REGISTERED NUMBER: 07181606 (England and Wales) |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2021 |
FOR |
PRIME LONDON RESIDENTIAL LIMITED |
REGISTERED NUMBER: 07181606 (England and Wales) |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2021 |
FOR |
PRIME LONDON RESIDENTIAL LIMITED |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 30 April 2021 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 3 |
Consolidated Income Statement | 7 |
Consolidated Statement of Financial Position | 8 |
Company Statement of Financial Position | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Notes to the Consolidated Financial Statements | 12 |
PRIME LONDON RESIDENTIAL LIMITED |
COMPANY INFORMATION |
for the year ended 30 April 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
REPORT OF THE DIRECTORS |
for the year ended 30 April 2021 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2021. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of property trading and development. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2020 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies and then apply them consistently; |
- make judgements and accounting estimates that are reasonable and prudent; |
- state whether applicable UK Accounting Standards have been followed; |
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
PROVISION OF INFORMATION TO AUDITOR |
In the case of each of the directors who are directors of the group at the date when this report is approved: |
- | so far as they are individually aware, there is no relevant audit information of which the group's auditor is unaware; and |
- | each of the directors has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group's auditor is aware of the information. |
This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRIME LONDON RESIDENTIAL LIMITED |
Opinion |
We have audited the financial statements of Prime London Residential Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2021 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company 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 group's and of the parent company affairs as at 30 April 2021 and of the group's 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 group 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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. |
Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRIME LONDON RESIDENTIAL LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRIME LONDON RESIDENTIAL LIMITED |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Bribery Act, taxation legislation and data protection, employment, and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected transactions; |
- agreed property sales to supporting legal correspondences; |
- tested the appropriateness of journal entries; |
- tested authorisation of expenditure; |
- assessed whether judgements and assumptions made in determining the accounting estimate for the valuation of property stock were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing legal expenses. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRIME LONDON RESIDENTIAL LIMITED |
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 a Report of the Auditors 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 Certified Accountants |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 30 April 2021 |
2021 | 2020 |
£ | £ |
TURNOVER | 20,852,785 | 200,000 |
Cost of sales | (10,100,941 | ) | (949,540 | ) |
GROSS PROFIT/(LOSS) | 10,751,844 | (749,540 | ) |
Administrative expenses | (737,032 | ) | (695,236 | ) |
10,014,812 | (1,444,776 | ) |
Other operating income | 72,087 | 136,881 |
OPERATING PROFIT/(LOSS) | 10,086,899 | (1,307,895 | ) |
Interest receivable and similar income | 204,408 | 193,678 |
10,291,307 | (1,114,217 | ) |
Interest payable and similar expenses | (566,666 | ) | (625,832 | ) |
PROFIT/(LOSS) BEFORE TAXATION | 9,724,641 | (1,740,049 | ) |
Tax on profit/(loss) | (1,096,383 | ) | - |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 8,628,258 | (1,740,049 | ) |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 April 2021 |
2021 | 2020 |
Notes | £ | £ |
CURRENT ASSETS |
Stocks | 22,436,177 | 11,381,883 |
Debtors | 7 | 9,472,588 | 7,300,275 |
Cash at bank | 2,746,852 | 768,327 |
34,655,617 | 19,450,485 |
CREDITORS |
Amounts falling due within one year | 8 | 9,528,961 | 21,752,894 |
NET CURRENT ASSETS/(LIABILITIES) | 25,126,656 | (2,302,409 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
25,126,656 |
(2,302,409 |
) |
CREDITORS |
Amounts falling due after more than one year | 9 | 18,800,807 | - |
NET ASSETS/(LIABILITIES) | 6,325,849 | (2,302,409 | ) |
CAPITAL AND RESERVES |
Called up share capital | 200 | 200 |
Retained earnings | 6,325,649 | (2,302,609 | ) |
SHAREHOLDERS' FUNDS | 6,325,849 | (2,302,409 | ) |
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. |
The financial statements were approved by the Board of Directors and authorised for issue on 26 January 2022 and were signed on its behalf by: |
Mr J S D A Rust - Director |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 April 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investments | 6 |
CURRENT ASSETS |
Debtors | 7 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings |
SHAREHOLDER FUNDS |
Company's profit/(loss) for the financial year | 389,803 | (295,006 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 April 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2019 | 200 | (562,560 | ) | (562,360 | ) |
Changes in equity |
Total comprehensive income | - | (1,740,049 | ) | (1,740,049 | ) |
Balance at 30 April 2020 | 200 | (2,302,609 | ) | (2,302,409 | ) |
Changes in equity |
Total comprehensive income | - | 8,628,258 | 8,628,258 |
Balance at 30 April 2021 | 200 | 6,325,649 | 6,325,849 |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 April 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2019 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 April 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 April 2021 |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 30 April 2021 |
1. | STATUTORY INFORMATION |
Prime London Residential Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of accounting |
The financial statements have been prepared under the historical cost convention, and on the going concern basis. |
They have been drawn up to comply with the applicable Financial Reporting Standards 102 (FRS 102), which have been applied consistently throughout the current year. |
Prime London Residential Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available. Exemptions have been taken in relation to financial instruments, presentation of a cash flow statement and intra-group transactions. |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiaries for the year reported. Control exists when the company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences. |
Intra-group balances and any unrealised gains and losses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. |
Going concern |
The directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing financial statements. |
In arriving at the conclusion, the directors have considered the potential effects of Covid 19 on the group. The figures for the period under consideration have not been impacted by Covid 19 and the directors are confident that no adjustments are necessary to the carrying value of the assets held at the balance sheet date. The directors are continuing to monitor the situation but cannot at this stage confidently state what the potential impact will be due to the unpredictable nature of the pandemic. |
Undoubtedly there will be challenges ahead but the directors do not expect material concerns to arise over the group's financial position or going concern. |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2021 |
3. | ACCOUNTING POLICIES - continued |
Related party exemption |
The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Taxation |
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
Turnover |
Turnover comprises income in relation to the sale of properties, is recognised on the point of completion and originated in the United Kingdom. |
Rental income - other operating income |
Rental income is measured at the fair value of the consideration received or receivable on an accruals basis and is stated net of discounts and VAT. |
Short term debtors and creditors |
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss. |
Stock of properties |
Stocks are stated at the lower of cost and net realisable value. Net realisable value is based upon estimated selling price, less costs to be incurred to completion and disposal. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
5. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2021 |
6. | FIXED ASSET INVESTMENTS |
The company owned 100% of the issued share capital of the companies listed below as at 30 April 2021, which are all incorporated in the UK. The principal business activity for each company is property trading and development. |
Ableside Limited |
Charterstar Limited |
Deepspur Limited |
Energyband Limited |
Epicstar Limited |
Extrakeen Limited |
Greatspan Limited |
Luckysix Limited |
Moonfix Limited |
Moonreef Limited |
Netseven Limited |
Pureblend Limited |
Rubysea Limited |
Supershare Limited |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Trade debtors | 859 | 7,642 |
Amounts owed by group undertakings | - | - |
Other debtors | 9,471,729 | 7,292,633 |
9,472,588 | 7,300,275 |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans and overdrafts | - | 13,592,483 |
Trade creditors | 47,608 | 63,523 |
Amounts owed to group undertakings | - | - |
Taxation and social security | 646,663 | 2,974 |
Other creditors | 8,834,690 | 8,093,914 |
9,528,961 | 21,752,894 |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2021 | 2020 |
£ | £ |
Bank loans | 18,800,807 | - |
PRIME LONDON RESIDENTIAL LIMITED (REGISTERED NUMBER: 07181606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2021 |
10. | SECURED DEBTS |
Group |
2021 | 2020 |
£ | £ |
Secured loans | (18,800,807 | ) | (13,592,483 | ) |
Unsecured loan to related company | 8,349,830 | 6,247,702 |
Net debts | (10,450,977 | ) | (7,344,781 | ) |
The bank loan outstanding at 30 April 2021 is secured by a fixed charge over the group's assets, interest bearing and repayable on 31 July 2024. |
11. | RELATED PARTY DISCLOSURES |
During the year the company paid fees of £70,021 (2020 - £61,482) to and received interest of £204,408 (2020 - £192,198) from related companies. At the balance sheet date, the company was owed loans of £8,349,831 (2020 - £6,247,702) by a related company. |
During the year, the company paid fees of £6,613 (2020 - £14,348) to Brett Palos Investments Limited, a company in which Mr B Palos is a director. |
At the balance sheet date, the company owed £5,716,072 (2020 - £5,337,716) to Marmalade Holdings Investments Limited, a company under common control. Interest of £178,356 (2020 - £188,632) was payable on the loan during the year. |
12. | POST BALANCE SHEET EVENTS |
There is an ongoing review of historical matters over a number of years which may result in amendments in the future. |
13. | ULTIMATE CONTROLLING PARTY |
The directors consider there to be no controlling party as the voting rights are controlled equally by Residential Land Holdings Ltd and Mr B Palos. |