Company registration number 03893064 (England and Wales)
CELEBRATION HOMES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
PAGES FOR FILING WITH REGISTRAR
CELEBRATION HOMES LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
CELEBRATION HOMES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
30 September 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investment properties
4
18,707,651
15,318,358
Current assets
Debtors
5
36,375
29,199
Cash at bank and in hand
60,222
329,857
96,597
359,056
Creditors: amounts falling due within one year
6
(13,525,568)
(11,218,297)
Net current liabilities
(13,428,971)
(10,859,241)
Total assets less current liabilities
5,278,680
4,459,117
Provisions for liabilities
9
(286,315)
(160,698)
Net assets
4,992,365
4,298,419
Capital and reserves
Called up share capital
8
1,630,000
1,630,000
Revaluation reserve
3,140,023
2,478,881
Profit and loss reserves
222,342
189,538
Total equity
4,992,365
4,298,419
The notes on pages 2 to 7 form part of these financial statements.
The directors of the company have elected not to include a copy of the income statement 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 22 December 2022 and are signed on its behalf by:
P J Byrne
Director
Company Registration No. 03893064
CELEBRATION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 2 -
1
Accounting policies
Company information
Celebration Homes Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
6 Wharf Studios, 28 Wharf Road, London, England, N1 7GR.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption available in FRS 102 and has not disclosed transactions and balances with entities that form part of the group headed by Ardmore Group Limited.
1.2
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.
Turnover represents rental income earned together with the recharge of rates and utility costs on investment properties and is recognised at the end of the month to which it relates.
1.3
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.
Fair value is determined by the directors with reference to internal experts and external valuations. Values are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided.
1.4
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.
1.5
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 statement of financial position 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.
CELEBRATION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 3 -
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
and
loans from
fellow group 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.
1.6
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.
1.7
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
income statement
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.
CELEBRATION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 4 -
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
income statement
, 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.
1.8
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.9
The Company's capital and reserves comprise the following categories:
-
Share capital - represents the nominal value of the shares issued.
-
Revaluation reserve - represents the cumulative fair value uplift on investment properties.
-
Retained earnings - represents cumulative profits or losses, net of dividends paid and other adjustments.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Leases
Determine whether leases entered into by the Company as a lessor are operating leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
CELEBRATION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 5 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Investment properties
Investment properties are valued annually by the directors using yield methodology, comparable property transactions and external advice obtained. The valuation method uses estimates of the likely sales proceeds upon disposal of the properties, but there is an inevitable degree of judgement involved.
3
Directors' remuneration
The Company has no employees other than the directors, who did not receive any remuneration in the current or prior year.
4
Investment property
2022
£
Fair value
At 1 October 2021
15,318,358
Additions
2,728,151
Revaluations
661,142
At 30 September 2022
18,707,651
Investment properties have been valued at the reporting date with reference to external valuations and market data by C J Byrne and P J Byrne, who are the directors of the Company. The directors are qualified to make valuations on the basis of their knowledge and experience of the commercial property market. In making the valuation, the directors have considered the value in use of the properties and the present market conditions.
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
15,640,117
12,911,966
Accumulated depreciation
-
-
Carrying amount
15,640,117
12,911,966
CELEBRATION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 6 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
2,700
1,900
Other debtors
33,675
27,299
36,375
29,199
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
6,856
4,613
Amounts owed to group undertakings
13,434,139
11,122,169
Other creditors
84,573
91,515
13,525,568
11,218,297
Amounts due to fellow undertakings are unsecured, interest free and repayable on demand.
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
On revalued investment property
286,315
160,698
2022
Movements in the year:
£
Liability at 1 October 2021
160,698
Charge to profit or loss
125,617
Liability at 30 September 2022
286,315
The deferred tax liability set out above is expected to reverse in more than 12 months, upon realisation of the fair value movement in the related property.
CELEBRATION HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 7 -
8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,630,000
1,630,000
1,630,000
1,630,000
9
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:
Atul Kariya FCCA
Statutory Auditor:
MHA MacIntyre Hudson
10
Related party transactions
The Company fully provided for a receivable totaling £911,056 in previous years, which was due from Byrne Estates (Chatham) Limited. The company is related due to the common control of the directors.
11
Parent company
The Company's immediate parent company is Systemhaven Limited.
The Company's ultimate parent company is Ardmore Group Limited.
Ultimate control of the Company rests with C J Byrne and P J Byrne.
The largest and smallest group in which the results of the company are consolidated is headed by Ardmore Group Limited, incorporated in England and Wales. The consolidated accounts of this company are available to the public and may be obtained from Companies House.