Rivergreen Developments PLC - Period Ending 2019-04-30

Registration number: 02731058

Rivergreen Developments PLC

Annual Report and Financial Statements

for the Year Ended 30 April 2019

Rivergreen Developments PLC

Contents

Company Information	1
Strategic Report	2
Directors' Report	3
Statement of Directors' Responsibilities	4
Independent Auditor's Report	5 to 7
Income Statement	8
Statement of Financial Position	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 to 23

Rivergreen Developments PLC

Company Information

Directors

P A Ganley P H Candler C L Oliphant

Company secretary

J C Candler

Registered office

The Rivergreen Centre St Mary's Lane St Mary's Park Morpeth Northumberland NE61 6BL

Bankers

HSBC Bank plc 110 Grey Street Newcastle upon Tyne NE1 6JG

Auditor

MHA Tait Walker Chartered Accountants & Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

1

Rivergreen Developments PLC

Strategic Report for the Year Ended 30 April 2019

The directors present their strategic report for the year ended 30 April 2019.

Principal activity

The principal activities of the company throughout the year continued to be those of property development, investment and project management.

Fair review of the business

Turnover increased to £2,667,963 (2018 - £661,338) during the year and operating loss was £298,854 (2018 - £282,918). Exceptional administrative expenses during the year amounted to £126,200 (2018 - £182,000) relating to doubtful debt provisions made against related party balances.

Marketing of the unlet units at the commercial development in Hartlepool continues.

Work continued on the developments at Stannington Park, a large scale mixed use development near Morpeth with the serviced office and conference venue, which is expected will welcome its first occupants during late 2019.

The company continues to consider appropriate opportunities for future developments.

Position at the year end

At the year end the company has a strong balance sheet position. The balance sheet strength puts the in company strong position to continue with the long term strategy.

Principal risks and uncertainties

The principal risks identified by the management team to meet the long term strategy are in relation to employee retention, interest rates and liquidity. The company is continuing to monitor these risks and develop safeguards in order to sufficiently aide with the growth plans.

Financial KPI's
As part of its continuous improvement and quality programme, the company monitors a range of key performance indicators and the directors are pleased to comment on a number of these as follows:

	Unit	2019	2018
Gross profit margin	%	11.57	48.58

Approved by the Board on 29 October 2019 and signed on its behalf by:

P H Candler Director

2

Rivergreen Developments PLC

Directors' Report for the Year Ended 30 April 2019

The directors present their report and the financial statements for the year ended 30 April 2019.

Directors of the company

The directors who held office during the year were as follows:

P A Ganley

P H Candler

C L Oliphant

Financial instruments

Objectives and policies

The company finances its activities with a combination of intercompany loans, cash and short term deposits. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.

Price risk, credit risk, liquidity risk and cash flow risk

Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company also utilises insurance policies to protect against non-payment of debt. The company does not consider that it is materially exposed to credit risk.

Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the company is deemed sufficient to minimise the company's exposure to cash flow and liquidity risk.

Future developments

See disclosures within the Strategic Report regarding future developments of the company.

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.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of MHA Tait Walker as auditor of the company is to be proposed at the forthcoming Annual General Meeting.

Approved by the Board on 29 October 2019 and signed on its behalf by:

P H Candler Director

3

Rivergreen Developments PLC

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 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 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 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.

4

Rivergreen Developments PLC

Independent Auditor's Report to the Members of Rivergreen Developments PLC

Opinion

We have audited the financial statements of Rivergreen Developments PLC (the 'company') for the year ended 30 April 2019, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, 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 30 April 2019 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 Auditor’s 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 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.

We have nothing to report in this regard.

5

Rivergreen Developments PLC

Independent Auditor's Report to the Members of Rivergreen Developments PLC (continued)

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year 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

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.

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.

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 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.

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.

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 auditor's report.

6

Rivergreen Developments PLC

Independent Auditor's Report to the Members of Rivergreen Developments PLC (continued)

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.

......................................
Brian Laidlaw BA CA (Senior Statutory Auditor)
For and on behalf of MHA Tait Walker
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

29 October 2019


MHA Tait Walker is a trading name of Tait Walker LLP.

7

Rivergreen Developments PLC

Income Statement for the Year Ended 30 April 2019

	Note	2019 £	2018 £
Turnover	3	2,667,963	661,338
Cost of sales		(2,359,303)	(340,058)
Gross profit		308,660	321,280
Administrative expenses		(481,314)	(472,198)
Exceptional administrative expenses	11	(126,200)	(182,000)
Other operating income	4	-	50,000
Operating loss	5	(298,854)	(282,918)
Other interest receivable and similar income	6	93,507	75,071
Interest payable and similar expenses	7	(21,228)	(47,607)
Loss before tax		(226,575)	(255,454)
Taxation	12	117,902	(15,977)
Loss for the financial year		(108,673)	(271,431)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 11 to 23 form an integral part of these financial statements.
 

8

Rivergreen Developments PLC

(Registration number: 02731058)
Statement of Financial Position as at 30 April 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	13	31,661	37,971
Investment property	14	2,516,724	3,559,724
		2,548,385	3,597,695
Current assets
Stocks	15	170,611	2,320
Debtors	16	3,010,413	1,908,569
Cash at bank and in hand		99,792	22,728
		3,280,816	1,933,617
Creditors: Amounts falling due within one year	17	(2,267,938)	(2,293,558)
Net current assets/(liabilities)		1,012,878	(359,941)
Total assets less current liabilities		3,561,263	3,237,754
Creditors: Amounts falling due after more than one year	17	(550,084)	-
Provisions for liabilities	19	(196,837)	(314,739)
Net assets		2,814,342	2,923,015
Capital and reserves
Called up share capital	21	50,000	50,000
Profit and loss account	22	2,764,342	2,873,015
Total equity		2,814,342	2,923,015

Approved and authorised by the Board on 29 October 2019 and signed on its behalf by:
 

P H Candler Director

The notes on pages 11 to 23 form an integral part of these financial statements.
 

9

Rivergreen Developments PLC

Statement of Changes in Equity for the Year Ended 30 April 2019

	Share capital £	Profit and loss account £	Total £
At 1 May 2017	50,000	3,144,446	3,194,446
Loss for the year	-	(271,431)	(271,431)
Total comprehensive income	-	(271,431)	(271,431)
At 30 April 2018	50,000	2,873,015	2,923,015

	Share capital £	Profit and loss account £	Total £
At 1 May 2018	50,000	2,873,015	2,923,015
Loss for the year	-	(108,673)	(108,673)
Total comprehensive income	-	(108,673)	(108,673)
At 30 April 2019	50,000	2,764,342	2,814,342

The notes on pages 11 to 23 form an integral part of these financial statements.
 

10

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019

1	General information

The company is a public company limited by share capital, incorporated in England and Wales.

The address of its registered office is The Rivergreen Centre, St Mary's Lane, St Mary's Park, Morpeth, Northumberland, NE61 6BL.

2	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.

These financial statements are prepared in sterling which is the functional currency of the entity.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.

The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.

Name of parent of group

These financial statements are consolidated in the financial statements of Rivergreen Limited.

The financial statements of Rivergreen Limited may be obtained from The Rivergreen Centre, St Mary's Lane, St Mary's Park, Morpeth, Northumberland, NE61 6BL.

11

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

2	Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There are considered to be no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which effect the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

Impairment of debtors - The company makes an estimate of the recoverable value of the trade and other debtors. When assessing impairment of trade and other debtor, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. The company has made a bad debt provision of £244,508 (2018 - £267,977).

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 company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Rental income is recognised in the accounts according to the period in which the income covers with accruals and prepayments being recognised as appropriate.

Property sales are recognised on legal completion.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises deferred 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

12

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

2	Accounting policies (continued)

Tangible assets

Tangible assets are stated in the statement of financial position 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.

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
	Plant and machinery	15% reducing balance
	Equipment, fixtures and fittings	15% reducing balance
	Motor vehicles	25% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

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 inventories 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

13

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

2	Accounting policies (continued)

Borrowings

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

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.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

	2019 £	2018 £
Sale of goods	2,320,841	128,514
Rendering of services	248,849	288,621
Rental income from investment property	94,846	221,802
Other revenue	3,427	22,401
	2,667,963	661,338

14

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

3	Revenue (continued)

The analysis of the company's turnover for the year by market is as follows:

	2019 £	2018 £
UK	2,667,963	661,338

4	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2019  £	2018  £
Management charges receivable	-	50,000

5	Operating loss

Arrived at after charging/(crediting)

	2019 £	2018 £
Depreciation expense	6,826	9,616

6	Other interest receivable and similar income

	2019 £	2018 £
Other finance income	93,507	75,071

Other interest receivable relates to interest on a loan with a related party, Hotel Operations Limited. This interest is not considered to be recoverable and as such has been included within bad debts provided for in the current and prior year respectively.

7	Interest payable and similar expenses

	2019 £	2018 £
Interest on bank overdrafts and borrowings	21,228	47,607

15

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

8	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2019  £	2018  £
Wages and salaries	314,780	400,533
Social security costs	62,741	65,450
Pension costs, defined contribution scheme	4,853	1,318
	382,374	467,301

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2019 No.	2018 No.
Administration and support	14	14
Management	5	5
	19	19

9	Directors' remuneration

The directors' remuneration for the year was as follows:

	2019  £	2018  £
Remuneration	155,000	163,760
Contributions paid to money purchase schemes	1,698	460
	156,698	164,220

10	Auditor's remuneration

	2019 £	2018 £
Audit of the financial statements	3,190	3,100

11	Exceptional items

	2019  £	2018  £
Exceptional administrative expenses	126,200	182,000

The exceptional administrative expenses disclosed on the face of the income statement of £126,200 (2018 - £182,000) relate to doubtful debt provisions made against related party loan balances following an assessment of recoverability by management.

16

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

12

Taxation

Tax charged/(credited) in the income statement

	2019  £	2018  £
Deferred taxation
Arising from origination and reversal of timing differences	(117,902)	-
Arising from changes in tax rates and laws	-	15,977
Total deferred taxation	(117,902)	15,977

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2018 - the same as the standard rate of corporation tax in the UK) of 19% (2018 - 19%).

The differences are reconciled below:

	2019  £	2018  £
Loss before tax	(226,575)	(255,454)
Corporation tax at standard rate	(43,049)	(48,536)
Increase (decrease) from effect of different UK tax rates on some earnings	13,871	(1,921)
Effect of revenues exempt from taxation	-	(20,714)
Effect of expense not deductible in determining taxable profit (tax loss)	230	34,581
Increase (decrease) in UK and foreign current tax from adjustment for prior periods	-	(344)
Tax increase (decrease) from effect of capital allowances and depreciation	(124,155)	19,434
Tax increase (decrease) arising from group relief	35,201	33,477
Total tax (credit)/charge	(117,902)	15,977

17

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

12	Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2019	Liability £
Accelerated capital allowances	18,549
Short term timing differences - trading	(99)
Losses	(5,990)
Revaluations/fair value adjustments	184,377
	196,837

2018	Liability £
Accelerated capital allowances	19,301
Short term timing differences - trading	(25)
Losses	-
Revaluations/fair value adjustments	295,463
	314,739

13	Tangible assets

	Fixtures and fittings £	Plant and machinery £	Motor vehicles  £	Total £
Cost or valuation
At 1 May 2018	75,869	100,369	29,316	205,554
Additions	516	-	-	516
At 30 April 2019	76,385	100,369	29,316	206,070
Depreciation
At 1 May 2018	50,909	89,045	27,629	167,583
Charge for the year	4,688	1,716	422	6,826
At 30 April 2019	55,597	90,761	28,051	174,409
Carrying amount
At 30 April 2019	20,788	9,608	1,265	31,661
At 30 April 2018	24,960	11,324	1,687	37,971

18

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

14	Investment properties

	2019 £
At 1 May	3,559,724
Disposals	(1,043,000)
At 30 April	2,516,724

Included within Investment properties at the year end is a commercial property.

The commercial property was valued at an open market basis by Storeys Edward Symmons LLP on 29 February 2012. Since the date of the external valuation the company has sold commercial units within the property and the valuation has been reduced accordingly for their disposal.

Taking the disposal values into consideration, the directors are of the opinion that there has been no significant change in the market value since the last external valuation.

During the year the company sold a development site to Rivergreen Homes Limited, a fellow subsidiary of Rivergreen Limited, at market value.

There has been no valuation of investment property by an independent valuer.

Had investment properties been measured on a historical cost basis, the carrying value would have been £1,152,943 (2018 - £1,536,448).

15

Stocks

	2019  £	2018  £
Work in progress	168,291	-
Other inventories	2,320	2,320
	170,611	2,320

The cost of stocks and work in progress recognised as an expense in the year amounted to £1,174,189 (2018 - £54,082).

16

Debtors

	Note	2019 £	2018 £
Trade debtors		604	6,428
Amounts owed by group undertakings		546,599	-
Amounts owed by related parties	25	2,305,670	1,761,436
Other debtors		155,885	127,468
Prepayments		1,655	13,237
		3,010,413	1,908,569
Total non current element of loans and receivables		(1,187,084)	(1,151,087)
		1,823,329	757,482

19

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

16	Debtors (continued)

Details of non-current trade and other debtors

£1,187,084 (2018 - £1,151,087) of amounts owed by related parties is classified as non current.

17

Creditors

	2019  £	2018  £
Due within one year
Trade creditors	416,136	262,782
Amounts owed to group undertakings	1,755,382	1,594,207
Social security and other taxes	14,075	30,024
Other creditors	36,954	396,525
Accrued expenses	45,391	10,020
	2,267,938	2,293,558
Due after one year
Loans and borrowings	550,084	-

18	Loans and borrowings

	2019  £	2018  £
Non-current loans and borrowings
Bank borrowings	550,084	-

Bank borrowings

The Atom Bank loan is denominated in Sterling and the final instalment is due on 22 May 2023. The carrying amount at year end is £550,084 (2018 - £Nil). The loan is secured against an investment property owned by the company.

19	Deferred tax and other provisions

	Deferred tax £	Total £
At 1 May 2018	314,739	314,739
Increase (decrease) in existing provisions	(117,902)	(117,902)
At 30 April 2019	196,837	196,837

20	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £4,853 (2018 - £1,318).

20

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

21	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £1 each	50,000	50,000	50,000	50,000

22

Reserves

Profit and loss account

This reserve records retained earnings, gains and losses on asset revaluations and accumulated losses.

23	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2019 £	2018 £
Not later than one year	9,805	11,305
Later than one year and not later than five years	12,475	22,279
	22,280	33,584

The amount of non-cancellable operating lease payments recognised as an expense during the year was £11,306 (2018 - £47,544).

24	Contingent liabilities

In respect of one of its development projects the company has received grants from the following organisation which may be repayable in full or in part under certain conditions. Grants in the sum of £1,121,148 from the Secretary of State for the Environment under Section 5(2) of the Regional Development Agencies Act 1998. The company has given an unlimited multilateral guarantee to its bankers in respect of the facilities of its parent company Rivergreen Limited. No liability is expected to arise as a result of this guarantee.

21

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

25	Related party transactions

Summary of transactions with other related parties

Hotel Operations Limited is a related party by virtue of common directorship and shareholders of P H Candler and P A Ganley. Net loan movements during the year, excluding interest, totalled £35,997 (2018 - £26,200). At the year end, included within debtors, is an amount of £1,283,084 (2018 - £1,247,087) due to the company. The loan balance is subject to an interest charge of 2.0% above the bank base rate on a cumulative basis. During the year the company charged loan interest of £93,507 (2018 - £75,070), all of which was provided against as a bad debt provision as the directors do not consider the interest to be recoverable.

 Jesmond Dene house Limited is a 100% subsidiary of Hotel Operations Limited. During the year the company made net purchases totalling £5,756 (2018 - £50,330). At the year end the balance owed to Jesmond Dene house Limited, included in trade creditors is £104,661 (2018 - £65,061) and included in trade debtors is ££21,204 (2018 - £10,929). During the year the company made advances to Jesmond Dene House Limited totalling £505,000 (2018 - £484,000), received repayments totalling £Nil (2018 - £5,000) and costs were paid on the company's behalf totalling £5,764 (2018 - £3,185). At the year end, included within debtors, is an amount of £1,015,641 (2018 - £510,649) due to the company.

 At the year end, included within trade debtors, is an amount of £2,652 (2018 - £Nil) owed to the company by The Rivergreen Management Pension Scheme, the directors' self investment personal pension scheme, in respect of historical rent (2018 - £106,563 included in trade creditors and owed to The Rivergreen Management Pension Scheme). During the year, the company made repayments of £106,563 (2018 - £Nil) to The Rivergreen Management Pension Scheme.

 Big Hearted Hospitality Company Limited is a related party by virtue of common directorship and shareholders of P H Candler and P A Ganley. The company advanced £126,200 (2018 - £182,000) to Big Hearted Hospitality Limited during the year and provided against this amount in full.

St Mary's Inn Limited is a related party by virtue of common directorship and shareholders of P H Candler and P A Ganley. During the year, net purchases totalling £1,944 (2018 - £7,779) were made to St Mary's Inn Limited. At the year end £126,945 (2018 - £3,699) was included within debtors and £23,969 (2018 - £12,151) within trade debtors. A bad debt provision was made against the trade debtor balance.

26	Parent and ultimate parent undertaking

The company's immediate parent is Rivergreen Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Rivergreen Limited. These financial statements are available upon request from The Rivergreen Centre, St. Mary Lane, St. Mary Park, Morpeth, Northumberland, NE61 6BL.

 The ultimate controlling party is P H Candler and P A Ganley.

22

Rivergreen Developments PLC

Notes to the Financial Statements for the Year Ended 30 April 2019 (continued)

27	Non adjusting events after the financial period

During June 2019 the company sold an investment property valued at £1,302,319 to a fellow subsidiary company, Rivergreen Centre (St Mary's) Limited.

23