FOR THE YEAR ENDED 31 DECEMBER 2019
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DEVONSHIRE HOMES (LANDKEY) LIMITED
COMPANY INFORMATION
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DEVONSHIRE HOMES (LANDKEY) LIMITED
CONTENTS
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DEVONSHIRE HOMES (LANDKEY) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their report and the financial statements for the year ended 31 December 2019.
The directors who served during the year were:
COVID-19
The company has and will continue to take a number of management actions to manage the risk of Covid-19 impacting onto the company’s business. Construction is a permitted activity under the Government lockdown rules and housing transactions are allowed to progress taking due consideration of social distancing.
This includes the following:
a)
Temporarily closing active building sites from 27th March 2020 with the intention that these sites will be reopened shortly with safe working under guidance of the Construction Leadership Council site operating procedures version 3 and Government guidance.
b)
Sales offices temporarily shut but with a virtual sales presence put in place to continue to deal with existing customers and new enquiries. Increased online marketing to increase buyer interest.
c)
Implemented home working for relevant staff.
d)
Furloughed staff as required.
e)
Undertaken a detailed review of cashflow and P&L forecasts taking account of changes to build programmes and sales rates including running various scenarios to ensure the company is able to meet its covenants and continue as a going concern.
f)
Engaged closely with the company bankers to ensure they are fully aware of the company's future forecasts.
g)
Reduced cash outgoing including reducing current working staff & executive directors' pay by 20% and non executive directors pay by 50%. The board have agreed not to pay a dividend to shareholders in respect of 2019 profits.
h)
Engaging with the materials supply chain and subcontractor base to ensure that they are ready to provide materials and labour when the sites restart.
i)
Directors will be closely monitoring sales demand to work in progress spend and will take further actions if needs to manage work in progress.
Each of the persons who are
directors at the time when this Directors' report is approved has confirmed that:
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
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 and signed on its behalf.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
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:
∙
select suitable accounting policies for the Company's financial statements and then 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;
∙
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.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DEVONSHIRE HOMES (LANDKEY) LIMITED
We have audited the financial statements of Devonshire Homes (Landkey) Limited (the 'Company') for the year ended 31 December 2019, which comprise the Statement of income and retained earnings, the Statement of financial position
and the related notes, 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 the financial statements:
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 opinion.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙
the directors
' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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 Auditors' 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.
We have nothing to report in this regard.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DEVONSHIRE HOMES (LANDKEY) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Directors' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
As explained more fully in the Directors' responsibilities statement on page 3, 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 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 Company or to cease operations, or have no realistic alternative but to do so.
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 Auditors' 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' report.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DEVONSHIRE HOMES (LANDKEY) LIMITED (CONTINUED)
This report is made solely to the Company's members
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 Auditors' 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 for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
16 Queen Square
BS1 4NT
19 May 2020
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DEVONSHIRE HOMES (LANDKEY) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2019
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DEVONSHIRE HOMES (LANDKEY) LIMITED
REGISTERED NUMBER:
10480997
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 9 to 13 form part of these financial statements.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Devonshire Homes (Landkey) Limited is a limited liability company incorporated in England and Wales. The registered office is Devonshire House, Lowman Green, Tiverton, Devon, EX16 4LA.
The principal activity of the company is the development of residential property in the South West of England.
2.
ACCOUNTING POLICIES
The following principal accounting policies have been applied:
The directors continue to monitor the financial situation from the Covid-19 impact to the business and will continue to take a number of management actions to manage the risk. Construction is a permitted activity under the Government lockdown rules and housing transactions are allowed to progress taking due consideration of social distancing. This includes the following: a) Temporarily closing active building sites from 27th March 2020 with the intention that these sites will be reopened shortly with safe working under guidance of the Construction Leadership Council site operating procedures version 3 and Government guidance. b) Sales offices temporarily shut but with a virtual sales presence put in place to continue to deal with existing customers and new enquiries. Increased online marketing to increase buyer interest c) Implemented home working for relevant staff. d) Furloughed staff as required. e) Undertaken a detailed review of cashflow and P&L forecasts taking account of changes to build programmes and sales rates including running various scenarios to ensure the company is able to meet its covenants and continue as a going concern. f) Engaged closely with the company bankers to ensure they are fully aware of the company's future forecasts. g) Reduced cash outgoing including reducing current working staff & executive directors' pay by 20% and non executive directors pay by 50%. The board have agreed not to pay a dividend to shareholders in respect of 2019 profits. h) Engaging with the materials supply chain and subcontractor base to ensure that they are ready to provide materials and labour when the sites restart. i) Directors will be closely monitoring sales demand to work in progress spend and will take f urther actions if needs to manage work in progress Based on this information the Directors believe that the Company has the ability to meet its financial obligations as they fall due for the foreseeable future, which is considered to be for a period of at least twelve months from the date of approval of the accounts. For this reason, they continue to adopt the going concern basis in preparing the accounts.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
ACCOUNTING POLICIES (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
Stocks and work in progress comprising of development projects, including land are valued at the lower of cost and net realisable value.
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.
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.
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of income and retained earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
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DEVONSHIRE HOMES (LANDKEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
ACCOUNTING POLICIES (continued)
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DEVONSHIRE HOMES (LANDKEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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DEVONSHIRE HOMES (LANDKEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
by Housing Growth Partnership GP LLP and Devonshire Homes Limited.
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