ACCOUNTS - Final Accounts preparation

BANK HOMES LIMITED - Company Information

Registered number: 4663517

BANK HOMES LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

BANK HOMES LIMITED

COMPANY INFORMATION

DIRECTORS	Mark Pears CBE
	Sir Trevor Pears CMG
	David Pears
	Nicholas Zambakides
	Jeremy Page
	WPG Registrars Limited


COMPANY SECRETARY	William Bennett


REGISTERED NUMBER	4663517


REGISTERED OFFICE	Ground Floor
	30 City Road
	London
	EC1Y 2AB


INDEPENDENT AUDITORS	Arram Berlyn Gardner LLP
	Chartered Accountants & Statutory Auditor
	Ground Floor
	30 City Road
	London
	EC1Y 2AB

BANK HOMES LIMITED

CONTENTS

	Page
Directors' Report	1 - 2
Independent Auditors' Report	3 - 5
Statement of Comprehensive Income	6
Statement of Financial Position	7
Statement of Changes in Equity	8
Notes to the Financial Statements	9 - 13

BANK HOMES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 APRIL 2020

The directors present their report and the financial statements for the year ended 30 April 2020.

DIRECTORS' RESPONSIBILITIES STATEMENT

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 judgments and accounting estimates that are reasonable and prudent;

∙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.

PRINCIPAL ACTIVITY

The principal activity of the company is property dealing.

DIRECTORS

The directors who served during the year were:

Mark Pears CBE

Sir Trevor Pears CMG

David Pears

Nicholas Zambakides

Jeremy Page

WPG Registrars Limited

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 1

BANK HOMES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2020

AUDITORS

The auditors, Arram Berlyn Gardner LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

SMALL COMPANIES NOTE

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.

William Bennett

Secretary

Date: 5 January 2021

Page 2

BANK HOMES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BANK HOMES LIMITED

OPINION

We have audited the financial statements of Bank Homes Limited (the 'Company') for the year ended 30 April 2020, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity 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:

∙give a true and fair view of the state of the Company's affairs as at 30 April 2020 and of its profit 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 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.

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 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.

Page 3

BANK HOMES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BANK HOMES LIMITED (CONTINUED)

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 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.

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 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:

∙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' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the Directors' Responsibilities Statement on page 1, 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.

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 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.

Page 4

BANK HOMES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BANK HOMES LIMITED (CONTINUED)

USE OF OUR REPORT

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.

Ian Hughes ACA (Senior Statutory Auditor)

for and on behalf of

Arram Berlyn Gardner LLP

Chartered Accountants

Statutory Auditor

Ground Floor

30 City Road

London

EC1Y 2AB

16 January 2021

Page 5

BANK HOMES LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 APRIL 2020

	2020	2019
Note	£	£


Turnover	3	439,896	82,670
Cost of sales	3	(291,694)	(26,101)
GROSS PROFIT	3	148,202	56,569
Administrative expenses		(9,274)	(8,910)
OPERATING PROFIT		138,928	47,659
Interest payable and expenses	6	(121,666)	(123,531)
PROFIT/(LOSS) BEFORE TAX		17,262	(75,872)
Tax on profit/(loss)	7	-	-
PROFIT/(LOSS) FOR THE FINANCIAL YEAR		17,262	(75,872)


TOTAL COMPREHENSIVE INCOME FOR THE YEAR		17,262	(75,872)

The notes on pages 9 to 13 form part of these financial statements.

Page 6

BANK HOMES LIMITED

REGISTERED NUMBER: 4663517

STATEMENT OF FINANCIAL POSITION

AS AT 30 APRIL 2020

		2020		2019
Note		£		£


CURRENT ASSETS
Stocks	8	1,531,500		1,744,500
Debtors: amounts falling due within one year	9	4,905		5,064
Cash at bank and in hand		3,238		10,686
		1,539,643		1,760,250
Creditors: amounts falling due within one year	10	(2,299,792)		(2,537,661)
NET CURRENT LIABILITIES			(760,149)		(777,411)
TOTAL ASSETS LESS CURRENT LIABILITIES			(760,149)		(777,411)

NET LIABILITIES			(760,149)		(777,411)

CAPITAL AND RESERVES
Called up share capital	1,000	1,000
Profit and loss account	(761,149)	(778,411)
	(760,149)	(777,411)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

David Pears	Nicholas Zambakides
Director	Director

Date: 5 January 2021

The notes on pages 9 to 13 form part of these financial statements.

Page 7

BANK HOMES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 APRIL 2020

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 May 2019	1,000	(778,411)	(777,411)
COMPREHENSIVE INCOME FOR THE YEAR
Profit for the year	-	17,262	17,262
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	-	17,262	17,262
AT 30 APRIL 2020	1,000	(761,149)	(760,149)

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 APRIL 2019

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 May 2018	1,000	(702,539)	(701,539)
COMPREHENSIVE INCOME FOR THE YEAR
Loss for the year	-	(75,872)	(75,872)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	-	(75,872)	(75,872)
AT 30 APRIL 2019	1,000	(778,411)	(777,411)

The notes on pages 9 to 13 form part of these financial statements.

Page 8

BANK HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

1.	GENERAL INFORMATION

Bank Homes Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, 30 City Road, London, EC1Y 2AB. The principal place of business is
Haskell House, 152 West End Lane, London, NW6 1SD.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 other than where additional disclosure is required to show a true and fair view.

The company's functional and presentational currency is GBP and rounded to the nearest £1.

The following principal accounting policies have been applied:

2.2

GOING CONCERN

The financial statements have been prepared on a going concern basis even though the company has net liabilities of £760,149 (2019 - £777,411). The validity of the going concern concept is dependent on the continuing support from creditors. The directors believe that the going concern concept is applicable as the company will be able to meet its debts as and when they fall due, as they are confident that the principal creditors will continue to provide support as required for a period of at least 12 months from the date of approval of the financial statements.

2.3

TURNOVER

Turnover 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. Turnover is measured as the fair value of rents receivable and sales of property trading stock.

2.4

PROPERTY TRANSACTIONS

Purchases and sales of properties are included on the basis of completions occuring during the year.

2.5

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 9

BANK HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

2.ACCOUNTING POLICIES (CONTINUED)

2.6

TAXATION

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

2.7

STOCKS

Stocks of properties are valued at the lower of cost and estimated selling price less cost to complete and sell.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income

2.8

DEBTORS

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.

2.9

CREDITORS

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.

2.10

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost 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 the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the

Page 10

BANK HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

2.ACCOUNTING POLICIES (CONTINUED)

2.10

FINANCIAL INSTRUMENTS (CONTINUED)

contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

TURNOVER

All turnover arose within the United Kingdom.

		Turnover 2020	Turnover 2019	Cost of sales 2020	Cost of sales 2019	Gross profit 2020	Gross profit 2019
		£	£	£	£	£	£


Sales of trading stock properties	368,000	-	(283,274)	(19,387)	84,726	(19,387)
Rental income	71,896	82,670	(8,420)	(6,714)	63,476	75,956
Total	439,896	82,670	(291,694)	(26,101)	148,202	56,569

Cost of sales of rental income comprises property outgoings.

4.	AUDITORS' REMUNERATION

Fees payable to the Company's auditor for the audit of the Company's annual financial statements totalled £2,976 (2019 - £2,910).

EMPLOYEES

The average monthly number of employees, including the directors, during the year was as follows:

	2020	2019
	No.	No.

Directors	5	5

Page 11

BANK HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

6.	INTEREST PAYABLE AND SIMILAR EXPENSES
		2020	2019
		£	£

Sundry loan interest payable

121,666

123,531

7.	TAXATION

		2020	2019
		£	£



TOTAL CURRENT TAX	-	-

FACTORS AFFECTING TAX CHARGE FOR THE YEAR
The tax assessed for the year is lower than (2019 -higher than) the standard rate of corporation tax in the UK of 19% (2019 -19%). The differences are explained below:
	2020	2019
	£	£

Profit/(loss) on ordinary activities before tax

17,262

(75,872)

Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 -19%)	3,280	(14,416)
EFFECTS OF:
Utilisation of tax losses	(3,280)	-
Unrelieved tax losses carried forward	-	14,416
TOTAL TAX CHARGE FOR THE YEAR	-	-

FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

8.	STOCKS
		2020	2019
		£	£

	Freehold and leasehold properties	1,531,500	1,744,500

Page 12

BANK HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

DEBTORS

					2020	2019
					£	£


Other debtors	4,905	5,064

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2020	2019
		£	£

Sundry loan	2,275,795	2,513,116
Trade creditors	3,027	2,928
Accruals and deferred income	20,970	21,617
	2,299,792	2,537,661

11.

RELATED PARTY TRANSACTIONS

Creditors include an amount of £2,275,795 (2019 - £2,513,116) owed to WPG Treasury Limited, a company in which the directors Mark Pears CBE, Sir Trevor Pears CMG and David Pears have an interest. The financial statements include a charge for interest of £121,666 (2019 - £123,531) payable to that company.
The financial statements include an accountancy fee of £6,298 (2019 - £6,000) payable to The William Pears Group of Companies Limited, a company in which the directors Mark Pears CBE, Sir Trevor Pears CMG and David Pears have an interest.

Page 13