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Burrington Estates (Topsham) Limited

Annual Report and Financial Statements
Year Ended 30 June 2023

Registration number: 09969110

 

Burrington Estates (Topsham) Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 7

 

Burrington Estates (Topsham) Limited

Balance Sheet

30 June 2023

Note

30 June
2023
£

30 June
2022
£

Current assets

 

Stocks

4

6,379,821

2,504,475

Debtors

5

195,641

83,617

Cash at bank and in hand

 

5,785

5,760

 

6,581,247

2,593,852

Creditors: Amounts falling due within one year

6

(6,304,372)

(1,352,843)

Total assets less current liabilities

 

276,875

1,241,009

Creditors: Amounts falling due after more than one year

6

-

(936,232)

Net assets

 

276,875

304,777

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

276,775

304,677

Shareholders' funds

 

276,875

304,777

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

Approved and authorised by the Board on 30 January 2025 and signed on its behalf by:
 

.........................................
Mr R Dewhurst
Director

   
     

Company Registration Number: 09969110

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2023

1

General information

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

The address of its registered office and principal place of business is:
Winslade House
Manor Drive
Clyst St Mary
Devon
United Kingdom
EX5 1FY

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The functional currency of Burrington Estates (Topsham) Limited is considered to be pounds sterling because it is the currency of the primary economic environment in which the company operates.

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2023

Going concern

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

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

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

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

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

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

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

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 corporation 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 company operates and generates taxable income.

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2023

Borrowing costs

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

Stocks

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

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Cash and bank balances;
• Bank borrowings; and
• Short term balances with group companies.

All financial instruments are classified as basic.

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

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

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

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


 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2022 - 0).

4

Stocks

30 June
2023
£

30 June
2022
£

Work in progress

6,379,821

2,504,475

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2023

5

Debtors

30 June
2023
£

30 June
2022
£

Prepayments

53,812

32,587

Other debtors

141,829

51,030

195,641

83,617

6

Creditors

Note

30 June
2023
£

30 June
2022
£

Due within one year

 

Loans and borrowings

7

4,504,625

-

Trade creditors

 

220,836

87,379

Amounts due to group undertakings

 

1,095,502

756,212

Accruals and deferred income

 

164,400

128,639

Other creditors

 

319,009

230,347

Corporation tax

 

-

150,266

 

6,304,372

1,352,843

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

7

Loans and borrowings

30 June
2023
£

30 June
2022
£

Loans and borrowings due after one year

Bank borrowings

-

936,232

Bank borrowings

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

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

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2023

8

Contingent Liabilities

An unlimited guarantee has been given by the company in relation to obligations of Burrington Estates (Clifton Road Deddington) Limited, Burrington Estates (Deddington 2) Limited and Burrington Estates (Rangeworthy) Limited due to the bank that provide the loan to the company. Since the balance sheet date, all bank obligations of the previously noted companies have been satisfied.

These companies have provided unlimited guarantees to Burrington Estates (Topsham) Limited in respect of the loan. Since the balance sheet date, all bank obligations of the Company have been satisfied.

9

Related party transactions

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

10

Parent and ultimate parent undertaking

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

 The ultimate parent is Burrington Estates Group Limited, incorporated in England and Wales. Its registered office is:

Winslade House
Manor Drive
Clyst St Mary
United Kingdom
EX5 1FY

 

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2023

11

Audit report

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

Material uncertainty relating to going concern

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

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

Whilst the company pursues its activity of developing a housing site they will be reliant on both financial and operational support from the ultimate parent undertaking, Burrington Estates Group Limited (BEG). BEG has become reliant on its principal shareholder and lender to continue to support it. The directors of BEG have concluded that it is unlikely to be able to settle or refinance all its loans from shareholders. The timing of the sold of unsold properties may impact on the period that the company will continue trading and the financial position of the group means that decisions could subsequently change which casts significant doubt on the company’s ability to continue as a going concern.

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

The name of the Senior Statutory Auditor who signed the audit report was Tom Beable FCA, who signed for and on behalf of PKF Francis Clark on 31 January 2025.