Year Ended
Registration number:
Burrington Estates (Deddington 2) Limited
Contents
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Balance Sheet |
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Notes to the Financial Statements |
Burrington Estates (Deddington 2) Limited
Balance Sheet
30 November 2024
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Note |
2024 |
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 |
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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: 14474888
Burrington Estates (Deddington 2) Limited
Notes to the Financial Statements
Year Ended 30 November 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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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.
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. The functional currency of Burrington Estates (Deddington 2) Limited is considered to be pounds sterling because it is the currency of the primary economic environment in which the company operates.
Burrington Estates (Deddington 2) Limited
Notes to the Financial Statements
Year Ended 30 November 2024
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 company's ultimate parent is Burrington Estates Group Limited (BEG). BEG has become reliant on its principal shareholder and lender to continue to support it. After considering the cash flows of the business and conditions in the UK economy and housing market, the directors of BEG have concluded that it is unlikely to be able to settle or refinance all its loans from shareholders. As a result, and after considering the options available to it, the directors of BEG have reluctantly concluded that it should seek to effect a managed closure of its business. The intention is to support its existing portfolio of homes, complete its existing developments to its recognised high standards, divest of its development sites where these are not in construction phase and withdraw from any further investment in new sites.
As part of this, the company’s immediate parent, Burrington Estates (Midlands) Limited (“Midlands”), recently entered liquidation. The objective of Midlands’ liquidators is to maximise its return to its creditors. The best way to maximise the return from its investment in the company is to continue to complete and sell its properties as planned. As a result we expect that Midlands will continue to support the company as it does this.
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. Therefore the company’s expectation is that it will be supported in continuing to complete and sell its development on an orderly basis. This will involve continuing to trade while the developments are completed, then sold, and all assets are realised – and as a result, despite the situation at group level, the directors expect this company to continue to trade for the next several years. For that reason, these accounts have been prepared on a going concern basis.
The group’s position does create material uncertainties that cast significant doubt on the company’s ability to continue as a going concern. In particular,
• While the company pursues the development, it is reliant on financial and non-financial support from the group, which includes group companies not calling in amounts due unless there are sufficient funds to do so; and
• Currently the communications from the group are that this company, as it is expected to generate positive cash flow, will be supported in trading normally to complete and sell the development. However, the group’s financial situation means that decision could subsequently change, especially if the UK housing market continues to deteriorate.
Revenue recognition
Turnover comprises the fair value of consideration received or receivable for the sale of development properties to third parties and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
Turnover and profit on the sale of residential property is recognised on the legal completion date.
Burrington Estates (Deddington 2) Limited
Notes to the Financial Statements
Year Ended 30 November 2024
Contract revenue recognition
Work in progress is valued at cost less foreseeable losses and progress payments received and receivable and includes attributable overheads based on normal events of activity.
Amounts recoverable on long term contracts are included in debtors at the net sales value of work done less amounts received as progress payments on account.
Stocks
Stock of land and work in progress are stated at the lower of cost and net realisable value. 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 directly attributable staff costs.
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.
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Short term balances with group companies.
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.
Except for bank loans, 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 loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Burrington Estates (Deddington 2) Limited
Notes to the Financial Statements
Year Ended 30 November 2024
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Stocks |
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2024 |
2023 |
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Work in progress |
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Debtors |
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2024 |
2023 |
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Amounts due from group undertakings |
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264,747 |
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Other debtors |
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Creditors |
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Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Amounts due to group undertakings |
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Accruals and deferred income |
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Other creditors |
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Amounts owed to group are repayable on demand and no interest is charged on the balances.
Loans and borrowings in the prior year represented amounts due to Paragon Development Finance Limited and were secured on the assets of the company. 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. £821,314 has been released to the profit and loss account in the current year (2023: nil).
Burrington Estates (Deddington 2) Limited
Notes to the Financial Statements
Year Ended 30 November 2024
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Share capital |
Allotted, called up and fully paid shares
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2024 |
2023 |
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No. |
£ |
No. |
£ |
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1 |
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1 |
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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.
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Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
Their registered office is:
Winslade House
Manor Drive
Clyst St Mary
Exeter
Devon
EX5 1FY
Burrington Estates (Deddington 2) Limited
Notes to the Financial Statements
Year Ended 30 November 2024
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Audit report |
Material uncertainity relating to going concern
We draw attention to Note 2 of the financial statements which indicates the ultimate parent has become reliant on its principal shareholder and the immediate parent has entered liquidation.
The directors expect this company to continue to trade for the foreseeable future while the developments are completed, then sold, and all assets are realised over the next several years.
However, as stated in Note 2, the group’s position creates material uncertainties that cast significant doubt on going concern. In particular,
• While the company pursues the development, it is reliant on financial and non-financial support from the group, which includes group companies not calling in amounts due unless there are sufficient funds to do so; and
• Currently the communications from the group are that this company, as it is expected to generate positive cash flow, will be supported in trading normally to complete and sell the development. However, the group’s financial situation means that decision could subsequently change, especially if the UK housing market continues to deteriorate.
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