Company Registration No. 04691625 (England and Wales)
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 26 FEBRUARY 2020
PAGES FOR FILING WITH REGISTRAR
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
COMPANY INFORMATION
Directors
D H Marsh
P J Taylor
Company number
04691625
Registered office
Oakapple House
1 John Charles Way
Leeds
West Yorkshire
LS12 6QA
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
BALANCE SHEET
AS AT 26 FEBRUARY 2020
26 February 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
-
854
Investments
5
258,397
2
258,397
856
Current assets
Stocks
409,517
769,606
Debtors
7
439,454
1,218,266
Cash at bank and in hand
1,359
7,091
850,330
1,994,963
Creditors: amounts falling due within one year
8
(4,321,806)
(4,787,668)
Net current liabilities
(3,471,476)
(2,792,705)
Total assets less current liabilities
(3,213,079)
(2,791,849)
Provisions for liabilities
-
(162)
Net liabilities
(3,213,079)
(2,792,011)
Capital and reserves
Called up share capital
9
2
2
Profit and loss reserves
(3,213,081)
(2,792,013)
Total equity
(3,213,079)
(2,792,011)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 26 February 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
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 23 February 2021 and are signed on its behalf by:
D H Marsh
Director
Company Registration No. 04691625
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 26 FEBRUARY 2020
- 2 -
1
Accounting policies
Company information
Oakapple Homes (Scarborough) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Oakapple House, 1 John Charles Way, Leeds, West Yorkshire, LS12 6QA.
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.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
The company has net liabilities amounting to £3,213,079 at the balance sheet date. The company is reliant upon the continued support of its directors and associated undertakings. It has been indicated that this support will continue for the foreseeable future.
The directors have also considered the trading position of related parties and do not foresee that this will give rise to any significant exposure to the company.
Based on these discussions and projected trading of the company, the directors are of the opinion that the company will have adequate resources to continue its operations for the foreseeable future. For this reason, the directors consider the going concern basis to be appropriate
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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 26 FEBRUARY 2020
1
Accounting policies
(Continued)
- 3 -
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:
Motor vehicles
33.3% Straight line
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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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
Work in progress
Work in progress is valued at lower of direct costs incurred in respect of properties under development and net realisable value.
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 26 FEBRUARY 2020
1
Accounting policies
(Continued)
- 4 -
1.8
Cash at bank and in hand
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.
1.9
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 26 FEBRUARY 2020
1
Accounting policies
(Continued)
- 5 -
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.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
2
2
3
Intangible fixed assets
Goodwill
£
Cost
At 27 February 2019 and 26 February 2020
404,997
Amortisation and impairment
At 27 February 2019 and 26 February 2020
404,997
Carrying amount
At 26 February 2020
-
At 26 February 2019
-
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 26 FEBRUARY 2020
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 27 February 2019 and 26 February 2020
3,075
Depreciation and impairment
At 27 February 2019
2,221
Depreciation charged in the year
854
At 26 February 2020
3,075
Carrying amount
At 26 February 2020
-
At 26 February 2019
854
5
Fixed asset investments
2020
2019
£
£
Investment in subsidiaries
258,397
2
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 27 February 2019
2
Additions
1,671,500
At 26 February 2020
1,671,502
Impairment
At 27 February 2019
-
Impairment losses
1,413,105
At 26 February 2020
1,413,105
Carrying amount
At 26 February 2020
258,397
At 26 February 2019
2
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 26 FEBRUARY 2020
- 7 -
6
Subsidiaries
Details of the company's subsidiaries at 26 February 2020 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Oakapple (Lower Railway Road) Limited
England & Wales
Ordinary
100.00
0
Oakapple Homes (Balmoral) Limited
England & Wales
Ordinary
100.00
0
Oakapple Homes (Yorkshire) limited
England & Wales
Ordinary
100.00
0
Oakapple Primary Care Properties (Fleetwood) Limited
England & Wales
Ordinary
100.00
0
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
4,940
-
Amounts owed by group undertakings
210,943
306,199
Other debtors
223,571
912,067
439,454
1,218,266
8
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
91,162
261,821
Amounts owed to group undertakings
290,137
-
Taxation and social security
-
17,332
Other creditors
3,940,507
4,508,515
4,321,806
4,787,668
9
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary of £1 each
2
2
OAKAPPLE HOMES (SCARBOROUGH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 26 FEBRUARY 2020
- 8 -
10
Related party transactions
By virtue of common directorships and shareholdings, the following companies are related parties:
Surcoat Group Limited
Oakapple Commercial Limited
Heavenly Residential Limited
By virtue of being a subsidiary company, the following companies are related parties:
Oakapple (Lower Railway Road) Limited
Oakapple Homes (Balmoral) Limited
Oakapple Primary Care Properties (Fleetwood) Limited
Oakapple Homes (Yorkshire) Limited
During the year, the following transactions took place:
At the balance sheet date, a balance of £210,943 (2019: £306,199) was owed from group companies.
At the balance sheet date, a balance of £290,137 (2019: £NIL) was owed to group companies.
During the year, the company recharged services of £362,576 (2019: £NIL) to group companies.
During the year, the company received management fee income of £785,000 (2019: £NIL) from group companies.
During the year, the company received management fee income of £NIL (2019: £98,400) from other related parties.
During the year, the company paid finance costs of £NIL (2019: £121,270) to other related parties.
At the balance sheet date, a balance of £188,964 (2019: £900,070) was owed from other related parties.
At the balance sheet date, a balance of £Nil (2019: £121,270) was owed to other related parties.
All the above loans are repayable on demand.
11
Directors' transactions
At the year end, directors were owed £3,223,807 (2019: £4,195,395) by the company. The loan is interest free and is repayable on demand.