Company registration number 07882115 (England and Wales)
DOCKLEY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
DOCKLEY LIMITED
COMPANY INFORMATION
Director
J Allen
Company number
07882115
Registered office
1 Pickle Mews
London
England
SW9 0FJ
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
DOCKLEY LIMITED
CONTENTS
Page
Strategic report
1 - 4
Director's report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
DOCKLEY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
The director presents the strategic report for the year ended 30 November 2023.
This report aims to analyse the financial performance of Dockley Limited ("the Company") for the period to 30 November 2023, evaluate its strategic position, and provide recommendations for the future.
Principal activities
Dockley Limited is a property development company focused on creating high-quality mixed-use properties, with residential flats and ground-floor commercial units. The development under review is now complete, with all commercial units successfully let out, subsequent to the year end, in March 2024. The remaining residential units are actively being marketed for sale, marking the final phase of the project.
Review of the business
Company Objectives Our primary objectives for this development are to:
Complete the sale of all remaining residential units to finalise the development.
Ensure stable rental income from the let commercial units, enhancing long-term asset value.
Support the community by fostering a vibrant mix of commercial tenants that meet local needs.
Deliver a sustainable, high-quality development that complies with current regulatory standards.
Business Review
Market Conditions In the past financial year, the UK property market saw stable conditions for commercial and residential property. The residential and commercial market was impacted strongly by the economic conditions prevailing at the end of 2022, which continued to prevail during 2023, which affected the financing for the market. Despite some challenges, Dockley Limited has maintained progress by successfully letting all commercial units following the year end, and focusing on marketing the remaining residential flats to prospective buyers.
Operational Highlights
Residential Units: A total of 111 residential flats were developed, with 94 successfully sold at 30 November 2023. The remaining 17 units are actively being marketed through strategic sales channels, with a goal to complete all sales within the next two years.
Commercial Units: All commercial units on the ground floor have been let to tenants who complement the needs of the residents and local community. This stable occupancy level provides a reliable revenue stream and contributes to the appeal of the residential units.
Financial Performance: Revenue from residential unit sales was £14.6 million, with additional sales expected to complete the project in the next fiscal period.
DOCKLEY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
Industry Analysis, Strengths, and Opportunities
Industry Analysis The property development sector in the UK continues to see demand for well-located, mixed-use properties that combine residential and commercial spaces, driven by:
Urbanisation Trends: Population growth in urban areas creates ongoing demand for residential flats, especially in well-connected locations.
Small Business Growth: Local businesses increasingly seek well-designed commercial spaces that attract foot traffic and are situated near residential areas.
Sustainability Focus: Regulatory and consumer demand for environmentally responsible buildings create opportunities for developers who prioritise energy efficiency and sustainable construction practices.
Strengths Dockley Limited possesses several strengths that differentiate us within the market:
Experienced Management: Our team brings in-depth expertise in residential and commercial property development, with a track record of successful project completions.
Sustainability Initiatives: Incorporating sustainable building materials and energy-efficient designs aligns with industry trends and enhances the appeal of our properties to eco-conscious buyers and tenants.
Opportunities We are well-positioned to capitalise on several key opportunities:
Growing Demand for Quality Housing: There is an ongoing need for residential properties that meet modern living standards, especially in urban centres.
Community-Focused Commercial Spaces: Our let commercial units serve as a value-added feature for residents, attracting local businesses that create a vibrant community atmosphere.
Principal risks and uncertainties
The following key risks and uncertainties could impact the final phase of this development:
Market Demand for Residential Sales: Fluctuations in the property market, such as changes in buyer demand or interest rates, may impact the sale of the remaining residential units. We have implemented targeted marketing strategies to attract buyers and complete sales in a timely manner.
Regulatory and Environmental Compliance: Compliance with evolving environmental standards could result in unexpected costs, particularly if regulations change for residential sales or commercial leases. We are committed to meeting all current regulations and have incorporated energy-efficient features to future-proof the property as much as possible.
DOCKLEY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
Development and performance
Future Strategy
Completion of Residential Sales The immediate focus is on the sale of the remaining residential flats. To achieve this, we are:
Enhancing our marketing efforts with a focus on target market, e.g., "young professionals, families, or buy-to-let investors".
Exploring incentives, such as options like "discounts, financing options, or furnishing packages", to attract a broader pool of potential buyers.
Maximising Value from Commercial Units We aim to sustain the occupancy of commercial units by:
Building strong tenant relationships to ensure lease renewals and long-term occupancy.
Actively managing the tenant mix to create a balanced environment that benefits the wider residential community and enhances property value.
Sustainability and Compliance We are committed to ongoing sustainability and compliance efforts, ensuring that the development meets current environmental standards and provides energy-efficient solutions for residents and commercial tenants alike.
Community Engagement To support the appeal and success of this development, we will:
Continue to engage with the community, organising events in the commercial areas to attract foot traffic and create a vibrant, welcoming environment.
Gather feedback from tenants and residents to refine our approach in future developments.
Key performance indicators
Financial Key Performance Indicators (KPIs)
The KPIs of the Company are gross profit (2023: £4.8m, 2022: £8.2m), sales of residential units (2023: 22, 2022: 30) and the letting of the commercial units, which has been agreed subsequent to the year end, in March 2024.
Promoting the success of the company
The Directors believe they have acted in the way most likely to promote the success of the Company for the benefit of its members as a whole, as required by s172 of the Companies Act 2006. The requirements of s172 are for the Directors to:
Consider the likely consequences of any decision in the long term;
Act fairly between members of the Company;
Maintain a reputation for high standards of business conduct; Consider the interest of the Company's employees;
Foster the Company's relationships with suppliers, customers and others; and
Consider the impact of the Company's operations on the community and environment. The Company has sought to act in a way that upholds these principles.
DOCKLEY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
J Allen
Director
27 November 2024
DOCKLEY LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -
The director presents his annual report and financial statements for the year ended 30 November 2023.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid (2022 : £Nil). The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
J Allen
Auditor
Gerald Edelman LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 company will continue in business.
The director is 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. He is 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
The financial statements have been prepared on the assumption that the company is a going concern.
Having reviewed the company's financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the financial statements for the year ended 30 November 2023.
DOCKLEY LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 6 -
On behalf of the board
J Allen
Director
27 November 2024
DOCKLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOCKLEY LIMITED
- 7 -
Opinion
We have audited the financial statements of Dockley Limited (the 'company') for the year ended 30 November 2023 which comprise the statement of comprehensive income, the balance sheet, 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 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 30 November 2023 and of its profit 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.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
DOCKLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOCKLEY LIMITED (CONTINUED)
- 8 -
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 director's 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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. 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
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
Enquiring of management of whether they are aware of any non-compliance with laws and regulations.
Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.
Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journals.
Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation,data protection, anti-bribery, employment and health and safety.
DOCKLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOCKLEY LIMITED (CONTINUED)
- 9 -
Audit response to risks identified
Fraud due to management override
To address the risk of fraud through management bias and override of controls, we:.
Audited the risk of management override of controls, including through testing journal entries for appropriateness
Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
Irregularities and non-compliance with laws and regulations
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:
Agreeing financial statements disclosures to underlying supporting documentation.
Reviewing minutes of meetings of those charged with governance.
Enquiring of management as to actual and potential litigation claims.
The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.
Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
In accordance with ISA (UK) 706, we are required to draw users’ attention to any matter or matters other than those presented or disclosed in the financial statements that are relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report.
In this regard, we report to you that the prior year’s financial statements are unaudited. We have nothing further to report to you on other matters.
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.
Grant Lee
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
27 November 2024
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
DOCKLEY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
Turnover
3
14,626,366
24,151,659
Cost of sales
(9,854,406)
(15,909,930)
Gross profit
4,771,960
8,241,729
Administrative expenses
(505,410)
(761,522)
Operating profit
4
4,266,550
7,480,207
Interest receivable and similar income
428
2,614
Interest payable and similar expenses
6
(2,024,459)
(3,374,805)
Fair value gains and losses on investment properties
9
1,619,769
(9,839,588)
Profit/(loss) before taxation
3,862,288
(5,731,572)
Tax on profit/(loss)
7
Profit/(loss) for the financial year
3,862,288
(5,731,572)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DOCKLEY LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
8
26,543
12,224
Investment property
9
2,640,000
2,847,000
2,666,543
2,859,224
Current assets
Work in Progress
10
6,814,761
13,499,653
Debtors
11
582,697
537,930
Cash at bank and in hand
30,771
155,056
7,428,229
14,192,639
Creditors: amounts falling due within one year
12
(9,985,892)
(16,421,594)
Net current liabilities
(2,557,663)
(2,228,955)
Total assets less current liabilities
108,880
630,269
Creditors: amounts falling due after more than one year
13
(2,618,481)
(7,261,833)
Provisions for liabilities
Provisions
15
259,675
(259,675)
-
Net liabilities
(2,769,276)
(6,631,564)
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
(2,769,376)
(6,631,664)
Total equity
(2,769,276)
(6,631,564)
The financial statements were approved and signed by the director and authorised for issue on 27 November 2024
J Allen
Director
Company registration number 07882115 (England and Wales)
DOCKLEY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 30 November 2021
100
(900,092)
(899,992)
Year ended 30 November 2022:
Loss and total comprehensive income (restated - refer to Note 21 for details)
-
(5,731,572)
(5,731,572)
Balance at 30 November 2022
100
(6,631,664)
(6,631,564)
Year ended 30 November 2023:
Profit and total comprehensive income
-
3,862,288
3,862,288
Balance at 30 November 2023
100
(2,769,376)
(2,769,276)
DOCKLEY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
11,349,029
10,343,477
Interest payable
(2,024,459)
(3,374,805)
Net cash inflow from operating activities
9,324,570
6,968,672
Investing activities
Purchase of tangible fixed assets
(21,785)
(14,486)
Purchase of investment property
(107,188)
(639,013)
Reduction in property investment costs
1,933,957
3,135,529
Lease capitalised costs as investment property
(2,640,000)
Interest received
428
2,614
Net cash generated from/(used in) investing activities
1,805,412
(155,356)
Financing activities
(Repayment)/issuing of loans
(11,254,267)
(6,899,607)
Net cash used in financing activities
(11,254,267)
(6,899,607)
Net decrease in cash and cash equivalents
(124,285)
(86,291)
Cash and cash equivalents at beginning of year
155,056
241,347
Cash and cash equivalents at end of year
30,771
155,056
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
1
Accounting policies
Company information
Dockley Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Pickle Mews, London, England, SW9 0FJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 30 November 2023 are the first financial statements of Dockley Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 December 2021. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of units is recognised when the significant risks and rewards of ownership of the units have passed to the buyer (usually on completion of the property by the seller, transfer of title and acceptance of the property by the buyer), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Lease income from operating leases is recognised on a straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished. Lease incentives granted are recognized as an integral part of the total lease income, over the term of the lease.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
10 % straight line
Fixtures and fittings
20 % straight line
Computers
33 % straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks refer to construction/work in progress and is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials (building and commercial works) and, where applicable, direct labour costs and those overheads (professional fees) that have been incurred in bringing the stocks to their present location and condition, with reference to the stage of completion, which is calculated by comparing the costs incurred, as a proportaion of total costs.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of 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 company after deducting all of its liabilities.
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Leases
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Investment property valuations
A valuation is carried out for investment properties at the year-end date. Judgements and estimation techniques have been employed as part of this valuation process in order to determine the current market value of the property.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sales of residential units
14,626,366
24,151,659
All turnover was derived from the principal activities of the Company in the United Kingdom.
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
7,466
3,110
Audit and accountancy fees
41,955
6,265
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
No. of Employees
1
1
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities
2,024,459
3,374,805
7
Taxation
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit/(loss) before taxation
3,862,288
(5,731,572)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
965,572
(1,088,999)
Tax effect of utilisation of tax losses not previously recognised
(965,572)
1,088,999
Taxation charge for the year
-
-
At the 30 November 2023, the company had utilised tax losses carried forward of £1,228,881 (2022: £3,341,166) to offset against future taxable profits.
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
8
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 December 2022
15,548
Additions
21,785
At 30 November 2023
37,333
Depreciation and impairment
At 1 December 2022
3,324
Depreciation charged in the year
7,466
At 30 November 2023
10,790
Carrying amount
At 30 November 2023
26,543
At 30 November 2022
12,224
9
Investment property
2023
£
Fair value
At 1 December 2022
2,847,000
Additions through external acquisition
107,188
Reclassification of investment costs
(1,933,957)
Net gains or losses through fair value adjustments
1,619,769
At 30 November 2023
2,640,000
Investment property comprises of the completed building units and the valuation were performed by the chartered surveyors for FY22 each year-end and informed management reassessed the appropriateness of the valuation at FY22, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
10
Stocks
2023
2022
£
£
Work in progress
6,814,761
13,499,653
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
203,292
359,941
Amounts owed by group undertakings
288,834
56,993
Other debtors
35,172
42,449
Prepayments and accrued income
55,399
78,547
582,697
537,930
Amounts owed by group undertakings relate to inter-company loans which are unsecured.
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank and other loans
14
5,302,148
11,913,063
Trade creditors
908,075
723,118
Other creditors
2,886,698
2,729,757
Accruals and deferred income
888,971
1,055,656
9,985,892
16,421,594
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank and other loans
14
2,618,481
7,261,833
14
Loans and overdrafts
2023
2022
£
£
Bank loans
7,920,629
19,174,896
Payable within one year
5,302,148
11,913,063
Payable after one year
2,618,481
7,261,833
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
14
Loans and overdrafts
(Continued)
- 22 -
The above loans are held with Fern Trading Ltd. (secured), Barclays Bank Plc (secured) and Matching Green Ltd. (unsecured).
Fern Trading Ltd.
As per the financing loan agreement dated in 2019, amended and restated in August 2020, this loan is a development loan with the maturity tied to the completion of the development, this loan is secured and the interest rate was 7.5% at 30 November 2023.
Matching Green Ltd.
This related party loan is unsecured and bears an interest rate of 20% per annum, which accrues on the principal.
Barclays Bank Plc
This bank loan is secured and bears an interest rate of 2.5% per annum, which accrues on the principal.
15
Provisions for liabilities
2023
2022
£
£
Profit sharing agreement
259,675
-
Movements on provisions:
£
Additional provisions in the year
259,675
Profit sharing agreements with the construction firm and a key consultant give rise to a likely payment, which has been estimated at £220,064 (2022: £nil) and £39,611 (2022: £nil) respectively. These profit sharing amounts are dependent on the final sales figures for the remaining residential units.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Building works
16,775
272,140
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
18
Events after the reporting date
Subsequent to the year end, on 30 April 2024 the loan with Fern Trading Limited was refinanced with Octane Capital for the principal of £5,292,141 where interest is payable at 0.41% above the Bank of England base rate, where interest accrued daily and settled monthly. A completion fee of £105,842 will be amortised on the principal over the life of the loan. The maturity of the loan is the earliest of 15 months from the arrangement date, or the sale of the Property upon which the loan is secured.
19
Cash generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
3,862,288
(5,731,572)
Adjustments for:
Finance costs
2,024,459
3,374,805
Investment income
(428)
(2,614)
Fair value (gain)/loss on investment properties
(1,619,769)
9,839,588
Depreciation and impairment of tangible fixed assets
7,466
3,110
Increase in provisions
259,675
-
Movements in working capital:
Decrease in stocks
6,684,892
165,974
Increase in debtors
(44,767)
(39,986)
Increase in creditors
175,213
2,734,172
Cash generated from operations
11,349,029
10,343,477
20
Analysis of changes in net debt
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
155,056
(124,285)
30,771
Borrowings excluding overdrafts
(19,174,897)
11,254,268
(7,920,629)
(19,019,841)
11,129,983
(7,889,858)
21
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Nov 2022
£
£
£
Fixed assets
Investment properties
37,843,000
(34,996,000)
2,847,000
Current assets
Stocks
11,403,500
2,096,153
13,499,653
Creditors due within one year
Creditors
(13,781,595)
(2,639,999)
(16,421,594)
DOCKLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
21
Prior period adjustment
As previously reported
Adjustment
As restated at 30 Nov 2022
£
£
£
(Continued)
- 24 -
Provisions for liabilities
Deferred tax
(7,229,029)
7,229,029
Net assets
21,679,254
(28,310,818)
(6,631,564)
Capital and reserves
Profit and loss reserves
21,679,154
28,310,818
(6,631,664)
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 30 November 2022
£
£
£
Cost of sales
(14,870,554)
(1,039,376)
(15,909,930)
Administrative expenses
(991,522)
230,000
(761,522)
Interest payable and similar expenses
(3,144,805)
(230,000)
(3,374,805)
Amounts written off investments
24,660,883
(34,500,471)
(9,839,588)
Taxation
7,229,029
(7,229,029)
Profit/(loss) for the financial period
22,579,246
(28,310,818)
(5,731,572)
Reconciliation of changes in equity
1 December
30 November
2021
2022
£
£
Adjustments to prior year
-
(28,310,818)
Equity as previously reported
(899,992)
21,679,254
Equity as adjusted
(899,992)
(6,631,564)
Analysis of the effect upon equity
Profit and loss reserves
-
(28,310,818)
Reconciliation of changes in profit/(loss) for the previous financial period
2022
£
Adjustments to prior year
Net effect of the prior year adjustments on the 2022 results
(28,310,818)
Profit as previously reported
22,579,246
Loss as adjusted
(5,731,572)
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