Period from 7 December 2022 to
Registration number:
Burrington Estates (Stratton) Limited
Contents
Balance Sheet |
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Notes to the Financial Statements |
Burrington Estates (Stratton) Limited
Balance Sheet
31 December 2023
Note |
2023 |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
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Net liabilities |
( |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
( |
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Shareholders' deficit |
( |
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
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Company Registration Number: 14527901
Burrington Estates (Stratton) Limited
Notes to the Financial Statements
Period from 7 December 2022 to 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. There are no material departures from FRS 102 Section 1A.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Burrington Estates (Stratton) Limited
Notes to the Financial Statements
Period from 7 December 2022 to 31 December 2023
Going concern
The financial statements have been prepared on a going concern basis. There are material uncertainties that cast significant doubt on the Company’s 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 program. The Company continues to be supported by the Group’s principal shareholder and secured lender.
In respect of this Company, 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 market and ultimately sell the development land owned (the 'underlying land transaction').
Once the underlying land transaction is completed, it is expected that the Company will be wound down in an orderly fashion. However, at the date of approval of these financial statements, the underlying land transaction has not completed, meaning that the timing of this orderly wind down is uncertain. Communication from the Group’s principal shareholder supports this Company concluding on the underlying land transaction.
These accounts have been prepared on a going concern basis but the timing of the conclusion of the underlying land transaction, as well as the fact that the Company is reliant on the ongoing support of the principal shareholder and secured lender, creates a material uncertainty that casts significant doubt on the Company’s ability to continue as a going concern.
Stocks
Stock of land for development and work in progress are stated at the lower of cost and net realiseable value. Options over land are initilially 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.
Burrington Estates (Stratton) Limited
Notes to the Financial Statements
Period from 7 December 2022 to 31 December 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Amounts owed to and from group undertakings; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
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.
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.
Key accounting estimates and judgements
Carrying value of work in progress
Work in progress - development land - is required to be carried at the lower of cost and net realisable value.
Management assessed the net realisable value of the development land based on conditions that existed at the balance sheet date.
In making their assessment as to the net realisable value of the development land, management have taken into consideration the original purchase price of the land, the period over which the land has been marketed, the number of enquiries made by interested parties, the type of planning permission held and offers received to date.
This has resulted in the management estimating the net realisable value of the development land to be £100,000, which is lower than cost.
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
Stocks |
2023 |
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Work in progress - land for development |
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Burrington Estates (Stratton) Limited
Notes to the Financial Statements
Period from 7 December 2022 to 31 December 2023
Debtors |
2023 |
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Amounts owed by group undertakings |
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Other debtors |
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Creditors |
2023 |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings |
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Accruals and deferred income |
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Share capital |
Allotted, called up and fully paid shares
2023 |
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No. |
£ |
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1 |
New shares allotted
During the period 1 Ordinary share having an aggregate nominal value of £1 was allocated for an aggregate consideration of £1. The shares were allotted on incorporation.
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 (Stratton) Limited
Notes to the Financial Statements
Period from 7 December 2022 to 31 December 2023
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
Winslade House
Manor Drive
Clyst St Mary
United Kingdom
EX5 1FY
Audit report |
Material uncertainty in respect of 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 Note 2, the Company is reliant on the ongoing support of its principal shareholder and secured lender. The Company is expected to be wound down once the underlying land transaction has completed. However, at the date of approval of these financial statements, the underlying land transaction has not completed, meaning that the timing of this orderly wind down is uncertain. These two factors create a material uncertainty that 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