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Registration number: 02612423

Surfbuild Limited

Financial Statements

for the Year Ended 30 April 2024

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Surfbuild Limited

Contents

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3 to 10

 

Surfbuild Limited

Company Information

Director

J P Crossan

Company secretary

M Crossan

Registered office

130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

Auditor

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Surfbuild Limited

Statement of Financial Position as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

6

16,936

3,979

Investment property

7

1,906,000

1,885,000

 

1,922,936

1,888,979

Current assets

 

Stocks

8

3,722,327

2,824,448

Debtors

9

2,467,366

1,447,639

Cash at bank and in hand

 

28,468

453,466

 

6,218,161

4,725,553

Creditors: Amounts falling due within one year

10

(3,889,468)

(1,818,477)

Net current assets

 

2,328,693

2,907,076

Total assets less current liabilities

 

4,251,629

4,796,055

Creditors: Amounts falling due after more than one year

10

(2,738,811)

(2,752,752)

Provisions for liabilities - deferred tax

(208,618)

(321,260)

Net assets

 

1,304,200

1,722,043

Capital and reserves

 

Called up share capital

110

110

Profit and loss account

1,304,090

1,721,933

Total equity

 

1,304,200

1,722,043

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Statement of Income and Retained Earnings has been taken.

Approved and authorised by the director on 28 April 2025
 

.........................................

J P Crossan

Director

Company registration number: 02612423

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

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

The address of its registered office is:
130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

The principal activity of the company is that of development and commercial renting of private dwellings.

2

Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 28 April 2025 was John Chamberlain, who signed for and on behalf of Brebners.

3

Accounting policies

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' Section 1A and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of significant accounting policies

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.

Going concern

The company made a loss before tax for the year, but had net assets at the year end of £1,304,200 including cash at bank of £28,468 and with expenses controllable, is expected to return to profitably in the year ended 30 April 2026.

The director has considered the potential effect of the current cost of living crisis and inflationary pressures and the director is confident that the company is in a position to deal with the issues. The company’s working capital requirements are currently met via a combination of own resources and funds provided by connected parties of £5,323,346. The director has no reason to believe that any of these facilities will be discontinued. As a consequence, it is the director's view that the company has sufficient financial resources to meet its liabilities as they fall due and that the company is well placed to manage its business risks successfully despite the economic outlook.

On the basis of the above and after making enquiries, the director has a reasonable expectation that the company has adequate resources to continue for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Revenue from the sale of property developments are recognised on exchange of contracts.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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 operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

25% straight line

Motor vehicles

25% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate using observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Hire purchase

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at cost. The asset is then depreciated over its useful life. Future payments are apportioned between finance costs in the income statement and reduction of the liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

4

Staff numbers

The average number of persons employed by the company during the year, was 6 (2023 - 4).

5

Taxation

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Revaluation of investment property

325,716

Accelerated capital allowances

4,135

Tax losses carried forward

(121,233)

 

208,618

2023

Liability
£

Revaluation of investment property

320,466

Accelerated capital allowances

794

Tax losses carried forward

-

 

321,260

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

6

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2023

8,120

7,200

15,320

Additions

666

18,854

19,520

At 30 April 2024

8,786

26,054

34,840

Depreciation

At 1 May 2023

4,141

7,200

11,341

Charge for the year

1,849

4,714

6,563

At 30 April 2024

5,990

11,914

17,904

Carrying amount

At 30 April 2024

2,796

14,140

16,936

At 30 April 2023

3,979

-

3,979

7

Investment properties

2024
£

At 1 May

1,885,000

Fair value adjustments

21,000

At 30 April

1,906,000

The fair value of the company's investment property is considered annually by the director on the basis of market value with existing use.

There has been no valuation of investment property by an independent valuer.

8

Stocks

2024
£

2023
£

Work in progress

3,722,327

2,824,448

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

9

Debtors

2024
£

2023
£

Trade debtors

1,210

1,210

Other debtors

2,466,156

1,446,429

2,467,366

1,447,639

10

Creditors

Creditors: amounts falling due within one year

2024
£

2023
£

Loans

2,598,434

929,016

Trade creditors

193,366

87,572

Taxation and social security

6,390

7,153

Other creditors

1,091,278

794,736

3,889,468

1,818,477

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Loans and borrowings

12

2,738,811

2,752,752

11

Reserves

The profit and loss account includes all current and prior retained earnings and accumulated losses. Of the amount standing to the credit of the profit and loss account an amount of £1,277,961 (2023: £1,262,211) is not distributable in accordance with the Companies Act 2006.
 

 

Surfbuild Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

12

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Hire purchase contracts

4,662

-

Other borrowings

2,593,772

929,016

2,598,434

929,016

2024
£

2023
£

Non-current loans and borrowings

Hire purchase contracts

9,237

-

Other borrowings

2,729,574

2,752,752

2,738,811

2,752,752

Loans and other borrowings are secured over various investment property and property under development.
Net obligations under hire purchase contracts are secured on the assets concerned.

13

Financial commitments, guarantees and contingencies

Amounts not provided for in the statement of financial position

The total amount of financial commitments in respect of operating leases not included in the statement of financial position is £14,950 (2023 - £22,425).

14

Related party transactions

Summary of transactions with other related parties

Included within other creditors is an amount of £241,132 (2023: £241,132) due to entities under common control of the director.

Included within other debtors is an amount of £2,426,041 (2023: £1,416,367) due from entities under common control of the director.