Company registration number 06323297 (England and Wales)
HIGHFIELD PENSCOMBE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
PAGES FOR FILING WITH REGISTRAR
HIGHFIELD PENSCOMBE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
HIGHFIELD PENSCOMBE LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 1 -
2024
2023
Notes
£
£
£
£
Current assets
Stocks
4
1,110,256
1,204,517
Debtors
5
76,601
84,863
1,186,857
1,289,380
Creditors: amounts falling due within one year
6
(1,234,427)
(1,327,202)
Net current liabilities
(47,570)
(37,822)
Capital and reserves
Called up share capital
10,000
10,000
Profit and loss reserves
(57,570)
(47,822)
Total equity
(47,570)
(37,822)
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved and signed by the director and authorised for issue on 23 July 2025
Mr D J Watkins
Director
Company registration number 06323297 (England and Wales)
HIGHFIELD PENSCOMBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
1
Accounting policies
Company information
Highfield Penscombe Limited is a private company limited by shares incorporated in England and Wales. The registered office is Highfield House, Holsworthy Beacon, Holsworthy, Devon, EX22 7NF.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
Going concern
The company is developing a site of residential properties in Cornwall. The remaining plots are expected to be sold within 12 months of the date of signing these financial statements, at which time the company is expected to become dormant. Until that time, ttruehe company's work in progress will continue to be funded by a loan from parent company, Highfield Homes of Distinction Limited, which has arranged a development loan with a third party financial institution. Based on projections of future development costs and sales and dialogue with the external lender, the director expects that the company has access to sufficient financial resources to complete the property development and sell the remaining plots and has therefore prepared the financial statements on the going concern basis.
1.3
Turnover
Turnover represents amounts receivable for the sale of properties. Income from the sale of properties is recognised at the point in time when an unconditional contract is signed by the purchaser.
1.4
Stocks
Work in progress is valued at the lower of cost and net realisable value.
Work in progress is the accumulated cost of unsold plots. On the completion of the sale of a property, the relevant accumulated costs are transferred to cost of sales.
The company operates a policy of capitalising interest incurred on loans related to the development of properties.
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.
HIGHFIELD PENSCOMBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Net realisable value and impairment of property work in progress
The director exercises judgement in projecting the costs to completion and sales values of properties under construction and consequently in adjustments for the impairment of work in progress when it is anticipated that total development costs will exceed total sales values. An adjustment for impairment is made to work in progress to write down the value to a level that, allowing for projected future costs and sales values, will produce an overall break even result for the development in question. Each property development is assessed for impairment on an individual basis and projected profits on one project are not used to offset projected losses on another.
In assessing impairment of work in progress, the director is required to estimate future costs and the timing and value of future sales. Factors beyond the directors’ control can impact upon the actual outcome compared to the original estimates. Changes to the price and availability of materials and labour can be driven by general market forces. Rising interest rates and the cost of living might impact upon demand for completed properties and the timing of sales. In estimating expected sales values, the director takes appropriate advice from property agents. However, general economic factors can result in variances from expectation. Delays to the timing of completed property sales mean that costs will increase, in particular, in relation to development loan interest.
In assessing work in progress for impairment, the director has used the best information available to him as at the date of approving the financial statements. However, there remains the possibility that factors beyond his control may result in material divergence of actual results from projections.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
1
1
HIGHFIELD PENSCOMBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
4
Stocks and work in progress
2024
2023
£
£
Work in progress
1,110,256
1,204,517
Work in progress includes bank interest and charges totalling £249,786 (2023: £240,463) in connection with building development loans.
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
76,575
84,863
Other debtors
26
76,601
84,863
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
5,610
8,250
Amounts owed to group undertakings
1,220,219
1,310,702
Other creditors
8,598
8,250
1,234,427
1,327,202
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
Opinion
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its loss 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.
Senior Statutory Auditor:
Jonathan Williams BSc FCA CTA
Statutory Auditor:
Simpkins Edwards Audit LLP
Date of audit report:
24 July 2025
HIGHFIELD PENSCOMBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -
8
Intra-group guarantees
Parent company debt totalling £3,240,076 (2023: £2,578,073) is partially secured by a charge over this company's building development work in progress.
9
Parent company
Highfield Penscombe Limited is a wholly owned subsidiary of ultimate parent company W J Watkins and Son Limited. The results of Highfield Penscombe Limited are included in the consolidated financial statements of W J Watkins and Son Limited whose registered office is Highfield House, Holsworthy Beacon, Holsworthy, Devon, EX22 7NF.