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Burrington Estates (Topsham) Limited

Annual Report and Financial Statements
Year Ended 30 June 2024

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 2024

Note

30 June
2024
£

30 June
2023
£

Current assets

 

Stocks

4

6,821,523

6,379,821

Debtors

5

107,043

195,641

Cash at bank and in hand

 

3,215

5,785

 

6,931,781

6,581,247

Creditors: Amounts falling due within one year

6

(6,409,044)

(6,304,372)

Net assets

 

522,737

276,875

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

522,637

276,775

Shareholders' funds

 

522,737

276,875

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 27 March 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 2024

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.

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 Group that the Company is a part of is undergoing restructure as part of a managed closure programme. The Company continues to be supported by the Group’s principal shareholder and secured lender in completing the development to its recognised high standards and selling all properties.

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. The Company’s expectation is that it will be supported by the Group’s principal shareholder and secured lender in continuing to complete and sell its development on an orderly basis. Communication from the Group’s principal shareholder and secured lender supports this Company continuing to trade normally. For that reason, these accounts have been prepared on a going concern basis.

However the Company is reliant on the ongoing support of the principal shareholder and secured lender which creates a material uncertainty that casts significant doubt on the Company’s ability to continue as a going concern.

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2024

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.

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.


 

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2024

Key judgements and estimates

A key judgement made by the directors in the preparation of these financial statements is that amounts due to and from group companies have been presented net in the accounts, due to the way the group balances are expected to be settled. As a result of this, a balance of £1,303,095 due from one group company has been shown net of amounts due to other group companies of £3,981,178. The net balance of £2,678,083 is shown as amounts owed to group companies within creditors falling due in under one year.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2023 - 0).

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2024

4

Stocks

30 June
2024
£

30 June
2023
£

Work in progress

6,821,523

6,379,821

Included in work in progress are capitalised borrowing costs of £1,056,563 (2023: £638,842).

5

Debtors

30 June
2024
£

30 June
2023
£

Trade debtors

20,000

-

Prepayments

22,422

53,812

Other debtors

64,621

141,829

107,043

195,641

6

Creditors

Note

30 June
2024
£

30 June
2023
£

Due within one year

 

Loans and borrowings

7

3,188,200

4,504,625

Trade creditors

 

26,653

220,836

Amounts due to group undertakings

 

2,678,083

1,095,502

Corporation tax

 

82,300

-

Other creditors

 

304,024

319,009

Accruals and deferred income

 

129,784

164,400

 

6,409,044

6,304,372

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2024

7

Loans and borrowings

Current loans and borrowings

30 June
2024
£

30 June
2023
£

Bank borrowings

3,188,200

4,504,625

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. £580,169 has been released to the profit and loss account in the current year (2023: nil).

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.

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.

 

Burrington Estates (Topsham) Limited

Notes to the Financial Statements

Year Ended 30 June 2024

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

 

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.

As stated in that note, the company is reliant on the ongoing support of its principal shareholder and secured lender. This indicates that a material uncertainty exists that may 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.

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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 27 March 2025.