Registration number:
Prepared for the registrar
for the
Year Ended 30 September 2022
Severells Fields Developers Ltd
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Severells Fields Developers Ltd
Company Information
Directors |
E Arbuthnott N Arbuthnott V Arbuthnott G Deboucicault Calthrop B Lang A Marks |
Registered office |
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Auditors |
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Severells Fields Developers Ltd
(Registration number: 12430862)
Balance Sheet as at 30 September 2022
Note |
2022 |
2021 |
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Current assets |
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Stocks |
14,417,831 |
8,351,808 |
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Debtors |
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Cash at bank and in hand |
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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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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
Director
Severells Fields Developers Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Name of parent of group
The parent of the smallest group preparing consolidated financial statements which include the company is Stonewood Builders Holdings Limited. The registered office of Stonewood Builders Holdings Limited is The Stonewood Office, West Yatton Lane, Castle Combe, Chippenham, SN14 7EY.
Going concern
After reviewing the company's forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing its financial statements.
Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Severells Fields Developers Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of properties and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured. it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Turnover is recognised on legal completion for each individual unit sold.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
Stocks
Stocks which comprise work in progress, are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Severells Fields Developers Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Staff numbers |
The company had no employees other than directors.
Debtors |
2022 |
2021 |
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Other debtors |
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Severells Fields Developers Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Creditors |
Note |
2022 |
2021 |
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Due within one year |
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Amounts due to related parties |
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Other creditors |
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Accrued expenses |
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Corporation tax liability |
380,313 |
18,292 |
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Due after one year |
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Loans and borrowings |
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Amounts due to related parties |
2,010,122 |
3,347,500 |
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11,339,824 |
7,807,434 |
Amounts owed to related parties are interest free and repayable on demand.
Loans and borrowings |
2022 |
2021 |
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Non-current loans and borrowings |
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Bank borrowings |
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Bank borrowings comprise a bank loan of £9,329,702 (2021 - £4,459,934) which is denominated in Sterling and bears interest at a rate of 5.25% per annum above the Bank of England base rate, subject to a minimum of 6.25%, as at the first business day of each month. The loan is due for repayment on 29 Feburary 2024 and is therefore disclosed as falling due in more than one year.
The loan is secured by first ranking security over all shares in the company and a debenture incorporating first ranking fixed and floating security over all current and future assets of the company, to include a legal charge over the development site. The loan imposes a negative pledge which prohibits the company from creating any security interests over the assets pledged as security.
Related party transactions |
Stonewood Partnerships Limited
(a company under common control)
During the year the company made purchases (net of sales) of £10,337,094 (2021 - £2,999,626) from Stonewood Partnerships Limited. The company was advanced a loan of £1,217,834 (2021 - £68,451) from Stonewood Partnerships Limited. No interest has been charged on this loan. At the balance sheet date, the amount owed to Stonewood Partnerships Limited was £1,217,834 (2021 - £731,155).
Stonewood Builders Holdings Limited
(50% shareholder in the company)
During the year the company was advanced a loan of £nil (2021 - £1,547,500) from Stonewood Builders Holdings Limited. No interest has been charged on this loan. At the balance sheet date the amount owed to Stonewood Builders Holdings Limited in respect of this loan was £1,
Seathwaite LLP
(50% shareholder in the company)
During the year the company was advanced a loan of £nil (2021 - £1,800,000) from Seathwaite LLP. No interest has been charged on this loan. Prepayments of £794,939 have been made during the year. At the balance sheet date, the amount owed to Seathwaite LLP in respect of this loan was £1,005,061 (2021 - £1,800,000).
Severells Fields Developers Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Audit report |