favourable responses both from the residents and the Considerate Contractors Scheme inspectors. Quarterly newsletters and information boards are provided for the larger sites;
with the local environment, maintaining "exceptional environmental policies, procedures and ecology measures" during pre-commencement, development and after the sites have been occupied, through the various site management companies;
with customers, as the Group strives for excellence during the purchase process, at the time of occupation and afterwards through its customer care relationships. 

The Group is very aware of the valued contribution made by all of its staff and its contractors, and the directors ensure the highest levels of management commitment to encourage health, safety, skill and enthusiasm throughout the workforce. 


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



J N Tory
Director
Date: 11 July 2024

Page 3

 
Pentland Homes (Holdings) Limited
 

 
Directors' Report
For the Year Ended 31 January 2024

The directors present their report and the financial statements for the year ended 31 January 2024.

Directors' responsibilities statement

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

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


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

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Group in the year under review was that of the development and sale of residential property.

Results and dividends

The loss for the year, after taxation, amounted to £2,631,832 (2023 - loss £1,601,925).

The directors did not recommend a final dividend for the year (2023: £500,000).

Directors

The directors who served during the year were:

P N Tory 
J N Tory 
P J Rosbrook 

Political contributions

The Group made no political donations in the period. 

Future developments

The Group has built up a land bank that will provide an increasing number of house sales in the future. Planning permission has been achieved for many existing owned sites, but the directors will consider purchasing new parcels of land for prompt development. 

Page 4

 
Pentland Homes (Holdings) Limited
 

 
Directors' Report (continued)
For the Year Ended 31 January 2024

Financial instruments

The Group has the benefit of an interest rate hedge contract to protect against significant interest rate increases.

Research and development activities

The Group continues to investigate alternative methods of construction, for improved build quality and efficiency
of construction processes. 
Going concern 
The activities of the Group and the factors that are likely to affect its future development, financial position and
risk management objectives are described in the Strategic Report. 
The Group has considerable financial resources and access to further funding, and the directors consider that the Group is in a strong position to manage its business risks and to take advantage of the market conditions in the house building industry. Consequently they continue to adopt the going concern basis in preparing the annual report and accounts. 
The directors have reviewed the Group's business and consider that there are no liabilities that have not been
shown in the balance sheet. 

Engagement with suppliers, customers and others

Engagement with suppliers, customers and other other stakeholders is explained in the strategic report. 

Matters covered in the Group Strategic Report

Items required under Sch. 7 to be disclosed in the directors' report are set out in the strategic report in accordance with s.414C(11) CA 2006. 

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption are as follows: 


2024

UK energy used kWh
163,305

Associated greenhouse gas emissions (in tonnes of CO2 equivalent)
34,229

The GHG Reporting Protocol - Corporate Standard Methodology was used to calculate the group's emissions and energy consumption. 

Intesity ratio: Emissions per £ of sales revenue - 612.

During the year the group took action to replace the majority of our diesel company vehicles with fully electric and hybrid vehicles. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

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

Page 5

 
Pentland Homes (Holdings) Limited
 

 
Directors' Report (continued)
For the Year Ended 31 January 2024


Auditors

The auditorsKreston Reeves LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





J N Tory
Director
Date: 11 July 2024

Page 6

 
Pentland Homes (Holdings) Limited
 

 
Independent Auditors' Report to the Members of Pentland Homes (Holdings) Limited
 

Opinion


We have audited the financial statements of Pentland Homes (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 January 2024 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent 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.


Page 7

 
Pentland Homes (Holdings) Limited
 

 
Independent Auditors' Report to the Members of Pentland Homes (Holdings) Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
Pentland Homes (Holdings) Limited
 

 
Independent Auditors' Report to the Members of Pentland Homes (Holdings) Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Discussions with management and assessment of known or suspected instances of non-compliance 
         with laws and regulations and fraud; and
• Assessment of identified fraud risk factors; and
• Challenging assumptions and judgements made by management in its significant accounting estimates;
         and
• Performing analytical procedures to identify any unusual or unexpected relationships, including related
          party transactions, that may indicate risks of material misstatement due to fraud; and
• Confirmation of related parties with management, and review of transactions throughout the period to
         identify any previously undisclosed transactions with related parties outside the normal course of business;
         and
• Reading minutes of meetings of those charged with governance, reviewing internal audit reports
          and reviewing correspondence with relevant tax and regulatory authorities; and
• Review of internal controls and physical inspection of tangible assets susceptible to fraud or irregularity;
         and
• Review of significant and unusual transactions and evaluation of the underlying financial
         rationale supporting the transactions; and
• Identifying and testing journal entries, in particular any manual entries made at the year end for 
         financial statement preparation.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
 
Page 9

 
Pentland Homes (Holdings) Limited
 

 
Independent Auditors' Report to the Members of Pentland Homes (Holdings) Limited (continued)




As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Mark Attwood FCCA (Senior Statutory Auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Canterbury

12 July 2024
Page 10

 
Pentland Homes (Holdings) Limited
 

Consolidated Statement of Comprehensive Income
For the Year Ended 31 January 2024

2024
2023
Note
£
£

  

Turnover
 4 
20,933,398
51,451,089

Cost of sales
  
(18,309,802)
(45,822,162)

Gross profit
  
2,623,596
5,628,927

Administrative expenses
  
(4,597,851)
(3,806,527)

Exceptional administrative expenses
 14 
-
(2,466,919)

Other operating income
 5 
6,060
-

Operating loss
 6 
(1,968,195)
(644,519)

Interest receivable and similar income
 10 
-
60,357

Interest payable and similar expenses
 11 
(868,868)
(654,536)

Loss before taxation
  
(2,837,063)
(1,238,698)

Tax on loss
 12 
205,231
(363,227)

Loss for the financial year
  
(2,631,832)
(1,601,925)

  

Total comprehensive income for the year
  
(2,631,832)
(1,601,925)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(2,631,832)
(1,601,925)

  
(2,631,832)
(1,601,925)

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 17 to 38 form part of these financial statements.

Page 11

 
Pentland Homes (Holdings) Limited
Registered number: 06362844

Consolidated Balance Sheet
As at 31 January 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
381,925
16,359

Tangible assets
 16 
1,413,083
1,456,915

  
1,795,008
1,473,274

Current assets
  

Stocks
 18 
43,688,867
31,894,754

Debtors: amounts falling due within one year
 19 
2,417,627
4,788,760

Cash at bank and in hand
 20 
2,008,303
4,788,115

  
48,114,797
41,471,629

Creditors: amounts falling due within one year
 21 
(20,523,736)
(10,995,374)

Net current assets
  
 
 
27,591,061
 
 
30,476,255

Total assets less current liabilities
  
29,386,069
31,949,529

Provisions for liabilities
  

Deferred taxation
 24 
(248,855)
(181,232)

Other provisions
 25 
(73,410)
(72,661)

  
 
 
(322,265)
 
 
(253,893)

Net assets
  
29,063,804
31,695,636


Capital and reserves
  

Called up share capital 
 26 
15,664
15,664

Share premium account
  
3,309,814
3,309,814

Profit and loss account
  
25,738,326
28,370,158

Equity attributable to owners of the parent Company
  
29,063,804
31,695,636

  
29,063,804
31,695,636


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




J N Tory
Director
Date: 11 July 2024

The notes on pages 17 to 38 form part of these financial statements.

Page 12

 
Pentland Homes (Holdings) Limited
Registered number: 06362844

Company Balance Sheet
As at 31 January 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 17 
15,674
15,674

  
15,674
15,674

Current assets
  

Debtors: amounts falling due after more than one year
 19 
2,621,963
2,626,793

Debtors: amounts falling due within one year
 19 
1,464
150

Cash at bank and in hand
 20 
92,013
93,915

  
2,715,440
2,720,858

Creditors: amounts falling due within one year
 21 
(150,696)
(150,696)

Net current assets
  
 
 
2,564,744
 
 
2,570,162

Total assets less current liabilities
  
2,580,418
2,585,836

  

  

Net assets
  
2,580,418
2,585,836


Capital and reserves
  

Called up share capital 
 26 
15,664
15,664

Profit and loss account brought forward
  
2,570,172
5,428,666

Loss for the year
  
(5,418)
(2,358,494)

Other changes in the profit and loss account

  

-
(500,000)

Profit and loss account carried forward
  
2,564,754
2,570,172

  
2,580,418
2,585,836


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




J N Tory
Director
Date: 11 July 2024

The notes on pages 17 to 38 form part of these financial statements.

Page 13

 
Pentland Homes (Holdings) Limited
 

Consolidated Statement of Changes in Equity
For the Year Ended 31 January 2024


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£


At 1 February 2022
15,664
3,309,814
30,472,083
33,797,561
33,797,561



Loss for the year
-
-
(1,601,925)
(1,601,925)
(1,601,925)

Dividends: Equity capital
-
-
(500,000)
(500,000)
(500,000)



At 1 February 2023
15,664
3,309,814
28,370,158
31,695,636
31,695,636



Loss for the year
-
-
(2,631,832)
(2,631,832)
(2,631,832)


At 31 January 2024
15,664
3,309,814
25,738,326
29,063,804
29,063,804


The notes on pages 17 to 38 form part of these financial statements.

Page 14

 
Pentland Homes (Holdings) Limited
 

Company Statement of Changes in Equity
For the Year Ended 31 January 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2022
15,664
5,428,666
5,444,330



Loss for the year
-
(2,358,494)
(2,358,494)

Dividends: Equity capital
-
(500,000)
(500,000)



At 1 February 2023
15,664
2,570,172
2,585,836



Loss for the year
-
(5,418)
(5,418)


At 31 January 2024
15,664
2,564,754
2,580,418


The notes on pages 17 to 38 form part of these financial statements.

Page 15

 
Pentland Homes (Holdings) Limited
 

Consolidated Statement of Cash Flows
For the Year Ended 31 January 2024

2024
2023
£
£

Cash flows from operating activities

Loss for the financial year
(2,837,063)
(1,238,698)

Adjustments for:

Amortisation of intangible assets
14,610
861

Depreciation of tangible assets
292,660
231,086

Loss on disposal of tangible assets
(4,792)
(78,210)

Interest paid
868,868
654,536

Interest received
-
(60,357)

(Increase)/decrease in stocks
(11,794,113)
5,192,823

Decrease/(increase) in debtors
2,450,566
(509,431)

Increase/(decrease) in creditors
4,448,929
(3,385,800)

Increase in provisions
749
72,661

Corporation tax received
272,854
-

Net cash generated from operating activities

(6,286,732)
879,471


Cash flows from investing activities

Purchase of intangible fixed assets
(380,176)
(17,220)

Purchase of tangible fixed assets
(347,738)
(668,910)

Sale of tangible fixed assets
103,702
169,564

Interest received
-
60,357

Net cash from investing activities

(624,212)
(456,209)

Cash flows from financing activities

New secured loans
5,000,000
-

Dividends paid
-
(500,000)

Interest paid
(868,868)
(654,536)

Net cash used in financing activities
4,131,132
(1,154,536)

Net (decrease) in cash and cash equivalents
(2,779,812)
(731,274)

Cash and cash equivalents at beginning of year
4,788,115
5,519,389

Cash and cash equivalents at the end of year
2,008,303
4,788,115


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,008,303
4,788,115

2,008,303
4,788,115


Page 16

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

1.


General information

Pentland Homes (Holdings) Limited is a limited liability company incorporated in England and Wales with the registration number 06362844. The address of the registered office is The Estate Office, Canterbury Road, Etchinghill, Folkestone, Kent, CT18 8FA. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

In accordance with UK GAAP, the company annually assesses whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the ability of the group to
continue as a going concern and meets its obligation as they become due for one year after the date
that the financial statements are issued.  This evaluation is based on relevant conditions and events
that are known or reasonably knowable at this date.  If substantial doubt exists, management will also
assess whether there are effective plans in place to alleviate these conditions. 
Management has performed this evaluation through to the date of signing of the accounts and determined that there are no conditions or events, considered in the aggregate, that raise substantial doubt about the company’s ability to continue as a going concern for one year after signing.

Page 17

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 18

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

2.Accounting policies (continued)

 
2.5

Revenue

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

Sale of goods

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

Sale of residential units 
In respect of sales of residential units, a contract is established through a formal purchase process that involves the exchange of contracts via solicitors. Revenue from the sale of residential units is recognised at a point in time on legal completion where the group has transferred to the buyer the control of the units. 
Contract revenue 
The group acts as a main contractor on certain building projects, primarily on behalf of the housing associations where the group must provide social housing units as part of its obligations under the planning consent or has sold the land to the housing association and entered into a construction contract to provide the completed units. 
Revenue on construction contracts is recognised over time as the performance obligations are satisfied. The output method is used to measure the progress of the group's performance over the duration of the contract. This is done through valuation surveys conducted by the group and by the customer respectively who then agree the value of work completed. The agreed valuation is used to determine the revenue to be recognised for the period. Where the outcome of a contract on which revenue is recognised over time cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred. 

 
2.6

Operating leases: the Group as lessee

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

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

Page 19

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

2.Accounting policies (continued)

  
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. 

 
2.8

Interest income

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

 
2.9

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.

 
2.10

Borrowing costs

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

 
2.11

Pensions

Defined contribution pension plan

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

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

Page 20

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

2.Accounting policies (continued)

 
2.12

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 balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 balance sheet date.


 
2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.14

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Computer software
-
20%

Page 21

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

2.Accounting policies (continued)

 
2.15

Tangible fixed assets

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

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

Depreciation is provided on the following basis:

Long-term leasehold property
-
2%
Plant and machinery
-
25%
Motor vehicles
-
20%
Office equipment
-
25%

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

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

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

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 22

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

2.Accounting policies (continued)

 
2.19

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

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

 
2.21

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.22

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.23

Financial instruments

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

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as
Page 23

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

2.Accounting policies (continued)


2.23
Financial instruments (continued)

subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

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

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

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

 
2.24

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 24

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the Directors to make judgements, estimates and
assumptions that can affect the amounts reported for assets and liabilities, and the results for the year.
The nature of estimation is such that actual outcomes could differ significantly from those estimates.
The following judgements have had the most significant impact on amounts recognised in the financial
statements:
i) Valuation of inventories 
The group values inventories at the lower of cost and net realisable value. The net realisable value is based on the judgement of the probability that planning consent will be granted for each site. The group believes that based on directors' experience, planning consent will be given. If planning consent  was not achieved than a provision may be required against inventories. 
In applying the group's accounting policy for the valuation of inventories the directors are required to assess the expected selling price and costs to sell each of the plots or units that constitute the group's work in progress. Cost includes the cost of acquisition of sites, the cost of infrastructure and construction works, and legal and professional fees incurred during development prior to sale. Estimation of selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the market value of land. 
Whilst the directors exercise due care and attention to make reasonable estimates, taking into account all available information in estimating the future selling price, the estimates will, in all likelihood, differ from actual selling prices achieved in future periods and these differences may, in certain circumstances,  be very significant. The critical judgement in respect of receipt of planning consent further increases the level of estimation uncertainty. 
ii)  Useful economic lives of tangible fixed assets 
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re­ assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets.

Page 25

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Property development and sale
16,462,359
42,096,135

Contract revenue
4,336,307
9,354,954

Other sales
134,732
-

20,933,398
51,451,089


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
20,933,398
51,451,089

20,933,398
51,451,089



5.


Other operating income

2024
2023
£
£

Other operating income
6,060
-

6,060
-



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Other operating lease rentals
36,000
42,633

Restructuring costs
-
2,466,919


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
42,550
40,500

Page 26

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
2,919,916
5,589,488
-
1,997,876

Social security costs
422,994
742,161
-
-

Cost of defined contribution scheme
87,599
50,793
-
-

3,430,509
6,382,442
-
1,997,876


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Production
13
29
-
-



Administration and support
24
28
3
3

37
57
3
3


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
443,070
1,997,876

443,070
1,997,876


During the year retirement benefits were accruing to 1 director (2023 - 8) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £332,557 (2023 - £2,078,840).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £19,333 (2023 - £NIL).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
-
60,357

-
60,357

Page 27

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
867,776
559,874

Other loan interest payable
1,092
94,662

868,868
654,536


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
148,000

Adjustments in respect of previous periods
(272,854)
109,000


(272,854)
257,000


Total current tax
(272,854)
257,000

Deferred tax


Origination and reversal of timing differences
67,623
106,227

Total deferred tax
67,623
106,227


Tax on loss
(205,231)
363,227
Page 28

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(2,837,063)
(1,238,698)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(709,266)
(235,353)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
6,523
(5,402)

Capital allowances for year in excess of depreciation
(1,387)
(59,359)

Utilisation of tax losses
-
141,454

Adjustments to tax charge in respect of prior periods
(272,854)
109,000

Short-term timing difference leading to an increase (decrease) in taxation
-
106,227

Unrelieved tax losses carried forward
771,753
306,660

Total tax charge for the year
(205,231)
363,227


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends analysis
-
500,000

-
500,000


14.


Exceptional items

2024
2023
£
£


Restructuring costs
-
2,466,919

-
2,466,919

Page 29

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

15.


Intangible assets

Group and Company





Computer software

£



Cost


At 1 February 2023
17,220


Additions
380,176



At 31 January 2024

397,396



Amortisation


At 1 February 2023
861


Charge for the year on owned assets
14,610



At 31 January 2024

15,471



Net book value



At 31 January 2024
381,925



At 31 January 2023
16,359



Page 30

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

16.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 February 2023
660,815
603,610
849,359
265,886
2,379,670


Additions
-
-
340,729
7,009
347,738


Disposals
-
(29,874)
(221,345)
-
(251,219)



At 31 January 2024

660,815
573,736
968,743
272,895
2,476,189



Depreciation


At 1 February 2023
61,232
425,271
256,479
179,773
922,755


Charge for the year on owned assets
10,200
72,160
173,815
36,485
292,660


Disposals
-
(18,734)
(133,575)
-
(152,309)



At 31 January 2024

71,432
478,697
296,719
216,258
1,063,106



Net book value



At 31 January 2024
589,383
95,039
672,024
56,637
1,413,083



At 31 January 2023
599,583
178,339
592,880
86,113
1,456,915

Page 31

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 February 2023
15,674



At 31 January 2024
15,674





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Pentland Homes Limited
The Estate Office Canterbury Road, Etchinghill, Folkestone, Kent, CT18 8FA
Ordinary
100%
Pentland Kent Limited
Montague Place Quayside, Chatham Maritime, Chatham, Kent, ME4 4QU
Ordinary
90%

The aggregate of the share capital and reserves as at 31 January 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings was as follows:

Name




18.


Stocks

Group
Group
2024
2023
£
£

Work in progress
43,688,867
31,894,754

43,688,867
31,894,754


Page 32

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Amounts owed by group undertakings
-
-
2,621,963
2,626,793

-
-
2,621,963
2,626,793


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
195,161
488,709
-
-

Amounts owed by companies under common control
149,162
110,654
150
150

Other debtors
1,826,223
3,724,257
1,314
-

Prepayments and accrued income
247,081
465,140
-
-

2,417,627
4,788,760
1,464
150



20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
2,008,303
4,788,115
92,013
93,915

2,008,303
4,788,115
92,013
93,915



21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
12,000,000
7,000,000
-
-

Trade creditors
681,823
867,289
-
-

Amounts owed to companies under common control
909,460
-
-
-

Other taxation and social security
105,334
93,883
-
-

Other creditors
6,372,299
1,958,417
150,696
150,696

Accruals and deferred income
454,820
1,075,785
-
-

20,523,736
10,995,374
150,696
150,696


Page 33

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
12,000,000
7,000,000




12,000,000
7,000,000


The company's bank, Lloyds Bank PLC, has legal charges over portions of land owned by the company as listed below: 
i) A fixed charge and negative pledge dated 25 July 2016 over properties of the company.
 
ii) A fixed and floating charge covering all property or undertaking of Pentland Homes Limited dated 2 August 2016. The charge contains a negative pledge.
iii) A floating charge and negative pledge over land adjoining to New Street Farm, Great Chart, Ashford registered at the Land Registry under title number TT42532 was created on 23 August 2016. 
iv) A fixed and floating charge on land lying to the North of Canterbury Road, Lydden, Dover. The charge was created on 26/11/2018. The charge contains a negative pledge.
v) A fixed and floating charge on land on the North-West side of Elvington Lane, Hawkinge. The charge was created on 10/08/2022. The charge contains a negative pledge. 
vi) A fixed and floating charge on land lying to the North-East of Canterbury Road, Etchinghill. The charge was created on 07/09/2022. The charge contains a negative pledge. 
vii) A fixed and floating charge on land lying to the South East side of Cockering Lane, New Romney. The charge was created on 13/12/2022. The charge contains a negative pledge.  
iix) A fixed and floating charge on land lying to the East side of Broad Street, Lyminge. The charge was created on 21/02/2023. The charge contains a negative pledge. 
x) A fixed and floating charge on land known as land at Brook, Ashford and land on the south side of Brook, Ashford. The charge was created on 20/09/2023. The charge contains a negative pledge. 
Other charges: 
Westerley Investments Limited have registered a legal charge on 14 May 2004 on freehold property Pound Farm, Kingsnorth, Ashford, Kent on all initial overage payments and further overage payments which may become due at any time within the Perpetuity Period. 
G H Dean & Co Limited have registered a legal charge dated 11 May 2023 on freehold property at Grovehurst Road, Sittingbourne. The charge contains a negative pledge.

Page 34

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

23.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
2,008,303
4,788,115
92,013
93,915




24.


Deferred taxation


Group



2024


£






At beginning of year
(181,232)


Charged to profit or loss
(67,623)



At end of year
(248,855)

Company


2024






At end of year
-
Group
Group
2024
2023
£
£

Accelerated capital allowances
(248,855)
(181,232)

(248,855)
(181,232)

Page 35

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

25.


Provisions


Group



Customer care and cost to complete provisions

£





At 1 February 2023
72,661


Charged to profit or loss
749



At 31 January 2024
73,410


26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



15,664 (2023 - 15,664) Ordinary shares of £1.00 each
15,664
15,664


27.


Analysis of net debt




At 1 February 2023
Cash flows
At 31 January 2024
£

£

£

Cash at bank and in hand

4,788,115

(2,779,812)

2,008,303

Debt due within 1 year

(7,163,840)

(4,860,488)

(12,024,328)


(2,375,725)
(7,640,300)
(10,016,025)


28.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the scheme and amounted to £87,599 (2023: £50,793) Contributions totaling £20,992 (2023: £9,808) were payable to the scheme at the balance sheet date. 

Page 36

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

29.


Commitments under operating leases

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


Group
Group
2024
2023
£
£

Not later than 1 year
13,053
14,240

Later than 1 year and not later than 5 years
-
13,053

13,053
27,293

30.Transactions with directors

Following balances were outstanding at the year end: 
Loans payable to directors totalled £3k (2023: £3k). During the year the company paid interest of £Nil (2023: £Nil) on the loan. 

Page 37

 
Pentland Homes (Holdings) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 January 2024

31.


Related party transactions

The company is exempt from disclosing related party transactions between companies that are wholly
owned within the group.
Transactions with associated companies:
1) 1) Etchinghill Golf is owned by a charitable trust set up by the Tory Family Foundation, controlled by P N Tory and J N Tory who are Directors of the company. During the year following transactions occurred with the above businesses:
Etchinghill Golf charged costs of £26.2k (2023: £29k) to Pentland Homes Ltd. At the year end the company owed £1.2k (2023 £Nil) to Etchinghill Golf.
2) JN Tory is director of Pentland Homes Limited and also controls Cave Hotels (UK) Ltd and Boughton Golf. During the year following transactions occurred with above entities:
Costs of £46.8k (2023: £22k) recharged to Cave Hotels UK Ltd and costs of £74.5k (2023: £120k) recharged by Cave Hotels (UK) Ltd.
At the year end Cave Hotels (UK) Ltd owed £49k (2023: £10k - owed to Cave Hotels) to the company.
3) P N Tory and J N Tory are both directors and shareholders of Pentland Properties Ltd and also
directors of Pentland Homes Ltd.
During the year the company provided £3.310m (2023: £22.587m) worth of goods and services to Pentland  Properties Ltd. A management charge of £340k (2023: £340k) was also charged by Pentland Homes Limited to Pentland Properties Limited.
At the year end, the company was owed £91.6k from Pentland Properties Ltd. (2023: £101k - owed by Pentland Properties).
Key management personnel throughout the group include all of the directors and they are responsible for planning, directing and controlling the activities of the group.  The total compensation paid to key management personnel for services provided to the group including directors remuneration is £1,898,624 (2023: £3,346,993)


32.


Controlling party

Pentland Homes (Holdings) Limited is the ultimate parent company. P N Tory and J N Tory are the ultimate controlling parties by virtue of their majority shareholding in the parent company. 


Page 38