Company registration number 02930345 (England and Wales)
THE BARON HOMES CORPORATION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
THE BARON HOMES CORPORATION LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
THE BARON HOMES CORPORATION LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
20,382
23,355
Investment properties
5
56,473,907
117,800,528
56,494,289
117,823,883
Current assets
Stocks
69,510,080
Debtors
7
2,361,449
2,886,896
Cash at bank and in hand
6,329,454
4,800,396
78,200,983
7,687,292
Creditors: amounts falling due within one year
8
(5,169,234)
(5,930,450)
Net current assets
73,031,749
1,756,842
Total assets less current liabilities
129,526,038
119,580,725
Creditors: amounts falling due after more than one year
9
(58,602,827)
(59,794,256)
Provisions for liabilities
(14,350,954)
(9,380,669)
Net assets
56,572,257
50,405,800
Capital and reserves
Called up share capital
200
200
Profit and loss reserves
10
56,572,057
50,405,600
Total equity
56,572,257
50,405,800
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 7 December 2022 and are signed on its behalf by:
Nazila Blencowe
Director
Company Registration No. 02930345
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
1
Accounting policies
Company information
The Baron Homes Corporation Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
10 Prince Albert Street, Brighton, BN1 1HE.
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover comprises revenue recognised by the Company in respect of rental income and service chargesreceivable during the year. Amounts are accrued or prepaid, as appropriate, to recognise the period for which the revenue relates.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25 % reducing balance basis
Fixtures and fittings
25 % reducing balance basis
Motor vehicles
25 % reducing balance basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 3 -
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
2
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 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
10
12
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2021
357,658
Additions
858
Disposals
(10,150)
At 31 March 2022
348,366
Depreciation and impairment
At 1 April 2021
334,303
Depreciation charged in the year
2,687
Eliminated in respect of disposals
(9,006)
At 31 March 2022
327,984
Carrying amount
At 31 March 2022
20,382
At 31 March 2021
23,355
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
5
Investment property
2022
£
Fair value
At 1 April 2021
117,800,528
Additions
595,464
Transfers
(69,510,080)
Revaluations
7,587,995
At 31 March 2022
56,473,907
The 2022 valuations were made by the directors. The directors have based their valuations on external reports dated 12 November 2021 by CBRE Limited and on an open market value for existing use basis.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2022
2021
£
£
Cost
30,853,327
48,748,805
Accumulated depreciation
(7,914,048)
(14,093,160)
Carrying amount
22,939,279
34,655,645
As at the balance sheet date, the Fair value reserve relating to investment properties stands at £21,559,237 (2021 - £59,671,055). This is included within Profit and loss reserves but is not distributable as it is unrealised.
6
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
171,567
12,887
Hedging arrangements
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
699,129
989,973
Amounts owed by group undertakings
1,128,287
1,581,390
Other debtors
495,016
279,082
2,322,432
2,850,445
2022
2021
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
7
Debtors
(Continued)
- 8 -
Amounts falling due after more than one year:
£
£
Deferred tax asset
39,017
36,451
Total debtors
2,361,449
2,886,896
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
1,320,000
1,320,000
Trade creditors
145,622
84,996
Amounts owed to group undertakings
58,663
Corporation tax
805,510
Other taxation and social security
387,886
404,571
Other creditors
2,451,553
4,120,883
5,169,234
5,930,450
9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
58,602,827
59,794,256
Security for bank loans is in the form of a legal charge over the freehold and leasehold properties owned by the Company at the year end.
10
Profit and loss reserves
As at the balance sheet date, the Fair value reserve stands at £62,288,764 (2021 - £59,671,055). This is included within Profit and loss reserves but is not distributable as it is unrealised.
11
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 was unqualified.
Senior Statutory Auditor:
John Warner FCA
Statutory Auditor:
Friend-James Limited
THE BARON HOMES CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
12
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Other information
At 31 March 2022:
The Company owed Nazila Blencowe, a director of the Company, an amount of £nil (2021 - £1,610,833) and is included in other creditors. Loan balances totalling £nil (2021 - £847) are owed to other directors.
The Company had the following balances and transactions with fellow group undertakings:
The ultimate parent company, Chestnut Development Co Limited, owed £nil (2021 - £1,581,390).
The Company owes £58,663 (2021 £nil) to Chestnut Development Co. Limited at the year end date.
The Company is owed an amount of £nil (2021 - £40,000) by Baron Developments (Brighton) Limited. This is included within Other debtors . During the year, the Company charged a management fee of £nil (2021 - £40,000).
Baron Management Limited owes £1,202,287 (2021 - £74,000), included within Group and Other debtors .During the year, the Company charged a management fee of £nil (2021 - £66,667). During the year, the Company wrote off a loan to Baron Management Limited amounting to £nil (2021 - £70,000).
The Company had the following transactions with companies under common control:
The Company was owed by Newhaven Marina Company Limited an amount of £120,000 (2021 - £60,000). During the year, the Company charged a management fee of £60,000 (2021 - £60,000).
The Company was owed by Baron's Bay Limited an amount of £20,670 (2021 - £32,822). During the year, the Company charged a management fee of £nil (2021 - £20,833).
The Company owed Lyons Corporation Limited £7989 (2021 - £2,617).
The Company owed West Acre UK Investments Limited £906,040 (2021 - £950,000). During the year , the Company charged a management fee of £90,000 (2021 - £nil).
The Company is owed £390,000 (2021 - £nil) by Baron Estate Management Limited.
13
Parent company
The ultimate parent undertaking of The Baron Homes Corporation Limited is Chestnut Development Co Limited, a company incorporated in England and Wales. The principal place of business is 10 Prince Albert Street, Brighton BN1 1HE.