Period from 1 December 2021 to
Registration number:
Hopkins Developments (Holdings) Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Hopkins Developments (Holdings) Limited
Company Information
Directors |
Mr W I Hopkins Mr N W Hopkins |
Company secretary |
Mr W I Hopkins |
Registered office |
|
Auditors |
|
Hopkins Developments (Holdings) Limited
Strategic Report
period from 1 December 2021 to 31 March 2023
The directors present their strategic report for the period from 1 December 2021 to 31 March 2023.
Principal activity
The principal activity of the group is that of property development, property investment and mixed farming.
Fair review of the business
The directors are pleased to report an increase in profits for the 16-month period coupled with an increase in turnover for the same period.
The business has expanded its aggregate and muck away section and turnover has grown substantially with investment in new trucks to cope with the demand.
The farming enterprise has also grown with investment in more agricultural land which is reflected in the increase in borrowings and the increase in net asset value of the company.
The company's key financial and other performance indicators during the period were as follows:
Financial KPIs |
Unit |
31 March 2023 |
30 November 2021 |
Turnover |
£ |
17,685,130 |
13,040,828 |
Gross profit |
£ |
4,837,705 |
2,956,252 |
Operating profit |
£ |
1,556,796 |
4,156,191 |
Cash movement |
£ |
(5,360,102) |
5,687,163 |
Net assets |
£ |
50,594,345 |
48,386,758 |
Principal risks and uncertainties
The general agricultural commodity prices are of concern going forward with the uncertainty in the world markets generally.
The housing market has slowed down and we are expecting the sales to continue but at a reduced rate.
The business has several revenue streams, and this diversity gives the business some resilience to market conditions. The directors continue to explore new opportunities for growth. Working capital and cash are closely monitored.
Approved and authorised by the
......................................... |
Hopkins Developments (Holdings) Limited
Directors' Report
Period from 1 December 2021 to 31 March 2023
The directors present their report and the for the period from 1 December 2021 to 31 March 2023.
Directors of the group
The directors who held office during the period were as follows:
Financial instruments
Objectives and policies
The company has exposure to three main types of risk, being liquidity risk and customer credit exposure. The company does not enter into any hedging transactions. The use, and nature, of finance instruments are determined by the directors, in context of trading terms made available to the company by the customers and suppliers, with the objective of securing the liquid and profitability of the company.
Price risk, credit risk, liquidity risk and cash flow risk
Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the availability of overdraft facilities at floating rates of interest.
Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers, and the regular monitoring of amounts outstanding for both time and limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Trade creditors are paid in line with agreed credit terms and conditions, subject to correct invoicing.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Hopkins Developments (Holdings) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Hopkins Developments (Holdings) Limited
Independent Auditor's Report to the Members of Hopkins Developments (Holdings) Limited
Qualified opinion
We have audited the financial statements of Hopkins Developments (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 1 December 2021 to 31 March 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statements:
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's profit for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion
The group did not require an audit for the period ended 30 November 2021, and therefore we did not attend its stock count on that date. We were unable to satisfy ourselves by alternative means concerning the stock quantity of £1,558,591 held on that date. Consequently we are unable to determine whether any adjustment was necessary to the 30 November 2021 balance sheet or whether there was any consequential effect on cost of sales for the period ended 31 March 2023. In addition, were any adjustments to the stock balance to be required, the strategic report would also need to be amended.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Other matters
The group was exempt from the requirement of an audit for the period ended 30 November 2021 and consequently the comparative information, which is derived from those financial statements, is unaudited.
Hopkins Developments (Holdings) Limited
Independent Auditor's Report to the Members of Hopkins Developments (Holdings) Limited
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
As described in the basis for qualified opinion section or our report, we were unable to satisfy oursleves concerning the opening stock quantity for the period ended 31 March 2023. Where the other information refers to the opening stock balance related balances, such as cost of sales, may be materially misstated for the same reason.
Opinion on other matter prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
Arising solely from the limitation on the scope of our work relating to stock, referred to above:
• |
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
• |
we were unable to determine whether adequate accounting records have been kept. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
Hopkins Developments (Holdings) Limited
Independent Auditor's Report to the Members of Hopkins Developments (Holdings) Limited
• |
returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors' remuneration specified by law are not made. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Hopkins Developments (Holdings) Limited
Independent Auditor's Report to the Members of Hopkins Developments (Holdings) Limited
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.
The key laws and regulations we identified were in respect of: Health and Safety Regulations, Employment Law, and pollution, hazardous substances, and waste disposal regulations.
We have also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006 and Corporation Taxes Acts 2009 and 2010.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.
We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations are deal with reporting any issues if they arise.
As part of our planning procedures, we assessed the risk of any non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Reviewed legal and professional costs to identify any possible non compliance or legal costs in respect of non compliance; and
• Reviewed certification, reports and correspondence in respect of adherence with relevant laws and regulations.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions or fraud.
We also evaluated the risk of fraud through management override including that arising from management's incentives. The key risks we identified were incentives relating to management bonuses, and we determined that the principal risks were related to the overstatement of profit, either through overstating revenue or management bias in accounting estimates.
In response to the identified risk, as part of our audit work we:
• Used data analytics to test journal entries throughout the year, for appropriateness;
• Reviewed estimates and judgements made in the financial statements for any indication of bias and challenged assumptions used by management in making the estimates; and
• Undertook specific cut-off procedures in respect of revenue recognition.
Hopkins Developments (Holdings) Limited
Independent Auditor's Report to the Members of Hopkins Developments (Holdings) Limited
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Somerset
TA1 2PX
Hopkins Developments (Holdings) Limited
Consolidated Profit and Loss Account
Period from 1 December 2021 to 31 March 2023
Note |
31 March |
30 November |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
|
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Gain on financial assets at fair value through profit and loss |
|
- |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
1,719,698 |
(128,283) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial period |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the period other than the results above.
Hopkins Developments (Holdings) Limited
Consolidated Balance Sheet
31 March 2023
Note |
31 March |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
- |
|
Tangible assets |
|
|
|
Investment property |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Capital redemption reserve |
2,254,000 |
2,254,000 |
|
Revaluation reserve |
10,938,817 |
8,632,475 |
|
Other reserves |
4,500 |
4,500 |
|
Profit and loss account |
37,396,928 |
37,495,683 |
|
Equity attributable to owners of the company |
50,594,345 |
48,386,758 |
|
Shareholders' funds |
50,594,345 |
48,386,758 |
Approved and authorised by the
......................................... |
Company Registration Number: 06376309
Hopkins Developments (Holdings) Limited
Balance Sheet
31 March 2023
Note |
31 March |
30 November |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Capital redemption reserve |
2,250,000 |
2,250,000 |
|
Shareholders' funds |
2,250,100 |
2,250,100 |
The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial period of £144,778 (2021 - profit of £850,235).
Approved and authorised by the
......................................... |
Company Registration Number: 06376309
Hopkins Developments (Holdings) Limited
Consolidated Statement of Changes in Equity
Period from 1 December 2021 to 31 March 2023
Share capital |
Capital redemption reserve |
Revaluation reserve |
Merger reserve |
Profit and loss account |
Total |
Total equity |
|
At 1 December 2021 |
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
- |
( |
( |
( |
Transfers |
- |
- |
2,306,342 |
- |
(2,306,342) |
- |
- |
At 31 March 2023 |
|
|
|
|
|
|
|
Share capital |
Capital redemption reserve |
Revaluation reserve |
Merger reserve |
Profit and loss account |
Total |
Total equity |
|
At 1 December 2020 |
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
- |
( |
( |
( |
Other capital redemption reserve movements |
- |
750,000 |
- |
- |
- |
750,000 |
750,000 |
At 30 November 2021 (As restated) |
100 |
2,254,000 |
8,632,475 |
4,500 |
37,495,683 |
48,386,758 |
48,386,758 |
Hopkins Developments (Holdings) Limited
Statement of Changes in Equity
Period from 1 December 2021 to 31 March 2023
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 December 2021 |
|
|
- |
|
Profit for the period |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 March 2023 |
|
|
- |
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 December 2020 |
|
|
- |
|
Profit for the period |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Other capital redemption reserve movements |
- |
750,000 |
- |
750,000 |
At 30 November 2021 |
100 |
2,250,000 |
- |
2,250,100 |
Hopkins Developments (Holdings) Limited
Consolidated Statement of Cash Flows
Period from 1 December 2021 to 31 March 2023
Note |
31 March |
(As restated) |
|
Cash flows from operating activities |
|||
Profit for the period |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Changes in fair value of investment property |
( |
- |
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
( |
|
|
Income taxes paid |
- |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
- |
|
Acquisition of investment properties |
( |
- |
|
Proceeds from sale of investment properties |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
|
- |
|
Repayment of bank borrowing |
- |
( |
|
Payments to finance lease creditors |
( |
|
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
|
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
Hopkins Developments (Holdings) Limited
Consolidated Statement of Cash Flows
Period from 1 December 2021 to 31 March 2023
Note |
31 March |
(As restated) |
|
Cash and cash equivalents at 1 December |
|
( |
|
Cash and cash equivalents at 31 March |
(2,720,697) |
2,639,405 |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The consolidated financial statements are presented in pounds sterling, which is the functional currency of the Group and rounded to the nearest £.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023.
The financial statements have been prepared using merger accounting principles as if the group had been in existence for the current and previous financial periods. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Disclosure of long or short period
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Going concern
Having considered all available information, including cashflow forecasts for a period of no less than 12 months from the date of approval of these financial statements, the directors are satisfied that the going concern basis of preparation is appropriate in preparing these financial statements.
Reclassification of comparative amounts
Key sources of estimation uncertainty
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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.
Land and buildings are carried at fair value based on the valuation carried out by a professional independent valuer or by the directors. The valuations used observable market prices adjusted as necessary for any difference in the future, location or conditions of the specific asset. The carrying amount is £40,553,084 (2021 -£37,090,715).
Trade debtors are held on the balance sheet at their recoverable value. The directors utilise all information readily available in order to estimate the recoverable value of trade debtors as at the balance sheet date and make provisions where necessary. The carrying amount is £1,092,043 (2021 -£114,476).
Investment properties are held at the balance sheet date at fair value, which requires estimation by the directors as to the market value of the properties. The carrying amount is £20,866,850 (2021 -£18,143,658).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
For property rental income, turnover is recognised for tenancy periods during the year. For farming sales, turnover is recognised once livestock or crops are delivered. For aggregate and concrete income, turnover is recognised upon delivery of materials.
Accrued income in relation to residential property development sales, is recognised based on the date of completion, in excess of amounts previously invoiced and received.
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Contract revenue recognition
Revenue per contract is recognised on the percentage completion of each tender build. Where it is possible that the total contract costs will exceed the contract revenue, a provision is recognised for the total expected loss.
Government grants
Grants received are accounted for using the accruals model. Grants relating to revenue are credited to the profit and loss account on a straight line basis over the relevant period in which the related costs are incurred. Grants which are the purpose of giving immediate financial support to the entity, with no future related costs, are recognised as income in the period in which they become receivable.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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 group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Biological assets are held at depreciated cost. Where animals are home-reared, cost is deemed to be equivalent to the market value of the livestock at the point of transfer from livestock. Where biological assets are purchased from third party suppliers, cost is the actual cost of the livestock in question.
For home reared livestock, up to the point of transfer from livestock to biological assets, livestock is held at deemed cost, being equivalent to 75% of the market value, as explained further in the stock policy.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
Not depreciated |
Plant and machinery |
5% to 33% reducing balance |
Biological assets |
20% straight line |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Investment property
Intangible assets
Agricultural subsidy entitlements
Separately acquired intangible assets are recognised at cost less accumulated amortisation and impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Agricultural subsidy entitlements |
Written off over the remaining useful life to 2024 |
Investments
Investments in subsidiaries are 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.
Stocks
Stocks 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 finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks 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.
Raw materials and consumables includes consumable stock held at cost, together with the aggregated costs associated with growing crops and livestock. Where actual cost is not readily identifiable, deemed cost is used in place of actual costs. In the case of the livestock and arable crops held, deemed cost is equivalent to 75% of the market value of the stock in hand at the year end date.
Work in progress includes land and building costs acquired for the purpose of development, together with the aggregated actual costs of development projects. Work in progress is released based on the stage of completion where construction contracts are in place.
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Operating Leases - the company as lessee
All other leases are operating leases and the annual rentals are charged to profit or loss on a straight line basis over the lease term.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans and hire purchase and finance lease agreements, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Assets held under finance leases and hire purchase contracts are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. The assets are depreciated on a straight line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Finance lease obligations are subsequently measured at amortised cost using the effective interest
method.
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Turnover |
The analysis of the group's Turnover for the period from continuing operations is as follows:
31 March |
30 November |
|
Sale of goods |
|
|
The analysis of the group's Turnover for the period by class of business is as follows:
31 March |
30 November |
|
Arable and sheep farming |
|
|
Property development |
|
|
Property letting |
|
|
Aggregate and Concrete |
4,660,739 |
- |
|
|
The analysis of the group's Turnover for the period by market is as follows:
31 March |
30 November |
|
United Kingdom |
|
|
Other operating income |
The analysis of the group's other operating income for the period is as follows:
31 March |
30 November |
|
Miscellaneous other operating income |
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the period is as follows:
31 March |
30 November |
|
Gain on disposal of Tangible assets |
|
|
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Operating profit |
Arrived at after charging/(crediting)
31 March |
30 November |
|
Depreciation expense |
|
|
Amortisation expense |
|
- |
Profit on disposal of property, plant and equipment |
( |
( |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
31 March |
30 November |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
31 March |
30 November |
|
Production |
|
|
Administration and support |
|
|
Research and development |
|
- |
Sales, marketing and distribution |
|
|
Sales |
|
|
Other departments |
|
|
|
|
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Directors' remuneration |
The directors' remuneration for the period was as follows:
31 March |
30 November |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
106,997 |
80,248 |
Auditor's remuneration |
31 March |
30 November |
|
Audit of these financial statements |
26,950 |
- |
Other interest receivable and similar income |
31 March |
30 November |
|
Other finance income |
|
|
Interest payable and similar expenses |
31 March |
30 November |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
- |
|
|
|
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Taxation |
Tax charged/(credited) in the profit and loss account
1 December 2021 to 31 March 2023 |
Year ended 30 November 2021 |
|
Current taxation |
||
UK corporation tax |
- |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2021 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
31 March |
30 November |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
Increase/(decrease) in UK and foreign current tax from unrecognised temporary difference from a prior period |
|
( |
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
Total tax charge |
|
|
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Intangible assets |
Group
Agricultural subsidy entitlements |
Total |
|
Cost or valuation |
||
At 1 December 2021 |
|
|
Additions acquired separately |
|
|
At 31 March 2023 |
|
|
Amortisation |
||
At 1 December 2021 |
|
|
Amortisation charge |
|
|
At 31 March 2023 |
|
|
Carrying amount |
||
At 31 March 2023 |
|
|
Amortisation of intangible assets is recognised within administration costs.
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Tangible assets |
Group
Land and buildings as restated |
Plant and machinery |
Biological assets |
Total |
|
Cost or valuation |
||||
At 1 December 2021 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
( |
At 31 March 2023 |
|
|
|
|
Depreciation |
||||
At 1 December 2021 |
- |
|
|
|
Charge for the period |
- |
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
At 31 March 2023 |
- |
|
|
|
Carrying amount |
||||
At 31 March 2023 |
|
|
|
|
At 30 November 2021 |
|
|
|
|
Included within the net book value of land and buildings above is £40,553,084 (2021 - £37,090,715) in respect of freehold land and buildings.
Revaluation
The fair value of the group's freehold land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
31 March |
30 November |
|
Plant and machinery |
1,507,156 |
187,907 |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Investment properties |
Group
(As restated) |
|
At 1 December |
|
Additions |
|
Fair value adjustments |
|
At 31 March |
|
The fair value of the investment property has been arrived at on the basis of a valuation carried out as at 31 March 2023 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
There has been no valuation of investment property by an independent valuer.
Investments |
Company
31 March |
30 November |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 December 2021 |
|
Provision |
|
Carrying amount |
|
At 31 March 2023 |
|
At 30 November 2021 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2021 |
|||
Subsidiary undertakings |
||||
|
The Tythings Commercial Centre
England & Wales |
|
|
|
|
The Tythings Commercial Centre
England & Wales |
|
|
|
Subsidiary undertakings |
Hopkins Estates Limited The principal activity of Hopkins Estates Limited is |
Kingsmead Business Park Management Company Limited The principal activity of Kingsmead Business Park Management Company Limited is |
The investment in Kingsmead Business Park Management Company Limited is held indirectly.
Stocks |
Group |
Company |
|||
31 March |
30 November |
31 March |
30 November |
|
Raw materials and consumables |
|
|
- |
- |
Work in progress |
|
|
- |
- |
|
|
- |
- |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Debtors |
Group |
Company |
||||
Note |
31 March |
30 November |
31 March |
30 November |
|
Trade debtors |
|
|
- |
- |
|
Amounts due from group undertakings |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
Accrued income |
|
- |
- |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
31 March |
30 November |
31 March |
30 November |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
- |
|
- |
- |
|
|
- |
- |
|
Bank overdrafts |
( |
( |
- |
- |
Cash and cash equivalents in statement of cash flows |
(2,720,697) |
2,639,405 |
- |
- |
Analysis of changes in net debt |
At 1 December 2021 |
Cash Flow |
Non cash movements |
At 31 March 2023 |
|
£ |
£ |
£ |
£ |
|
Cash at bank and on hand |
2,657,018 |
(2,656,908) |
- |
110 |
Bank overdrafts |
(17,613) |
(2,703,194) |
- |
(2,720,807) |
Cash and cash equivalents |
2,639,405 |
(5,360,102) |
- |
(2,720,697) |
Finance lease obligations |
(1,013,462) |
1,121,523 |
(3,099,601) |
(2,991,540) |
Long term loans |
(3,961,662) |
(8,954,875) |
- |
(12,916,537) |
Net debt |
(2,335,719) |
(16,293,055) |
- |
(18,628,774) |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Creditors |
Group |
Company |
||||
Note |
31 March |
30 November |
31 March |
30 November |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other creditors |
|
|
- |
- |
|
Accrued expenses |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Other creditors |
|
|
- |
- |
|
15,160,386 |
4,625,122 |
- |
- |
Loans and borrowings |
Group |
Company |
|||
31 March |
30 November |
31 March |
30 November |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
|
|
- |
- |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Group |
Company |
|||
31 March |
30 November |
31 March |
30 November |
|
Current loans and borrowings |
||||
Bank overdrafts |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
Redeemable preference shares |
|
|
|
|
|
|
|
|
Group
Bank borrowings
The bank loan is secured over certain freehold properties of the company. |
The bank loan is secured over certain freehold properties of the company. |
The bank loan is secured over certain freehold properties of the company. |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Obligations under leases and hire purchase contracts |
Group
Operating leases - lessor
The total of future minimum lease payments is as follows:
31 March |
30 November |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Total contingent rents recognised as income in the period are £Nil (2021 - £Nil).
Provisions for liabilities |
Group
Deferred tax |
|
At 1 December 2021 |
|
Decrease in existing provisions |
|
At 31 March 2023 |
|
|
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Share capital |
Allotted, called up and fully paid shares
31 March |
30 November |
|||
No. |
£ |
No. |
£ |
|
|
|
99.00 |
|
99.00 |
|
|
0.20 |
|
0.20 |
|
|
0.20 |
|
0.20 |
|
|
0.20 |
|
0.20 |
|
|
0.20 |
|
0.20 |
|
|
0.20 |
|
0.20 |
|
|
|
|
Redeemable preference shares
The |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Dividends |
31 March |
30 November |
|||
£ |
£ |
|||
Interim dividend of £ |
144,778 |
850,235 |
||
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Reserves |
Group
Revaluation reserve - Arising from revaluation of fixed assets
Merger reserve - Arising upon consolidation
Profit and loss account - Arising through normal trading activities of the group
Capital redemption reserve - Arising from redemption of redeemable preference shares
Non adjusting events after the financial period |
|
Pension and other schemes |
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Related party transactions |
Group
Key management compensation
31 March |
30 November |
|
Salaries and other short term employee benefits |
|
|
Post-employment benefits |
|
|
|
|
Transactions with directors |
2023 |
At 1 December 2021 |
Advances to director |
Repayments by director |
At 31 March 2023 |
Mr W I Hopkins |
||||
Advances and repayments including interest at HMRC official rate |
( |
|
( |
|
Mr N W Hopkins |
||||
Advances and repayments including interest at HMRC official rate |
( |
|
( |
|
2021 |
At 1 December 2020 |
Advances to director |
Repayments by director |
At 30 November 2021 |
Mr W I Hopkins |
||||
Advances and repayments including interest at HMRC official rate |
|
|
( |
( |
Mr N W Hopkins |
||||
Advances and repayments including interest at HMRC official rate |
( |
|
( |
( |
Hopkins Developments (Holdings) Limited
Notes to the Financial Statements
Period from 1 December 2021 to 31 March 2023
Company
Summary of transactions with all subsidiaries
Loans to related parties
2023 |
Subsidiary |
Total |
At start of period |
|
|
At end of period |
|
|
|
2021 |
Subsidiary |
Total |
At start of period |
|
|
At end of period |
|
|
|
Parent and ultimate parent undertaking |
The ultimate controlling party is