Company registration number 13831541 (England and Wales)
PRIME GROUP HOLDINGS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2023
FILLETED ACCOUNTS
Tavistock House South
Tavistock Square
Rayner Essex LLP
London
Chartered Accountants
WC1H 9LG
PRIME GROUP HOLDINGS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
PRIME GROUP HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2023
31 January 2023
- 1 -
2023
Notes
£
£
Fixed assets
Investment property
3
9,109,595
Current assets
Debtors
4
49,790
Cash at bank and in hand
77,671
127,461
Creditors: amounts falling due within one year
5
(307,441)
Net current liabilities
(179,980)
Total assets less current liabilities
8,929,615
Creditors: amounts falling due after more than one year
6
(9,228,067)
Net liabilities
(298,452)
Capital and reserves
Called up share capital
7
1,000
Profit and loss reserves
(299,452)
Total equity
(298,452)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial Period ended 31 January 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the Period in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 5 October 2023
Ms R Nasser
Director
Company Registration No. 13831541
PRIME GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2023
- 2 -
1
Accounting policies
Company information
Prime Group Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o Rayner Essex LLP, Tavistock House South, Tavistock Square, London, United Kingdom, WC1H 9LG.
1.1
Reporting period
This is the first set of accounts of the company and it covers a 13-month period from incorporation date 6 January 2022 to the end of 31 January 2023.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the Period ended 31 January 2023 are the first financial statements of Prime Group Holdings Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was . The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.3
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future as a result of shareholder investment. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents rents receivable.
Rental income arising from operating leases on investment properties is accounted for on a straight line basis over the lease term. Lease incentives such as rent free periods are recognised on a straight line basis over the lease term.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost, legal and professional fees, stamp duty, land tax and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
PRIME GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 3 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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 transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2023
Number
Total
PRIME GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
- 4 -
3
Investment property
2023
£
Fair value
At 6 January 2022
Additions
9,109,595
At 31 January 2023
9,109,595
The investment properties 104 and 107 Holmby House, 312, 702, 302, 502 and 1202 Wilshire House, 2 Prospect Way were purchased at a total cost of £9,109,595 including legal and professional fees and Stamp duty land tax. The director believes the carrying amount for these investment properties approximates fair value, therefore, no adjustment was required at the reporting date.
4
Debtors
2023
Amounts falling due within one year:
£
Other debtors
49,790
5
Creditors: amounts falling due within one year
2023
£
Other creditors
307,441
6
Creditors: amounts falling due after more than one year
2023
£
Bank loans and overdrafts
5,799,029
Other creditors
3,429,038
9,228,067
The above bank loans are secured against investment properties known as 104 and 107 Holmby House, and 302, 312, 502, 702, 1202 Wilshire House, 2 Prospect Way, London.
The loans are interest-only loans, capital will be repaid in full at the end of the term of each loan. The loans bear interest at 2.29% per annum above London Inter Bank Offer Rate and have a maturity date of 25 February 2027.
The bank loans are secured by a first charge over the investment properties. In addition, a personal guarantee has been provided by the shareholder of the company.
PRIME GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
- 5 -
7
Called up share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of 0.0001p each
1,000,000,001
1,000
The company issued 1 Ordinary share of £0.000001 at par on incorporation of the company.
8
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
£
Acquisition of tangible fixed assets
1,163,209
The above capital commitment was completed in March 2023.
9
Related party transactions
Transactions with related parties
At the year end the company owed £1,280,736 to the shareholders of the company. The company also owed £2,148,302 to Power Tower Company in Saudi Arabia. The loans bear interest at 6% per annum. The total balance is included within creditors due after one year as per note 6.
At the year end the company was owed £42,738 from Power Tower Investments Limited which is registered in England & Wales, and is a related company with a common shareholder and director. The balance is included within debtors due within one year as per note 4.