Rivergreen Developments PLC - Period Ending 2020-04-30
Rivergreen Developments PLC - Period Ending 2020-04-30
Registration number:
Rivergreen Developments PLC
for the
Year Ended 30 April 2020
Rivergreen Developments PLC
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Rivergreen Developments PLC
Company Information
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Directors |
P A Ganley P H Candler M I Candler |
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Company secretary |
J C Candler |
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Registered office |
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Bankers |
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Auditor |
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Rivergreen Developments PLC
Strategic Report for the Year Ended 30 April 2020
The directors present their strategic report for the year ended 30 April 2020.
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 £2,222,571 (2019 - £2,667,963) during the year and operating loss was £3,349,194 (2019 - £298,854). Exceptional administrative expenses during the year amounted to £3,105,199 (2019 - £126,200) relating to doubtful debt provisions made against related party balances. The overall loss after tax was £3,085,694. Excluding the impact of the exceptional impairment of the related party balances the company would have reported a profit of £19,505.
Marketing of the unlet units at the Rivergreen Centre in Hartlepool continued throughout the year, however this slowed down in March due to the imposing of a National lockdown by the government in response to the coronavirus pandemic.
Throughout the year, the company continued to work on the developments at Stannington Park.
During the year, the company sold its investment property, the Rivergreen Centre St Mary's to a fellow subsidiary and was subsequently contracted to do the internal fit out and completion of the building for marketing to new tenants.
In the forthcoming months of 2021 the company will look to bring the housebuilding at Stannington Park to a conclusion and seek to fill the unlet units at Hartlepool.
The long term strategy for the company is to look for other contracting opportunities.
Impact of Covid-19 on the business
In March 2020 the country entered into a National lockdown as a result of the Coronavirus pandemic. The impact on the company has seen a delay to the build and completion schedule of some properties along with a delay to the onboarding and securing of tenants at Hartlepool. As the company adapted to the new challenges of working, activities continued where it was considered safe to do so and downtime was kept to a minimum.
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 |
2020 |
2019 |
|
|
Gross profit margin |
% |
3.58 |
11.57 |
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.
Impact of Covid-19 virus - the company continues to monitor the ongoing developments and has a business continuity plan in place to ensure we minimise the impact on both our customers and employees.
Rivergreen Developments PLC
Strategic Report for the Year Ended 30 April 2020 (continued)
Approved by the
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......................................... |
Rivergreen Developments PLC
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 of the company
The directors who held office during the year were as follows:
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.
Going concern
The company has net current liabilities and net liabilities of £961,826 and £271,352 respectively. The year end position has been impacted by a bad debt provision against related parties and group undertakings of £3,105,199.
The directors have prepared the financial statements on a going concern basis.
The company meets its day to day working capital requirements through cash generated from operations, intercompany borrowings and external borrowings.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and from having continued group support.
Rivergreen Developments PLC
Directors' Report for the Year Ended 30 April 2020 (continued)
In the directors assessment of possible changes they have considered the impact of the Covid-19 virus on the business. The possible changes considered include further delays to build schedules and securing tenants. The ability of the company to continue as a going concern show that with continuing support of its ultimate parent company, Rivergreen Limited expects to retain sufficient financial resources to continue meeting its liabilities as they fall due.
Rivergreen Limited has confirmed it is their intention to support the company for a period of at least twelve months from the date of approval of these financial statements.
On the basis that group support has been obtained, the directors believe they are well placed to manage its business risks, despite the current economic conditions, and are satisfied that there is no material uncertainty in relation to going concern and it therefore remains appropriate to adopt the going concern basis in preparing its financial statements.
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
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......................................... |
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:
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• |
select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
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 2020, 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 2020 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:
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• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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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.
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:
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• |
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 |
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• |
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 6), 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.
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.
......................................
For and on behalf of
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Newcastle upon Tyne
NE3 3LS
MHA Tait Walker is a trading name of Tait Walker LLP.
Rivergreen Developments PLC
Income Statement for the Year Ended 30 April 2020
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Note |
2020 |
2019 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Exceptional administrative expenses |
(3,105,199) |
(126,200) |
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|
Other operating income |
|
- |
|
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Operating loss |
( |
( |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
Loss before tax |
( |
( |
|
|
Taxation |
|
|
|
|
Loss for the financial year |
( |
( |
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Rivergreen Developments PLC
(Registration number: 02731058)
Statement of Financial Position as at 30 April 2020
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Note |
2020 |
2019 |
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Fixed assets |
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Tangible assets |
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Investment property |
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||
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Current assets |
|||
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Stocks |
- |
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Debtors |
|
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current (liabilities)/assets |
( |
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|
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Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
- |
( |
|
|
Net (liabilities)/assets |
( |
|
|
|
Capital and reserves |
|||
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Called up share capital |
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|
|
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Profit and loss account |
( |
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|
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Total equity |
( |
|
Approved and authorised by the
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Rivergreen Developments PLC
Statement of Changes in Equity for the Year Ended 30 April 2020
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Share capital |
Profit and loss account |
Total |
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|
At 1 May 2018 |
|
|
|
|
Loss for the year |
- |
( |
( |
|
Total comprehensive income |
- |
( |
( |
|
At 30 April 2019 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 May 2019 |
|
|
|
|
Loss for the year |
- |
( |
( |
|
Total comprehensive income |
- |
( |
( |
|
At 30 April 2020 |
|
( |
( |
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020
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General information |
The company is a public company limited by share capital, incorporated in England and Wales.
The address of its registered office is
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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.
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
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2 |
Accounting policies (continued) |
Going concern
The company has net current liabilities and net liabilities of £961,826 and £271,352 respectively. The year end position has been impacted by a bad debt provision against related parties and group undertakings of £3,105,199.
The directors have prepared the financial statements on a going concern basis.
The company meets its day to day working capital requirements through cash generated from operations, intercompany borrowings and external borrowings.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and from having continued group support.
In the directors assessment of possible changes they have considered the impact of the Covid-19 virus on the business. The possible changes considered include further delays to build schedules and securing tenants. The ability of the company to continue as a going concern show that with continuing support of its ultimate parent company, Rivergreen Limited expects to retain sufficient financial resources to continue meeting its liabilities as they fall due.
Rivergreen Limited has confirmed it is their intention to support the company for a period of at least twelve months from the date of approval of these financial statements.
On the basis that group support has been obtained, the directors believe they are well placed to manage its business risks, despite the current economic conditions, and are satisfied that there is no material uncertainty in relation to going concern and it therefore remains appropriate to adopt the going concern basis in preparing its financial statements.
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. |
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
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2 |
Accounting policies (continued) |
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 £3,105,199 (2019 - £244,508).
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 charge 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.
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.
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
2 |
Accounting policies (continued) |
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
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.
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.
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
2 |
Accounting policies (continued) |
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.
|
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2020 |
2019 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Rental income from investment property |
|
|
|
Other revenue |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2020 |
2019 |
|
|
UK |
|
|
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2020 |
2019 |
|
|
Government grants |
|
- |
|
Operating loss |
Arrived at after charging/(crediting)
|
2020 |
2019 |
|
|
Depreciation expense |
|
|
|
Exceptional expenses |
3,105,199 |
126,200 |
|
Other interest receivable and similar income |
|
2020 |
2019 |
|
|
Other finance income |
|
|
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.
|
Interest payable and similar expenses |
|
2020 |
2019 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2020 |
2019 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
8 |
Staff costs (continued) |
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2020 |
2019 |
|
|
Administration and support |
|
|
|
Management |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2020 |
2019 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
160,428 |
156,698 |
|
Auditor's remuneration |
|
2020 |
2019 |
|
|
Audit of the financial statements |
|
|
|
Exceptional items |
|
2020 |
2019 |
|
|
Exceptional administrative expenses |
3,105,199 |
126,200 |
The exceptional administrative expenses relate to doubtful debt provisions made against related party and fellow subsidiary loan balances following an assessment of recoverability by management.
|
Taxation |
Tax charged/(credited) in the income statement
|
2020 |
2019 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
12 |
Taxation (continued) |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2020 |
2019 |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Increase from effect of different UK tax rates on some earnings |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Tax increase arising from group relief |
|
|
|
Total tax credit |
( |
( |
Deferred tax
Deferred tax assets and liabilities
|
2020 |
Liability |
|
Accelerated capital allowances |
|
|
Short term timing differences - trading |
( |
|
Losses |
( |
|
Revaluations/fair value adjustments |
- |
|
- |
|
2019 |
Liability |
|
Accelerated capital allowances |
|
|
Short term timing differences - trading |
( |
|
Losses |
( |
|
Revaluations/fair value adjustments |
|
|
|
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
Tangible assets |
|
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 May 2019 |
|
|
|
|
|
Additions |
|
- |
- |
|
|
At 30 April 2020 |
|
|
|
|
|
Depreciation |
||||
|
At 1 May 2019 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 30 April 2020 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 April 2020 |
|
|
|
|
|
At 30 April 2019 |
|
|
|
|
|
Investment properties |
|
2020 |
|
|
At 1 May |
|
|
Disposals |
( |
|
At 30 April |
|
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 an office building to Rivergreen Centre (St Mary's) Ltd, a fellow subsidiary of Rivergreen Limited, at market value.
There has been no valuation of investment property by an independent valuer during the current year.
Had investment properties been measured on a historical cost basis, the carrying value would have been £984,770 (2019 - £1,152,943).
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
Stocks |
|
2020 |
2019 |
|
|
Work in progress |
- |
|
|
Other inventories |
- |
|
|
- |
|
|
Debtors |
|
Note |
2020 |
2019 |
|
|
Trade debtors |
4,828 |
604 |
|
|
Amounts owed by group undertakings |
1,334,503 |
546,599 |
|
|
Amounts owed by related parties |
- |
2,305,670 |
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
|
|
||
|
Total non current element of loans and receivables |
- |
(1,187,084) |
|
|
|
|
Details of non-current trade and other debtors
£Nil (2019 - £1,187,084) of amounts owed by related parties is classified as non current.
|
Creditors |
|
2020 |
2019 |
|
|
Due within one year |
||
|
Trade creditors |
|
|
|
Amounts owed to group undertakings |
|
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
|
|
|
|
Due after one year |
||
|
Loans and borrowings |
|
|
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
Loans and borrowings |
|
2020 |
2019 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
Bank borrowings
|
The loan is secured against an investment property owned by the company. |
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 May 2019 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 30 April 2020 |
- |
- |
|
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 £
|
Share capital |
Allotted, called up and fully paid shares
|
2020 |
2019 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
50,000 |
|
50,000 |
|
Reserves |
Profit and loss account
This reserve records retained earnings, gains and losses on asset revaluations and accumulated losses.
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Related party transactions |
Summary of transactions with other related parties
St Mary’s Inn Limited is a 100% subsidiary of Hotel Operations Limited. During the year the company made advances to St Mary’s Inn Limited totalling £117,415 (2019 - £126,945). At the year end, included within debtors before any provision is an amount of £244,360 (2019 - £126,945) due to the company. A provision of £244,360 has been made against this debtor as the directors do not consider the amounts to be recoverable.
At the year end, included within trade debtors, is an amount of £2,652 (2019 - £2,652) owed to the company by The Rivergreen Management Pension Scheme, the directors' small self administered scheme, in respect of historical rent. During the year, the company made repayments of £Nil (2019 - £106,563) to The Rivergreen Management Pension Scheme.
Rivergreen Developments PLC
Notes to the Financial Statements for the Year Ended 30 April 2020 (continued)
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is
|
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.