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REGISTERED NUMBER: 07916785 (England and Wales)












Financial Statements

for the Year Ended 31 March 2023

for

Arpeggio Properties Limited

Arpeggio Properties Limited (Registered number: 07916785)






Contents of the Financial Statements
for the year ended 31 March 2023




Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


Arpeggio Properties Limited

Company Information
for the year ended 31 March 2023







DIRECTORS: S Soin
P Olson
S P Berrill


REGISTERED OFFICE: Cotton Court Business Centre
Cotton Court
Church Street
Preston
Lancashire
PR1 3BY


REGISTERED NUMBER: 07916785 (England and Wales)


SENIOR STATUTORY AUDITOR: Paul Woodburn


AUDITORS: Wallwork Nelson and Johnson (Statutory auditor)
Chandler House
7 Ferry Road Office Park
Riversway
Preston
Lancashire
PR2 2YH


SOLICITORS: Napthens
47 Hoghton Street
Southport
PR9 0PQ

Arpeggio Properties Limited (Registered number: 07916785)

Statement of Financial Position
31 March 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 5 3,407,601 3,457,675
Investments 6 16,680,000 14,750,000
20,087,601 18,207,675

CURRENT ASSETS
Debtors 7 779,184 565,166
Cash at bank 1,030,194 344,088
1,809,378 909,254
CREDITORS
Amounts falling due within one year 8 (823,187 ) (416,409 )
NET CURRENT ASSETS 986,191 492,845
TOTAL ASSETS LESS CURRENT
LIABILITIES

21,073,792

18,700,520

CREDITORS
Amounts falling due after more than one year 9 (2,272,295 ) -
NET ASSETS 18,801,497 18,700,520

RESERVES
Income and expenditure account 18,801,497 18,700,520
18,801,497 18,700,520

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2023 and were signed on its behalf by:





S Soin - Director


Arpeggio Properties Limited (Registered number: 07916785)

Notes to the Financial Statements
for the year ended 31 March 2023

1. STATUTORY INFORMATION

Arpeggio Properties Limited is a provider of social housing in the United Kingdom. The address of the registered office is given within the information on page 1 of these financial statements.

Arpeggio Properties Limited constitutes a public benefit entity as defined by FRS 102.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102, The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2014, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006. The financial statements are prepared in sterling, which is the functional currency of the registered provider, and rounded to the nearest pound.

3. ACCOUNTING POLICIES

Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparation
The financial statements are prepared on the going concern basis under the historical cost convention, modified to include certain items at fair value and comply with the United Kingdom Accounting Standards and Companies Act 2006.

Going concern
The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being a period of twelve months after the date on which the financial statements are signed. For this reason, they continue to adopt the going concern basis in the financial statements.

Revenue recognition
Revenue comprises of monies received in lieu of ground rents relating to its freehold property portfolio and rental income on all other property as follows:Income from Social lettings £457,172 (£251,160 in 2022); Income from Ocean House £1,348,256 (£790,214 in 2022); Income from Birmingham portfolio £172,932 (£112,431) in 2022; and Income from Bedford portfolio £67,483 (£nil in 2022)

Operating costs
Operating costs relate to operating expenditure and professional fees.

Arpeggio Properties Limited (Registered number: 07916785)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

3. ACCOUNTING POLICIES - continued

Housing properties for letting
Housing properties are principally properties available for rent and are stated at deemed cost being the fair value as at 31 March 2015 less depreciation.

Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised.

Depreciation of housing properties for letting
The company separately identifies the major components of its housing properties and charges depreciation so as to write down the cost of each component, on a straight line basis, over its estimated useful economic life. Depreciation is not charged in the year of acquisition and freehold land is not depreciated.

The useful economic lives for the identified components are as follows:

ComponentUEL
Kitchens20
Bathrooms20
Roofs45
Windows30
Boilers15
Fire safety systems20

Impairment
Housing properties are reviewed for impairment if there is an indication that impairment may have occurred. Where there is evidence of impairment, assets are written down to their recoverable amount. Any such write down is charged to operating surplus.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates so as to write off their cost less residual amounts over their estimated useful economic lives. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount.

Computer equipment- 33.33% on cost

The residual values and useful lives of assets are reviewed and adjusted if appropriate at each statement of financial position date.


Arpeggio Properties Limited (Registered number: 07916785)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

3. ACCOUNTING POLICIES - continued
Taxation
Current tax represents the amount of tax payable or receivable in respect of taxable income 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 from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trade and other receivables within one year
Trade and other receivables with no stated interest rate are recorded at transaction price.

Trade and other creditors
Trade and other creditors are classified as current liabilities if payment is due within one year or less. If not, 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.

Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand and other short-term highly liquid investments with original maturities of three months or less that are readily convertible into known amounts of cash.

Judgements and key sources of estimation uncertainty
There have been no significant judgements (apart from those involving estimates) made in the process of applying the above accounting.

There have been no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Interest from investments
Interest received from investments is accounted for on an acrruals basis.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2022 - 3 ) .

Arpeggio Properties Limited (Registered number: 07916785)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

5. TANGIBLE FIXED ASSETS
Housing
Properties
for Computer
letting equipment Totals
£    £    £   
COST
At 1 April 2022 3,816,850 4,045 3,820,895
Additions - 2,462 2,462
At 31 March 2023 3,816,850 6,507 3,823,357
DEPRECIATION
At 1 April 2022 361,085 2,135 363,220
Charge for year 51,188 1,348 52,536
At 31 March 2023 412,273 3,483 415,756
NET BOOK VALUE
At 31 March 2023 3,404,577 3,024 3,407,601
At 31 March 2022 3,455,765 1,910 3,457,675

The portfolio was valued by Bruton Knowles during the year and has a market value of £10.4m.

6. FIXED ASSET INVESTMENTS
Other
investments
£   
COST
At 1 April 2022 14,750,000
Additions 1,930,000
At 31 March 2023 16,680,000
NET BOOK VALUE
At 31 March 2023 16,680,000
At 31 March 2022 14,750,000

The fixed asset investments are made up of £6.75 million preference shares in Sands Investments Limited, £8 million preference shares in Pebbles Real Estate Limited and £1.93 million preference shares in Abingdon Capital Limited.

7. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 398,671 232,298
Prepayments and accrued income 359,624 282,649
758,295 514,947

Arpeggio Properties Limited (Registered number: 07916785)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

7. DEBTORS - continued
2023 2022
£    £   
Amounts falling due after more than one year:
Deferred tax 20,889 50,219

Aggregate amounts 779,184 565,166

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 459 556
Social security and other taxes 4,932 7,804
Other creditors 182,753 246,408
Accruals and deferred income 635,043 161,641
823,187 416,409

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans - 2-5 years 2,044,000 -
Other creditors 228,295 -
2,272,295 -

There were charges registered at Companies House during the year relating to the Funding 365 Mortgages Limited borrowings.

10. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Paul Woodburn (Senior Statutory Auditor)
for and on behalf of Wallwork Nelson and Johnson (Statutory auditor)

11. CONTINGENT LIABILITIES

As at 31 March 2023 there was £2.3m of government grant funding attached to the 99 housing properties received from another social landlord. The grant will become repayable to the Homes and Communities Agency if the assets are ever sold out of the social housing sector.

12. COMPANY LIMITED BY GUARANTEE

The company is incorporated as a company limited by guarantee having no share capital, in accordance with the Memorandum of Association, the members of the company are liable to contribute up to £1 each in the event of the company being wound up.

Arpeggio Properties Limited (Registered number: 07916785)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

13. ACCOMMODATION OWNED AND IN MANAGEMENT

2023 2022
No No

General needs rental 99 99
Supported Housing 106 106

Total housing stock managed by another body 205 205