Registration number:
Barkwell Properties Limited
for the Year Ended 30 June 2024
Barkwell Properties Limited
Contents
Company Information |
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Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Statement of Financial Position |
|
Statement of Financial Position |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Barkwell Properties Limited
Company Information
Directors |
C Barkwell M Domaille |
Registered office |
|
Auditors |
|
Barkwell Properties Limited
Strategic Report for the Year Ended 30 June 2024
The directors present their strategic report for the year ended 30 June 2024.
Principal activity
The principal activity of the group is the operation of a hotel and provision of plumbing services to property development companies.
Fair review of the business
The performance of the group is as detailed in the Statement of Comprehensive Income on page 8. The directors are pleased to report turnover of £18.2m (2023: £18.2m) for the year.
Loss for the year after tax was reported as £73k (2023: £329k) after an amortisation charge relating to the acquired goodwill of £342k (2023: £342k).
The directors are satisfied with the performance of the group during the year.
The net assets of the group as at 30 June 2024 are set out on page 9 and show a net asset position of £3.8m (2023: £3.9m).
The gross profit margin of the group was 16.5% (2023: 17.0%).
Subsequent to 30 June 2024 the group has been profitable for the three months to September 2024. The directors have considered the group's funding for the next 12 months and beyond by preparing profit and cashflow forecasts which show that adequate funding is in place.
Principal risks and uncertainties
The directors consider that the nature of the business carried on by the group is straightforward and are of the opinion that further analysis using key performance indicators, over and above the information already presented in these financial statements, is not necessary to gain an understanding of the development, performance or position of the group.
The group assesses its opportunities and risks in the market place including areas such as competition, market trends and health and safety policies in order to maintain and extend its business activities.
Non-financial and sustainability information
Environmental matters
Information about environmental matters, the group's employees, social community and human rights issues has not been provided as the directors do not believe that this is material to gain an understanding of the business.
Company employees
Of the two Directors of the company, one is female and one is male.
Approved and authorised by the
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Barkwell Properties Limited
Directors' Report for the Year Ended 30 June 2024
The directors present their report and the for the year ended 30 June 2024.
Directors of the group
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Barkwell Properties Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and 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; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Barkwell Properties Limited
Independent Auditor's Report to the Members of Barkwell Properties Limited
Opinion
We have audited the financial statements of Barkwell Properties Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 30 June 2024 and of the group's loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Barkwell Properties Limited
Independent Auditor's Report to the Members of Barkwell Properties Limited (continued)
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussions with the directors. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit. |
Barkwell Properties Limited
Independent Auditor's Report to the Members of Barkwell Properties Limited (continued)
• |
The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences on non-compliance could have a material impact on the amounts or disclosures within the financial statements including health and safety laws and regulations, employment laws and regulations and certain aspects of companies legislation. |
• |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
80 Oxford Street
Somerset
TA8 1EF
Barkwell Properties Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
- |
|
Operating profit/(loss) |
|
( |
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
33,634 |
(46,359) |
||
Profit/(loss) before tax |
|
( |
|
Tax on profit/(loss) |
( |
( |
|
Loss for the financial year |
( |
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
( |
( |
The group has no recognised gains or losses for the year other than the results above.
Barkwell Properties Limited
(Registration number: 09030239)
Consolidated Statement of Financial Position as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
200 |
200 |
|
Share premium reserve |
3,999,900 |
3,999,900 |
|
Profit and loss account |
(187,551) |
(113,034) |
|
Equity attributable to owners of the company |
3,812,549 |
3,887,066 |
|
Shareholders' funds |
3,812,549 |
3,887,066 |
Approved and authorised by the
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Barkwell Properties Limited
(Registration number: 09030239)
Statement of Financial Position as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
200 |
200 |
|
Profit and loss account |
1,073,823 |
824,581 |
|
Shareholders' funds |
1,074,023 |
824,781 |
The company made a profit after tax for the financial year of £251,242 (2023 - profit of £154,919).
Approved and authorised by the
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Barkwell Properties Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2024
Equity attributable to the parent company
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
( |
|
Loss for the year |
- |
- |
( |
( |
Dividends |
- |
- |
( |
( |
At 30 June 2024 |
|
|
( |
|
Total equity |
|
At 1 July 2023 |
|
Loss for the year |
( |
Dividends |
( |
At 30 June 2024 |
|
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
Dividends |
- |
- |
( |
( |
At 30 June 2023 |
200 |
3,999,900 |
(113,034) |
3,887,066 |
Total equity |
|
At 1 July 2022 |
|
Loss for the year |
( |
Dividends |
( |
At 30 June 2023 |
3,887,066 |
Barkwell Properties Limited
Statement of Changes in Equity for the Year Ended 30 June 2024
Share capital |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2023 |
200 |
824,581 |
824,781 |
Barkwell Properties Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
Finance income |
( |
- |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
(Increase)/decrease in debtors |
( |
|
|
Increase/(decrease) in creditors |
|
( |
|
Cash generated from operations |
|
|
|
Income taxes (paid)/received |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
( |
( |
|
Payments to finance lease creditors |
( |
|
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 July |
|
|
|
Cash and cash equivalents at 30 June |
2,540,795 |
1,014,926 |
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling which is the functional currency of the entity.
Subsequent to 30 June 2023 the group has been profitable for the six months to December 2023. The directors have considered the funding for the next 12 months and beyond by preparing profit and cashflow forecasts which show that adequate funding is in place. The directors have thus continued to adopt the going concern basis of accounting in preparing the annual financial statements.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2024 using the acquisition or merger method of accounting as required. Where the acquisition method is used, the results of subsidiary undertakings are included from the date of acquisition.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
2 |
Accounting policies (continued) |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Statement of Comprehensive Income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The acquisition method of accounting is used for business combinations from purchase of shares in new subsidiaries. The consideration for this acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Where merger accounting is used, the investment is recorded in the company's balance sheet at the nominal value of the shares issued together with the fair value of any additional consideration paid.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
2 |
Accounting policies (continued) |
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
2 |
Accounting policies (continued) |
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Investment properties |
No depreciation |
Short leasehold properties |
Over term of lease |
Fixtures, fittings and equipment |
15% reducing balance/15% straight line |
Plant and machinery |
15% reducing balance/25% reducing balance |
Office equipment |
25% straight line |
Motor vehicles |
25% reducing balance |
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Website |
5 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
2 |
Accounting policies (continued) |
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
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 the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
2 |
Accounting policies (continued) |
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the statement of comprehensive income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Recognition and measurement
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
Rendering of services |
|
|
Rental income from investment property |
( |
|
Other revenue |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Profit on disposal of property |
|
- |
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
(Loss)/gain on disposal of tangible assets |
( |
|
Operating profit/(loss) |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Other interest receivable and similar income |
2024 |
2023 |
|
Other finance income |
|
- |
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Pension costs, defined contribution scheme |
|
|
Redundancy costs |
- |
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
Sales, marketing and distribution |
|
|
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
13,000 |
13,000 |
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Taxation |
Tax charged/(credited) in the consolidated statement of comprehensive income
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK of
The differences are reconciled below:
2024 |
2023 |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
Deferred tax expense on origination and reversal of timing differences |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax decrease from effect of tax losses utilised |
( |
( |
Tax increase from chargeable gains |
|
- |
Tax increase from effect of unrelieved loss on cessation of operations |
|
- |
Total tax charge |
|
|
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Intangible assets |
Group
Goodwill |
Internally generated software development costs |
Total |
|
Cost or valuation |
|||
At 1 July 2023 |
|
|
|
At 30 June 2024 |
|
|
|
Amortisation |
|||
At 1 July 2023 |
|
|
|
Amortisation charge |
|
|
|
At 30 June 2024 |
|
|
|
Carrying amount |
|||
At 30 June 2024 |
|
- |
|
At 30 June 2023 |
|
|
|
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Tangible assets |
Group
Land and buildings |
Short leasehold land and buildings |
Fixtures, fittings and equipment |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||||||
At 1 July 2023 |
|
|
|
|
|
|
|
Additions |
- |
|
|
|
- |
|
|
Disposals |
( |
( |
( |
( |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
|
|
|
Depreciation |
|||||||
At 1 July 2023 |
- |
|
|
|
|
|
|
Charge for the year |
- |
|
|
|
- |
|
|
Eliminated on disposal |
- |
( |
( |
( |
- |
( |
( |
At 30 June 2024 |
- |
|
|
|
|
|
|
Carrying amount |
|||||||
At 30 June 2024 |
|
|
|
|
- |
|
|
At 30 June 2023 |
|
|
|
|
- |
|
|
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
13 |
Tangible assets (continued) |
Included within the net book value of land and buildings above is £4,997,027 (2023 - £6,030,637) in respect of freehold land and buildings and £329,987 (2023 - £20,475) in respect of short leasehold land and buildings.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
13 |
Tangible assets (continued) |
Company
Land and buildings |
Fixtures and fittings |
Total |
|
Cost or valuation |
|||
At 1 July 2023 |
|
|
|
Disposals |
( |
( |
( |
At 30 June 2024 |
|
- |
|
Depreciation |
|||
At 1 July 2023 |
- |
|
|
Eliminated on disposal |
- |
( |
( |
At 30 June 2024 |
- |
- |
- |
Carrying amount |
|||
At 30 June 2024 |
|
- |
|
At 30 June 2023 |
|
|
|
Included within the net book value of land and buildings above is £4,997,027 (2023 - £6,030,637) in respect of freehold land and buildings.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 July 2022 and 30 June 2024 |
|
Provision |
|
At 1 July 2022 and 30 June 2024 |
- |
Carrying amount |
|
At 30 June 2024 |
|
At 30 June 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Unit 2 Brayhams Yard
England |
|
|
|
|
Unit 2 Brayhams Yard
England |
|
|
|
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
14 |
Investments (continued) |
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
Unit 2 Brayhams Yard
England |
|
|
|
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Raw materials and consumables |
|
|
- |
- |
Finished goods and goods for resale |
|
|
- |
- |
|
|
- |
- |
Debtors |
Group |
Company |
|||
Current |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
- |
- |
|
|
Other debtors |
|
|
- |
- |
Prepayments |
|
|
- |
- |
Accrued income |
|
|
|
|
Gross amount due from customers for contract work |
|
|
- |
- |
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash at bank |
|
|
|
|
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
|
|
Trade creditors |
|
|
- |
|
|
Amounts due to group undertakings |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
Other creditors |
|
|
|
|
|
Accruals |
|
|
|
|
|
Income tax liability |
107,976 |
16,087 |
66,921 |
9,839 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
|
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 July 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
Decrease (increase) through disposals |
( |
( |
At 30 June 2024 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 July 2023 |
|
|
Decrease (increase) through disposals |
( |
( |
At 30 June 2024 |
- |
- |
|
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
200 |
200 |
200 |
200 |
Reserves |
Company
Profit and loss account
This reserve records retained earnings and accumulated losses. The reserve includes £Nil (2023: £172,661) which is not distributable.
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
|
Hire purchase contracts |
|
|
- |
- |
|
|
- |
|
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
23 |
Loans and borrowings (continued) |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
|
Hire purchase contracts |
|
|
- |
- |
|
|
- |
|
Group
Bank borrowings
Included within creditors: amounts falling due after more than one year is an amount of £Nil (2023: £33,186) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
- |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Dividends |
2024 |
2023 |
|||
£ |
£ |
|||
Interim dividend of £ |
2,000 |
4,000 |
||
Related party transactions |
Group
Transactions with directors |
2024 |
At 1 July 2023 |
Advances to director |
Repayments by director |
At 30 June 2024 |
|
||||
R & C Barkwell |
( |
|
( |
( |
2023 |
At 1 July 2022 |
Advances to director |
At 30 June 2023 |
|
|||
R & C Barkwell |
( |
|
( |
Other transactions with directors |
During the year the group made sales of £Nil (2023: £50,000) to R Barkwell, a director of the company.
Summary of transactions with entities with joint control or significant interest
R Barkwell is also a director of Moor Training Limited in the year. During the year the company made sales of goods, services and assets of £Nil (2023: £9,796) to Moor Training Limited and made purchases of goods and services of £Nil (2023: £63,308) from Moor Training Limited. Creditors at 30 June 2024 include £53,185 (2023: £78,362) owed to Moor Training Limited.
C Barkwell is a director of Made Well Community Interest Company. During the year the company made sales of goods and services of £Nil (2023: £15,000) to Made Well Community Interest Company. Debtors at 30 June 2024 include £Nil (2023: £15,000) due from Made Well Community Interest Company.
Barkwell Properties Limited
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
26 |
Related party transactions (continued) |
Company
Transactions with directors |
2024 |
At 1 July 2023 |
Advances to director |
Repayments by director |
At 30 June 2024 |
|
||||
R & C Barkwell |
( |
|
( |
( |
2023 |
At 1 July 2022 |
Advances to director |
At 30 June 2023 |
|
|||
R & C Barkwell |
( |
|
( |
Dividends paid to directors
2024 |
2023 |
|||
R Barkwell |
||||
1,000 |
2,000 |
|||
C Barkwell |
||||
1,000 |
2,000 |
|||
Parent and ultimate parent undertaking |
As at 30 June 2024, the ultimate controlling parties are R Barkwell and C Barkwell by virtue of their combined holding of 100% of the issued share capital of the company