REGISTERED NUMBER: |
Whiteheads Development Company Limited |
Audited Financial Statements for the Year Ended 31 March 2023 |
REGISTERED NUMBER: |
Whiteheads Development Company Limited |
Audited Financial Statements for the Year Ended 31 March 2023 |
Whiteheads Development Company Limited (Registered number: 08741542) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Whiteheads Development Company Limited |
Company Information |
for the Year Ended 31 March 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Whiteheads Development Company Limited (Registered number: 08741542) |
Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Current assets |
Stocks |
Debtors | 4 |
Cash at bank |
Creditors |
Amounts falling due within one year | 5 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 6 | ( |
) | ( |
) |
Net liabilities | ( |
) | ( |
) |
Capital and reserves |
Called up share capital | 8 |
Retained earnings | 9 | ( |
) | ( |
) |
Shareholders' funds | ( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Profit and loss has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Whiteheads Development Company Limited (Registered number: 08741542) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | Statutory information |
Whiteheads Development Company Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents amounts chargeable, net of value added tax, in respect of the provision of construction and property services to customers. |
Stocks |
Work in progress is valued at the lower of cost and selling price less costs to complete and sell. Impairment of work in progress is considered at each year end and cost reduced if required. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Whiteheads Development Company Limited (Registered number: 08741542) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | Accounting policies - continued |
Financial instruments |
Financial instruments are recognised on the company's balance sheet when the company becomes party to the contractual provision of the instrument. |
Financial assets and liabilities are offset and 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 balance, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective rate of interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cashflows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the assets original interest rate. The impairment loss is recognised in the income statement. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the income statement. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cashflows from the asset expire or are settled, or when the group transfers the financial assets and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities including trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing arrangement, where the debt instrument is measured at the present value of the future payments 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 are method. |
Trade creditors are obligations to pay for goods are services that have been acquired in the ordinary course of business from suppliers. Amounts 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 rate of interest method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
Whiteheads Development Company Limited (Registered number: 08741542) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | Accounting policies - continued |
Going concern |
The Board is aware that due to the nature of the development project where a significantly large amount of cost is expended ahead of earning any revenue income, the company will report significant accounting losses until revenue income is generated. The long-term projections monitored via regular review of the development tracker, shows that the scheme will generate a surplus when completed based upon the latest cost estimates. The Board is looking at a number of options to deliver further savings and/or additional income which will improve the financial viability. |
All of the payments to date are in accordance with the Welsh Government (WG) loan agreement and has been certified as qualifying expenditure by the WG officers. |
In the unlikely event that the Board considers the scheme to be undeliverable, then the company has the option to serve an acquisition termination notice in accordance with the Conditional Loan Sale Agreement and the current loan, together with accrued interest, will be written off. |
As with any such project, there is some level of material uncertainty, but the directors are confident that should the project fail to go ahead, the Company will be able to meet its liabilities as they fall due. |
Based on the above, the Directors consider that the Company is financially viable and can meet its liabilities as they fall due and therefore these financial statements have been prepared on a going concern basis. |
3. | Employees and directors |
The average number of employees during the year was |
4. | Debtors |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Amounts owed by group undertakings |
VAT |
Amounts falling due after more than one year: |
Trade debtors |
Aggregate amounts |
5. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
VAT | - | 63,125 |
Accrued expenses |
6. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Other loans - 2-5 years |
Whiteheads Development Company Limited (Registered number: 08741542) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
7. | Secured debts |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Other loans | 8,356,688 | 8,128,528 |
The loan is from the Welsh Government and is dated 29 April 2021, this loan supersedes the revised loan agreements dated 3 July 2020 and 30 March 2017 and the original loan agreement dated 30 March 2013. The interest is calculated on a compound basis with reference to the European Reference rates together with a 1% margin. The interest rate together with the 1% margin increased from 1.66% to 4.52% in the year to 31 March 2023 (2022: 1.66%). |
The loan of £7 million plus accrued interest is due for repayment based on the earlier of several different key events but no later 31 December 2025 and therefore the loan has been classified as falling due for repayment within 2-5 years. |
The loan is secured on the Whiteheads site and the cash balances within the company. |
8. | Called up share capital |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 100 | 100 |
9. | Reserves |
Retained |
earnings |
£ |
At 1 April 2022 | ( |
) |
Deficit for the year | ( |
) |
At 31 March 2023 | ( |
) |
10. | Disclosure under Section 444(5B) of the Companies Act 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
Material uncertainty related to going concern |
We draw attention to note 2, 'Going concern', in the financial statements. As at 31 March 2022, the company's total liabilities exceeded its total assets by £931,934. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
11. | Contingent liabilities |
The company received a pre-action letter of claim on behalf of Coilcolor for flooding events that occurred during late 2016. The Company has taken appropriate expert advice and legal representations and is confident that it is not responsible for the alleged damages and has sent a substantive response defending its position. As the value is unable to be reliably measured as at the year end, the liability has been treated as contingent. |
Whiteheads Development Company Limited (Registered number: 08741542) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
12. | Post balance sheet events |
Subsequent to the balance sheet date. Development of the Whitehead site has progressed with the completion of Cluster 1 (of 4) on 1 September 2023 which consists of 75 units. On completion of Cluster 1 a payment obligation of £9,409,274 becomes payable 1 December 2023. The obligation will be settled through the sale of shared ownership units and long term funding from M&G. |
13. | Ultimate parent company |
The ultimate parent company and controlling party is Tirion Group Limited, which prepares group financial statements incorporating the financial statements of the company. A copy of these can be obtained from the registered society's registered office at 7 Neptune Court, Vanguard Way, Cardiff, Wales, CF24 5PJ. |