REGISTERED NUMBER: |
ASHWOOD HOMES LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
REGISTERED NUMBER: |
ASHWOOD HOMES LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 4 |
Report of the Directors | 5 | to | 6 |
Report of the Independent Auditors | 7 | to | 10 |
Income statement | 11 |
Statement of Comprehensive Income | 12 |
Statement of Financial Position | 13 |
Statement of Changes in Equity | 14 |
Notes to the Financial Statements | 15 | to | 25 |
ASHWOOD HOMES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Salisbury House |
Station Road |
Cambridge |
Cambridgeshire |
CB1 2LA |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and nature of the business. |
The company's main focus of activity has been the construction and sale of new homes through the 'Ashwood Homes' brand. |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being revenue, gross profit and profit before tax and exceptional items. |
2024 | 2023 | 2022 | 2021 | 2020 |
Revenue | £33,800,771 | £55,663,223 | £51,632,335 | £51,702,643 | £36,061,837 |
Gross profit | £5,352,963 | £8,874,485 | £14,222,149 | £7,916,431 | £8,076,114 |
Gross profit % | 15.8% | 15.9% | 27.5% | 15.3% | 22.4% |
Profit before tax | £2,601,836 | £5,357,925 | £11,465,376 | £5,186,201 | £5,657,659 |
In the face of severely challenging economic conditions revenue and profit have decreased during the year to 30 June 2024. The principal reason for this has been the significant decrease in demand for new houses caused by interest rate rises and the increased cost of living. Despite this the company has remained profitable. |
The company's focus on high specification developments with a quality build is helping it to form an enviable reputation with high levels of customer satisfaction. The professional customer service team also plays no small part in this on-going success. |
This year, gross profit has decreased from £8,874,485 to £5,352,963, representing 15.8% as in 2023. Cost pressures associated with the reduced levels of demand contributed to holding the core housing gross profit margin below 20%. |
Taking these factors into account, the underlying trading performance remains very healthy and the directors are pleased considering the challenges that the last 12 months has brought and have confidence in the increased land bank to continue to deliver the company's targets. |
Profit before tax has decreased from £5,357,925 to £2,601,836. This reflects the continuing stability of the business in the face of the economic turbulence and uncertainties. |
In the current year, there continues to be some cost pressures in relation to material and labour costs, but due to its proactive sales approach, good cost and operational control the company has continued to achieve healthy gross profit margins. There are signs that demand levels are starting to improve and the company is well placed to deal with this. |
Overall, the directors are pleased with the results for the year and are confident of the future. There will undoubtedly be further challenges and uncertainties, such as the longer-term impact of both Brexit and interest rate uncertainty on the housing market. The company is however in a favourable position with a significant land bank and plots with planning permission that will allow current activity to be maintained into the coming year and beyond. |
The company continues to identify new land for future development. Our flagship 1,000 home project in Holbeach is fully operational and producing completions, giving the business security for the future. There are also a number of new sites coming on stream in the next year as part of our overall 9-year supply of land. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks arising from the company's activities and the board's policies for managing these risks are summarised below. |
Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by revolving credit facilities. |
Interest rate risk |
The company finances its operations through a combination of bank borrowings, hire purchase, group loans and director financing loans. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and variable rate facilities. Interest on group loans and director financing loans is discretionary. |
Government housing policy |
Government housing policies can impact the market in both the short and long-term. Following the change of government there are likely to be new measures taken which will influence our business operations and future profitability. We are constantly monitoring current commentary relating to future government policy and maintaining contact with current thinking through industry platforms and contacts. |
Economic conditions |
The health of the economy at local and national level, and any deterioration in it, will potentially have an impact on demand and selling prices for new homes. Revenue, profit and cash flow could be adversely affected. Current economic data is monitored to identify any potential triggers for a deterioration in market conditions, allowing the company to set build rates and plot releases as close as possible to anticipated demand levels. The company's level of gearing and cash reserves are also monitored as part of its liquidity risk assessment to ensure borrowing levels are manageable in the event of a sudden downturn. |
Impact of Brexit |
There has been a considerable degree of uncertainty about Brexit in recent years. The situation continues to remain somewhat uncertain, with pressure being felt in supply chain and logistics, resulting in increased material prices, longer lead times and economy wide inflationary increases. The longer-term impact of Brexit remains uncertain, but the company manages this risk by monitoring the Government's post-Brexit policy closely and assessing any potential impact on both the housing market and the company. |
Mortgage regulation |
The housing market is dependent on homeowners' ability to borrow money to buy homes. Any changes in regulations, money supply or interest rates may affect that ability with potential impact on revenue, profit and cash flow. This risk is managed by monitoring current commentary relating to finance and assessing its impact on levels of construction activity. |
Price risk |
Material and labour supply demands will vary according to overall levels of house building activity. Increased activity can lead to cost increases. |
Currency and credit risks |
Due to the nature of the financial instruments used by the company there is no exposure to currency risk and minimal exposure to credit risk with new homes being released on full payment of the asking price. |
Environmental |
The company is aware of its environmental responsibilities and of its carbon footprint and is starting to look in some detail at its impact on the community and the environment. Our fleet of company cars are all 100% electric with chargers installed at both the company's head office and the EV user's homes. |
We also continue to assess and implement new technologies in order to make the homes we build more energy efficient and lower our carbon footprint, through small changes such as using LED lights to replacing gas boilers with thermal heating pumps. |
Future developments |
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
SECTION 172(1) STATEMENT |
The directors set out their compliance statement in accordance with S172(1) of the Companies Act 2006. |
The directors key objectives in decision making is to ensure the short and long term success of all business related activities. This promotes the sustainable growth of the business, to the benefit of all involved stakeholders, including customers and suppliers. |
Consideration is also given to the impact of any such decisions on the welfare of the group's employees, to ensure that decisions are made equitably, in their best interests. The directors are committed to providing a working environment that promotes the long term well-being of all employees, whilst enhancing their performance and potential. |
The group is mindful of its environmental and community responsibility, and sets a high standard of conduct for both employees and suppliers to follow. The directors set high standards of ethical behaviour to promote the reputation of the company both in its operating area and across the wider housebuilding industry. |
ON BEHALF OF THE BOARD: |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the development and sale of real estate. |
DIVIDENDS |
No interim dividend was paid on the Ordinary £1 shares. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the Preference £1 shares. The directors recommend that no final dividend be paid on these shares. |
A dividend in specie of £3,519,777 was paid on 29 February 2024. This related to group debt reorganisation. |
The total distribution of dividends for the year ended 30 June 2024 will be £3,519,777. |
FUTURE DEVELOPMENTS |
Information concerning future developments is contained in the strategic report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise cash, bank term borrowings and trade creditors. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the 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 (United Kingdom Accounting Standards 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 accounting estimates that are reasonable and prudent; |
- | state whether applicable 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. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHWOOD HOMES LIMITED |
Opinion |
We have audited the financial statements of Ashwood Homes Limited (the 'company') for the year ended 30 June 2024 which comprise the Income statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 June 2024 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Auditors' 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Report of the Directors has 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 Report of the Directors. |
- 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; or |
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Report of the Directors and from the requirement to prepare a Strategic Report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHWOOD HOMES LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHWOOD HOMES LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- 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; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the house building sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, and health and safety legislation; |
- in addition, we considered provisions of other laws and regulations which do not have a direct effect on the financial statements but compliance with which might be fundamental to the company's ability to operate or to avoid material penalties; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and the company's lawyers inspecting correspondence available: and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
To address the risk of fraud through management bias and override of controls, we; |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- 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; |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- discussing with management, those charged with governance and the entity's solicitors actual and potential litigation and claims; and |
- reviewing correspondence made available to us such as correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHWOOD HOMES LIMITED |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Salisbury House |
Station Road |
Cambridge |
Cambridgeshire |
CB1 2LA |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
REVENUE | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
2,844,696 | 6,141,254 |
Other operating income | 4 |
OPERATING PROFIT | 7 |
Income from shares in group undertakings |
Interest receivable and similar income |
2,575,231 | 6,927 |
5,480,324 | 6,199,559 |
Amounts written off investments | 8 | 1,894,836 | - |
3,585,488 | 6,199,559 |
Interest payable and similar expenses | 9 |
PROFIT BEFORE TAXATION |
Tax on profit | 10 |
PROFIT FOR THE FINANCIAL YEAR |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
STATEMENT OF FINANCIAL POSITION |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 12 |
Investments | 13 |
Investment property | 14 |
CURRENT ASSETS |
Inventories | 15 |
Debtors | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 21 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Merger reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Sale of investment | - | 1,163,612 | (1,163,612 | ) | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2024 |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Ashwood Homes Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements contain information about Ashwood Homes Limited as an individual company. The company is included by full consolidation within the consolidated financial statements of Ashley King Group Limited, the company's ultimate parent. |
The registered office of Ashley King Group Limited is 1 Goodison Road, Lincs Gateway Business Park, Spalding, Lincolnshire. PE12 6FY. |
Consolidated financial statements can be obtained from the above address. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about Ashwood Homes Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Ashley King Group Limited, 1 Goodison Road, Lincs Gateway Business Park, Spalding, Lincolnshire. PE12 6FY. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
(i) Work in progress/cost of sales |
The company recognises costs in the profit and loss account based on the expected margin after considering the the total costs for each site. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue from housing sales is recognised at the fair value of the consideration received or receivable on legal completion, being the point that control is deemed to pass to the customer. |
Profit is recognised on the sale of each housing plot by reference to the estimated costs of that plot based on an allocation from the expected overall cost out-turn for the development site. |
Property, plant and equipment |
Freehold property | - |
Plant and machinery | - |
Fixtures, fittings and equipment | - |
Motor vehicles | - |
Tangible fixed assets are held at cost less accumulated depreciation and impairment losses. Depreciation is charged to both administrative expenses and cost of sales. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairment. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Inventories |
Inventory comprises units in the course of construction and currently held for sale. Cost is measured as the cost of materials used, plus staff and other costs directly attributable to bringing the stock to its current condition. |
Stocks and work in progress are valued at the lower of cost and fair value less costs to complete and sell after making due allowance for slow moving and obsolete items. |
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
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 the profit and loss account, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest. |
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. Accounts 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Interest amounts are accounted for on an accruals basis. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by class of business is given below: |
2024 | 2023 |
£ | £ |
All revenue arose in the UK. |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Rents received |
Sundry receipts | 2,430 | - |
60,397 | 51,378 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 2 |
Management, office and administration | 41 | 45 |
Site staff | 14 | 16 |
6. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Hire of plant and machinery included in cost of sales |
8. | AMOUNTS WRITTEN OFF INVESTMENTS |
2024 | 2023 |
£ | £ |
Amounts written off investments | 1,894,836 | - |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Other bank loan interest |
Interest on taxation |
Hire purchase interest |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment for previous years | 16,516 | - |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods |
Change in corporation tax rate | - | (247,186 | ) |
Group loss relief | ( |
) | ( |
) |
Total tax charge | 511,432 | 1,083,822 |
11. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each - Interim |
Dividend in specie | 3,519,777 | - |
3,519,777 | - |
12. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures, |
fittings |
Freehold | Plant and | and | Motor |
property | machinery | equipment | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The net book value of property, plant and equipment includes £ 170,625 in respect of assets held under hire purchase contracts. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
Disposals | ( |
) |
Impairments | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: 1 Goodison Road, Lincs Gateway Business Park, Spalding, Lincolnshire. PE12 6FY |
Nature of business: |
% |
Class of shares: | holding |
The following subsidiary companies were disposed of to a fellow group company for nil consideration during the year: Tallsteed Limited (registered number 06357627), Saxondune Limited (registered number 06362227), Courtscreen Limited (registered number 06362218), Viewcliff Limited (registered number 06374444), Helmguard Limited (registered number 06374437), Marbleshield Limited (registered number 06503528) and Gateway South Management Co Limited (09420576). |
The following subsidiary company was disposed of to a fellow group company for £458,268: King Bros. (Butchers) Limited (registered number 01366927). |
14. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The investment property was acquired during the year ended 30 June 2019. The directors are of the opinion that the fair value at the year end is not materially different to the cost. |
15. | INVENTORIES |
2024 | 2023 |
£ | £ |
Stocks |
Work-in-progress |
Inventories are recognised after provisions for impairment of £70,309 (2023: £70,309). |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' loan accounts | - |
Prepayments and accrued income |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Hire purchase contracts (see note 19) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Other taxes and social security |
Other creditors |
Directors' loan accounts |
Accruals and deferred income |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Bank loans are utilised to fund land acquisition and development costs. Repayments are made in respect of individual plot sales as they are completed. Bank borrowings are provided on the bank's normal commercial terms. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 92,620 | - |
Bank loans | 9,007,607 | 12,608,144 |
Hire purchase contracts are secured over the assets financed. |
Bank borrowings are secured by a debenture including a fixed and floating charge over all property and assets present and future. In addition, land and development loans are secured by first legal mortgages over the property to which they relate and other properties of the company. |
21. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 58,938 | 71,737 |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Credit to Income statement during year | ( |
) |
Balance at 30 June 2024 |
The reversal of deferred taxation timing differences is not expected to be significant in the forthcoming period. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 10,000 | 10,000 |
Ordinary B | £1 | 1 | 1 |
Preference | £1 | 6,500,000 | 6,500,000 |
6,510,001 | 6,510,001 |
The Ordinary B shares rank pari passu with the Ordinary shares, other than limitation to dividends and repayment of capital which are limited to the value of B shares assets (as defined in the articles). |
The Preference shares have no voting rights but rank above the Ordinary shares on winding up. Dividends can only be paid on the Preference shares following an ordinary resolution. The Preference shares are redeemable, with three months notice, at the option of the company. The preference shares are not redeemable at the option of the shareholder. |
In all other respects, the Preference shares rank pari passu with the Ordinary shares. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
23. | CONTINGENT LIABILITIES |
The company undertakes to perform "snagging work" on each new property up to six months after completion and sale. This work is budgeted for in the original sale price and a standard cost for the work is accrued at the point of sale. However, an unquantifiable contingent liability exists in respect of any work that may be necessary on properties sold at the statement of financial position date but inspected for snagging after that date where the standard cost may be exceeded. All structural work is covered by a separate insurance policy applicable to each property sold. This takes effect following the expiry of an initial maintenance period. |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 June 2024 and 30 June 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
Loans to directors are provided interest free and are repayable on demand. |
ASHWOOD HOMES LIMITED (REGISTERED NUMBER: 04242280) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
25. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
During the year, total key management personnel compensation of £483,185 (2023: £560,630) was paid. |
During the year, the company paid rent to the directors' pension scheme of £93,500 (2023: £93,500). |
During the year, the company sold a car for £10,455 (2023: £nil) and paid rent of £15,000 (2023: £nil) to a partnership in which the directors have a controlling interest. |
At the year end the company owed the directors £341,264 (2023: £1,424,521 owed by the directors to the company). This loan is interest free and repayable on demand. During the year a consolidation of directors' loan account balances within the group of £3,858,436 (2023: £nil) was undertaken and land was purchased from a director for £554,760 (2023: £nil). |
Other related parties |
Ashwood Homes Limited sub-lets office space to a company under the control of a director. During the year, this company was charged rent and rent insurance of £nil (2023: £5,844). At the statement of financial position date this company was owed £199 (2023: £1,911) by Ashwood Homes Limited. |
From time to time, the company makes and receives financing loans to/from other group companies. At the statement of financial position date, the company owed other group companies £13,141,864 (2023: £12,175,445). Other group companies owed the company £5,654,081 (2023: £6,349,258). These loans are interest free and repayable on demand. |
On 21st June 2022 a £1 Ordinary B share was issued to a director and the company ceased to be 100% owned by the parent company. The following transactions with the parent company and subsidiaries of the parent company took place during the year. |
- The company charged other companies within the group £18,000 (2023: £nil) for management services, £4,098 (2023: £65,672) for recharge of expenses and £19,625 (2023: £14,874) for rental of land in the period. |
- The company was charged by other companies within the group £245,529 (2023: £nil) for recharge of expenses and £42,597 (2023: £442,311) for hire of plant and machinery. |
- The company was charged by other companies within the group £nil (2023: £227,500) for the purchase of land and £608,601 (2023: £nil) for the purchase of assets. |
- The company paid a dividend in specie of £3,519,777 (2023: £nil) to a company within the group. |
- The company entered a Deed of Release with a company within the group for £1,896 (2023: £nil). |
- A group company novated its director's loan account balance with the company for £338,659 (2023: £nil). |
At the statement of financial position date, the company was owed £38,243 (2023: £46,507) by a 60% owned related company. This loan is interest free and repayable on demand. The company charged this company £3,836 (2023: £33,701) for recharged expenses and services provided. |
26. | ULTIMATE CONTROLLING PARTY |
At the year end, the parent and ultimate parent company was Ashley King Group Limited, a company registered in the United Kingdom. |
The ultimate controlling parties are the directors by virtue of their shareholding in Ashley King Group Limited. |
The only group of undertakings for which group financial statements are drawn up and of which this company is a member is Ashley King Group Limited. |
Copies of group accounts can be obtained from 1 Goodison Road, Lincs Gateway Business Park, Spalding. Lincolnshire. PE12 6FY. |