Company registration number 02446537 (England and Wales)
QUADRANT PROPERTY MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
QUADRANT PROPERTY MANAGEMENT LIMITED
CONTENTS
Page
Directors' report
1 - 2
Statement of financial position
3
Statement of changes in equity
4
Notes to the financial statements
5 - 17
QUADRANT PROPERTY MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of the management of blocks of residential flats and estates and ancillary services.
Results and dividends
The results for the year are set out on .
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
MJ Barnett-Salter
(Resigned 31 March 2023)
P Macainsh
NP Redding
NF Burnand
(Resigned 1 February 2023)
R Burnand
(Resigned 14 February 2022)
VE Quinlan
(Appointed 4 January 2022)
ARL Screen
(Resigned 16 May 2022)
CD Stutts
(Resigned 3 March 2023)
PM Wrights
(Resigned 31 January 2022)
S Patel
(Resigned 4 February 2022)
TEB Hartley
(Appointed 3 March 2023)
Auditor
The auditor, Cottons Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 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 of the profit or loss of the company 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, subject to any material departures disclosed and explained in the financial statements; and
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 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.
QUADRANT PROPERTY MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
VE Quinlan
Director
13 October 2023
QUADRANT PROPERTY MANAGEMENT LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 3 -
2022
2021
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
996,434
25,757
Current assets
Trade and other receivables
6
1,958,454
1,438,270
Cash and cash equivalents
95,471
419,965
2,053,925
1,858,235
Current liabilities
7
(811,391)
(501,127)
Net current assets
1,242,534
1,357,108
Total assets less current liabilities
2,238,968
1,382,865
Non-current liabilities
7
(952,147)
-
Provisions for liabilities
Deferred tax liabilities
10
(7,160)
(3,614)
Net assets
1,279,661
1,379,251
Equity
Called up share capital
12
8,000
8,000
Capital redemption reserve
13
2,000
2,000
Retained earnings
1,269,661
1,369,251
Total equity
1,279,661
1,379,251
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The directors of the company have elected not to include a copy of the income statement within the financial statements.
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
VE Quinlan
Director
Company registration number 02446537
QUADRANT PROPERTY MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Share capital
Capital redemption reserve
Retained earnings
Total
£
£
£
£
Balance at 1 January 2021
8,000
2,000
1,177,876
1,187,876
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
191,375
191,375
Balance at 31 December 2021
8,000
2,000
1,369,251
1,379,251
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(99,590)
(99,590)
Balance at 31 December 2022
8,000
2,000
1,269,661
1,279,661
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
1
Accounting policies
Company information
Quadrant Property Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is Thamesbourne Lodge, Station Road, Bourne End, Buckinghamshire, United Kingdom, SL8 5QH. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
inclusion of an explicit and unreserved statement of compliance with IFRS;
presentation of a statement of cash flows and related notes;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
the effect of financial instruments on the statement of comprehensive income;
comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment, intangible assets, investment property and biological assets;
disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;
comparative narrative information;
for financial instruments, investment property and biological assets measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value; and
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of Qdime Corporate Holdings Limited. The group accounts of Qdime Corporate Holdings Limited are available to the public and can be obtained as set out in note 17.
1.2
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Management fees
The principal source of revenue for the entity is management fees. These represent fees receivable for performing the role of managing agent on a portfolio of leasehold residential properties. This revenue is recognised on a straight line basis, which are generally receivable within 30 days.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the terms of the leases
Leasehold improvements
Over the terms of the leases
Fixtures and fittings
20% on cost
Computers
20% on cost and 1-3 years straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.5
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents 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.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
1.7
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 8 -
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.8
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 9 -
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 10 -
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements
Present value discount factor
The implicit rate of return used to calculate the present value of the right-of-use assets and the corresponding lease liabilities is driven by judgement. Management has calculated the implicit rate of return based upon historic 1-month LIBOR rates and lending spreads for entities with moderate leverage in the United Kingdom.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
24
25
4
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
44,005
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
4
Taxation
2022
2021
£
£
(Continued)
- 11 -
Deferred tax
Origination and reversal of temporary differences
3,546
(1,597)
Total tax charge
3,546
42,408
The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:
2022
2021
£
£
(Loss)/profit before taxation
(96,044)
233,783
Expected tax (credit)/charge based on a corporation tax rate of 19.00% (2021: 19.00%)
(18,248)
44,419
Group relief
22,299
Permanent capital allowances in excess of depreciation
(1,785)
(581)
Deferred tax adjustments in respect of prior years
1,280
-
Other
-
(1,430)
Taxation charge for the year
3,546
42,408
The applicable tax rate above is based on the standard rates in both the current and previous period.
An increase in the UK corporation tax rate from 19% to 25% for all companies with taxable profits in excess of £250,000 (effective 1 April 2023) was substantively enacted on 24 May 2021. This rate increase will have a consequential effect on the company's future tax charge.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
5
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2022
28,764
800
50,793
80,357
Additions
978,301
25,612
8,276
1,012,189
Disposals
(2,583)
(2,583)
At 31 December 2022
978,301
28,764
26,412
56,486
1,089,963
Accumulated depreciation and impairment
At 1 January 2022
28,764
360
25,476
54,600
Charge for the year
24,255
1,054
13,620
38,929
At 31 December 2022
24,255
28,764
1,414
39,096
93,529
Carrying amount
At 31 December 2022
954,046
24,998
17,390
996,434
At 31 December 2021
440
25,317
25,757
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2022
2021
£
£
Net values at the year end
Property
954,046
-
Total additions in the year
978,301
-
Depreciation charge for the year
Property
24,255
38,637
The carrying value of land and buildings comprises:
2022
2021
£
£
Short leasehold
954,046
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
6
Trade and other receivables
2022
2021
£
£
Trade receivables
370,165
11,610
Corporation tax recoverable
23,289
-
VAT recoverable
87,771
-
Amounts owed by fellow group undertakings
1,082,838
1,122,349
Other receivables
90,101
18,206
Prepayments and accrued income
304,290
286,105
1,958,454
1,438,270
Loans to fellow group undertakings are interest-free and repayable on demand.
7
Liabilities
Current
Non-current
2022
2021
2022
2021
Notes
£
£
£
£
Trade and other payables
8
753,799
397,112
Corporation tax
-
1,285
-
-
Other taxation and social security
33,150
102,730
-
-
Lease liabilities
9
24,442
-
952,147
-
811,391
501,127
952,147
-
8
Trade and other payables
2022
2021
£
£
Trade payables
154,590
1,237
Amounts owed to fellow group undertakings
458,535
58
Accruals and deferred income
31,913
370,443
Other payables
108,761
25,374
753,799
397,112
Loans from fellow group undertakings are interest-free and repayable on demand.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
9
Lease liabilities
2022
2021
Maturity analysis
£
£
Within one year
80,927
-
In two to five years
554,928
-
In over five years
658,977
-
Total undiscounted liabilities
1,294,832
-
Future finance charges and other adjustments
(318,243)
-
Lease liabilities in the financial statements
976,589
-
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2022
2021
£
£
Current liabilities
24,442
-
Non-current liabilities
952,147
-
976,589
-
2022
2021
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
9,292
(530)
Other leasing information is included in note 16.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Accelerated capital allowances
Retirement benefit obligations
Total
£
£
£
Liability at 1 January 2021
5,211
5,211
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(1,597)
-
(1,597)
Liability at 1 January 2022
3,614
-
3,614
Deferred tax movements in current year
Charge/(credit) to profit or loss
4,440
(894)
3,546
Liability at 31 December 2022
8,054
(894)
7,160
2022
2021
2022
2021
Offsets applied
£
£
£
£
Deferred tax assets
Deferred tax liabilities
Balances before offset
894
-
8,054
(3,614)
Amounts offset
(894)
-
(894)
-
Balances after offset
7,160
(3,614)
11
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
13,631
18,705
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
12
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,000
8,000
8,000
8,000
The company has one class of ordinary shares, which are irredeemable. The ordinary shares provide the holder with one vote per share and rank pari passu for dividend rights.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
13
Capital redemption reserve
2022
2021
£
£
At the beginning and end of the year
2,000
2,000
The capital redemption reserve represents the nominal value of the company's share capital that has been diminished upon cancellation of shares repurchased by the company.
14
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's signed off the report on
17 October 2023
The auditor's report was unqualified.
The senior statutory auditor was Richard Wilch FCCA and the auditor was Cottons Accountants LLP.
15
Contingent liabilities
The company provided a guarantee, secured by way of fixed and floating charges against all of its assets, in respect of borrowings of Cortland Management UK (Acquisition) Limited, a parent undertaking of the company. The guarantee would only be called upon in the event of default. No such default events have occurred.
16
Other leasing information
Lessee
Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:
2022
2021
£
£
Expense relating to short-term leases
64,928
27,468
Information relating to lease liabilities is included in note 9.
QUADRANT PROPERTY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
17
Controlling party
The immediate parent company of Quadrant Property Management Limited is Qdime Corporate Holdings Limited, a company incorporated in England and Wales, The ultimate parent company is Cortland Management UK Investors Limited, a company incorporated in England and Wales.
Cortland Management UK Investors Limited is a jointly controlled entity by relevant investors as defined in the joint venture agreement. The directors consider that there is no ultimate controlling party.
Qdime Corporate Holdings Limited is the parent undertaking of the smallest group of companies that produces consolidated accounts that are publicly available and Cortland Management Investors Limited is the largest group of companies that produces consolidated accounts that are publicly available at Leaf A, 9th Floor, Tower 42, 25 Old Broad Street, London, England. EC2N 1HQ.
18
Auditor's liability limitation agreement
Upon appointment of Cottons Accountants LLP as auditors, the company entered into a limitation liability agreement with the auditors and this was approved by resolution on 11th July 2023. Liability is limited to the lesser of 15 times the audit fee for the individual entity and £1,000,000 for the group as a whole. In accordance with section 537 of CA06, the effect of the liability limitation agreement is to limit the auditor's liability to less than such amount as is fair and reasonable, as determined by that section, the agreement shall have effect as if it limited the liability to such amount as is fair and reasonable, as so determined.
The agreement limits the liability owed to the company by the auditors in respect of any negligence, default or breach of duty, or breach of trust, occurring in the course of the audit of the accounts for the year ending 31st December 2022.
The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restricted by applicable laws or regulations.
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