Registered number |
Registered number: | |||||||
Directors' Report | |||||||
The directors present their report and financial statements for the year ended |
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Principal activities | |||||||
Financial instrument risk | |||||||
Liquidity risk The company ensures that there are sufficient funds available to meet the requirements of its on-going operations Interest rate risk The company currently has no interest bearing debts. |
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Results for the financial period | |||||||
The profit for the year, after taxation, amounted to £ |
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Directors | |||||||
The following persons served as directors during the year: | |||||||
Disclosure of information to auditors |
Each person who was a director at the time this report was approved confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
Employment of disabled persons | |||||||
This report was approved by the board on |
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Mr R. J. Emmerson | |||||||
Director | |||||||
Amethyst Homes Limited | |||||||
Statement of Directors' Responsibilities | |||||||
The directors are responsible for preparing the report and financial statements in accordance with applicable law and regulations. | |||||||
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; | ||||||
● | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. | ||||||
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. | |||||||
Strategic Report | ||
Introduction | ||
The directors present their strategic report together with the audited financial statements for the year ended 31st January 2024. | ||
Principal Activites | ||
The company's principal activity during the period continued to be the construction and sale of dwellings to the private market. | ||
Review of Business | ||
During the financial year the business completed two developments, one in Northumberland and the other in Stockton-on-Tees, and commenced work on two new developments, namley The Pastures in Northumberland and Vallum Heights in Newcastle. Although work is progressing well on both schemes, no legal completions had been made on either development by the year end, thus resulting in a reduction in total number of new homes legally completed in the year of 44 new homes (2023: 51 new homes). Turnover decreased by 10.09% to £9.44m (2023: £10.5m), however gross profit has increased to £2.219m (2023: £1.498m). The profit after tax for the year also increased and was £657k (2023: £259k). This increase is a direct result of increased margins being achieved by the business on completed homes. The Company's liquidity ratios have decreased slightly in comparison with the previous year, and whilst bank liquidity has reduced, this is a direct result of the investment made into the infrastructure on the two new developments. Balance sheet value has also increased following another profitable year, and as a consequence the company's risk profile continues to improve. |
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The business remains focused on delivering high quality well priced homes for a range of purchasers from first time buyers to family homes, to downsizers. Our products range from traditional two-story homes as well as a wide range of bungalows, allowing a broad range of available house types. Our key values of Health and Safety and Our Customers Experience remain our focus and drive for the business. The Health, Safety and general wellbeing of our staff, subcontractors and customers remains our number one priority. Our performance is measured monthly and regularly reviewed by the board. Customer satisfaction is measured on a plot-by-plot basis. During the financial year, we continued to use the services of an external company to carry out customer satisfaction surveys on our behalf. We were delighted to receive a Gold Award for the second year running, with a customer satisfaction score of 97%. We have also achieved the 5* rating in the HBF Customer Satisfaction Survey in our first year of participation, again demonstrating our commitment to quality and customer satisfaction. The medium-term objective is to deliver 125 units per annum on sites within the North East of England. This objective will be achieved by: developing high quality homes; producing returns on capital employed in line with industry benchmarks; maintaining good liquidity; and increasing the land bank with planning consent. |
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Key Performance Indicators | ||
The business uses reservation rates, legal completions achieved, revenue, gross profit, and net profit margins together with liquidity ratios to monitor financial performance. These key performance indicators are reviewed by the board on an ongoing basis. Health & Safety and Customer Satisfaction are also monitored and results form part of our KPI’s for the business as a whole. These are reviewed monthly by the board. |
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Amethyst Homes Limited | ||
Strategic Report | ||
Principal risks and uncertainties | ||
The primary operating risks for the company centre around the economy as a whole and its direct impact on the private house building industry. Inflationary pressures during the year together with interest rate rises have had a significant impact on both raw material and labour prices. Other economic and global factors have compounded this and continue to affect all aspects of the industry’s supply chain. Securing land in the right locations remains a key focus to ensure profitable managed growth for the business. However, the ongoing challenge of the planning system, has impacted the business by delaying new developments. The above risks are being continually monitored and strategies have been developed, together with the strengthening of internal processes to minimise any adverse effects. These are reviewed monthly by the board. |
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Future Developments | ||
While the uncertainty created by the current economic climate cannot be ignored, the past twelve months has been used as an opportunity to focus the management team on the business's key objectives. In addition, investment into the new developments sites will generate additional liquidity for the business, enabling the company to generate strong and sustainable growth in the years ahead. The business will continue to manage its operations in a controlled manner, taking into account the external impacts that the general economic environment creates. We are confident that, given the general undersupply of new homes throughout the region, that the business is in good shape to deliver it’s short- and medium-term growth plans in a controlled and well managed way. |
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Financial Instruments | ||
The company does not have any financial instruments in existence. | ||
This report was approved by the board on 24 October 2024 and signed on its behalf. | ||
Mr R. J. Emmerson | ||
Director | ||
Amethyst Homes Limited | ||
Independent auditor's report | ||
to the members of Amethyst Homes Limited | ||
Opinion |
We have audited the financial statements of Amethyst Homes Limited (the 'company') for the year ended 31 January 2024 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). | ||
In our opinion the financial statements: | ||
● | give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the year then ended; | |
● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; | |
● | 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. | ||
Conclusions relating to going concern | ||
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. | ||
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. | ||
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. | ||
Other information | ||
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. | ||
We have nothing to report in this regard. | ||
Opinions on other matters prescribed by the Companies Act 2006 | ||
In our opinion, based on the work undertaken in the course of the audit: | ||
● | the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and | |
● | the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. | |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report. | ||
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: | ||
● | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the financial statements are not in agreement with the accounting records and returns; or | |
● | certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. | ||
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. | ||
Auditor’s responsibilities for the audit of the financial statements | ||
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. | ||
Irregularities, including fraud, are instances of non-compliance with laws and regulations and 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, are based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to pensions and tax legislation, employment law, health and safety legislation, and building safety legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, and determined that the principal risks were related to deliberate manipulation of results such as improper revenue recognition, management bias in key accounting estimates and posting of inappropriate journal entries to manipulate the results for the period. Audit procedures performed are detailed below. 1. Discussions with management. 2. Challenging assumptions and judgements made by management in their significant accounting estimates. 3. Identifying and testing journal entries on a sample basis. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. | ||
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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. | ||
(Senior Statutory Auditor) | 6B Planet Business Centre | |
for and on behalf of | Planet Place | |
Killingworth | ||
Statutory Auditor | Newcastle Upon Tyne | |
NE12 6DY | ||
Income Statement | ||||||||
for the year ended |
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Notes | 2024 | 2023 | ||||||
£ | £ | |||||||
Turnover | 3 | |||||||
Cost of sales | ( |
( |
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Gross profit | ||||||||
Administrative expenses | ( |
( |
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Other operating income | ||||||||
Operating profit | 4 | |||||||
Interest receivable | ||||||||
Profit on ordinary activities before taxation | ||||||||
Tax on profit on ordinary activities | 7 | ( |
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Profit for the financial year | ||||||||
Statement of Financial Position | |||||||
as at |
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Notes | 2024 | 2023 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Tangible assets | 8 | ||||||
Current assets | |||||||
Stocks | 9 | ||||||
Debtors | 10 | ||||||
Cash at bank and in hand | |||||||
Creditors: amounts falling due within one year | 11 | ( |
( |
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Net current assets | |||||||
Total assets less current liabilities | |||||||
Provisions for liabilities | |||||||
Deferred taxation | 12 | ( |
- | ||||
Net assets | |||||||
Capital and reserves | |||||||
Called up share capital | 13 | ||||||
Capital redemption reserve | 14 | 5 | - | ||||
Profit and loss account | 15 | ||||||
Total equity | |||||||
Mr R. J. Emmerson | |||||||
Director | |||||||
Approved by the board on |
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Statement of Changes in Equity | |||||||||
for the year ended |
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Share | Capital | Profit | Total | ||||||
capital | redemption | and loss | |||||||
reserve | account | ||||||||
£ | £ | £ | £ | ||||||
At 1 February 2022 | - | ||||||||
Profit for the financial year | 259,048 | 259,048 | |||||||
Capital redemption reserve transfer | - | - | - | ||||||
At 31 January 2023 | 100 | - | 8,190,997 | 8,191,097 | |||||
At 1 February 2023 | - | ||||||||
Profit for the financial year | |||||||||
Capital redemption reserve transfer | 5 | (5) | - | ||||||
Other comprehensive income for the financial year | - | ( |
- | ||||||
Total comprehensive income for the financial year | - | ||||||||
Shares redeemed | ( |
( |
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At 31 January 2024 | |||||||||
Statement of Cash Flows | |||||
for the year ended |
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Notes | 2024 | 2023 | |||
£ | £ | ||||
Operating activities | |||||
Profit for the financial year | 657,357 | 259,048 | |||
Adjustments for: | |||||
Interest receivable | (137,540) | (12,805) | |||
Tax on profit on ordinary activities | 385,596 | (155,713) | |||
Depreciation | 51,303 | 47,863 | |||
(Increase)/decrease in stocks | (5,083,033) | 335,212 | |||
Decrease in debtors | 1,296,090 | 92,895 | |||
Increase/(decrease) in creditors | 873,443 | (27,082) | |||
( |
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Interest received | |||||
Corporation tax paid | ( |
||||
Cash (used in)/generated by operating activities | ( |
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Investing activities | |||||
Payments to acquire tangible fixed assets | ( |
( |
|||
Proceeds from sale of tangible fixed assets | - | ||||
Cash used in investing activities | ( |
( |
|||
Financing activities | |||||
Payments to redeem shares | ( |
- | |||
Cash used in financing activities | ( |
- | |||
Net cash (used)/generated | |||||
Cash (used in)/generated by operating activities | ( |
||||
Cash used in investing activities | ( |
( |
|||
Cash used in financing activities | ( |
- | |||
Net cash (used)/generated | ( |
||||
Cash and cash equivalents at 1 February | 8,649,277 | 8,109,098 | |||
Cash and cash equivalents at 31 January | 6,646,469 | 8,649,277 | |||
Cash and cash equivalents comprise: | |||||
Cash at bank | |||||
Amethyst Homes Limited | ||||||||
Notes to the Accounts | ||||||||
for the year ended 31 January 2024 | ||||||||
1 | Summary of significant accounting policies | |||||||
Basis of preparation | ||||||||
Turnover | ||||||||
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: | ||||||||
Leasehold building alterations | 2% straight line | |||||||
Plant and machinery | 25% reducing balance | |||||||
Fixtures, fittings, tools and equipment | 25% reducing balance |
Stocks and work in progress | ||||||||
Taxation | ||||||||
Provisions | ||||||||
Leased assets | ||||||||
Pensions | ||||||||
2 | Critical accounting estimates and judgements | |||||||
Significant judgements in applying the entity's accounting policies Stocks and work in progress are carried at the lower of cost and net realisable value. Net realisable value represents the estimated selling price (in the ordinary course of business) less all estimated costs of completion and overheads. Valuation of site / phase work in progress are carried out at regular intervals and estimate of the cost to complete a site / phase and estimates of anticipated revenues are required to enable a development profit to be determined. Management are required to employ considerable judgement in estimating the profitability of a site / phase and in assessing any impairment provisions which may be required. |
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Gross profit is recognised for completed houses based on the latest whole site / phase gross margin which is an output of the site / phase valuation. These valuations, which are updated at frequent intervals throughout the life of the site / phase use actual and forecast selling prices, land and construction costs and are sensitive to future movements in both estimated costs to complete and expected selling prices. Forecast selling prices are inherently uncertian due to changes in market conditions. In preparing these financial statements, the directors do not consider there to have been any other significant judgements that were required in the process of applying the company's accounting policies. |
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Key sources of estimation uncertainty Estimates included within the financial statements include depreciation charges, and asset impairments (for example provision against stock and debtors). None of the estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
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3 | Analysis of turnover | 2024 | 2023 | |||||
£ | £ | |||||||
Sale of goods | ||||||||
By geographical market: | ||||||||
UK | ||||||||
4 | Operating profit | 2024 | 2023 | |||||
£ | £ | |||||||
This is stated after charging: | ||||||||
Depreciation of owned fixed assets | ||||||||
Auditors' remuneration for audit services | ||||||||
Carrying amount of stock sold | ||||||||
5 | Directors' emoluments | 2024 | 2023 | |||||
£ | £ | |||||||
Emoluments | ||||||||
Company contributions to defined contribution pension plans | ||||||||
Number of directors to whom retirement benefits accrued: | 2024 | 2023 | ||||||
Number | Number | |||||||
Defined contribution plans | ||||||||
6 | Staff costs | 2024 | 2023 | |||||
£ | £ | |||||||
Wages and salaries | ||||||||
Social security costs | ||||||||
Other pension costs | ||||||||
Average number of employees during the year | Number | Number | ||||||
Administration | ||||||||
Development | ||||||||
Sales | ||||||||
7 | Taxation | 2024 | 2023 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period | - | |||||||
Adjustments in respect of previous periods | - | |||||||
- | ||||||||
Deferred tax: | ||||||||
Origination and reversal of timing differences | ( |
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Tax on profit/(loss) on ordinary activities | ( |
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Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2024 | 2023 | |||||||
£ | £ | |||||||
Profit on ordinary activities before tax | ||||||||
£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax | ||||||||
Effects of: | ||||||||
Expenses not deductible for tax purposes | ( |
( |
||||||
Adjustments to tax charge in respect of previous periods | - | |||||||
Current tax charge for period | - | |||||||
Factors that may affect future tax charges | ||||||||
8 | Tangible fixed assets | |||||||
Land and buildings | Plant and machinery | Fixtures, fittings, tools and equipment | Total | |||||
At cost | At cost | At cost | ||||||
£ | £ | £ | £ | |||||
Cost or valuation | ||||||||
At 1 February 2023 | ||||||||
Additions | - | |||||||
Disposals | - | ( |
( |
( |
||||
At 31 January 2024 | ||||||||
Depreciation | ||||||||
At 1 February 2023 | ||||||||
Charge for the year | ||||||||
On disposals | - | ( |
- | ( |
||||
At 31 January 2024 | ||||||||
Carrying amount | ||||||||
At 31 January 2024 | ||||||||
At 31 January 2023 | ||||||||
9 | Stocks and work in progress | 2024 | 2023 | |||||
£ | £ | |||||||
Work in progress | ||||||||
10 | Debtors | 2024 | 2023 | |||||
£ | £ | |||||||
Trade debtors | ||||||||
Deferred tax asset (see note 12) | - | |||||||
Corporation tax recoverable | - | 3,746 | ||||||
Other debtors | ||||||||
Prepayments and accrued income | ||||||||
11 | Creditors: amounts falling due within one year | 2024 | 2023 | |||||
£ | £ | |||||||
Trade creditors | ||||||||
Corporation tax | ||||||||
Other taxes and social security costs | ||||||||
Other creditors | ||||||||
Accruals and deferred income | ||||||||
12 | Deferred taxation | 2024 | 2023 | |||||
£ | £ | |||||||
Accelerated capital allowances | ||||||||
Tax losses carried forward | - | ( |
||||||
( |
||||||||
2024 | 2023 | |||||||
£ | £ | |||||||
At 1 February | ( |
|||||||
Charged/(credited) to the profit and loss account | ( |
|||||||
At 31 January | ( |
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13 | Share capital | Nominal | 2024 | 2024 | 2023 | |||
value | Number | £ | £ | |||||
Allotted, called up and fully paid: | ||||||||
£ |
||||||||
Nominal | Number | Amount | ||||||
value | £ | |||||||
Shares redeemed during the period: | ||||||||
£ |
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14 | Capital Redemption reserve | |||||||
The capital redemption reserve arose on the redemption of shares and is non-distributable. | ||||||||
15 | Profit and loss account | 2024 | 2023 | |||||
£ | £ | |||||||
At 1 February | ||||||||
Profit for the financial year | ||||||||
Capital redemption reserve transfer | (5) | - | ||||||
At 31 January | ||||||||
16 | Loans to directors | |||||||
Description and conditions | B/fwd | Paid | Repaid | C/fwd | ||||
£ | £ | £ | £ | |||||
- | ( |
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11,100 | - | (6,200) | 4,900 | |||||
17 | Presentation currency | |||||||
18 | Legal form of entity and country of incorporation | |||||||
Amethyst Homes Limited is a private company limited by shares and incorporated in England. | ||||||||
19 | Principal place of business | |||||||
The address of the company's principal place of business and registered office is: | ||||||||
Steel House | ||||||||
Ponds Court | ||||||||
Consett | ||||||||
County Durham | ||||||||
DH8 5XP | ||||||||
20 | Reconciliations on adoption of FRS 102 | |||||||
Profit and loss for the year ended 31 January 2023 | £ | |||||||
Profit under former UK GAAP | 259,048 | |||||||
Profit under FRS 102 | 259,048 | |||||||
Balance sheet at 31 January 2023 | £ | |||||||
Equity under former UK GAAP | 8,191,097 | |||||||
Equity under FRS 102 | 8,191,097 | |||||||
Balance sheet at 1 February 2022 | £ | |||||||
Equity under former UK GAAP | - | |||||||
Equity under FRS 102 | - | |||||||