5 Garrett Street Limited |
Notes to the Accounts |
for the year ended 30 September 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Owenership of assets and transactions |
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The company owns the freehold reversionary interest in land and buildings at 5 Garrett Street, London, and manages the property on behalf of the leaseholders on a non-profit basis. The lessees are the shareholders of the company. Although the company is owned entirely by the lessees of the property, currently it is generally considered that the collection of service charges (but not ground rent), service charge expenses, the attributable cash at bank, receivables and payables, including sinking fund reserves and current and future financial commitments legally belong to the lessees not the company and the company only acts as an agent for the lessees. To reflect this the service charges, expenses and attributable assets and liabilities have been excluded from the profit and loss account and balance sheet of the company and cash at bank in the name of the company treated as held on trust for the lessees; services charge expenditure for the year was £99,087 (2022: £89,973), excluding amounts paid into or withdrawn from the sinking fund reserves. In addition to the normal service charge expenditure, £36,271 (2022: more than £120,000) was incurred on behalf of lessees on fire safety costs emanating from cladding issues with the building. Further costs are expected but these are unable to be quantified with any reasonable accuracy, nor can the extent, if any, to which contributions towards these costs will be provided by third parties . Further information on this may be available from the directors or the managing agent who is also the Company Secretary. |
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Other operating income |
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Other operating income represents the ground rent receiveable on the freehold property from lessees. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life. |
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No depreciation is charged on freehold land and buildings on the grounds that it would be immaterial. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie 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. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
2 |
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2 |
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3 |
Tangible fixed assets |
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Land and buildings |
£ |
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Cost |
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At 1 October 2022 |
216 |
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At 30 September 2023 |
216 |
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Depreciation |
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At 30 September 2023 |
- |
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Net book value |
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At 30 September 2023 |
216 |
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At 30 September 2022 |
216 |
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4 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Other debtors |
35,257 |
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33,626 |
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5 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Taxation and social security costs |
434 |
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382 |
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6 |
Contingent liabilities |
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As mentioned in Note 1 - Accounting policies - ownership of assets and transactions, significant costs have been incurred, with more expected, on fire safety due to cladding issues with the building. The lessees are bearing these costs and it is not known the extent to which any contribution will be provided by third parties. The company owns the freehold reversion of the property but does not expect to be required to make a contribution. |
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7 |
Other information |
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5 Garrett Street Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Tey House |
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Market Hill |
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Royston |
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SG8 9TN |