P J Livesey Country Homes (Eastern) Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 04204927 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2018

FOR

P J LIVESEY COUNTRY HOMES (EASTERN)

LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

7

Balance Sheet

8

Notes to the Financial Statements

9

DIRECTORS:

Mr P J Livesey

Mrs D A Livesey

Mr R Brocklehurst

Mrs G A Livesey

Mr J N D Woodmansee

Mr M Duckett

Mr C D Lynch

SECRETARY:

Mrs D A Livesey

REGISTERED OFFICE:

Ashburton Park

Ashburton Road West

Trafford Park

Manchester

M17 1AF

REGISTERED NUMBER:

04204927 (England and Wales)

AUDITORS:

Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

BANKERS:

Santander

298 Deansgate

Manchester

M3 4HH

The directors present their report with the financial statements of the company for the year ended 30th June 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st July 2017 to the date of this report.

Mr P J Livesey

Mrs D A Livesey

Mr R Brocklehurst

Mrs G A Livesey

Mr J N D Woodmansee

Other changes in directors holding office are as follows:

Mr M Duckett and Mr C D Lynch were appointed as directors after 30th June 2018 but prior to the date of this report.

Mr J W Allcock and Mr P G Richardson ceased to be directors after 30th June 2018 but prior to the date of this report.

Mr G W Graves was appointed as a director after 30th June 2018 and resigned prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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

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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

AUDITORS

The auditors, Ainsworths Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

Mrs G A Livesey - Director

27th March 2019

Opinion

We have audited the financial statements of P J Livesey Country Homes (Eastern) Limited (the 'company') for the year

ended 30th June 2018 which comprise the Income Statement, Balance Sheet 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 the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30th June 2018 and of its loss for the year 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 opinion

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 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 opinion.

Conclusions relating to going concern

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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of

the Directors, but does not include the financial statements and our Report of the Auditors 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Directors.

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:

-	adequate accounting records have not been kept, or 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; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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.

Auditors' 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 a Report of the Auditors 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 Report of the Auditors.

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 a Report of the Auditors 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.

Michael Heys (Senior Statutory Auditor)

for and on behalf of Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

27th March 2019

TURNOVER

9,297,350

10,154,734

Cost of sales

10,417,909

8,456,157

GROSS (LOSS)/PROFIT

(1,120,559

)

1,698,577

Administrative expenses

25

1,575,028

OPERATING (LOSS)/PROFIT

4

(1,120,584

)

123,549

Profit/(loss) on sale of

investment property

5

228,559

-

(892,025

)

123,549

Interest receivable and similar income

170

-

(891,855

)

123,549

Interest payable and similar expenses

1,759

-

(LOSS)/PROFIT BEFORE TAXATION

(893,614

)

123,549

Tax on (loss)/profit

-

24,402

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(893,614

)

99,147

FIXED ASSETS

Investment property

6

-

366,000

CURRENT ASSETS

Stocks

1,149,148

8,294,624

Debtors

7

56,238

56,238

Cash at bank

16

1,035,797

1,205,402

9,386,659

CREDITORS

Amounts falling due within one year

8

1,748,252

9,401,895

NET CURRENT LIABILITIES

(542,850

)

(15,236

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(542,850

)

350,764

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

(542,851

)

350,763

SHAREHOLDERS' FUNDS

(542,850

)

350,764

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 27th March 2019 and were signed on its behalf by:

Mrs D A Livesey - Director

1.	STATUTORY INFORMATION

P J Livesey Country Homes (Eastern) Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis which assumes that the company will be

able to meet its liabilities as they fall due. The ultimate parent company, P.J. Livesey Holding Limited, has

confirmed that it will provide support for at least 12 months following the approval of these financial statements.

If the company were unable to continue to trade, adjustments would have to be made to reduce the value of the

assets to their recoverable amounts, to provide for any further liabilities that may arise, and to reclassify fixed

assets and any long term liabilities as current assets and liabilities respectively.

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.

The company's results are included within the consolidated financial statements of its ultimate parent company,

P.J. Livesey Holdings Limited, whose registered office is Ashburton Park, Ashburton Road West, Trafford Park,

Manchester, M17 1AF.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions

that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for

revenues and expenses during the year. However, the nature of estimation means that actual outcomes could

differ from those estimates. The following are the Company's key sources of estimation uncertainty:

Revaluation of investment properties

The Company carries its investment property at fair value, with changes in fair value being recognised in the

income statement. The Company values its investment property using an estimated yield applied to the income

generated by the investment property. The estimated yield is based on anticipated market yields.

Estimation of future income and costs to complete

In order to determine the profit the Company is able to recognise on its developments in a particular period, it

has to estimate costs to complete on such developments and make estimates relating to future sales price margins

on those developments. In making these assessments there is a degree of inherent uncertainty. The Company

has developed internal controls to assess and review carrying values and the appropriateness of the estimates

made.

If estimated future income less costs to complete is anticipated to be lower than costs incurred to date, then full

provision is made in the period in which such a loss is first foreseen.

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 from the sale of property is recognised on legal completion.

Investment property

Investment property consists of freehold ground rent assets and are shown at the most recent valuation. Any

aggregate surplus or deficit arising from changes in fair value is recognised in the income statement. Any gain or

loss arising on disposal is recognised in the income statement.

Stocks

Stock and work-in-progress are valued at the lower of cost and net realisable value. Cost includes all direct

expenditure and an appropriate proportion of overheads.

Net realisable value is based on estimated selling price less all further costs to completion and disposal.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual

provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of

the company after deducting all of its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except

for those financial assets classified as at fair value through profit and loss, which are initially measured at fair

value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a

financing transaction. If an arrangement constitutes a financing transaction the financial asset or liability is

measured at the present value of the future payments discounted at a market rate of interest for a similar debt

instrument.

The following assets and liabilities are classified as financial instruments:

Investments in subsidiaries, trade debtors, trade creditors, hire purchase contracts, bank loans, directors' loans

and inter group balances.

Trade debtors, trade creditors, and directors' loans and inter group balances (being repayable on demand) are

measured at the undiscounted amount of cash or other consideration expected to be paid or received.

Hire purchase contracts and bank loans are initially measured at the present value of future payments, discounted

at a market rate of interest and subsequently at amortised cost using the effective interest method.

Financial assets 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 profit and loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees and directors during the year was 7 (2017 - 7).

4.	OPERATING (LOSS)/PROFIT

Auditors' remuneration is recognised in the Income Statement of the ultimate parent company, P.J. Livesey

Holdings Limited.

5.	EXCEPTIONAL ITEMS

30.6.18

30.6.17

£

£

Profit/(loss) on sale of

investment property

228,559

-

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1st July 2017

366,000

Disposals

(366,000

)

At 30th June 2018

-

NET BOOK VALUE

At 30th June 2018

-

At 30th June 2017

366,000

7.

DEBTORS

30.6.18

30.6.17

£

£

Amounts falling due within one year:

Trade debtors

56,238

-

30.6.18

30.6.17

£

£

Amounts falling due after more than one year:

Trade debtors

-

56,238

Aggregate amounts

56,238

56,238

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.18

30.6.17

£

£

Trade creditors

8,806

43,806

Amounts owed to group undertakings

1,670,348

9,160,231

Taxation and social security

24,076

194,402

Other creditors

45,022

3,456

1,748,252

9,401,895

9.	CONTINGENT LIABILITIES

The company has guaranteed the bank borrowings of parent undertakings and some of its fellow subsidiaries.

There are fixed and floating charges over all property of the company in respect of these bank borrowings. At

30th June 2018 the net bank borrowings were £8,545,572 (2017: £nil).