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Registered number: 10927968
ACRE CONSTRUCTION LTD
UNAUDITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
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CONTENTS
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Statement of Financial Position
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Notes to the Financial Statements
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CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF ACRE CONSTRUCTION LTD
FOR THE PERIOD ENDED 17 MAY 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Acre Construction Ltd for the period ended 17 May 2023 which comprise the Statement of Financial Position and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the Board of Directors of Acre Construction Ltd, as a body, in accordance with the terms of our engagement letter dated 13 June 2025. Our work has been undertaken solely to prepare for your approval the financial statements of Acre Construction Ltd and state those matters that we have agreed to state to the Board of Directors of Acre Construction Ltd, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Acre Construction Ltd and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Acre Construction Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Acre Construction Ltd. You consider that Acre Construction Ltd is exempt from the statutory audit requirement for the period.
Matter to which we draw attention
As set out in note 11 to the financial statements, In preparing these accounts we were unable to obtain primary records in respect of improvement works carried out to the company's development property. Those works were undertaken by a connected company under common ownership of the previous director. That company was subsequently wound up by order of the Court on the petition of the Official Receiver. No records are held at Companies House and none were obtainable from the liquidator.
The cost of those works, included within the carrying value of development property in the Statement of Financial Position, has been determined solely by reference to written representations provided by the previous director. We have been unable to independently verify those figures.
We also draw attention to the fact that loan account records were not fully available. Interest and charges have been calculated by reference to completion statements obtained from the relevant lenders rather than from full account statements. We were unable to obtain detailed statements despite requests made.
Additionally, certain balances relating to transactions with parties connected to the former director could not be independently verified due to the absence of underlying accounting records. The financial statements incorporate balances based on representations made by the former director.”
These matter are drawn to your attention without qualification of our compilation report.
We have not been instructed to carry out an audit or review of the financial statements of Acre Construction Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Sopher + Co LLP
Chartered Accountants
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD
7 May 2026
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ACRE CONSTRUCTION LTD
REGISTERED NUMBER:10927968
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STATEMENT OF FINANCIAL POSITION
AS AT 17 MAY 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
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ACRE CONSTRUCTION LTD
REGISTERED NUMBER:10927968
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 17 MAY 2023
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 May 2026.
The notes on pages 4 to 10 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
Acre Construction Ltd is a private limited liability company registered in England and Wales. Its registered office address is at 5 Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, WD6 3JD.
The principal activity of the Company is property development and contract work.
The functional and presentational currency of the Company is £ sterling.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 current period covers the nine months from 1 September 2022 to 17 May 2023 following a change in the Company's accounting reference date. The comparative figures cover the twelve months ended 31 August 2022 and are therefore not directly comparable with the current period figures.
The following principal accounting policies have been applied:
The financial statements have been prepared on the going concern basis. At the Statement of Financial Position date the Company had net assets of £90,329, with total bank borrowings of £1,592,481 secured on development stock carried at £2,311,800.
The director has considered the going concern position and is satisfied that the Company has sufficient resources to continue in operation for the foreseeable future. In reaching this conclusion the director has had regard to the current value of the development stock and the status of the Company's current bank facilities.
On this basis the director considers the going concern basis of preparation to be appropriate. The financial statements do not include any adjustments that would result from a failure of the going concern assumption.
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Development property sales are recognised at the date of exchange of contracts. If completion is conditional upon an external event the sale is recognised at the time the transaction becomes unconditional.
Revenue for contract work is recognised in the period in which the work is carried out.
Finance costs are recognised in profit or loss in the period in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
2.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and 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 in profit or loss.
Stocks are valued at the lower of cost and net realisable value after making due allowance for any impairment in value.
Cost includes the purchase price of land and property together with directly attributable development expenditure incurred in bringing the stock to its present location and condition. Where development works have been carried out by third parties, cost includes the amounts invoiced or, where invoices are not available, amounts determined by reference to representations provided as to the value of work undertaken.
Net realisable value is the estimated selling price in the ordinary course of business less estimated costs to complete and estimated selling costs. In assessing net realisable value the director has assumed that developments will be completed and sold in the ordinary course of the Company's business and that properties would not be placed on the market for immediate sale.
The director has assessed net realisable value at the Statement of Financial Position date and is satisfied that the carrying value of stock does not exceed net realisable value. That assessment has had regard to current market conditions and the estimated costs required to complete the development to a saleable condition.
As described in Note 11, a significant element of the cost included within stocks relates to development works carried out by a connected company for which formal invoices were not raised or retained. The carrying value of that element rests on representations provided by the previous director rather than on primary records.
Short term debtors are measured at the transaction price, less any impairment.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty
on notice of not more than 24 hours.
Short term creditors are measured at the transaction price.
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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The director was the only employee of the Company during the current and preceding period.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
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Charge for the period on owned assets
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Prepayments and accrued income
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Bank loans are secured by fixed and floating charges over the assets of the Company.
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Creditors: Amounts falling due after more than one year
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Bank loans are secured by fixed and floating charges over the assets of the Company.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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100 Ordinary shares of £1.00 each
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 17 MAY 2023
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Related party transactions
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During the period, and prior to the acquisition of the Company by the current director, the Company entered into a number of transactions with parties connected to the previous director. Those connected parties included companies under his ownership or control.
The balances arising from those transactions have not been independently verified, as records of the relevant connected parties were not available. The previous director has confirmed in writing that all outstanding balances between the Company and those connected parties, taken together, are offset by amounts owed by those parties to the Company or by credits arising from transactions between them, and that the net balance of all such amounts is reflected in his loan account balance shown in the financial statements.
On the basis of those representations, no separate debtor or creditor balances in respect of connected party transactions have been recognised in the financial statements other than as described below.
The loan account balance of £453,194 included in other creditors owed to the previous director as at 17 May 2023 represents the net position of all amounts due to and from him and entities connected to him following application of the representations described above. That balance has been agreed by the previous director and is reflected in the accounts accordingly.
The company has been unable to obtain independent verification of the individual components of this net balance. Users of the accounts should be aware that the figures disclosed rest on representations provided by the previous director rather than on primary records.
The current director is satisfied, on the basis of those representations and the information available, that the net balance as stated fairly reflects the position between the Company and connected parties of the previous director.
Additionally, during the year, property development works were carried out to property held as stock by a connected company, Inova Construction Limited, a company under the common control of the director at the time of the works.
Costs of £1.4m relating to those works have been included within stock at the reporting date. Formal invoices in respect of the works were not raised or retained. The director considers the costs included within stock to represent a reasonable estimate of the value of works undertaken.
Inova Construction Limited was subsequently wound up by order of the Court on the petition of the Official Receiver and supporting records are no longer available.An amount of £307,087 shown as due from that company at 17 May 2023 was not recovered. The director has considered whether the conditions leading to that insolvency existed at the Statement of Financial Position date. On the basis of information available to him, he is satisfied that the that the insolvency was most likely to have arisen from events occurring before the period end. Accordingly full provision has been made in the current period financial statements.
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