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Burrington Estates (Deddington 2) Limited

Annual Report and Financial Statements
Period from 10 November 2022 to 30 November 2023

Registration number: 14474888

 

Burrington Estates (Deddington 2) Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 7

 

Burrington Estates (Deddington 2) Limited

Balance Sheet

30 November 2023

Note

2023
£

Current assets

 

Stocks

4

5,505,517

Debtors

5

294,315

Cash at bank and in hand

 

206,093

 

6,005,925

Creditors: Amounts falling due within one year

6

(6,017,092)

Net liabilities

 

(11,167)

Capital and reserves

 

Called up share capital

8

1

Profit and loss account

(11,168)

Shareholders' deficit

 

(11,167)

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 12 November 2024 and signed on its behalf by:
 

.........................................
Mr D Chubb
Director

Company Registration Number: 14474888

 

Burrington Estates (Deddington 2) Limited

Notes to the Financial Statements

Period from 10 November 2022 to 30 November 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Winslade House
Manor Drive
Clyst St Mary
Exeter
Devon
EX5 1FY

These financial statements were authorised for issue by the Board on 12 November 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. There are no material departures from FRS 102.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. The functional currency of Burrington Estates (Deddington 2) Limited is considered to be pounds sterling because it is the currency of the primary economic environment in which the company operates.

Disclosure of long period

The results for the period cover the period from 10 November 2022 to 30 November 2023 due to the date that the company was incorporated.

 

Burrington Estates (Deddington 2) Limited

Notes to the Financial Statements

Period from 10 November 2022 to 30 November 2023

Going concern

The financial statements have been prepared on a going concern basis. There are material uncertainties that cast significant doubt on its ability to continue its operations, as explained below.

The company’s ultimate parent is Burrington Estates Group Limited (BEG). BEG has become reliant on its principal shareholder and lender to continue to support it. After considering the cash flows of the business and conditions in the UK economy and housing market, the directors of BEG have concluded that it is unlikely to be able to settle or refinance all its loans from shareholders. As a result, and after considering the options available to it, the directors of BEG have reluctantly concluded that it should seek to effect a managed closure of the business. The intention is to support its existing portfolio of homes, complete its existing developments to its recognised high standards, divest of its development sites where these are not in construction phase and withdraw from any further investment in new sites.

In respect of this company, the directors' best estimates of the company’s cash flows show the company generating positive cash flows and continuing to pay its creditors as they fall due. Therefore the company’s expectation is that it will be supported in continuing to complete and sell its development on an orderly basis. Once all properties are sold, and third-party creditors have been settled, it is expected that the company will be wound down in an orderly fashion. However, at the date of approval of these financial statements, not all properties have been sold, meaning that the timing of this orderly wind down is uncertain. Communication from the group supports this company continuing to trade normally. For that reason, these accounts have been prepared on a going concern basis.

However the group’s position, as well as the timing of the sale of unsold properties, creates material uncertainties that cast significant doubt on the company’s ability to continue as a going concern. In particular,

• Once properties are sold and all third party creditors settled the company is expected to be wound down.

• While the company pursues the development, it is reliant on financial and non-financial support from the group; and

• Currently the communications from the group are that this company, as it is expected to generate positive cash flow, will be supported in trading normally to complete and sell the development. However, the group’s financial situation means that decision could subsequently change, especially if the UK housing market continues to deteriorate.

Stocks

Stock of land and work in progress are stated at the lower of cost and net realisable value. Cost includes all statutory and professional fees relating to the acquisition of a property, obtaining planning consents, costs of construction and development finance costs and directly attributable staff costs.

Borrowing costs

Borrowing costs directly attributable to the principal activity of the company, the construction and sale of new homes, are included within work in progress and subsequently released to cost of sales once sales are made.

 

Burrington Estates (Deddington 2) Limited

Notes to the Financial Statements

Period from 10 November 2022 to 30 November 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Short term balances with group companies.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was 0.

4

Stocks

2023
£

Work in progress

5,505,517

5

Debtors

2023
£

Amounts due from group undertakings

264,747

Other debtors

29,568

294,315

 

Burrington Estates (Deddington 2) Limited

Notes to the Financial Statements

Period from 10 November 2022 to 30 November 2023

6

Creditors

Note

2023
 £

Due within one year

 

Loans and borrowings

7

3,572,676

Trade creditors

 

204,030

Amounts due to group undertakings

 

2,152,760

Accruals and deferred income

 

85,178

Other creditors

 

2,448

 

6,017,092

Amounts owed to group are repayable on demand and no interest is charged on the balances.

7

Loans and borrowings

Due within one year

2023
£

Bank borrowings

3,572,676

Bank borrowings represent amounts due to Paragon Development Finance Limited and are secured on the assets of the company. Since the balance sheet date, these borrowings, including all interest and fees due, have been settled in full. In line with the accounting policy, interest is initially charged to work in progress and released to cost of sales as properties are sold.

A second charge, in favour of BGF Nominees Ltd, exists over the assets of the company. The associated inter-company debt (shown as amounts due to group undertakings) remains unsettled at the date of approval of the accounts.

8

Share capital

Allotted, called up and fully paid shares

2023

No.

£

Share capital of £1 each

1

1

   
 

Burrington Estates (Deddington 2) Limited

Notes to the Financial Statements

Period from 10 November 2022 to 30 November 2023

9

Contingent Liabilities

An unlimited guarantee has been given by the company in relation to obligations of Burrington Estates (Clifton Road Deddington) Limited, Burrington Estates (Topsham) Limited and Burrington Estates (Rangeworthy) Limited due to the bank that provide the loan to the company.

These companies have provided unlimited guarantees to Burrington Estates (Deddington 2) Limited in respect of the loan.

10

Related party transactions

The company has taken advantage of the exemption in FRS 102 Section 1A from disclosing transactions and balances with its parent company and other members of the wholly owned group.

11

Parent and ultimate parent undertaking

The company's immediate parent is Burrington Estates (Midlands) Limited, incorporated in England & Wales.

 The ultimate parent is Burrington Estates Group Limited, incorporated in England & Wales.

 

Their registered office is:
Winslade House
Manor Drive
Clyst St Mary
Exeter
Devon
EX5 1FY

 

Burrington Estates (Deddington 2) Limited

Notes to the Financial Statements

Period from 10 November 2022 to 30 November 2023

12

Audit report

The Independent Auditors' Report was unqualified. It included the following paragraphs which do not consititue a qualification.

Material uncertainity relating to going concern
We draw attention to Note 2 of the financial statements which indicates the company is expected to generate positive future cashflows from its activities.

Once all properties are sold, and third party creditors have been settled, it is expected that the company will be wound down in an orderly fashion. However, at the date of approval of these financial statements, not all properties have been sold, meaning that the timing of this orderly wind down is uncertain.

Whilst the company pursues its activity of developing a housing site they will be reliant on both financial and operational support from the ultimate parent undertaking, Burrington Estates Group Limited (BEG). BEG has become reliant on its principal shareholder and lender to continue to support it. The directors of BEG have concluded that it is unlikely to be able to settle or refinance all its loans from shareholders.

The timing of the sale of unsold properties may impact on the period that the company will continue trading and BEG’s financial situation means that decisions could subsequently change which casts significant doubt on the company’s ability to continue as a going concern.

As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

The name of the Senior Statutory Auditor who signed the audit report was Tom Beable FCA, who signed for and on behalf of PKF Francis Clark on 14 November 2024.