Company Registration No. 12936456 (England and Wales)
IMPACT DEVELOPMENTS FAVERSHAM LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
Affinia
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
IMPACT DEVELOPMENTS FAVERSHAM LTD
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
IMPACT DEVELOPMENTS FAVERSHAM LTD
STATEMENT OF FINANCIAL POSITION
- 1 -
31 May 2024
31 March 2023
Notes
£
£
£
£
Current assets
Stocks
-
1,250,191
Debtors
4
34,083
Cash at bank and in hand
32,210
1,316,484
Creditors: amounts falling due within one year
5
(6,317)
(1,174,311)
Net current (liabilities)/assets
(6,317)
142,173
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
(6,327)
142,163
Total equity
(6,317)
142,173
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial period ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 19 February 2025
Mr S Whitton
Director
Company registration number 12936456 (England and Wales)
IMPACT DEVELOPMENTS FAVERSHAM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2024
- 2 -
1
Accounting policies
Company information
Impact Developments Faversham Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Vicarage Lane, Stratford, London, E15 4HF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is in a net trueliabilities position of £6,317 at the balance sheet date.
The directors have considered the forecasted future operations of the company and that the ultimate parent undertaking has confirmed to provide continuing financial support to the company, and have concluded that the company will have adequate resources to continue in business for the foreseeable future, being at least 12 months from the date of approval of these financial statements.
1.3
Reporting period
The financial statements have been prepared for an accounting period not equal to 12 months due to the company winding up at the end of this period.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.5
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
These costs are then released through the income statement in the period in which the release of work in progress occurs.
IMPACT DEVELOPMENTS FAVERSHAM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Stocks
Stocks, are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour costs and those overheads that are directly attributable to the construction of the qualifying assets of stock, including capitalised borrowing costs. These are the borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been made. Management assesses the cost held and where required will write down the stock to its net realisable value. Net realisable value represents the estimated selling price less all estimated costs of completion and overheads. Stocks represent property acquired.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
IMPACT DEVELOPMENTS FAVERSHAM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
- 4 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Valuation of work in progress and stock
Work in progress & stocks are carried at the lower of cost and net realisable value.
The Company annually conducts a review of its work in progress and makes impairments to ensure work in progress is carried at the lower of cost and net realisable value. Valuations of site work are carried out at regular intervals and estimates of the cost to complete and anticipated revenues are reviewed to determine the level of any impairment required. Management are required to employ judgement in estimating the profitability of a site and in assessing any impairment provisions required.
These assessments include a degree of inherent uncertainty due to the need to estimate future costs and future selling prices. These estimates are based on the Directors' assessment of current market conditions.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Total
1
1
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
34,083
IMPACT DEVELOPMENTS FAVERSHAM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2024
- 5 -
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
693,263
Trade creditors
600
Taxation and social security
3,542
Other creditors
2,775
480,448
6,317
1,174,311
Included within other creditors above is a balance of nil due to this balance being waived in the year (2023: £430,188) owed to connected companies.
A fixed charge was created on 28 June 2022 and exists as security for the bank loan over the property known as 10-11 Market Street, Faversham including the land and the leasehold property registered at land registry under title no. K101102, K386557, K697110 and K96748. This charge includes a floating charge over all property and undertakings of the company and contains a negative pledge.
6
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
The company paid £68,750 (2023: £NIL) in relation to management fees to a company under common control.
7
Parent company
The immediate parent company is Impact Smart Homes Limited, a company incorporated in England and Wales. The registered address of Impact Smart Homes Limited is 1 Vicarage Lane, London, England, E15 4HF.
The ultimate controlling parent company is Impact Capital Group Limited, a company incorporated in England and Wales. The registered address of Impact Capital Group Limited is 1 Vicarage Lane, London, England, E15 4HF.