REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
LONDON AND SOUTHERN ESTATES (CITY) LTD |
REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
LONDON AND SOUTHERN ESTATES (CITY) LTD |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
LONDON AND SOUTHERN ESTATES (CITY) LTD |
COMPANY INFORMATION |
for the Year Ended 31 December 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
36a Station Road |
New Milton |
Hampshire |
BH25 6JX |
BANKERS: |
3 Thomas More Square |
London |
E1W 1WY |
SOLICITORS: |
Town Gate |
38 London Street |
Basingstoke |
Hampshire |
RG21 7NY |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investment property | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 10 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 11 |
Revaluation reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each 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 financial statements, so far as applicable to the company. |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
BALANCE SHEET - continued |
31 December 2022 |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
London and Southern Estates (City) Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the rental income chargeable for the period covered by these accounts. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount 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 represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise form the inclusion of income and expense in tax assessments in periods different to those in which they are recognised in the financial statements. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted b the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on investments and investment properties held at fair value is measured using the rates and allowances that would apply to the sale of the assets. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Additional notes |
Financial Instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities and include trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
Financial assets 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 income statement. |
Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. |
Provisions |
Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
Additions |
At 31 December 2022 |
DEPRECIATION |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
The original cost within the land and buildings relates to a long leasehold which is not depreciated. |
5. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
5. | INVESTMENT PROPERTY - continued |
Fair value at 31 December 2022 is represented by: |
£ |
Valuation in 2012 | 428,711 |
Valuation in 2014 | 1,100,000 |
Valuation in 2015 | 40,000 |
Valuation in 2016 | 600,000 |
Valuation in 2020 | 1,075,000 |
Cost | 2,031,289 |
5,275,000 |
If the investment property had not been revalued it would have been included at the following historical cost: |
2022 | 2021 |
£ | £ |
Cost | 2,031,289 | 2,031,289 |
The investment property was valued on on an open market basis on 29 October 2020 by Colliers International Valuation UK LLP . |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Other creditors |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Other Loans | 500,000 | 500,000 |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank loans |
The loan is secured by a legal charge dated 31st July 2015 over the property owned by the company, being 6-7 The Crescent, Minories, London, EC3. |
10. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax |
Other timing differences | 605,647 | 605,647 |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Balance at 31 December 2022 |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
12. | OTHER FINANCIAL COMMITMENTS |
The company has total commitments under a long non-cancellable operating lease as follows:- |
Due within 1 year | 26,400 |
Due between 2 and 5 years | 105,600 |
Due over 5 years | 2,890,800 |
The commitment relates to ground rentals to be paid over the 114.5 years remaining on the long term leasehold property owned by the company. |
13. | RELATED PARTY DISCLOSURES |
The company held loans from the directors during the period. The balance at the balance sheet date totalled £161,210 (2021 - £18,722). No interest is charged and there is no formal repayment plan.These loans are repayable on demand. |
A company controlled by one of the director's was in receipt of a loan from the company amounting to £450,000. This loan was repaid during the year. Interest was charged on the loan at 2% above the SONIA rate per annum cumulative, payable on the termination date. |
LONDON AND SOUTHERN ESTATES (CITY) LTD (REGISTERED NUMBER: 07306032) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
14. | POST BALANCE SHEET EVENTS |
The full implications of the Covid-19 outbreak on the Company's assets and trading are as yet unknown and the directors do not therefore feel that there is any requirement to make adjustments to these financial statements. |
Rental income ceased when the existing tenants vacated the property. The lease allowed for the company to claim for dilapidation costs and the company is in negotiations via solicitors with their former tenants regarding these costs plus loss of rental and compensation. The company is unable to quantify the results and the costs incurred to reinstate the property to a rentable condition are being carried forward in debtors. |
The value of the investment property has been held at the 2020 valuation due to uncertainly in the market. During 2023 the company has received an offer to purchase the leasehold property but the full financial implications of this are unknown at the date of signing the accounts. |
15. | ULTIMATE CONTROLLING PARTY |
In the opinion of the directors, the company is ultimately controlled by Mr G D Swetman and Mrs A M Swetman. |