Company Registration No. 03520125 (England and Wales)
LARKFLEET LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
LARKFLEET LIMITED
CONTENTS
Page
Balance sheet
2 - 3
Notes to the financial statements
4 - 12
LARKFLEET LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Principal activities
The principal activity of the company is of property developers, consultants and project managers.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
HP Hick
KS Hick
Directors' Statement
The Group including its subsidiary, Larkfleet Limited, has various claims and issues outstanding from the previous sale of business assets, with a minimum value of £40.5m in its favour. The directors are confident in the success of these. As at the end of September 2023 the claims are not recorded in the financial statements of either company. These companies continue to be an important part of the Phoenix Group going forward.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
KS Hick
Director
11 March 2025
LARKFLEET LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
9,281
12,656
Investment properties
5
906,000
Investments
6
11
33
9,292
918,689
Current assets
Stocks
2,114,826
3,696,398
Debtors
7
8,889,905
22,130,286
Cash at bank and in hand
92,368
240,158
11,097,099
26,066,842
Creditors: amounts falling due within one year
8
(5,075,724)
(7,550,564)
Net current assets
6,021,375
18,516,278
Net assets
6,030,667
19,434,967
Capital and reserves
Called up share capital
45,096
45,096
Capital redemption reserve
6,175,200
6,175,200
Profit and loss reserves
(189,629)
13,214,671
Total equity
6,030,667
19,434,967
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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 year 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.
LARKFLEET LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023
30 September 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 11 March 2025 and are signed on its behalf by:
KS Hick
Director
Company Registration No. 03520125
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
1
Accounting policies
Company information
Larkfleet Limited is a private company limited by shares incorporated in England and Wales. The registered office is Larkfleet House, Falcon Way, Southfield Business Park, Bourne, Lincolnshire, PE10 0FF.
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.
The company has taken advantage of the disclosures available to it, as a subsidiary company, in order not to prepare group accounts, despite being a parent company, on the basis that the financial statements of this company (and its subsidiaries) are consolidated in the financial statements of the parent group.
1.2
Going concern
The financial statements have been prepared on a going concern basis.true
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.3
Turnover
Revenue
Revenue is recognised at legal completion in respect of the total proceeds of building and development. An appropriate proportion of revenue from construction contracts is recognised by reference to the stage of completion of contract activity. Revenue is measured at the fair value of consideration received or receivable and represents the amounts receivable for the property, net of discounts and VAT. Revenue is recognised at legal completion in respect of land sales. The sale proceeds of part exchange properties are not included in revenue.
Consultancy fees, management charges and car park and apartment rentals are accounted for on a receivable basis, net of VAT.
Construction contracts
Revenue is only recognised on a construction contract where the outcome can be estimated reliably. Variations to, and claims arising in respect of, construction contracts, are included in revenue to the extent that they have been agreed with the customer. Revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by surveys of work performed to date. Contracts are only treated as construction contracts where they have been specifically negotiated for the construction of a development or property. Where it is probable that the total costs on a construction contract will exceed total contract revenue, the expected loss is recognised as an expense in the profit and loss account immediately.
Amounts recoverable on construction contracts are included in debtors and stated at cost plus attributable profit less any foreseeable losses. Payments received on account for construction contracts are deducted from amounts recoverable on construction contracts.
Payments received in excess of amounts recoverable on construction contracts are included in creditors.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Motor vehicles
25% straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.5
Investment properties
Certain of the group's properties are held for long-term investment. Investment properties are accounted for in accordance with FRS 102, as follows:
(i) No depreciation is provided in respect of investment properties and they are revalued annually. The surplus or deficit on revaluation is transferred to the profit and loss account for the year.
(ii) No depreciation is provided in respect of leasehold investment properties where the lease has over 20 years to run.
This treatment as regards the group's investment properties may be a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. However, these properties are not held for consumption but for investment and the directors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 7 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stock is stated at the lower of cost and net realisable value. Land with planning includes undeveloped land and land under development and is recorded at cost. Work in progress comprises direct materials, labour costs, site overheads, associated professional charges and other attributable overheads. Net realisable value represents the estimated selling prices less all estimated costs of completion.
Investments in land without the benefit of a planning consent are recorded at cost. Regular reviews are carried out to identify any impairment in the value of the land considering the existing use value of the land and the likelihood of achieving a planning consent and the value thereof. Any amounts deemed irrecoverable are written off to the profit and loss account.
Expenditure relating to forward land, including options and fees, are held at cost. If the option expires or the Directors no longer consider it likely that the option will be exercised prior to the securing of planning permissions, the amount is written off to the profit and loss account.
Valuations which include an estimation of costs to complete and remaining revenues are carried out at regular intervals throughout the year, during which site development costs are allocated between units built in the current year and those to be built in future years. These assessments include a degree of inherent uncertainty when estimating the profitability of a site and in assessing any impairment provisions which may be required.
During the year the Board conducted a review of stock, land and work in progress. Write downs have been made where carrying value exceeds the lower of cost and net realisable value. The reviews were conducted on a site by site basis, using valuations that incorporated anticipated selling price and development cost movements, based on local management and the Board’s assessment of market conditions existing at the balance sheet date. If there are significant movements in UK house prices or development costs beyond management’s expectations then further impairments / reversals of previous write downs of stock, land and work in progress may be necessary.
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 8 -
1.9
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.
1.10
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 balance sheet 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
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.
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 9 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates stated within the details of accounting policies elsewhere) have had the most significant effect on amounts recognised in the financial statements.
The main judgments included within the financial statements relate to work in progress balances held at the year end and released in the year. The balances held at the year end are reviewed for recoverability and where amounts are deemed irrecoverable are written off in the year, The level of future profitability is at times judged by the directors where not clear.
Costs released to the P&L in relation to the sale of houses are released based on projected margins for sites during the year. Margins are estimated by the directors based on the expected total costs for each site made up of costs incurred to date and further costs expected to be incurred in relation to each site.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost or valuation
At 1 October 2022 and 30 September 2023
13,500
Depreciation and impairment
At 1 October 2022
844
Depreciation charged in the year
3,375
At 30 September 2023
4,219
Carrying amount
At 30 September 2023
9,281
At 30 September 2022
12,656
5
Investment property
2023
£
Fair value
At 1 October 2022
906,000
Transfers
(906,000)
At 30 September 2023
The properties were moved out in year to the correct legal entity.
The market value of the investment properties has been arrived at on the basis of a valuation carried out by the directors. The historical cost of the investment properties are £899,830 (2022 - £899,830).
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
11
33
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
6
Fixed asset investments
(Continued)
- 11 -
Movements in fixed asset investments
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 October 2022
33
Disposals
(22)
At 30 September 2023
11
Carrying amount
At 30 September 2023
11
At 30 September 2022
33
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,896
1,782,744
Amounts owed by group undertakings
3,167,287
2,590,534
Other debtors
1,401,388
1,243,476
4,570,571
5,616,754
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
4,319,334
16,513,532
Total debtors
8,889,905
22,130,286
LARKFLEET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
543,790
2,474,301
Amounts owed to group undertakings
3,973,531
4,653,153
Other creditors
558,403
423,110
5,075,724
7,550,564
9
Reserves
Share capital
Represents the nominal value of shares that have been issued.
Capital redemption reserve
Represents the value paid by the company in redeeming shares previously in issue.
Profit and loss account
Includes all current and prior period retained profit and losses, inclusive of cumulative unrealised gains and losses for assets shown at fair value at the balance sheet date.
10
Parent company
The company's immediate parent is Larkfleet Group Limited, a company incorporated in England & Wales.
The ultimate parent is Phoenix Sustainable Investments Limited.
The most senior parent entity producing publicly available financial statements is Phoenix Sustainable Investments Limited. These financial statements are available upon request from its registered office address Larkfleet House, Falcon Way, Bourne, Lincolnshire, PE10 0FF.
The ultimate controlling party is KS Hick.