Company Registration No. 11243965 (England and Wales)
South Downs Residential Limited
Unaudited accounts
for the year ended 31 March 2021
South Downs Residential Limited
Unaudited accounts
Contents
South Downs Residential Limited
Company Information
for the year ended 31 March 2021
Directors
R J W Corney
R J Crossan
M E Answell
Company Number
11243965 (England and Wales)
Registered Office
48 Malling Street
Lewes
East Sussex
BN7 2RH
Accountants
Maxwell-Gumbleton & Co.
1 West Street
Lewes
East Sussex
BN7 2NZ
South Downs Residential Limited
Statement of financial position
as at
31 March 2021
Tangible assets
1,057,142
46,113
Investment property
11,218,690
10,928,261
Cash at bank and in hand
37,946
115,759
Creditors: amounts falling due within one year
(667,619)
(457,823)
Net current liabilities
(395,162)
(220,760)
Total assets less current liabilities
11,880,670
10,753,614
Creditors: amounts falling due after more than one year
(6,069,304)
(5,477,516)
Provisions for liabilities
Deferred tax
(362,958)
(332,445)
Net assets
5,448,408
4,943,653
Called up share capital
90
90
Share premium
3,200,000
3,200,000
Profit and loss account
2,248,318
1,743,563
Shareholders' funds
5,448,408
4,943,653
For the year ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered 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 profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 17 March 2022 and were signed on its behalf by
R J W Corney
Director
Company Registration No. 11243965
South Downs Residential Limited
Notes to the Accounts
for the year ended 31 March 2021
South Downs Residential Limited is a private company, limited by shares, registered in England and Wales, registration number 11243965. The registered office is 48 Malling Street, Lewes, East Sussex, BN7 2RH.
2
Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
The accounts are presented in £ sterling.
Tangible fixed assets and depreciation
Tangible assets, other than investment and freehold properties, are included at cost less depreciation and impairment. Land and freehold property are carried at fair value at the date of the revaluation less subsequent accumulated impairment losses. Revaluations are undertaken with sufficiently regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
Land & buildings
held at fair value see above
Plant & machinery
3 years
Fixtures & fittings
3 years
Computer equipment
3 years
Investment property is included at market fair value. Gains are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
Deferred tax assets and liabilities are not discounted.
Government grants in relation to tangible fixed assets are credited to profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.
South Downs Residential Limited
Notes to the Accounts
for the year ended 31 March 2021
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profit on a straight line basis over the lease term.
Assets held under finance leases and hire purchase contracts are capitalised and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to the profit and loss account over the period of the lease at a constant proportion of the outstanding balance of capital repayments.
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the profit and loss account when due.
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.
The financial statements have been prepared on the going concern basis as the directors have prepared detailed budgets for a period of at least 12 months from the date of signing the accounts that show the company and group is able to meet all of its liabilities as they fall due. However, it is acknowledged that the global and UK outbreak of COVID-19 has had a profound impact on the global and UK economy and business.
The company and group are expected to remain in a strong financial position during the forecast period and operations have been largely unaffected from the recent outbreak of COVID-19. The large proportion of customers are from the public sector and therefore is unlikely to be affected by bad debt issues.
The directors are confident of being able to trade for a period of at least 12 months from the approval of the financial statements and the Director has therefore concluded that it is appropriate for the financial statements to be prepared on the going concern basis.
South Downs Residential Limited
Notes to the Accounts
for the year ended 31 March 2021
4
Tangible fixed assets
Land & buildings
Motor vehicles
Fixtures & fittings
Computer equipment
Total
Cost or valuation
At cost
At cost
At cost
At cost
At 1 April 2020
-
36,790
13,321
10,963
61,074
Additions
1,011,115
-
8,251
10,929
1,030,295
At 31 March 2021
1,011,115
36,790
21,572
21,892
1,091,369
At 1 April 2020
-
5,979
4,507
4,475
14,961
Charge for the year
-
7,971
5,842
5,453
19,266
At 31 March 2021
-
13,950
10,349
9,928
34,227
At 31 March 2021
1,011,115
22,840
11,223
11,964
1,057,142
At 31 March 2020
-
30,811
8,814
6,488
46,113
5
Investment property
2021
Fair value at 1 April 2020
10,928,261
Net gain from fair value adjustments
118,780
At 31 March 2021
11,218,690
Investment properties held at the year end were valued by the directors in accordance with standard valuation principles. The surplus on revaluation of investment properties arising (£118,780) has been credited to the statement of comprehensive income for the period.
Freehold properties acquired in September 2020 held at fair value were valued by Eddison's in accordance with the RICS valuation - Global Standards 2017.
If the investment and freehold properties would have been accounted for under the historic accounting rules, the properties would have been measured as follows:
Historic cost £10,388,072 (2020: £9,205,308) less accumulated depreciation and impairments £113,862 (2020: £48,852).
6
Debtors: amounts falling due within one year
2021
2020
Trade debtors
65,761
70,975
Amounts due from group undertakings etc.
250
-
Accrued income and prepayments
85,748
49,640
South Downs Residential Limited
Notes to the Accounts
for the year ended 31 March 2021
7
Creditors: amounts falling due within one year
2021
2020
Bank loans and overdrafts
192,765
171,694
Obligations under finance leases and hire purchase contracts
7,837
7,837
Trade creditors
20,854
109,356
Amounts owed to group undertakings and other participating interests
275,584
-
Taxes and social security
100,156
109,719
Other creditors
17,982
19,804
8
Creditors: amounts falling due after more than one year
2021
2020
Bank loans
6,058,857
5,459,233
Obligations under finance leases and hire purchase contracts
10,447
18,283
The Company has five term loans from its bankers. In a prior period, the Company borrowed funds from its bankers under four terms loans of £4,197,000 and £336,297. The first loan (£4,197,000) is repayable in a single principal instalment in July 2023. The second loan (£162,418 outstanding at 31 March 2021) is repayable in 60 consecutive monthly instalments that commenced in August 2018. In 2020 the group borrowed funds from its bankers a further two term loans of £972,485 and £77,915. The third loan (£972,485 outstanding at 31 March 2021) is repayable in a single principal instalment in July 2024. The fourth loan (£52,994 outstanding at 31 March 2021) is repayable in 60 consecutive monthly instalments that commenced in August 2019. During the year a fifth bank loan of £808,000 was borrowed. This is partially repaid over 60 instalments (£803,049 outstanding at 31 March 2021) with a final principal instalment of £757,264 payable in September 2025.
All bank loans are secured by a fixed charge on the group's freehold and investment property and also an unlimited debenture over the group's assets. All bank loans accrue interest ay a variable rate equivalent to Base rate plus 2.1%
The debt issue costs totalling £69,739 were in incurred on the bank loans when the facilities were set up and these are being charged to the profit and loss over the terms of the loans.
During the previous year the Company also borrowed funds under an unsecured loan of £250,000 repayable over 5 equal 6-monthly instalments starting in January 2020. £100,000 was outstanding at 31 March 2021. Interest accrues at a fixed rate of 6%.
9
Deferred taxation
2021
2020
Accelerated capital allowances
13,029
5,084
Revaluation of investment property
349,929
327,361
Provision at start of year
332,445
142,880
Charged to the profit and loss account
30,513
189,565
Provision at end of year
362,958
332,445
South Downs Residential Limited
Notes to the Accounts
for the year ended 31 March 2021
10
Share capital
2021
2020
Allotted, called up and fully paid:
90 Ordinary shares of £1 each
90
90
3,200,000 Preference shares of £- each
-
-
11
Operating lease commitments
2021
2020
At 31 March 2021 the company has total minimum future payment commitments under non-cancellable operating leases as follows:
Operating leases expiring:
Within one year
29,006
4,308
Within two to five years
21,628
9,693
12
Transactions with related parties
Balances with group undertakings are disclosed in notes 8 and 9 to these financial statements.
During the prior year the ultimate controlling party had advanced loans of £250,000 to the Company. At 31 March 2021 the loan balance was £100,000 (2020 - £200,000) Interest is due at 6% on the outstanding balance.
The immediate parent company and also the ultimate parent undertaking is Marmot Holdings Limited, a company incorporated in the United Kingdom. The ultimate controlling party of Marmot Holdings Limited is Philip Allison.
14
Post balance sheet events
On the 5th July 2021 South Downs Residential Limited acquired a further freehold property in Eastbourne for £235,000. This property will be leased to Asperger's and Autism Services Limited a fellow group company for use in that company's care provision business.
15
Average number of employees
During the year the average number of employees was 26 (2020: 18).