REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2024 |
for |
Ivygrove Developments Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2024 |
for |
Ivygrove Developments Limited |
Ivygrove Developments Limited (Registered number: 01279304) |
Contents of the Financial Statements |
for the Year Ended 30 September 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 7 |
Profit and Loss Account | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
Ivygrove Developments Limited |
Company Information |
for the Year Ended 30 September 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
Ivygrove Developments Limited (Registered number: 01279304) |
Strategic Report |
for the Year Ended 30 September 2024 |
The directors present their strategic report for the year ended 30 September 2024. |
The annual figures are shown in £ 's to aid clarity. |
PRINCIPAL ACTIVITIES |
The principal activities of the company are; |
- | The construction of premium quality housing |
- | The development of industrial units and brownfield sites |
- | The rental of commercial warehousing and office space |
REVIEW OF BUSINESS |
The key performance indicators are gross and net profit as detailed below. In addition, the directors compare quarterly results to budgets. |
Year Ended | Year Ended | Year Ended |
30/09/2024 | 30/09/2023 | 30/09/2022 |
£ 's | £ 's | £ 's |
Turnover | £12,652 | £8,310 | £13,657 |
Gross Profit | £5,031 | £3,892 | £5,016 |
Gross Profit % | 40% | 47% | 37% |
Net Profit (excl. revaluations) | £1,270 | £1,058 | £2,511 |
Net Profit % | 10% | 13% | 18% |
Shareholders Funds | £35,930 | £36,327 | £35,492 |
Increase in Shareholders Funds |
Profit before tax & revaluations | £1,270 | £1,058 | £2,511 |
Tax | - | (£180) | (£1,402) |
Dividends | (£1,600) | (£100) | (£500) |
Revaluations | (£66) | £57 | £7 |
Increase in year | (£397) | £835 | £616 |
The company has performed largely in line with directors expectations, although there are still cost pressures in the industry but these have largely been offset by increased house/industrial prices. |
Looking forward. the housing market is looking difficult with continued cost increases, house prices predicted to fall by 15% and continued increases in base rates. |
There are similar pressures in the commercial sector although there is still a high demand from tenants for industrial property with rents per square foot continuing to increase. |
Similarly there is still a high level of demand from investors for tenanted properties. |
Overall the tenanted properties remain almost fully occupied which reflects the relatively low rentals charged and the flexibility offered to Lessee's by the company. |
Ivygrove Developments Limited (Registered number: 01279304) |
Strategic Report |
for the Year Ended 30 September 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Fire |
Safety policies are in place to minimise risks and adequate insurance cover is maintained. Terrorism cover is not taken as this risk is considered minimal. |
Liquidity |
Like all companies, Ivygrove Developments faces the risk of being unable to pay liabilities when they are due through a lack of available funds. This risk is mitigated by the maintenance of a comprehensive cash flow forecast, regular supplier payments runs, effective credit control measures and not taking on projects that cannot be financed without putting undue pressure on cashflow. |
Maintaining adequate cash flow is of vital importance. Liquidity is maintained by the maintenance of a comprehensive cash forecast, regular supplier payment runs ,effective credit control measures and not taking on projects that cannot be financed without putting undue pressure on cashflow. |
Safety |
Construction is a relatively dangerous occupation and accordingly, the company gives a high priority to the safety of workers on its sites. Site managers and external consultants are used to ensure the sites are as safe as they can be. |
Economic Downturn |
The risk of the economy receding due to external forces e.g. war, pandemic or a recession poses a risk to the company's future sales. As a precaution, the company maintains a contingency plan detailing steps to take in order to maintain profitability, including essential staff and maximum debt level targets. In addition, legal exchanges are sought as early as possible and up to date leases are maintained, removing or extending break clauses wherever possible. The substantial property portfolio also avoids over-dependence on any one tenant. A housing market crash would have a significant effect in the short term but the economic fundamentals for the housing market remain strong. |
Labour Shortage |
The country is suffering a nationwide skills shortage. This reduces the number of skilled staff available to the company and can increase project durations. The company works hard to attract and retain a high quality of staff in various skill sectors and ensures payments are made promptly to maintain goodwill. The recent downturn in housing activity has already improved labour availability. |
Material Shortage |
This could potentially slow construction times and cause cashflow problems, particularly if we are unable to finish buildings and obtain completion. This is mitigated by ordering well in advance and holding higher stocks. In addition, suppliers are paid promptly which enables us to have preferential status with a number of suppliers. |
Inflation |
Inflation is still a concern, although less so as prices are already so high. Material prices are more dependent on world affairs, particularly in Ukraine and the Middle East and whatever the Bank of England does will have little effect on these. High base rates will subdue house prices and the housing market in general leading to a difficult period ahead. Although some costs are falling, the 10% rise in the living wage will inevitably lead to further price rises and reduce the fall in inflation. We do however expect base rates to fall a little in the next financial year. |
Fraud/Computer Virus |
The main threat would be if a hacker managed to get into the system and make fraudulent payments. Daily and weekly back-ups of the server are made, and anti-virus protection is in place, together with regular staff training to try and prevent this. In addition, a regular check is made on all requests to change bank details and all large payments are double checked to original supplier records. |
Ivygrove Developments Limited (Registered number: 01279304) |
Strategic Report |
for the Year Ended 30 September 2024 |
FUTURE DEVELOPMENTS |
The Company will continue to develop the housing and industrial sites it already owns and intends to acquire further sites during 2025/26 as opportunities arise. |
Housing |
The former Fire H.Q. site on Burton Road, Littleover, consisting of 14 Executive Houses, is now well under way, with completion end of 2025, a little later than forecast due to the higher mortgage cost, resulting in slower sales. |
The Old Hall is now subject to conversion into three self contained exclusive period houses, being the East Wing and West Wing, either side of the Old Hall, which will retain the imposing entrance and oak staircase. |
The dwellings will consist of approximately 3,000 sq.ft. each and enjoy the magnificent paved terrace and landscaped garden. |
The proposed conversion will significantly enhance previous valuations of the principle structure within this beautiful five acre location in the middle of Littleover Village. |
The Oakerthorpe site of nine Executive Houses has been delayed until late 2025. A higher volume of houses is considered appropriate. |
Various housing sites are under consideration but, even so, many are over-priced and have onerous conditions. |
Ivygrove will only acquire sites which we believe will achieve healthy margins to sustain future growth in the face of ever increasing cost in materials and labour. |
Industrial |
On the industrial front, the shortage of Employment Land and new build is driving up values for older stock and the next revaluation of our Portfolio will substantially increase values when interest rates start to come down. |
We shall continue to acquire Industrial sites with potential to increase rental income and add value to our Balance Sheet. |
The former Rolls-Royce site acquired in 2022 is now a thriving Industrial Park with most of the Units either sold or let. |
Dunstall Park is now complete, with the last Unit, consisting of 32,000 sq.ft. split into 2 No. Units of 16,000 sq.ft. and pre-let to two substantial Clients. |
Armitage Park, acquired in 2023, is well under construction with the Workshops Units, consisting of 60,000 sq.ft., fully let. |
The workspace created in the four storey former Mill Building has been particularly in demand with the ground floor and first floor consisting of 10,000 sq.ft. per floor fully let. |
The second and third floors are now under construction, with local Companies waiting to take occupation. |
When fully let the site will generate rental income of £700,000 per annum. |
The Dunstall Park Units, Merlin Park and Armitage Park combined will increase rental income by 30% and are considered excellent long-term investments. |
The Company will strive to consolidate its Portfolio, complete its current programme of new build at Merlin Park, increase rental income on its existing sites wherever possible and generally concentrate on creating a strong Balance Sheet and continuity for the future. |
Ivygrove Developments Limited (Registered number: 01279304) |
Strategic Report |
for the Year Ended 30 September 2024 |
ON BEHALF OF THE BOARD: |
Ivygrove Developments Limited (Registered number: 01279304) |
Report of the Directors |
for the Year Ended 30 September 2024 |
The directors present their report with the financial statements of the company for the year ended 30 September 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 September 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Ivygrove Developments Limited |
Opinion |
We have audited the financial statements of Ivygrove Developments Limited (the 'company') for the year ended 30 September 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 company's affairs as at 30 September 2024 and of its 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. |
Basis for opinion |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Ivygrove Developments Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 set out on page six, 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 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 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 company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and industry in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included: |
- | Enquiry of management around actual and potential litigation and claims; |
- |
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- |
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Ivygrove Developments Limited |
Use of our 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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
Ivygrove Developments Limited (Registered number: 01279304) |
Profit and Loss Account |
for the Year Ended 30 September 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
2,981,333 | 2,097,182 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
3,194,945 | 2,340,669 |
(Loss)/gain on revaluation of investment property |
(66,399 |
) |
57,484 |
3,128,546 | 2,398,153 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Ivygrove Developments Limited (Registered number: 01279304) |
Balance Sheet |
30 September 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Work in progress | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Fair value reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ivygrove Developments Limited (Registered number: 01279304) |
Statement of Changes in Equity |
for the Year Ended 30 September 2024 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 October 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 30 September 2024 |
Ivygrove Developments Limited (Registered number: 01279304) |
Cash Flow Statement |
for the Year Ended 30 September 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (21 | ) |
Purchase of investment property | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of investment property |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital (introduced)/repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 481,451 | 425,068 |
Amount withdrawn by directors | - | (326,974 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(1,069,543 |
) |
130,932 |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Cash Flow Statement |
for the Year Ended 30 September 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Loss/(gain) on revaluation of fixed assets | 66,399 | (57,484 | ) |
Finance costs | 1,925,320 | 1,282,681 |
Finance income | (9,853 | ) | (1,989 | ) |
3,158,458 | 2,387,983 |
Decrease/(increase) in work in progress | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2024 |
30.9.24 | 1.10.23 |
£ | £ |
Cash and cash equivalents | 130,004 | 103 |
Bank overdrafts | ( |
) | ( |
) |
(576,405 | ) | (1,069,543 | ) |
Year ended 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 103 | 130,932 |
Bank overdrafts | ( |
) |
(1,069,543 | ) | 130,932 |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Cash Flow Statement |
for the Year Ended 30 September 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.10.23 | Cash flow | At 30.9.24 |
£ | £ | £ |
Net cash |
Cash at bank | 103 | 129,901 | 130,004 |
Bank overdrafts | (1,069,646 | ) | 363,237 | (706,409 | ) |
(1,069,543 | ) | (576,405 | ) |
Debt |
Finance leases | (20,715 | ) | 12,837 | (7,878 | ) |
Debts falling due within 1 year | (3,775,220 | ) | (14,982,277 | ) | (18,757,497 | ) |
Debts falling due after 1 year | (22,757,238 | ) | 14,453,054 | (8,304,184 | ) |
(26,553,173 | ) | (516,386 | ) | (27,069,559 | ) |
Total | (27,622,716 | ) | (23,248 | ) | (27,645,964 | ) |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements |
for the Year Ended 30 September 2024 |
1. | STATUTORY INFORMATION |
Ivygrove Developments Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The accounts have been prepared on the going concern basis. The directors have confirmed the current liability position will be managed as part of the liquidity risk measures, which include monitoring the maintenance of a comprehensive cash flow forecast, regular supplier payment runs, effective credit control measures and not taking on projects that cannot be financed without putting undue pressure on cashflow. |
Preparation of consolidated financial statements |
The financial statements contain information about Ivygrove Developments Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Turnover |
Turnover represents the amount (excluding value added tax) of property sales and rents receivable. Turnover is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the agreed upon payment. Turnover is recognised on the completion date of the property sale. |
Changes in accounting policy |
During the year Ivygrove Developments Limited has adopted a change in accounting policy regarding the treatment of turnover in accordance with FRS 102. The change pertains to the recognition of revenue upon the sales of property, specifically regarding the timing of when revenue is recognised. |
Previously, Ivygrove Developments Limited has recognised revenue upon the exchange of contracts with the customer. Under the new policy, in line with FRS 102, the company now recognises the revenue upon the completion of the sale. The change in policy arises in order to result in more reliable and relevant information. |
This change has had no effect on the prior period. |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment loss. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter: |
Plant and machinery | - 25% on reducing balance |
Motor vehicles | - 25% on reducing balance |
The assets' residual values, useful lives and the depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment property is not depreciated but is revalued annually at its fair value. Any aggregate surplus or deficit arising from changes in fair value is charged to the profit and loss account, then transferred to a fair value reserve. |
Investment property comprises freehold and long leasehold buildings. They are measured initially at cost, including related transaction costs. These are held as investments to earn rental income and for capital appreciation and are stated at fair value at the balance sheet date. |
Investment property under construction is retained at cost less impairment and revalued on the completion of works. |
The fair value of investment property reflects, among other things, rental income from current leases and assumptions about rental income from future leases in light of current market conditions. |
Subsequent expenditure is added to the assets carrying amount only when it is probable that the future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the profit and loss account during the financial period in which they are incurred. |
Work in progress |
Work in progress is valued at the lower of cost and net realisable value. Cost represents the purchase price of land and development costs. Net realisable value is based on the estimated selling price less further costs expected to be incurred in completion and disposal. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Provision is made at current rates for taxation deferred in respect of all material timing differences, including provisions made for potential tax arising on assets which have been revalued balance sheet |
Leasing commitments |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution plans for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals on the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates. |
The following are the critical judgements and where relevant the key sources of estimation uncertainty: |
The directors have based the fair value of properties held for investment purposes initially on professional valuation and updated for considerations to capital improvements, rental yields, market conditions and other external factors that could bring about a change in the fair value. |
4. | TURNOVER |
Turnover comprises:- |
2024 | 2023 |
£ | £ |
Development properties | 7,225,024 | 3,661,196 |
Rents and service charges receivable | 5,426,825 | 4,649,096 |
12,651,849 | 8,310,292 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management | 8 | 8 |
Administrative | 9 | 9 |
Operatives | 7 | 13 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
The directors are the key management personnel. |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors remuneration- non audit services |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Other interest |
Hire purchase |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Other timing differences | 112,005 | (53,338 | ) |
Change in taxation rate | - | (6,856 | ) |
rate |
Enhanced deduction | (412,812 | ) | (40,888 | ) |
Total tax charge | - | 180,163 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
10. | TANGIBLE FIXED ASSETS |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 October 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 September 2024 |
DEPRECIATION |
At 1 October 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 30 September 2023 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2023 |
and 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 30 September 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following companies: |
Holding % |
Kinsey (Midlands) Limited | 100 |
Dunstall Park Management Company Limited | 100 |
398 Duffield Rd Management Company Limited | 100 |
Eagle Park Management Company Limited | 16.7 |
Hill (Duffield Rd) Management Limited | 100 |
Lower Burley View Management Company Limited | 100 |
Westside Park Management Company Limited | 100 |
Stephenson Gardens Management Company Limited | 100 |
Merlin Park Management (Derby) Limited | 100 |
R Scot Road Management Company Limited | 100 |
Victoria Centre Management Company Limited | 100 |
Parker Centre Management Company Limited | 100 |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 October 2023 |
Additions |
Revaluations | (66,399 | ) |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 30 September 2023 |
Fair value at 30 September 2024 is represented by: |
£ |
Valuation in 2024 | 62,320,000 |
Cost | 5,956,377 |
68,276,377 |
If investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 47,001,960 | 42,338,701 |
Aggregate depreciation | (9,583,566 | ) | (8,644,576 | ) |
Investment property was valued on a fair value basis on 30 September 2024 by the directors . |
Investment property held at cost relates to assets under construction as is consistent with FRS 102 16.5 and 17.10 (b). |
13. | WORK IN PROGRESS |
2024 | 2023 |
£ | £ |
Work in progress |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Owed by related parties | 125,637 | 50,000 |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Other loans (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Amounts owed to associates | 1,401,951 | - |
Tax |
Social security and other taxes |
Other creditors |
Owed to related parties | 1,510,000 | 1,273,920 |
Directors' current accounts | 906,519 | 425,068 |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) |
Other loans (see note 17) |
Hire purchase contracts (see note 18) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Other loans |
Amounts falling due between one and two years: |
Bank loans |
Other loans - 1-2 years | 1,000,000 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
17. | LOANS - continued |
At the year end bank loans included: |
- A loan with a balance of £13,707,496 at a fixed rate of 3.41% expires April 2025. |
- A loan with a balance of £650,000 at a rate of 3.25% above base expires September 2025. |
- A loan with a balance of £804,184 at a rate of 4% above base expires September 2026. |
- Loans with a balance of £6,500,000 at a rate of 2.75% above base expires September 2026. |
- Loans with a balance of £4,400,000 at a rate of 2.75% above base expires April 2025. |
The loans expiring in April 2025 have been refinanced post year-end for a term of 3 years. The new loans are as follows: |
- A loan with a balance of £20,000,000 at a fixed rate of 3.95% plus 2% margin. |
- A loan with a balance of £4,000,000 at a variable rate with 2% margin. |
- A loan with a balance of £3,000,000 at a variable rate with 2% margin. |
- A revolving loan of up to £5,000,000 at a variable rate with a 3% margin. |
18. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 7,878 | 20,715 |
National Westminster Bank PLC hold legal charges against property to which the borrowing relates, and a debenture, with fixed and floating charges over all the company's property and assets. |
20. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 4,520,000 | 4,520,000 |
Deferred |
tax |
£ |
Balance at 1 October 2023 |
Balance at 30 September 2024 |
Ivygrove Developments Limited (Registered number: 01279304) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 40,000 | 40,000 |
22. | RESERVES |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
At 1 October 2023 | 36,286,838 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Transfer of revaluation | 66,399 | (66,399 | ) | - |
At 30 September 2024 | 35,890,064 |
23. | RELATED PARTY DISCLOSURES |