Hawes Street Housing Limited
Reports
and Financial Statements
for the year ended 31 December 2020
Company Number 2328684
Homes and Communities Agency Registration number 4707
Page 1
Hawes Street Housing Limited
DIRECTORS’ REPORT for the year ended 31 December 2020 __________________
FINANCIAL STATEMENTS
The directors present their report and financial statements for the year ended 31 December 2020.
DIRECTORS RESPONSIBILITIES
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 financial statements in accordance with UK Generally Accepted Accounting Practice (UK 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:-
(1) select suitable accounting policies and then apply them consistently;
(2) make judgements and estimates that are reasonable and prudent;
(3) 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 company’s principal activity is the purchase and renovation of vacant houses within the area surrounding Hawes Street in the Tunstall area of Stoke on Trent for letting at affordable rents to local people who are homeless or in housing need.
FINANCIAL RESULTS
The profit for the year after taxation amounted to £66,100 (2019 £54,545)
Rental income from the properties has remained stable and operating costs successfully controlled. Property maintenance costs reflect the age of the housing stock.
The directors recommend that the profit for the year is transferred to reserves thereby continuing their policy of investing all the surplus funds from the charity's activities into properties for letting at affordable rents.
Hawes Street Housing Limited
Page 2
DIRECTORS’ REPORT for the year ended 31 December 2020 (continued)
DIRECTORS
The directors who served during the year were as follows:
J McMain Deceased 6 October 2020 A Turrell J Gerrard S R Ellis L Foster D Ashley D McMain P J Madden
This report, which has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006, was approved by the Board on 27 July 2021
J Gerrard
Director
Independent Examiner’s Report on the Accounts
Report to the directors/members of Hawes Street Housing Limited
On the Accounts year ending 31[st] December 2020 Respective responsibilities of directors As the Charity’s directors you are responsible for the preparation of the and examiner accounts; you consider that the audit requirements of section 43(2) of the Charities Act 1993 (the Act) do not apply. It is my responsibility to state, on the basis of the procedures specified in the General Directions given by the Charity Commissioners under section 43(7)(b) of the Act, whether particular matters have come to my attention.
Basis of independent Examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as directors concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that in any material respect the requirements
to keep accounting records in accordance with section 41 of the Act :and
to prepare accounts which accord with the accounting records and to comply with the accounting requirements have not been met ;or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached
P W Seaman FCA 32 Offley Road Sandbach Cheshire CW11 1GY 27 July 2021
Hawes Street Housing Limited
PROFIT AND LOSS ACCOUNT for the year ended 31 December 2020
| Notes | 2020 | 2019 | |
|---|---|---|---|
| £ | £ | ||
| Turnover | 2 | 81,684 | 79,115 |
| Administrative expenses | 15,605 | 27,594 | |
| _____ | _____ | ||
| Operating profit | 3 | 66,079 | 51,521 |
| Other income | 21 | 24 | |
| _____ | _____ | ||
| Profit on ordinary activities before taxation | £66,100 | £51,545 | |
| _____ | _____ |
There were no recognised gains or losses other than the profit for the year.
The accompanying notes and accounting policies form an integral part of these financial statements.
Hawes Street Housing Limited
Page 5
BALANCE SHEET as at 31 December 2020
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 4 | 873,275 | 873,275 | ||
| CURRENT ASSETS | |||||
| Debtors | 5 | 410 | 410 | ||
| Cash at bank and in hand | 195,151 | 129,051 | |||
| _____ | _____ | ||||
| 195,561 | 129,461 | ||||
| CREDITORS: amounts falling due | |||||
| within one year | 6 | 840 | 840 | ||
| _____ | _____ | ||||
| Net current assets | 194,721 | 128,621 | |||
| _ | _ | ||||
| Net assets | £1,067,996 | £1,001,896 | |||
| _ | _ | ||||
| CAPITAL AND RESERVES | |||||
| Capital Reserve | 9 | 250,000 | 250,000 | ||
| Revenue Reserves | 8 | 817,996 | 751,896 | ||
| _ | _ | ||||
| £1,067,996 | £1,001,896 | ||||
| _ | _ |
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477(2) of the Companies Act 2006. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006.
The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and with the Financial Reporting Standard for Smaller Entities (effective April 2008).
Approved by the Board for issue on 27 July 2021
J Gerrard
Director Company Registration No 2328684
Hawes Street Housing Limited
Page 6
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020
1. ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.
Turnover
Turnover represents the total amount receivable for rent and service charges exclusive of value added tax.
Tangible fixed assets and depreciation
Freehold properties are renovated to a high standard and maintained in good repair and it is considered that residual values are such that depreciation is not significant, consequently these buildings are not depreciated. The cost of freehold properties includes the cost of land and buildings, improvements, professional fees and other direct expenditure.
Depreciation is provided on other assets at the rate of 20 per cent per annum on written down values.
2. TURNOVER
| 2. TURNOVER | ||
|---|---|---|
| Turnover consists of the following: | ||
| 2020 | 2019 | |
| £ | £ | |
| Rents received | 81,684 | 79,115 |
| Members subscriptions | 21 | 24 |
| _____ | _____ | |
| £81,705 | £79,129 | |
| _____ | _____ | |
| 3. OPERATING PROFIT | ||
| is stated after charging: | ||
| Depreciation | - | - |
| ____ | ____ |
Hawes Street Housing Limited
Page 7
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020
4.TANGIBLE FIXED ASSETS
| 4.TANGIBLE FIXED ASSETS | |||
|---|---|---|---|
| Freehold land and | Office | ||
| buildings | Equipment | Total | |
| £ | £ | £ | |
| Cost | |||
| 1 January 2020 | 872,854 | 5,669 | 878,523 |
| Additions | |||
| ______ | _____ | ______ | |
| 31 December 2020 | 872,854 | 5,669 | 878,523 |
| ______ | ____ | ______ | |
| Depreciation | |||
| 1 January 2020 | - | 5,248 | 5,248 |
| Charge for the year | - | - | - |
| ______ | ____ | ____ | |
| 31 December 2020 | - | 5,248 | 5,248 |
| ______ | ____ | ____ | |
| Net book value | |||
| 31 December 2020 | 872,854 | 421 | 873,275 |
| ______ | _____ | ______ | |
| 31 December 2019 | 872,854 | 421 | 873,275 |
| ______ | ____ | ______ | |
| 5.DEBTORS | |||
| 2020 | 2019 | ||
| £ | £ | ||
| Debtors and prepayments | £410 | £410 | |
| ____ | ____ | ||
| 6.CREDITORS : amount falling due within one year | |||
| Accruals and deferred income | £840 | £840 | |
| _____------ | _____------ |
Hawes Street Housing Limited
Page 8
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020
7. MEMBER’S LIABILITY
The company is limited by guarantee and does not have a share capital. Every member of the company is liable to contribute to the assets of the company, in the event of its being wound up whilst in membership or within one year of leaving, for payment of the debts and liabilities of the company contracted before membership ceases, and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributors among themselves; such liability for any member will not exceed £1. At 31 December 2020 the number of members so liable was 27 (2019 – 27).
| 8.PROFIT AND LOSS ACCOUNT | 2020 | 2019 |
|---|---|---|
| £ | £ | |
| 1 January 2020 | 751,896 | 700,351 |
| Profit for the year | 66,100 | 51,545 |
| _ | _ | |
| 31 December 2020 | £817,996 | £751,896 |
| _ | _ |
9. CAPITAL RESERVE
This represents a donation from the Church Urban Fund towards the cost of purchase and improvement of properties for subsequent rental.
Hawes Street Housing Limited
PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2020
| 2020 | 2019 | |||
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Rent received | 81,684 | 79,115 | ||
| Members subscriptions | 21 | 24 | ||
| _____ | _____ | |||
| 81,705 | 79,139 | |||
| Expenses | ||||
| Peppercorn rent | - | - | ||
| Rates, heat, light and telephone | 3,085 | 4,495 | ||
| Insurance | 5,290 | 4,971 | ||
| Repairs and Maintenance | 3,219 |
13,886 | ||
| Donation | 200 | - | ||
| Accountancy | 840 | 840 | ||
| Sundry expenses | 2,971 | 3,402 | ||
| _____ | 15,605 | _____ | 27,594 | |
| _____ | _____ | |||
| Profit for the year before taxation | £66,100 | £51,545 | ||
| _____ | _____ |