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Sage Accounts Production Advanced 2021 - FRS102_2021
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14,790,691
4,756,930
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COMPANY REGISTRATION NUMBER:
08983360
Urban&Civic Alconbury Limited |
|
Urban&Civic Alconbury Limited |
|
Year ended 30 September 2024
Officers and professional advisers |
1 |
|
|
Independent auditor's report to the members |
5 |
|
|
Statement of income and retained earnings |
9 |
|
|
Statement of financial position |
10 |
|
|
Notes to the financial statements |
11 |
|
|
Urban&Civic Alconbury Limited |
|
Officers and Professional Advisers |
|
The board of directors |
W N Hugill |
|
R E Butler |
|
D L Wood |
|
|
Company secretary |
Urban&Civic (Secretaries) Limited |
|
|
Registered office |
50 New Bond Street |
|
London |
|
W1S 1BJ |
|
|
Auditor |
BDO LLP |
|
Chartered accountants & statutory auditor |
|
55 Baker Street |
|
London |
|
W1U 7EU |
|
|
Urban&Civic Alconbury Limited |
|
Year ended 30 September 2024
The directors present their strategic report together with the audited financial statements for the year ended 30 September 2024.
Principal activity
The principal activity of the company is that of property development
.
Review of the business
The company's results for the year and financial position are as shown in the financial statements. It is expected that the group will continue its activities and trade satisfactorily in the forthcoming year.
Key performance indicators
The key performance indicators, both financial and non-financial, disclosed in the annual report of Urban&Civic plc, are equally applicable to the Company given its activity is consistent with the aims and objectives of the wider Group.
Risks and uncertainties
All financial and non-financial risks faced by the Company are contained within those detailed in the annual report of Urban&Civic plc.
This report was approved by the board of directors on 4 March 2025 and signed on behalf of the board by:
Registered office: |
50 New Bond Street |
London |
W1S 1BJ |
|
Urban&Civic Alconbury Limited |
|
Year ended 30 September 2024
The directors present their report and the financial statements of the company for the year ended
30 September 2024
.
Directors
The directors who served the company during the year were as follows:
W N Hugill |
|
R E Butler |
|
D L Wood |
|
|
|
Dividends
The directors do not recommend the payment of a dividend. No dividend was recommended in the prior year.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 company and 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; 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 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
4 March 2025
and signed on behalf of the board by:
Registered office: |
50 New Bond Street |
London |
W1S 1BJ |
|
Urban&Civic Alconbury Limited |
|
Independent Auditor's Report to the Members of
Urban&Civic Alconbury Limited |
|
Year ended 30 September 2024
Opinion on the financial statements
In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 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. We have audited the financial statements of Urban&Civic Alconbury Limited ("the company") for the year ended 30 September 2024 which comprise the statement of income and retained earnings, statement of financial position and the related 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).
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's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence 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.
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 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. 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.
Other Companies Act 2006 reporting
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Strategic report and the Directors' report for the financial period for
which the financial statements are prepared is consistent with the financial statements; and
-
the Strategic and the Directors' report has been prepared in accordance with applicable legal requirements.
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 Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the 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 Directors' Responsibilities Statement, 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's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Extent to which the audit was capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Directors and other management (as required by auditing standards). - We had regard to laws and regulations in areas that directly affect the financial statements (including related company legislation) and taxation legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. - With the exception of any known or possible non-compliance and as required by auditing standards, our work include agreeing the financial statement disclosures to underlying supporting documentation, review of Board minutes, enquiries with management. - We communicated identified laws and regulations to our team and remained alert to any indications of non-compliance throughout the audit. Fraud We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included: - Enquiry with management and those charged with governance regarding any known or suspected instances of fraud. - Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud. - Discussion amongst the engagement team as to how and where fraud might occur in the financial statements. - Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. Based on our risk assessment, we considered the area's most susceptible to fraud to be management override, revenue recognition and property valuations. Our procedures in respect of the above included: - Testing a sample of journal entries throughout the year, which we considered most susceptible to override, by agreeing to supporting documentation. Auditor's responsibilities for the audit of the financial statements (continued) - Assessing significant inputs to valuations by testing source documentation to verify their accuracy such as the sales data and cost allocations. - Challenge of external valuation assumptions and their inputs within the valuation report. - Reviewing discount rates/RPI uplifts to ensure minimums have been calculated correctly. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 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.
Thomas Edward Goodworth |
(Senior Statutory Auditor) |
|
For and on behalf of
BDO LLP
, statutory auditor
55 Baker Street |
London |
W1U 7EU |
|
5 March 2025
BDO LLP is a limited liability partnership registered in England and Wales (with registered number: OC305127).
Urban&Civic Alconbury Limited |
|
Statement of Income and Retained Earnings |
|
Year ended 30 September 2024
|
2024 |
2023 |
Note |
£ |
£ |
Turnover |
4 |
11,193,891 |
27,082,363 |
|
|
|
|
Cost of sales |
(
7,593,941) |
(
29,539,789) |
|
------------- |
------------- |
Gross profit/(loss) |
3,599,950 |
(
2,457,426) |
|
|
|
Administrative expenses |
(
2,843,967) |
(
3,199,749) |
Revaluation of investment property |
(260,000) |
(10,054,000) |
|
|
|
|
|
------------ |
------------- |
Operating profit/(loss) |
5 |
495,983 |
(
15,711,175) |
|
|
|
|
Income from shares in group undertakings |
6 |
53,961 |
– |
Other interest receivable and similar income |
7 |
3,226,121 |
3,243,413 |
Interest payable and similar expenses |
8 |
(
3,438,639) |
(
2,229,795) |
|
------------ |
------------- |
Profit/(loss) before taxation |
337,426 |
(
14,697,557) |
|
|
|
|
Tax on profit/(loss) |
9 |
255,496 |
(
93,134) |
|
--------- |
------------- |
Profit/(loss) for the financial year and total comprehensive income/(loss) |
592,922 |
(
14,790,691) |
|
--------- |
------------- |
|
|
|
|
Retained earnings at the start of the year |
32,805,310 |
47,596,001 |
|
------------- |
------------- |
Retained earnings at the end of the year |
33,398,232 |
32,805,310 |
|
------------- |
------------- |
|
|
|
All the activities of the company are from continuing operations.
Urban&Civic Alconbury Limited |
|
Statement of Financial Position |
|
30 September 2024
Fixed assets
Tangible assets |
10 |
33,662,769 |
33,675,521 |
|
|
|
|
Current assets
Stocks |
11 |
138,818,174 |
126,691,741 |
Debtors: due within one year |
12 |
28,380,917 |
35,295,228 |
Debtors: due after more than one year |
12 |
21,393,631 |
28,274,808 |
Cash at bank and in hand |
33,608,339 |
20,469,795 |
|
-------------- |
-------------- |
|
222,201,061 |
210,731,572 |
|
|
|
|
Creditors: amounts falling due within one year |
13 |
(
62,969,634) |
(
56,544,581) |
|
-------------- |
-------------- |
Net current assets |
159,231,427 |
154,186,991 |
|
-------------- |
-------------- |
Total assets less current liabilities |
192,894,196 |
187,862,512 |
|
|
|
|
Creditors: amounts falling due after more than one year |
14 |
(
62,175,250) |
(
57,480,992) |
|
|
|
|
Provisions
Taxation including deferred tax |
15 |
(
4,501,434) |
(
4,756,930) |
|
-------------- |
-------------- |
Net assets |
126,217,512 |
125,624,590 |
|
-------------- |
-------------- |
|
|
|
|
Capital and reserves
Called up share capital |
17 |
2,000 |
2,000 |
Share premium account |
18 |
92,817,280 |
92,817,280 |
Profit and loss account |
18 |
33,398,232 |
32,805,310 |
|
-------------- |
-------------- |
Shareholders funds |
126,217,512 |
125,624,590 |
|
-------------- |
-------------- |
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
4 March 2025
, and are signed on behalf of the board by:
Company registration number:
08983360
Urban&Civic Alconbury Limited |
|
Notes to the Financial Statements |
|
Year ended 30 September 2024
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 50 New Bond Street, London, W1S 1BJ. The principal activity of the company is property development.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
Urban&Civic Alconbury Limited (the Company) is reliant on funding provided by Urban&Civic plc and fellow Group undertakings (the Group). Given Urban&Civic plc has provided a letter of support confirming that it shall continue to provide such support for the foreseeable future, and for a period of at least 12 months from the signing of these financial statements, the Directors consider it reasonable to rely on the continuation of this financing in making their assessment of the ability of the Company to continue as a going concern. The Directors have considered the ability of the Group to give the necessary support. Disclosures are given in the Group financial statements of Urban&Civic plc regarding its ability to continue as a going concern. Based on the Group forecasts and the assurance from Urban&Civic plc the Directors consider that the Company has adequate resources for a period in excess of 12 months from the date of approval of these financial statements and accordingly have concluded that it is appropriate for the Company to prepare its own financial statements on a going concern basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Urban&Civic Plc which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: - the requirements of Section 7 Statement of Cashflows. - the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d). - the requirements of Section 11 Financial Instruments paragraph 11.39 to 11.48A. - the requirements of Section 33 Related Party Disclosures paragraph 33.7.
Judgements and key sources of estimation uncertainty
The company makes certain estimates and assumptions regarding the future. These judgements and estimates affect the application of policies and reported amounts of assets, liabilities, income and expenses. Estimates are continually evaluated based on historical experience and expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. In preparing these financial statements, the directors have made the following judgements and estimates: Stock impairment For the purposes of calculating the net realisable value of its stock balance, the Directors use valuations carried out by independent valuers on the basis of market value in accordance with the Appraisal and Valuation Standards of the Royal Institution of Chartered Surveyors. The valuations are based upon assumptions including future rental income, sales prices, an estimate of typical profit margins, anticipated maintenance costs, future development costs and appropriate discount rates. The valuers also make reference to market evidence for comparable property transactions and principal inputs and assumptions. Due to the nature of development timescales, it is routinely necessary to estimate costs to complete and future revenues and to allocate non-unit-specific development costs between units legally completing in the current financial year and in future periods. Valuation of investment properties For the purposes of calculating the fair value of its investment property, the Company has used valuations carried out by independent valuers in accordance with the Appraisal and Valuation Standards of the Royal Institution of Chartered Surveyors. The valuations are based upon assumptions including future rental income, sales prices, an estimate of typical profit margins, future development costs and appropriate discount rates. The valuers and Directors also make reference to market evidence for comparable property transactions and principal inputs and assumptions. Revenue Estimates are involved when determining how much revenue to recognise at the point in time of residential property sales where there is deferred consideration and/or variable consideration which is only determined at the point of the future onward sale of constructed homes by the Group's housebuilder customers. In determining the amount of revenue recognised, the Directors consider the following factors: - Absorption rates - licence sale contracts contain minimum sales rates as well as minimum prices. The Directors consider as a base case assumption that houses will be sold by housebuilding customers in line with the contracted minimum sales rates. Deferred revenue is therefore discounted by reference to these rates. - Discount rates - the onward sale of constructed homes by housebuilder customers will occur over a number of years. Consequently, the time value of money and the credit risk of the housebuilder must be taken into account when measuring the present value of the consideration receivable. The Directors consider the third party cost of borrowing to be an appropriate rate at which to discount deferred consideration for the sale of the land. These discount rates are kept under review in the event of of indications of a significant change in circumstance of the housebuilding customer. Judgements and key sources of estimation uncertainty (continued) - Affordable revenue - licence sale contracts in respect of land parcels can mandate the purchaser to provide an element of affordable housing within overall delivery. Revenue in relation to affordable housing is recognised when the Directors consider that a reliable estimate can be made of the amount receivable. The Directors assess, on a case by case basis, whether such a reliable estimate can be made, taking into account, for example, whether contracts are exchanged, whether there are a number of of advanced offers in place, or whether contracts are well advanced. - Inflation rates - some contractual minimum prices are subject to annual review and inflation. The Directors consider publicly available inflation forecasts when calculating minimum amounts receivable over the licence contracts. Cost of trading property sales The sale of parcels or units of strategic land requires an allocation of costs (where applicable including site wide infrastructure, any construction costs directly attributable to individual land parcels, capitalised interest and capitalised administrative expenses) in order to account for cost of sales associated with the disposal. The costs being allocated, based on net developable acres as a proportion of total project net developable acres, include those incurred to date together with an allocation of costs remaining, estimated with reference to latest project forecasts.
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Revenue recognition
Revenue from the sale of trading and investment properties is recognised when the significant risks and rewards of ownership have passed to the buyer, usually when legally binding contracts that are irrevocable and effectively unconditional are exchanged. Rental income arising from property is accounted for on a straight line basis over the term of the lease. Lease incentives, including rent free periods and payments to tenants, are allocated to the statement of comprehensive income on a straight line basis over the lease term as a deduction from rental income. Revenue on construction contracts is recognised over time usually on the basis of percentage of work completed using the input method (reflecting the enhancement in value of the customer’s asset). Associated costs are expensed as incurred. Where contracts contain multiple distinct elements, revenue is allocated to each element in proportion to the assessed stand-alone selling price of the services being provided. For any such elements that are determined as being satisfied at a point in time, revenue is recognised at the point of satisfaction of the relevant performance obligations. Associated costs are initially recognised in trading properties and expensed as a cost of sale at the point of sale.
Income 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 expenses recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. 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 company's subsidiaries operate and generate taxable income. Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the reporting date.
Tangible assets
Tangible assets are stated at cost or fair value at the date of transfer less accumulated depreciation and accumulated impairment losses. This includes costs directly attributable to making the asset capable of operating as intended.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Owner occupied properties |
- |
over 50 years |
|
Fixtures & fittings |
- |
20% straight line |
|
|
|
|
Investment property
Investment properties are properties held for long-term rental income and/or for capital appreciation and are measured initially at cost, including related transaction costs, and subsequently at fair value. Investment property is recognised as an asset when: - it is probable that future economic benefits that are associated with the investment property will flow to the Company; - there are no material conditions present that could prevent completion; and - the cost of the investment property can be measured reliably. Additions to investment properties in the course of development or refurbishment include the cost of finance and directly attributable internal and external costs incurred during the period of development until the properties are ready for their intended use. An investment property undergoing redevelopment or refurbishment for continued use as an investment property will remain as an investment property. A transfer of a property from investment properties to trading properties will be made where there is a change in use and the land is to be developed with a view to sale. Fair value is determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. At each reporting date, inventories are assessed for impairment. If inventory is 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.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Trade and other debtors
Trade and other debtors are initially recognised at fair value and subsequently at amortised cost or their recoverable amount. Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Company will be unable to collect all of the amounts due under the terms receivable. The amount of such a provision is the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade debtors, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses. On confirmation that the trade debtor will not be collectable the gross carrying value of the asset is written off against the associated provision.
Financial liabilities
Financial liabilities including trade creditors, other creditors, accruals and amounts due to group undertakings are originally recorded at fair value and subsequently stated at amortised cost under the effective interest method.
4.
Turnover
Turnover arises from:
|
2024 |
2023 |
|
£ |
£ |
Rental and other property income |
1,242,158 |
1,366,356 |
Recoverable property expenses |
73,583 |
111,780 |
Trading property sales |
4,244,150 |
21,104,227 |
Revenue on construction contracts |
5,634,000 |
4,500,000 |
|
------------- |
------------- |
|
11,193,891 |
27,082,363 |
|
------------- |
------------- |
|
|
|
The whole of the turnover is earned through activities undertaken in the United Kingdom.
5.
Operating profit/(loss)
Operating profit/(loss) is stated after charging/(crediting):
|
2024 |
2023 |
|
£ |
£ |
Depreciation of tangible assets |
73,247 |
73,854 |
|
|
|
Impairment of tangible assets recognised in:
Administrative expenses |
– |
1,594,000 |
|
|
|
Reversal of impairment of tangible assets recognised in:
|
Administrative expenses |
(68,615) |
– |
Fair value adjustments to investment property |
260,000 |
10,054,000 |
|
--------- |
------------- |
|
|
|
|
The company has no employees other than the directors who did not receive any remuneration (2023: £nil)
Auditor's remuneration was borne by a fellow group company in the current and prior year.
6.
Income from shares in group undertakings
|
2024 |
2023 |
|
£ |
£ |
Income from group undertakings |
53,961 |
– |
|
-------- |
---- |
|
|
|
7.
Other interest receivable and similar income
|
2024 |
2023 |
|
£ |
£ |
Interest on cash and cash equivalents |
629,590 |
175,293 |
Other interest receivable and similar income |
2,596,531 |
3,068,120 |
|
------------ |
------------ |
|
3,226,121 |
3,243,413 |
|
------------ |
------------ |
|
|
|
8.
Interest payable and similar expenses
|
2024 |
2023 |
|
£ |
£ |
Interest due to group undertakings |
3,270,154 |
2,104,517 |
Interest payable on borrowings |
4,621,340 |
3,270,774 |
Interest capitalised |
(4,688,938)
|
(3,347,402)
|
Other interest payable and similar charges |
236,083 |
201,906 |
|
------------ |
------------ |
|
3,438,639 |
2,229,795 |
|
------------ |
------------ |
|
|
|
9.
Tax on profit/(loss)
Major components of tax (income)/expense
Deferred tax:
Origination and reversal of timing differences |
(
255,496) |
93,134 |
|
--------- |
-------- |
Tax on profit/(loss) |
(
255,496) |
93,134 |
|
--------- |
-------- |
|
|
|
Reconciliation of tax (income)/expense
The tax assessed on the profit/(loss) on ordinary activities for the year varies from the
standard rate of corporation tax in the UK
of
25
% (2023:
22
%).
|
2024 |
2023 |
|
£ |
£ |
Profit/(loss) on ordinary activities before taxation |
337,426 |
(
14,697,557) |
|
--------- |
------------- |
Profit/(loss) on ordinary activities multiplied by rate of tax |
84,357 |
(
3,233,462) |
Adjustment to tax charge in respect of prior periods |
40,353 |
– |
Effect of items not deductible for tax purposes |
18,312 |
16,235 |
Effect of revenue exempt from tax |
(
13,490) |
– |
Group relief |
(
149,444)
|
885,357 |
Tax losses and other items |
(
27,934)
|
(
230,690)
|
Deferred tax charge (as above) |
(
255,496)
|
93,134 |
Differences arising from taxation of chargeable gains |
47,846 |
2,562,560 |
|
--------- |
------------- |
Tax on profit/(loss) |
(
255,496) |
93,134 |
|
--------- |
------------- |
|
|
|
10.
Tangible assets
|
Investment properties |
Owner occupied properties |
Fixtures and fittings |
Total |
|
£ |
£ |
£ |
£ |
Cost or valuation |
|
|
|
|
At 1 October 2023 |
32,360,117 |
3,424,710 |
94,662 |
35,879,489 |
Additions |
250,000 |
– |
1,880 |
251,880 |
Disposals |
– |
– |
(
15,270) |
(
15,270) |
Revaluations |
(
260,000) |
– |
– |
(
260,000) |
|
------------- |
------------ |
-------- |
------------- |
At 30 September 2024 |
32,350,117 |
3,424,710 |
81,272 |
35,856,099 |
|
------------- |
------------ |
-------- |
------------- |
Depreciation |
|
|
|
|
At 1 October 2023 |
– |
2,124,830 |
79,138 |
2,203,968 |
Charge for the year |
– |
68,494 |
4,753 |
73,247 |
Disposals |
– |
– |
(
15,270) |
(
15,270) |
Reversal of impairment losses |
– |
(
68,615)
|
– |
(
68,615)
|
|
------------- |
------------ |
-------- |
------------- |
At 30 September 2024 |
– |
2,124,709 |
68,621 |
2,193,330 |
|
------------- |
------------ |
-------- |
------------- |
Carrying amount |
|
|
|
|
At 30 September 2024 |
32,350,117 |
1,300,001 |
12,651 |
33,662,769 |
|
------------- |
------------ |
-------- |
------------- |
At 30 September 2023 |
32,360,117 |
1,299,880 |
15,524 |
33,675,521 |
|
------------- |
------------ |
-------- |
------------- |
|
|
|
|
|
The investment property is valued on an annual basis by CBRE Limited (CBRE), an independent firm of chartered surveyors, on the basis of fair value. The valuation at each period end is carried out in accordance with guidance issued by the Royal Institution of Chartered Surveyors. Fair value represents the estimated amount that should be received for selling an investment property in an orderly transaction between market participants at the valuation date.
11.
Stocks
At 1 October |
126,691,741 |
132,714,925 |
Additions at cost |
12,126,433 |
17,461,061 |
Disposals |
– |
(23,484,245) |
|
--------------- |
-------------- |
At 30 September |
138,818,174 |
126,691,741 |
|
--------------- |
-------------- |
|
|
|
Independent valuers, CBRE, and Directors have valued the site at £239,630,000 (2023: £247,900,000) in respect of property assets held in the Statement of Financial Position as Tangible assets, Stocks and Debtors with a combined carrying value of £201,009,000 (2023: £214,632,000).
12.
Debtors
Debtors falling due within one year are as follows:
|
2024 |
2023 |
|
£ |
£ |
Trade debtors |
12,646,875 |
33,676,561 |
Amounts owed by group undertakings |
4,724 |
3 |
Prepayments and accrued income |
299,806 |
156,699 |
Other debtors |
15,429,512 |
1,461,965 |
|
------------- |
------------- |
|
28,380,917 |
35,295,228 |
|
------------- |
------------- |
|
|
|
Debtors falling due after one year are as follows:
|
2024 |
2023 |
|
£ |
£ |
Trade debtors |
21,393,631 |
28,274,808 |
|
------------- |
------------- |
|
|
|
Trade receivables include minimum and overage amounts due from housebuilders on strategic land parcel sales which are payable on the completion of the onward sale of completed units by the respective housebuilders, subject to certain minimum amounts that are payable annually, typically over a four to five year period post sale. Other debtors comprise amounts in client and rent deposit accounts. Deferred proceeds of £15,000,000 from a land sale that completed on 30 September 2022 were held in a client account at the year end.
13.
Creditors:
amounts falling due within one year
|
2024 |
2023 |
|
£ |
£ |
Trade creditors |
701,579 |
1,744,860 |
Amounts owed to group undertakings |
58,531,239 |
50,179,363 |
Accruals and deferred income |
3,647,999 |
4,219,896 |
Social security and other taxes |
29,711 |
15,990 |
Other creditors |
59,106 |
384,472 |
|
------------- |
------------- |
|
62,969,634 |
56,544,581 |
|
------------- |
------------- |
|
|
|
Amounts owed to group undertakings are unsecured, bear interest at 6.5% (2023: 7%) and are repayable on demand.
14.
Creditors:
amounts falling due after more than one year
|
2024 |
2023 |
|
£ |
£ |
Bank loans and overdrafts |
62,175,250 |
57,480,992 |
|
------------- |
------------- |
|
|
|
Loans comprise borrowings from Homes England and Huntingtonshire District Council. The loans were first drawn in March 2017 and April 2018 and £60,454,345 is due for repayment in March 2029 and £1,984,000 is due for repayment in February 2028, respectively. Interest is charged at 2.5 per cent above EC Reference rate.
15.
Provisions
|
Deferred tax (note 16) |
|
£ |
At 1 October 2023 |
4,756,930 |
Unused amounts reversed |
(
255,496) |
|
------------ |
At 30 September 2024 |
4,501,434 |
|
------------ |
|
|
This deferred tax liability is a result of historic uplifts in the property valuation at Alconbury and accelerated capital allowances.
16.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2024 |
2023 |
|
£ |
£ |
Included in provisions (note 15) |
4,501,434 |
4,756,930 |
|
------------ |
------------ |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2024 |
2023 |
|
£ |
£ |
Accelerated capital allowances |
665,537 |
584,760 |
Other revaluations |
3,835,897 |
4,172,170 |
|
------------ |
------------ |
|
4,501,434 |
4,756,930 |
|
------------ |
------------ |
|
|
|
The UK corporation tax rate increased to 25 per cent from 1 April 2023, which was substantively enacted on 24 May 2021. The Group’s deferred tax balances have been measured at 25 per cent (2023: 25 per cent), being the enacted rate of corporation tax in the UK at the balance sheet date against which the temporary differences giving rise to the deferred tax are expected to reverse.
17.
Called up share capital
Issued, called up and fully paid
|
2024 |
2023 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
2,000 |
2,000 |
2,000 |
2,000 |
|
------- |
------- |
------- |
------- |
|
|
|
|
|
18.
Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Share premium account- This reserve represents the excess of the value of shares issued over their nominal amount.
19.
Related party transactions
The company has taken advantage of the exemption allowed by FRS 102 Section 33, 'Related Party Disclosures', not to disclose any transactions with entities that are included in the consolidated financial statements of Urban&Civic Plc and are 100% owned.
20.
Controlling party
The immediate parent company is Urban&Civic Holdings Limited,
which is incorporated in England and Wales. The ultimate parent undertaking of the company is the Wellcome Trust, exercising control through its corporate trustee,
The Wellcome Trust Limited. The largest accounts which consolidate the results of the Company are those of Urban&Civic plc
. The results of Urban&Civic plc are not consolidated at a higher level. The Wellcome Trust holds a portfolio of investments, which are accounted for at fair value through profit or loss in its financial statements. Copies of the Wellcome Trust Annual Report and Financial Statements are available from Wellcome Trust's website (www.wellcome.org/news-and-reports/reports).