Registered number:
05910066
Arca Homes (Collingwood) Limited
Unaudited
Directors' report and financial statements
For the Year Ended
31 March 2020
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Arca Homes (Collingwood) Limited
Company Information
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Unit 328/9 Metalbox Factory
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30 Great Guildford Street
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Arca Homes (Collingwood) Limited
Contents
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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Arca Homes (Collingwood) Limited
Directors' report
For the Year Ended 31 March 2020
The directors present their report and the financial statements for the year ended 31 March 2020.
Directors' responsibilities statement
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The directors are responsible for preparing the directors' report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
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select suitable accounting policies for the company's financial statements and then apply them consistently;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the Company during the year was that of holding investment property for long term capital growth and the rental of these properties.
The directors who served during the year were:
Small companies note
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
16 February 2021
and signed on its behalf.
Page 1
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Arca Homes (Collingwood) Limited
Chartered accountants' report to the board of directors on the preparation of the unaudited statutory financial statements of Arca Homes (Collingwood) Limited for the Year Ended 31 March 2020
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Arca Homes (Collingwood) Limited for the year ended 31 March 2020 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity
and the related notes from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Arca Homes (Collingwood) Limited, as a body, in accordance with the terms of our engagement letter dated
6 May 2020. Our work has been undertaken solely
to prepare for your approval the financial statements of Arca Homes (Collingwood) Limited and state those matters that we have agreed to state to the board of directors of Arca Homes (Collingwood) Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Arca Homes (Collingwood) Limited and its board of directors, as a body, for our work or for this report.
It is your duty to ensure that Arca Homes (Collingwood) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Arca Homes (Collingwood) Limited. You consider that Arca Homes (Collingwood) Limited is exempt from the statutory audit requirement for the year.
We
have not been instructed to carry out an audit or review of the financial statements of Arca Homes (Collingwood) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
Canterbury
16 February 2021
Page 2
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Arca Homes (Collingwood) Limited
Statement of comprehensive income
For the Year Ended 31 March 2020
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(Loss)/profit for the year
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There were no recognised gains and losses for 2020 or 2019 other than those included in the statement of comprehensive income.
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The notes on pages 6 to 10 form part of these financial statements.
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Page 3
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Arca Homes (Collingwood) Limited
Registered number:
05910066
Balance sheet
As at
31 March 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Investment property reserve
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The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The
financial statements have been prepared 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 financial statements were approved and authorised for issue by the board and were signed on its behalf on
16 February 2021
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The notes on pages 6 to 10 form part of these financial statements.
Page 4
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Arca Homes (Collingwood) Limited
Statement of changes in equity
For the Year Ended
31 March 2020
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Non-distributable reserve
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Comprehensive income for the year
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Transfer to/from profit and loss account
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The notes on pages 6 to 10 form part of these financial statements.
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Statement of changes in equity
For the Year Ended
31 March 2019
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Non-distributable reserve
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Comprehensive income for the year
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The notes on pages 6 to 10 form part of these financial statements.
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Page 5
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Arca Homes (Collingwood) Limited
Notes to the financial statements
For the Year Ended 31 March 2020
Arca Homes (Collingwood) Limited a limited liability company incorporated in England and Wales.
The company's registered office is Unit 328/9 Metalbox Factory 30 Great Guildford Street, London, England, SE1 0HS.
The company number is 05910066.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The company's functional and presentational currency is Pounds Sterling.
The company's financial statements are presented to the nearest thousand.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
For accounting periods on or after 1 January 2019 the amendments to FRS 102, as set out in the triennial review published in December 2017, are mandatory to adopt. The adoption of these amendments has no material impact on the financial statements of the company.
The following principal accounting policies have been applied:
In order to meet its day to day working capital requirements the company will rely upon support provided by fellow group companies, as and when the need arises.
After making enquiries, the directors believe that the company will have adequate resources together with the continued support of fellow group companies to continue in operational existence for the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.
While the impact of the Covid-19 virus has been assessed by the directors, so far as reasonably possible, due to its unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the potential outcomes on the company’s trade. However, taking into consideration the UK Government’s response and the company’s planning the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
Turnover comprises property sales from its property development operations and rental income receivable by the company, exclusive of Value Added Tax.
Investment property is carried at fair value determined annually by external valuers and 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. Changes in fair value are recognised in profit or loss.
Page 6
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Arca Homes (Collingwood) Limited
Notes to the financial statements
For the Year Ended 31 March 2020
2.
Accounting policies (continued)
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
Page 7
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Arca Homes (Collingwood) Limited
Notes to the financial statements
For the Year Ended 31 March 2020
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following are the company’s key sources of estimation uncertainty:
Investment properties
The company holds investment property with fair value of £710,000 at the year end (see note 5). In order to determine the fair value of investment property the company has engaged independent valuation specialists with experience in the location and nature of the property being valued. They have used a valuation technique based on comparable market data. The determined fair value of the investment property is most sensitive to fluctuations in the property market.
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The Company has no employees other than the directors, who did not receive any remuneration (2019 - £NIL).
The directors are remunerated by other group companies, as their services to Arca Homes (Collingwood) Limited are considered incidental.
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Freehold investment property
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The 2020 valuations were made by the directors, informed by the company's external valuers and advisers, on a fair value basis.
Page 8
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Arca Homes (Collingwood) Limited
Notes to the financial statements
For the Year Ended 31 March 2020
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Allotted, called up and fully paid
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2
(2019 -
2
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Ordinary
shares of £
1.00
each
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Profit & loss account
This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company’s shareholders.
Non-distributable reserve
To assist with the identification of profits available for distribution this reserve represents changes in the fair value of the company’s investment properties to the extent that they are not considered to be distributable to the company’s shareholders, less any related provision for current or deferred tax.
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Related party transactions
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The company is exempt from disclosing related party transactions with other companies that are wholly owned within the group. The company is also exempt from disclosing related party transactions that are conducted under normal market conditions.
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Page 9
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Arca Homes (Collingwood) Limited
Notes to the financial statements
For the Year Ended 31 March 2020
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Ultimate parent undertaking and controlling party
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The company is a wholly owned subsidiary undertaking of Opus Property Finance Limited, a company incorporated in England and Wales.
The ultimate parent undertaking is Opus Trust Investments Limited, a company incorporated in England and Wales.
Page 10
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