Company registration number 04098819 (England and Wales)
CAPITALCLIMB LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
CAPITALCLIMB LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
3 - 8
CAPITALCLIMB LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
15,729,572
17,222,741
Current assets
Debtors
4
370,108
1,490,034
Cash at bank and in hand
61,865
59,388
431,973
1,549,422
Creditors: amounts falling due within one year
5
(18,753,095)
(19,421,651)
Net current liabilities
(18,321,122)
(17,872,229)
Net liabilities
(2,591,550)
(649,488)
Capital and reserves
Called up share capital
1
1
Revaluation reserve
(1,846,578)
(510,072)
Profit and loss reserves
(744,973)
(139,417)
Total equity
(2,591,550)
(649,488)

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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 9 November 2023
R Walters
Director
Company Registration No. 04098819
CAPITALCLIMB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 March 2022:
Balance at 1 April 2021
1
-
0
1,016,230
1,016,231
Year ended 31 March 2022:
Loss for the year
-
-
(1,155,647)
(1,155,647)
Other comprehensive income:
Revaluation of tangible fixed assets
-
(510,072)
-
(510,072)
Total comprehensive income for the year
-
(510,072)
(1,155,647)
(1,665,719)
Balance at 31 March 2022
1
(510,072)
(139,417)
(649,488)
Year ended 31 March 2023:
Loss for the year
-
-
(605,556)
(605,556)
Other comprehensive income:
Revaluation of tangible fixed assets
-
(1,336,506)
-
(1,336,506)
Total comprehensive income for the year
-
(1,336,506)
(605,556)
(1,942,062)
Balance at 31 March 2023
1
(1,846,578)
(744,973)
(2,591,550)

The notes on pages 3 to 8 form part of these financial statements.

CAPITALCLIMB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
Capitalclimb Limited is a private company limited by shares incorporated in England and Wales. The registered office is 20-26 Rosebery Avenue, London, EC1R 4SX.
1.1
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. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis, notwithstanding that there are net current liabilities of £18,321,122 as at 31 March 2023, the validity of which is dependent on the continued financial support of the shareholders and creditors. The financial statements do not include any adjustments that would result from discontinuance of their financial support. At the time of approving the financial statements, the directors have a reasonable expectation that the company 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
Turnover

Turnover represents rent and services apartment income receivable by the company. Rental income is based on lease agreements and is recognised evenly over the period of the lease.

 

Revenue from serviced apartments and other guest services is recognised when rooms are occupied and as services are provided.

1.4
Tangible fixed assets

Tangible fixed assets 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:

Land and buildings
Buildings depreciated over 100 years
Plant and machinery
Straight line over 5 years
Computers
Straight line over 3 years

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period 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.

CAPITALCLIMB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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 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.

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, 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.

CAPITALCLIMB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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.

1.9
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 stock or fixed 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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Employees

The average monthly number of persons employed by the company during the year was:

2023
2022
Number
Number
Total
20
16
CAPITALCLIMB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 April 2022
18,190,356
24,540
18,214,896
Additions
-
0
12,529
12,529
Revaluation
(1,336,506)
-
0
(1,336,506)
At 31 March 2023
16,853,850
37,069
16,890,919
Depreciation and impairment
At 1 April 2022
990,356
1,799
992,155
Depreciation charged in the year
163,494
5,698
169,192
At 31 March 2023
1,153,850
7,497
1,161,347
Carrying amount
At 31 March 2023
15,700,000
29,572
15,729,572
At 31 March 2022
17,200,000
22,741
17,222,741

The fair value of the freehold property has been arrived at on the basis of a valuation by the members.The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties at that time.

 

The follwoings assets are carried at valuation. If the assets were measure using the cost model, the carrying amounts would be as follows;
Freehold buildings
2023
2022
£
£
Cost
15,837,321
15,973,768
Accumulated depreciation
643,778
478,485
Carrying value
16,481,099
16,452,253
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
70,864
10,200
Other debtors
299,244
1,479,834
370,108
1,490,034
CAPITALCLIMB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
77,134
942
Corporation tax
79,716
79,716
Other taxation and social security
113,269
1,597
Other creditors
18,482,976
19,339,396
18,753,095
19,421,651
6
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 report was unqualified.

Senior Statutory Auditor:
Engin Zekia FCA
Statutory Auditor:
Gerald Edelman LLP
7
Financial commitments, guarantees and contingent liabilities

The company has provided a security over its assets for loan to a related entity amounting to £9.313m.

8
Related party transactions

The company has taken advantage of the exemption available in FRS 102.1A, whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertakings of the group.

9
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Analysis of the effect upon equity
Revaluation reserve
-
(510,072)
Profit and loss reserves
-
510,072
-
-
CAPITALCLIMB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Prior period adjustment
(Continued)
- 8 -
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Revaluation adjustment
510,072
Loss as previously reported
(1,665,719)
Loss as adjusted
(1,155,647)
Notes to reconciliation
1-Revaluation adjustment

The prior year adjustment relates to reclassification of revaluation for freehold properties.

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