1 year ago

Keepmoat Annual Report 2020

  • Text
  • Lease
  • Keepmoat
  • Strategic
  • Annual
  • Income
  • Assets
  • Limited
  • Homes
  • Statements
  • October
Keepmoat has released its Group financial results for the year ending 31 October 2020.


PRINCIPAL COMPANY ACCOUNTING POLICIES Principal Company accounting policies for the year ended 31 October 2020 Basis of preparation The Company financial statements of Keystone JVco Limited have been prepared in accordance with Financial Reporting Standard 101 “Reduced Disclosure Framework” (“FRS 101”) and in accordance with applicable accounting standards and under the historical cost convention and Companies Act 2006. The financial statements are presented in pounds sterling. All financial information is rounded to the nearest thousand (£’000) except where otherwise indicated. The principal accounting policies applied in the preparation of these financial statements have been consistently applied to all the periods presented unless otherwise stated. FRS 101 allows the income statement and balance sheet to be presented in accordance with International Accounting Standard (IAS) 1 - Presentation of Financial Statements. A summary of the disclosure exemptions adopted for the year ended 31 October 2020 is presented below. Equivalent disclosures for financial instruments are included in the Keystone JVco Limited Group consolidated financial statements allowing the exemptions to be applied. Area Cash flow statements Financial instrument disclosures Disclosure exemption Exemption from preparing a cash flow statement (IAS 7). Exemption from the disclosure requirements of IFRS 7 (Financial Instruments) and related IFRS 13 disclosures. Exemption from the disclosures in respect of management’s objectives, policies and processes for managing capital (IAS1.134 to 136). Comparative information Presentation of Financial Statements Exemption from comparative disclosure for movements on share capital, property, plant and equipment, intangibles and investment property. Exemption from statement of compliance with IFRS, cash flow information and capital management policy. The Company has consistently and uniformly applied the accounting policies of the Group set out on pages 73 to 79 insofar as they are applicable to the Company’s financial statements prepared in accordance with FRS 101 and subject to the disclosure exemptions above. Investments Investments in subsidiaries, joint ventures and associates are recorded in the Company’s balance sheet at cost less any impairment. The directors review the investments for impairment when there are indicators of possible impairment. Critical accounting estimates and assumptions The preparation of financial statements under IFRS requires the Company’s management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying value of assets and liabilities which are not readily apparent from other sources. Actual results may differ from these estimates. The estimates, and underlying assumptions are reviewed on an ongoing basis and any revisions to them are recognised in the period in which they are revised. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Impairment of investments and inter-company receivables IFRS 9 requires an expected credit loss model requiring the assessment of the expected credit loss on each class of financial asset at each reporting date. This assessment takes into consideration changes in credit risk since initial recognition of the financial asset. 112 KEEPMOAT.COM

NOTES TO THE COMPANY FINANCIAL STATEMENTS FINANCIAL REVIEW Notes to the Company financial statements for the year ended 31 October 2020 27 – Employees and directors The Company does not have any employees (31 October 2019: none). Directors’ emoluments None of the Company’s directors are remunerated by the Group (year ended 31 October 2019: none) 28 – Operating costs Operating costs for the year include the following: Year ended 31 October 2020 Year ended 31 October 2019 AUDITOR’S REMUNERATION £’000 £’000 Audit of the Company’s annual report 25 25 Total auditors’ remuneration 25 25 Tax advisory services 20 - Other non-audit services not covered above 664 - Total other services 684 - Total 709 25 Fees payable to the Company’s auditors were met by Keepmoat Homes Limited, a Group company. 29 – Investments in subsidiaries COST AND NET BOOK VALUE £’000 At 1 November 2019 7,087 Disposals (196) At 31 October 2020 6,891 The directors believe that the carrying value of the investment in Keystone Topco Limited is supported by the underlying net assets and future financial performance of the wider Keystone Topco Limited Group. Full details of both the Company’s directly and indirectly controlled subsidiaries are provided in note 23 to the consolidated financial statements. On 5 November 2019 the Company sold 2,016 B1 ordinary shares held in Keystone Topco Limited to a member of management for total consideration of £234,632. The value of the investment held was £196,480 the loss on sale of shares was charged to the statement of comprehensive income. ANNUAL REPORT & FINANCIAL STATEMENTS 2020 113