| Moody Homes Limited |
| Notes to the Abridged Accounts |
| for the year ended 30 June 2019 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The abridged accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Revenue from housing sales and land is recognised when transactions have legally completed. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. The purchase and subsequent sale of part-exchange properties is an activity undertaken in order to achieve the sale of a new property. As such, the activity is regarded as a mechanism for selling. Impairments and gains or losses on the sale of part-exchange properties are classified as a cost of sale. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant and machinery |
over 3 - 8 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Investments |
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Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Operating leases |
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Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profit as incurred. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Audit information |
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The audit report is unqualified. |
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Senior statutory auditor: |
M J Palmer |
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Firm: |
Intega |
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Date of audit report: |
16 March 2020 |
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| 3 |
Employees |
2019 |
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2018 |
| Number |
Number |
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Average number of persons employed by the company |
15 |
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14 |
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| 4 |
Tangible fixed assets |
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Total |
| £ |
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Cost |
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At 1 July 2018 |
78,319 |
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Additions |
11,130 |
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At 30 June 2019 |
89,449 |
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Depreciation |
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At 1 July 2018 |
56,847 |
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Charge for the year |
12,949 |
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At 30 June 2019 |
69,796 |
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Net book value |
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At 30 June 2019 |
19,653 |
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At 30 June 2018 |
21,472 |
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| 5 |
Investments |
| Other |
| investments |
| £ |
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Cost |
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At 1 July 2018 |
4,000,000 |
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Additions |
2,000,000 |
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At 30 June 2019 |
6,000,000 |
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Other investments |
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During the year the company invested a further £2 million in the Moody Venture Capital LLP making a total investment of £6 million, which represents a 36.20% share in the partnership. The principal activity of the Moody Venture Capital LLP is the provision of finance to property developers. |
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| 6 |
Related party transactions |
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At 30 June 2019 the company had an interest-free loan from D. A. Moody of £114,128 (1 July 2018 - £54,968) and S. Moody of £62,045 (1 July 2018 - £12,045). |
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The company has a 36.20% share of the Moody Venture Capital LLP, an entity in which D. A. Moody, S. Moody, J. L. Moody, C. A. Moody, S. J. Ellis and A. E. Ivey are also partners. |
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| 7 |
Controlling party |
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D. A. and S. Moody control the company by virtue of their interest in 100% of the issued share capital of the company. |
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| 8 |
Other information |
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Moody Homes Limited is a private company limited by shares and incorporated in England. Its registered office is: Hoe Mill Barns, Manor Road, Woodham Walter, Maldon, Essex, CM9 6GH. |
