Company registration number 05512138 (England and Wales)
PICKSTOCK HOMES LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
PICKSTOCK HOMES LIMITED
COMPANY INFORMATION
Directors
Mr N W Scott
Miss C C Pickstock
Mr J A Pickstock
Mr G V Pickstock
Mr J R Pickstock
Company number
05512138
Registered office
Brookland Hall
Guilsfield
Welshpool
Powys
SY21 9BU
Auditor
Champion Accountants LLP
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
PICKSTOCK HOMES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 31
PICKSTOCK HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the year ended 31 July 2024.
Principal Activity and Business Review
The principal activity of the company and its subsidiary undertakings is new residential development, providing a range of properties for private purchasers designed to meet the needs of first-time buyers through to larger family accommodation, as well as working in partnership with a number of registered social landlords constructing affordable accommodation under contract.
Fair Review of the Business
The financial performance of the business continues in line with the company forecasts in the main areas of operation including turnover, gross profit before tax and operating profit in the period.
Key Performance Indicators
The key performance indicators are set out below:
| | |
Turnover Profit on ordinary activities before taxation Taxation on Profit on ordinary activities Profit for the financial year Gross margin (%) Net operating margin (%) Plots sold in the year Average house price | £16,930,974 £1,045,339 £97,911 £1,143,250 15.74% 6.86% 65 £330,599 | £28,373,886 £3,219,794 (£791,492) £2,428,302 18.76% 14.09% 103 £291,972 |
The Group Turnover for the year showed a decrease of 40.33% amounting to £16,930,974 (2023 £28,373,886) which was in line with company forecasts presented in our strategic report for 2023, reflecting the cautious approach we adopted to commencing new developments in the previous financial year, where we anticipated difficult trading conditions, as the Bank of England raised interest rates to curb inflationary pressures in the wider economy.
The Gross margin achieved of 15.74% (2023 18.76%) is in line with forecasts and reflects the planned higher proportion of secure Partnership sales to speculative Private sales during the year. Careful control of overheads during the period has ensured a net operating margin of 6.86% has been achieved whilst ensuring the business maintained the resources required to deliver the expected growth in 2025.
Housing completions reduced to 65 units (2023 103 units); however economic headwinds appear to be easing as inflation is gradually being returned to Bank of England target levels, which in turn should allow interest rates to be reduced, improving mortgage affordability for our customers.
Whilst there remains uncertainty over the policies of any new government after the general election, we are cautiously optimistic that the latent demand for new housing coupled with the ongoing under supply of new homes will continue to under pin the market. We have therefore scheduled to commence two new developments in the final quarter of this financial year and to open our strategic site in Oswestry in the first quarter of 2024/25, which will lead to an increase in both housing completions and group revenue in the next financial year.
Pickstock Homes Limited continues with our long-term business plan to bring forward a strategic land supply, which will deliver land that is both ready to develop in the medium term as the economic outlook improves, as well as longer term development land to secure the forward land supply for the business. In conjunction with this planned further expansion, we are seeking to develop our partnership work with valued social housing clients to maintain strong cash flows for the business, alongside speculative housing revenues.
PICKSTOCK HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Principal risks and uncertainties
Risk Management
The management and mitigation of risk through our business continues to be a key priority. We have designed our Processes to identify, mitigate and manage risk on our projects from inception to completion. Our Managing Director and Board of Directors are ultimately responsible for risk management.
Availability of land
As we bring on stream two of our strategic long-term sites, securing a healthy forward land supply for the business is important. Our technical and commercial teams are involved in the careful evaluation of all new investment opportunities relating to land acquisition. To address this risk the business has invested further in improving its land buying and technical management resources, whilst strengthening internal controls, procedures and processes to manage the effective delivery of planning permissions on our development land portfolio.
Economic conditions and mortgage availability
The housing market in the UK continues to be underpinned by a shortfall in housing supply measured against the underlying demand for new homes. Despite this imbalance in supply and demand, the housing market has been adversely affected by the steady increase in base rates, raised by the Bank of England in response to the inflationary pressures in the economy.
The impact on mortgage availability and affordability over this year has impacted consumer confidence with a commensurate reduction in sales revenue. The forecasts from the Bank of England Monetary committee, indicate that inflation may have peaked and it is anticipated that it will return to within the Bank of England’s target rate over the next two quarters, whilst this should help expectations around the future of interest rates, the sustainability of any recovery remains uncertain.
Pickstock Homes Limited’s Board remains focused on carefully monitoring the business work in progress through this period by strictly controlling the release of build stages on site, whilst the business proactively seeks to diversify speculative residential revenues by growing the proportion of partnership contract work.
Material costs and availability of subcontractors
The demand for sub-contractor’s labour and materials, has eased as the housing market has slowed, there are no current restrictions on the lead in times of raw materials or on the supply of labour to our sites.
Liquidity and cash flow risk
The business trading and cash flow requirements are key performance indicators within the company. Working capital and capital investment requirements are carefully monitored and reported to Board. Strengthening of our Partnership work base has strengthened cash flows within the business.
The company continues to utilise debit facilities to fund its speculative residential development projects, which exposes the business to interest rate risk as it borrows funds on a floating rate of interest. The terms of these facilities
are stress tested to ensure affordability and prudently assessed to provide sufficient headroom, to adequately meet the fiscal demands of each project.
Health and safety
The health and safety of our staff and all the sub-contractors working on or visiting our sites is at the centre of the
company’s business principles. The company has continued the development of its formal health and safety and environmental management systems to reflect the growth of the business and the changing regulatory requirements.
PICKSTOCK HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
Other risks and uncertainties
Russian / Ukraine War
The Company Directors continue to monitor the war in Ukraine and its potential to impact on the business and the wider UK economy. At this time, the business has taken reasonable steps to ensure orders are placed early and stock levels are carefully monitored to mitigate any potential negative effects.
Export Risk
The business currently operates solely in the UK domestic market and has no export risk to its products.
Interest Rate Risk
Whilst inflationary pressures appear to be easing in the UK economy Directors continue to monitor the impact of inflation and the Bank of England’s responses to return it to target through increasing the base lending rate.
The business is cognisant of the short / medium term impact that higher interest rates have on both the availability of mortgage products, as well as the affordability of mortgages and consumer confidence and continues to stress test our facilities and the affordability of our products for customers.
Financing our Business
An improvement in sales in the second half of the year, coupled with the careful control of work in progress and the decision to maintain a strong component of partnership work ensured that the business has maintained a strong cash position and provided stable returns in the financial year ending in July 2024. We have continued to control costs and manage cash prudently during this period.
Overall, Pickstock Homes Limited remains highly liquid with a healthy cash balance and banking facilities committed on our key projects. Directors are satisfied that there are sufficient cash resources available for the business to meet its obligations as they fall due and to continue to develop its operations.
Miss C C Pickstock
Director
27 April 2025
PICKSTOCK HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company and group continued to be house building for both the general market and under contract for Housing Associations in the United Kingdom.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr N W Scott
Miss C C Pickstock
Mr J A Pickstock
Mr G V Pickstock
Mr J R Pickstock
Future developments
In accordance with section 414 c(11) of the Companies Act 2006 the company has chosen to set out details of likely future developments in the business as required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports Regulations 2008) within the strategic report.
Auditor
In accordance with the company's articles, a resolution proposing that Champion Accountants LLP be reappointed as auditor of the group will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PICKSTOCK HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 5 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Miss C C Pickstock
Director
27 April 2025
PICKSTOCK HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PICKSTOCK HOMES LIMITED
- 6 -
Opinion
We have audited the financial statements of Pickstock Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 July 2024 and of the group's 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 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 are independent of the group and parent 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 group's and parent 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PICKSTOCK HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PICKSTOCK HOMES LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and 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 parent 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 parent 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.
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:
PICKSTOCK HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PICKSTOCK HOMES LIMITED
- 8 -
Extent to which the audit is considered capable of detecting irregularities, including fraud
The responsibility for the prevention and detection of irregularities, including fraud, lies with the directors and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audit.
Audit procedures
We determine significant applicable laws and regulations through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial statements.
We consider the applicable laws and regulations to be the financial reporting framework (FRS 102 and the Companies Act 2006), the relevant tax regulations in the UK, employment law and the Health and Safety at Work Act 1974.
We consider the control environment and the procedures in place to address identified risks, including management override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. Our procedures are designed to provide reasonable assurance that the financial statements are free from material misstatement or error and include: enquiries of management and of staff in key compliance functions; review of minutes of meetings of those charged with governance; review and testing of manual journals and significant transactions outside the normal course of business; review of financial statement disclosures and testing to supporting documentation; performance of analytical procedures.
We are not responsible for preventing non-compliance and due to the inherent limitations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Susan Harris MA ACA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP, Statutory Auditor
Chartered Accountants
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
27 April 2025
PICKSTOCK HOMES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
16,930,974
28,373,886
Cost of sales
(14,265,738)
(23,050,624)
Gross profit
2,665,236
5,323,262
Administrative expenses
(1,511,174)
(1,325,630)
Other operating income
7,498
-
Operating profit
4
1,161,560
3,997,632
Interest receivable and similar income
7
10,785
Interest payable and similar expenses
8
(127,006)
(777,838)
Profit before taxation
1,045,339
3,219,794
Tax on profit
9
97,911
(791,492)
Profit for the financial year
1,143,250
2,428,302
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PICKSTOCK HOMES LIMITED
GROUP BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
423,335
556,246
Current assets
Stocks
14
20,726,999
15,943,359
Debtors
15
2,498,385
1,999,314
Cash at bank and in hand
587,735
2,415,073
23,813,119
20,357,746
Creditors: amounts falling due within one year
16
(17,645,487)
(15,421,872)
Net current assets
6,167,632
4,935,874
Total assets less current liabilities
6,590,967
5,492,120
Creditors: amounts falling due after more than one year
17
(237,993)
-
Provisions for liabilities
Deferred tax liability
20
92,805
125,201
(92,805)
(125,201)
Net assets
6,260,169
5,366,919
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
6,260,069
5,366,819
Total equity
6,260,169
5,366,919
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 27 April 2025 and are signed on its behalf by:
27 April 2025
Miss C C Pickstock
Director
Company registration number 05512138 (England and Wales)
PICKSTOCK HOMES LIMITED
COMPANY BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
423,335
556,246
Investments
12
6
4
423,341
556,250
Current assets
Stocks
14
2,707,208
3,477,137
Debtors
15
6,912,106
6,012,504
Cash at bank and in hand
185,122
175,398
9,804,436
9,665,039
Creditors: amounts falling due within one year
16
(9,049,653)
(9,470,835)
Net current assets
754,783
194,204
Total assets less current liabilities
1,178,124
750,454
Creditors: amounts falling due after more than one year
17
(237,993)
-
Provisions for liabilities
Deferred tax liability
20
92,805
125,201
(92,805)
(125,201)
Net assets
847,326
625,253
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
847,226
625,153
Total equity
847,326
625,253
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £472,073 (2023 - £444,426 loss).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 April 2025 and are signed on its behalf by:
27 April 2025
Miss C C Pickstock
Director
Company registration number 05512138 (England and Wales)
PICKSTOCK HOMES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2022
100
3,138,517
3,138,617
Year ended 31 July 2023:
Profit and total comprehensive income
-
2,428,302
2,428,302
Dividends
10
-
(200,000)
(200,000)
Balance at 31 July 2023
100
5,366,819
5,366,919
Year ended 31 July 2024:
Profit and total comprehensive income
-
1,143,250
1,143,250
Dividends
10
-
(250,000)
(250,000)
Balance at 31 July 2024
100
6,260,069
6,260,169
PICKSTOCK HOMES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2022
100
1,269,578
1,269,678
Year ended 31 July 2023:
Loss and total comprehensive income for the year
-
(444,425)
(444,425)
Dividends
10
-
(200,000)
(200,000)
Balance at 31 July 2023
100
625,153
625,253
Year ended 31 July 2024:
Profit and total comprehensive income
-
472,073
472,073
Dividends
10
-
(250,000)
(250,000)
Balance at 31 July 2024
100
847,226
847,326
PICKSTOCK HOMES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(4,133,720)
7,688,867
Interest paid
(723,849)
(777,838)
Income taxes refunded
6,487
8,212
Net cash (outflow)/inflow from operating activities
(4,851,082)
6,919,241
Investing activities
Purchase of tangible fixed assets
(7,354)
(498,472)
Proceeds from disposal of tangible fixed assets
-
20,840
Repayment of loans
20
-
Interest received
10,785
Net cash generated from/(used in) investing activities
3,451
(477,632)
Financing activities
Movement of bank loans
2,954,763
(5,250,386)
New finance leases obligations
315,530
-
Dividends paid to equity shareholders
(250,000)
(200,000)
Net cash generated from/(used in) financing activities
3,020,293
(5,450,386)
Net (decrease)/increase in cash and cash equivalents
(1,827,338)
991,223
Cash and cash equivalents at beginning of year
2,415,073
1,423,850
Cash and cash equivalents at end of year
587,735
2,415,073
PICKSTOCK HOMES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(74,071)
(163,180)
Interest paid
(84,292)
(72,537)
Income taxes refunded
109,893
8,213
Net cash outflow from operating activities
(48,470)
(227,504)
Investing activities
Purchase of tangible fixed assets
(7,354)
(498,472)
Proceeds from disposal of tangible fixed assets
20,840
Share Capital of new subsidiaries
(2)
(1)
Repayment of loans
20
Net cash used in investing activities
(7,336)
(477,633)
Financing activities
New finance leases obligations
315,530
-
Dividends paid to equity shareholders
(250,000)
(200,000)
Net cash generated from/(used in) financing activities
65,530
(200,000)
Net increase/(decrease) in cash and cash equivalents
9,724
(905,137)
Cash and cash equivalents at beginning of year
175,398
1,080,535
Cash and cash equivalents at end of year
185,122
175,398
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
1
Accounting policies
Company information
Pickstock Homes Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Brookland Hall, Guilsfield, Welshpool, Powys, SY21 9BU.
The group consists of Pickstock Homes Limited and all of its subsidiaries.
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.
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. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Pickstock Homes Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Turnover
Revenue from the sale of houses is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on exchange of contracts), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from social housing as part of a land sale and design and build contract is recognised when the significant risks and rewards of ownership have transferred to the purchaser, which is when the homes are build complete and all material contractual obligations have been fulfilled.
The purchase and subsequent sale of part-exchange properties is an activity undertaken in order to achieve the sale of a new property. As such, the activity is regarded as a mechanism for selling. Impairments and gains or losses on the sale of part-exchange properties are classified as a cost of sale.
1.6
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:
Plant and machinery
25% Reducing balance
Computer equipment
25% Reducing balance
Motor vehicles
25% Reducing balance
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 recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Management are required to apply considerable judgement in assessing the profitability of a site and any impairment provisions required.
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
1.10
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.
1.11
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Stock and work in progress valuation
Management apply considerable judgement in assessing the profitability of a site and any impairment provision required and in assessing the outcome, and therefore profitability, of construction contracts.
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Principle activity
16,930,974
28,373,886
2024
2023
£
£
Other revenue
Interest income
10,785
-
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
24,000
23,000
Depreciation of owned tangible fixed assets
37,382
54,461
Depreciation of tangible fixed assets held under finance leases
102,883
-
Profit on disposal of tangible fixed assets
-
(5,268)
Operating lease charges
61,476
63,914
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Direct
17
17
17
17
Admin
20
17
20
17
Directors
2
2
2
2
Total
39
36
39
36
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
5
Employees
(Continued)
- 22 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,639,664
1,645,762
1,025,235
959,932
Social security costs
188,193
178,614
121,459
111,664
Pension costs
32,039
29,776
19,715
17,305
1,859,896
1,854,152
1,166,409
1,088,901
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
169,167
165,000
Company pension contributions to defined contribution schemes
2,642
2,642
171,809
167,642
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
771
Interest on taxation
10,014
-
Total income
10,785
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
771
-
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
596,843
705,301
Other interest on financial liabilities
-
2,347
596,843
707,648
Other finance costs:
Interest on finance leases and hire purchase contracts
27,349
-
Other interest
98,130
70,190
Total finance costs
127,006
777,838
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
302,511
689,289
Adjustments in respect of prior periods
(368,026)
Total current tax
(65,515)
689,289
Deferred tax
Origination and reversal of timing differences
(32,396)
102,203
Total tax (credit)/charge
(97,911)
791,492
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,045,339
3,219,794
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.00%)
261,335
676,157
Tax effect of expenses that are not deductible in determining taxable profit
1,344
7,157
Tax effect of income not taxable in determining taxable profit
7,794
Permanent capital allowances in excess of depreciation
109,770
Under/(over) provided in prior years
(368,026)
Tax at marginal rate
(358)
(1,592)
Taxation (credit)/charge
(97,911)
791,492
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
250,000
200,000
11
Tangible fixed assets
Group
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
633,097
11,015
77,257
721,369
Additions
7,354
7,354
At 31 July 2024
633,097
18,369
77,257
728,723
Depreciation and impairment
At 1 August 2023
143,321
5,412
16,390
165,123
Depreciation charged in the year
122,444
2,605
15,216
140,265
At 31 July 2024
265,765
8,017
31,606
305,388
Carrying amount
At 31 July 2024
367,332
10,352
45,651
423,335
At 31 July 2023
489,776
5,603
60,867
556,246
Company
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
633,097
11,015
77,257
721,369
Additions
7,354
7,354
At 31 July 2024
633,097
18,369
77,257
728,723
Depreciation and impairment
At 1 August 2023
143,321
5,412
16,390
165,123
Depreciation charged in the year
122,444
2,605
15,216
140,265
At 31 July 2024
265,765
8,017
31,606
305,388
Carrying amount
At 31 July 2024
367,332
10,352
45,651
423,335
At 31 July 2023
489,776
5,603
60,867
556,246
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
11
Tangible fixed assets
(Continued)
- 25 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
308,650
308,650
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
6
4
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2023
4
Additions
2
At 31 July 2024
6
Carrying amount
At 31 July 2024
6
At 31 July 2023
4
13
Subsidiaries
Details of the company's subsidiaries at 31 July 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Pickstock Homes (Ludlow) Limited
2
House Building
Ordinary
100.00
Pickstock Homes (Telford) Limited
1
House Building
Ordinary
100.00
Pickstock Homes (Baschurch) Limited
1
House Building
Ordinary
100.00
Pickstock Homes (Oswestry) Limited
3
House Building
Ordinary
100.00
Pickstock Homes (Hodnet) Limited
3
House Building
Ordinary
100.00
Pickstock Homes (Guildsfield) Limited
3
House Building
Ordinary
100.00
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
13
Subsidiaries
(Continued)
- 26 -
Registered office addresses (all UK unless otherwise indicated):
1
2 Mile Oak, Maesbury Road, Oswestry, Shropshire, UK, SY10 8GA
2
Sodylt Hall, Ellesmere, UK, SY12 9EN
3
17 Mile Oak, Maesbury Road, Oswestry, Shropshire, UK, SY10 8GA
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
221,887
174,709
4,464
61,497
Work in progress
13,893,409
11,828,594
2,702,744
3,415,640
Finished goods and goods for resale
6,611,703
3,940,056
20,726,999
15,943,359
2,707,208
3,477,137
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
937,423
90,290
409,767
70,195
Amounts owed by group undertakings
-
-
4,951,974
4,033,285
Other debtors
1,200,847
1,560,756
1,190,250
1,560,756
Prepayments and accrued income
249,431
249,431
249,431
249,431
2,387,701
1,900,477
6,801,422
5,913,667
Amounts falling due after more than one year:
Gross amounts owed by contract customers
110,684
98,837
110,684
98,837
Total debtors
2,498,385
1,999,314
6,912,106
6,012,504
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
6,210,748
3,255,985
Obligations under finance leases
19
77,537
77,537
Trade creditors
3,448,313
3,534,265
3,448,313
3,534,265
Amounts owed to group undertakings
1
2,059,557
2,743,066
Corporation tax payable
807,973
867,001
152,177
8,213
Other taxation and social security
131,782
79,243
131,782
79,243
Other creditors
2,469,932
2,103,162
2,215,183
2,037,011
Accruals and deferred income
4,499,201
5,582,216
965,104
1,069,037
17,645,487
15,421,872
9,049,653
9,470,835
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
237,993
237,993
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
6,210,748
3,255,985
Payable within one year
6,210,748
3,255,985
The loan is secured by a fixed charge over the land, property and investments of the company.
Interest is charged on the bank loan at variable interest rates, using the Bank of England as term reference rate, plus a margin. The balance was repaid within 12 months of the year end.
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
77,537
77,537
In two to five years
237,993
237,993
315,530
-
315,530
-
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
19
Finance lease obligations
(Continued)
- 28 -
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
92,805
125,201
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
92,805
125,201
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 August 2023
125,201
125,201
Credit to profit or loss
(32,396)
(32,396)
Liability at 31 July 2024
92,805
92,805
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,039
29,776
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 29 -
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary £1 shares of £1 each
100
100
100
100
23
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
20,030
22,292
20,030
22,292
Between two and five years
22,742
8,951
22,742
8,951
42,772
31,243
42,772
31,243
24
Directors' transactions
At the year end there was an amount of £1,178,844 (2023 - £630,528) outstanding to a director of the company. The movement in the year relates to interest charged and amounts repaid. The loan has no fixed repayment terms and interest is payable at a rate of 6%.
At the year end there was an amount of £Nil (2023: £289,990) owed by a company controlled by one of the directors. The loan was interest free and repayable on demand.
During the year rental expenses of £43,800 (2023 - £43,800) were paid to a director of the company. An amount of £Nil (2023 - £3,375) was outstanding at the year end.
During the year £61,348 (2023 - £41,765) was charged to the company by entities controlled by one or more of the directors in respect of services, materials or equipment provided and expenditure incurred on behalf of the company. An amount of £97,430 (2023 - £36,242) was outstanding at the year end. During the year an amount of £Nil (2023 - £73,570) was invoiced from the company to entities controlled by one or more of the directors for recharges of costs incurred. An amount of £73,570 was outstanding at the year end.
During the year a loan was provided by a company controlled by one of the directors. The loan is interest free and repayable on demand. The balance outstanding at the end of the year was £107,970 (2023 - £396,980).
During the previous year a loan was provided to a company controlled by one of the directors. The loan is interest free and repayable on demand. The balance outstanding at the end of the year was £330,000 (2023 - £330,000).
During the year dividends totalling £250,000 (2023 - £200,000) were paid to the directors or to companies with whom directors are connected.
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 30 -
25
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
1,143,250
2,428,302
Adjustments for:
Taxation (credited)/charged
(97,911)
791,492
Finance costs
723,849
777,838
Investment income
(10,785)
Gain on disposal of tangible fixed assets
-
(5,268)
Depreciation and impairment of tangible fixed assets
140,265
54,461
Movements in working capital:
(Increase)/decrease in stocks
(4,783,640)
110,702
(Increase)/decrease in debtors
(499,091)
1,163,733
(Decrease)/increase in creditors
(749,657)
2,367,607
Cash (absorbed by)/generated from operations
(4,133,720)
7,688,867
26
Cash absorbed by operations - company
2024
2023
£
£
Profit/(loss) for the year after tax
472,073
(444,425)
Adjustments for:
Taxation charged
1,675
102,203
Finance costs
84,292
72,537
Gain on disposal of tangible fixed assets
-
(5,268)
Depreciation and impairment of tangible fixed assets
140,265
54,461
Movements in working capital:
Decrease/(increase) in stocks
769,929
(761,600)
(Increase)/decrease in debtors
(899,622)
887,972
Decrease in creditors
(642,683)
(69,060)
Cash absorbed by operations
(74,071)
(163,180)
27
Analysis of changes in net debt - group
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
2,415,073
(1,827,338)
587,735
Borrowings excluding overdrafts
(3,255,985)
(2,954,763)
(6,210,748)
Obligations under finance leases
-
(315,530)
(315,530)
(840,912)
(5,097,631)
(5,938,543)
PICKSTOCK HOMES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 31 -
28
Analysis of changes in net funds/(debt) - company
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
175,398
9,724
185,122
Obligations under finance leases
-
(315,530)
(315,530)
175,398
(305,806)
(130,408)
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