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FOR THE YEAR ENDED 30 NOVEMBER 2024
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AUTOGRAPH HOMES LIMITED
COMPANY INFORMATION
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AUTOGRAPH HOMES LIMITED
CONTENTS
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AUTOGRAPH HOMES LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
The company was incorporated on 11 October 2016. Its principal activity is in delivering open market homes and our purpose is to meet customer demand for considered, high quality, well designed, highly specified homes in a defined geographical area within the South West of England.
The business had another profitable year and delivered several objectives, including:
∙Completed our open market flagship site at Haw Wood, delivering 30 low-carbon homes.
∙Completed our Partnerships site in Stanton, handing over 12 affordable homes to Sovereign Housing Group.
∙Commenced work on our site in East Brent where we are building 9 low carbon homes
∙Secured several pipeline options and subject to planning deals for sites in Bristol and the surrounding area.
We continue to pursue our ambition to become a leading, low volume, housing developer with a reputation for distinctive design and outstanding specification, capable of securing attractive new development sites within the South-West.
We believe that an excellent opportunity exists to deliver on both an Open Market and Partnership brand and the business will pursue a broad strategy of securing revenues from both sectors. We are encouraged by the interest shown in our large sites and are considering offers to sell these with planning permission. This allows the business to benefit from secured cashflows, providing additional funds to be invested into more profitable Open Market sites. Whilst this plan provides an appropriate framework for growth, the Directors firmly believe that priority must be given to the quality of opportunity and available margin of each project, alongside the availability of finance and the maturity of the operational teams to deliver. The Directors will retain the flexibility to adjust this plan to exercise prudence and control. A strong emphasis is placed on understanding and forecasting cashflows within the business and a rolling 12-month model is reviewed each month. Our business model relies on strong management to procure and manage sub-contractors and suppliers to deliver operational performance across our sites. It is therefore important that we build and maintain strong and appropriate supply chain relationships.
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AUTOGRAPH HOMES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
Revenue in the period reflects sales achieved at Haw Wood, Stanton, Midland Road & Rode. Out-turn build costs and overheads in the period were in line with expectations and a solid net business margin has been achieved.
Ongoing construction works across our sites are held as WIP, along with on-going planning costs on formal Options. There were no completed units held as WIP at the end of November 2024. Our forecast for the period ending November 2025 is positive, although revenue in the period will be lower this year as the business will be starting several sites that will produce sales in the following year. BUSINESS ENVIRONMENT Competitive landscape – there is a wide and diverse range of quality competitors in our region, many of whom have a track record of delivering schemes. It is therefore important that we continue to strive to differentiate ourselves and build a brand that is attractive to customers and other stakeholders. Local & Regional Market – house prices in Bristol and the immediate vicinity continue to hold up favourably when compared with other areas of the UK. The demographics of the city continue to evolve and the continued incidence of postgraduate students deciding to stay in Bristol is providing demand for more homes in the region. Demand for “low carbon” family housing is strong in certain areas and the city centre provides opportunities for further development. Partnerships – there is strong demand from local Registered Providers for working in a joint venture with developers who have the skills and capability to deliver. Planning reforms – we are encouraged by the Government’s messaging in connection with planning reform and are hopeful that these will bring some relief to SME’s that are frustrated by the current planning environment. PRINCIPAL RISKS AND UNCERTAINTIES There are a number of economic risks that the business needs to be mindful of over the coming period and beyond. These include:
∙The volatility in the domestic economy, with the new Government seeking to rebalance the country’s finances.
∙The uncertainty surrounding the global economy and the UK’s reliance upon it to maintain growth.
∙Interest rates continue to be uncertain. The correlation between interest rates and housing demand has historically impacted the housing market.
∙The ability of the Government to move the economy towards a low-carbon future, without frustrating development.
∙Introduction of more purchase taxes, in an attempt by Government to reduce the fiscal deficit that has been created.
Notwithstanding these risks, there continues to be a genuine need for providing more homes across the UK and the new Government is openly promoting more house building. There is continued focus on supporting SMEs to deliver stock and we should be able to take advantage of this by being agile and open-minded in respect of funding options.
In addition, our single-minded focus on delivering low-carbon homes is gaining traction and we are building a reputation for delivering homes which are fit for the future. We have taken a strategic decision to pursue larger sites to secure planning and then sell to either an RP or a large developer. This enables us to forward fund schemes and use our planning and development expertise to guarantee an exit position.
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AUTOGRAPH HOMES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
In terms of operational business risks, the Directors meet monthly to consider the likelihood and possible impact of risks facing the business and where necessary take action to mitigate these.
We are committed to building strong operational teams to protect shareholder investment on our sites. Our teams are empowered to procure appropriate sub-contractors and suppliers, although robust sign-off procedures exist to ensure budgetary controls are in place and cost assumptions are adhered to. In addition, the business recognises its responsibility for the safety and welfare of employees, sub-contractors and the public who come into contact with our sites. Building a strong culture and promoting low-tolerance behaviour on our sites is fundamental to achieving positive outcomes. The Managing Director receives independent audits and feedback from Safety Form, an independent H&S consultant, across all sites monthly.
In conclusion, we are pleased with our year’s results, producing a solid net financial return and positive cashflows. We have also delivered on our project objectives, secured a healthy pipeline and continued to invest in the management team.
Our focus will continue to be on ensuring that we control the operational performance of our sites and manage the sales process effectively. We will also be introducing sustainable technology in all our homes as we continue to pursue our “low-carbon living” approach in all we do. We will continue to focus on securing consent on the sites we have under Option to enhance our medium-term pipeline. We will also consider purchasing sites with existing consents if we believe we can add value to the opportunity. Delivering turn-key sites to our RP partners will remain an ambition, along with targeting longer-term opportunities by obtaining options and conditional contracts on strategic land.
This report was approved by the board and signed on its behalf.
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AUTOGRAPH HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
The directors present their report and the financial statements for the year ended 30 November 2024.
The profit for the year, after taxation, amounted to £1,337,864 (2023: £1,307,819).
The directors who served during the year were:
There have been no significant events affecting the Group since the year end.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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AUTOGRAPH HOMES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group 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 for the Group's financial statements 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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AUTOGRAPH HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOGRAPH HOMES LIMITED
We have audited the financial statements of Autograph Homes Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 November 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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 Group Strategic Report and Directors Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Group Strategic Report and Directors 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.
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AUTOGRAPH HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOGRAPH HOMES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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AUTOGRAPH HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOGRAPH HOMES LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
∙The nature of the industry and sector, control environment and business performance;
∙Results of our enquires of management and directors in relation to their own identification and assessment of the risks of irregularities within the Group and Company; and
∙any matters we identified having obtained and reviewed the Group and Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or noncompliance with laws and regulations.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in accounting for revenue relating to long term construction contracts.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We have also obtained an understanding of the legal and regulatory frameworks that the Group and Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In additions we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company’s ability to operate or avoid a material penalty. These included building regulation laws, health and safety legislation, environmental legislation and employment legislation. Our audit procedures performed to respond to the risks identified included, but were not limited to:
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
∙Challenging assumptions and judgments made by management in their significant accounting estimates;
∙Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙Review of board meeting minutes; and
∙Reviewing key correspondence with external building surveyors;
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
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AUTOGRAPH HOMES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOGRAPH HOMES LIMITED (CONTINUED)
members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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 Auditors' Report.
This report is made solely to the Group and 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 Group and Company's members those matters we are required to state to them in an Auditors' 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 Group and Company and the Group and 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
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
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AUTOGRAPH HOMES LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
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AUTOGRAPH HOMES LIMITED
REGISTERED NUMBER:10421422
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 37 form part of these financial statements.
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AUTOGRAPH HOMES LIMITED
REGISTERED NUMBER:10421422
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 37 form part of these financial statements.
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