REGISTERED NUMBER: 13392815 (England and Wales)

DRF DESIGN & BUILD LTD

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Tangible assets

4

73,035

96,744

Investment property

5

2,067,431

270,000

2,140,466

366,744

CURRENT ASSETS

Stocks

3,818,317

4,598,747

Debtors

6

128,279

73,725

Cash at bank

60,207

32,919

4,006,803

4,705,391

CREDITORS

Amounts falling due within one year

7

4,114,276

4,300,321

NET CURRENT (LIABILITIES)/ASSETS

(107,473

)

405,070

TOTAL ASSETS LESS CURRENT LIABILITIES

2,032,993

771,814

CREDITORS

Amounts falling due after more than one year

8

(2,014,533

)

(742,303

)

PROVISIONS FOR LIABILITIES

(11,678

)

(15,302

)

NET ASSETS

6,782

14,209

CAPITAL AND RESERVES

Called up share capital

200

200

Capital redemption reserve

100

100

Retained earnings

6,482

13,909

6,782

14,209

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 May 2026 and were signed on its behalf by:

A L Reynolds - Director

1.	STATUTORY INFORMATION

DRF Design & Build Ltd is a private company, limited by shares, registered in England. The company's registered office is 116 Upper Way, Upper Longdon, Rugeley, Staffordshire, England, WS15 1QD.

The presentation currency of the financial statements is Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard. The financial statements have been prepared under the historical cost convention as modified for the revaluation of certain assets.

Going concern

As at 31 May 2025, the company is in a net current liabilities position. The major creditors of the company included in current liabilities are its directors by way of their director loan account balances. The directors will withdraw amounts from their loan accounts only if they are satisfied that the company is in a position to meet its other creditor balances. For this reason, the company continues to adopt the going concern basis for these financial statements.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The directors consider there are no such significant judgements.

Turnover

Turnover represents the proceeds from the sale of the company's development properties and is recognised in the period in which the sale arises. Turnover also includes the invoice value of goods and services provided during the year, excluding VAT, and this is recognised when substantively all the risks and rewards in connection with the goods and services have been passed to the buyer.

Rental income

Income arising from the rental of properties is included in Other Operating Income and is recognised on a straight line basis over the period of the lease.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery etc - 25% on reducing balance, 20% on straight line basis.

Fixed assets are included in the balance sheet at cost less accumulated depreciation and accumulated impairment losses.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant and machinery, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Investment property

The company's investment property is held for long term investment and is accounted for as follows:-

(i) Investment property is initially recorded at cost which includes purchase cost and any directly attributable expenditure.

(ii) For investment property originally held as stock, the property is initially transferred from stock at cost and then revalued to market value at the date of transfer, with the market value being the deemed cost.

(iii) Thereafter, investment property is revalued at each balance sheet date to its fair value, where this can be measured reliably.

(iv) The surplus or deficit arising on revaluation in the financial year is recognised in the Profit and Loss Account for that year. Revaluation gains and losses are accumulated in the Profit and Loss Account reserve, unless the revaluation amount exceeds deemed cost in which case, a transfer is made of the surplus to a non-distributable reserve in the Balance Sheet.

(v) Deferred taxation is provided on any gains in excess of deemed cost at the rate expected to apply when a property is sold.

Work in progress

Work in progress is valued at the lower of cost and estimated selling price less costs to complete. Cost comprises the cost of the land purchase including legal fees and stamp duty, construction costs and professional fees.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from financial institutions and loans from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Hire purchase and leasing

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives, or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2024 - 1 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 June 2024

150,804

Additions

496

At 31 May 2025

151,300

DEPRECIATION

At 1 June 2024

54,060

Charge for year

24,205

At 31 May 2025

78,265

NET BOOK VALUE

At 31 May 2025

73,035

At 31 May 2024

96,744

At the balance sheet date, the net book value of assets over which security is held amounts to £11,386 (2024: £38,572).

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 June 2024

270,000

Additions

1,589,594

Revaluation gain on transfer from stock

207,837

At 31 May 2025

2,067,431

NET BOOK VALUE

At 31 May 2025

2,067,431

At 31 May 2024

270,000

The fair value of the investment property at 31 May 2025 has been arrived at on the basis of a valuation carried out by the company's directors, who are not professionally qualified valuers. The valuation was arrived at by reference to market evidence of transaction prices for similar properties in their locations and takes into account the current state of the rental market in the areas where the properties are situated.

Fair value at 31 May 2025 is represented by:

£

Valuation in 2023

74,115

Valuation in 2025

207,837

Cost

1,785,479

2,067,431

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

76,788

23,596

Other debtors

51,491

50,129

128,279

73,725

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Hire purchase contracts

5,205

9,739

Trade creditors

70,777

105,275

Taxation and social security

5,755

-

Other creditors

4,032,539

4,185,307

4,114,276

4,300,321

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans

2,011,930

716,639

Hire purchase contracts

2,603

25,664

2,014,533

742,303

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans

2,011,930

716,639

9.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Bank loans

2,011,930

716,639

Hire purchase contracts

7,808

35,403

2,019,738

752,042

Hire purchase contracts are secured over the assets concerned.

The mortgage loans are secured over the related properties. In addition, the directors have provided personal guarantees in respect of certain of the amounts owed.

10.	RELATED PARTY DISCLOSURES

At the balance sheet date, the company owed the directors £3,994,882 (2024: £4,143,241). These loans are unsecured, interest free with no fixed repayment terms. The maximum amount outstanding during the year was £4,143,241 (2024: £4,143,241).