Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-312023-03-31truetruetruetruetruetruetruetruetruetrue2022-04-01false00true 06464634 2022-04-01 2023-03-31 06464634 2021-04-01 2022-03-31 06464634 2023-03-31 06464634 2022-03-31 06464634 2021-04-01 06464634 c:Exceptional 2022-04-01 2023-03-31 06464634 c:Exceptional 2021-04-01 2022-03-31 06464634 d:CompanySecretary1 2022-04-01 2023-03-31 06464634 d:Director1 2022-04-01 2023-03-31 06464634 d:Director2 2022-04-01 2023-03-31 06464634 d:Director2 2023-03-31 06464634 d:Director3 2022-04-01 2023-03-31 06464634 d:Director3 2023-03-31 06464634 d:Director4 2022-04-01 2023-03-31 06464634 d:Director4 2023-03-31 06464634 d:RegisteredOffice 2022-04-01 2023-03-31 06464634 c:Non-currentFinancialInstruments 2023-03-31 06464634 c:Non-currentFinancialInstruments 2022-03-31 06464634 c:Non-currentFinancialInstruments c:AfterOneYear 2023-03-31 06464634 c:Non-currentFinancialInstruments c:AfterOneYear 2022-03-31 06464634 c:UKTax 2022-04-01 2023-03-31 06464634 c:UKTax 2021-04-01 2022-03-31 06464634 c:ShareCapital 2023-03-31 06464634 c:ShareCapital 2022-03-31 06464634 c:ShareCapital 2021-04-01 06464634 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 06464634 c:RetainedEarningsAccumulatedLosses 2023-03-31 06464634 c:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 06464634 c:RetainedEarningsAccumulatedLosses 2022-03-31 06464634 c:RetainedEarningsAccumulatedLosses 2021-04-01 06464634 d:FRS101 2022-04-01 2023-03-31 06464634 d:Audited 2022-04-01 2023-03-31 06464634 d:FullAccounts 2022-04-01 2023-03-31 06464634 d:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 06464634 c:HirePurchaseContracts c:WithinOneYear 2023-03-31 06464634 c:HirePurchaseContracts c:WithinOneYear 2022-03-31 06464634 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-03-31 06464634 c:HirePurchaseContracts c:BetweenOneFiveYears 2022-03-31 06464634 c:HirePurchaseContracts 2023-03-31 06464634 c:HirePurchaseContracts 2022-03-31 iso4217:GBP xbrli:pure

Registered number: 06464634










U AND I (PINCENTS LANE) LIMITED










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
U AND I (PINCENTS LANE) LIMITED
 

COMPANY INFORMATION


Directors
M J Hood 
U and I Director 1 Limited (appointed 5 October 2022)
U and I Director 2 Limited (appointed 5 October 2022)
R Upton (resigned 30 April 2022)




Company secretary
U and I Company Secretaries Limited



Registered number
06464634



Registered office
100 Victoria Street

London

SW1E 5JL






 
U AND I (PINCENTS LANE) LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors of U and I (Pincents Lane) Limited (the 'Company') present their report and the audited financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare audited financial statements for each financial year. Under that law the directors have elected to prepare the audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the audited 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 audited 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 audited 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 to enable them to ensure that the audited financial statements comply with the Companies Act 2006They 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.

Principal activity, review of the business and future developments

The Company has continued its business of property development in the United Kingdom. No changes in the Company’s principal activity are anticipated in the foreseeable future.

Going concern

The directors have determined that preparing the financial statements on the going concern basis is appropriate due to the continued financial support of the ultimate parent company, Land Securities Group PLC (together with its subsidiaries referred to as the ‘Group’). The directors’ going concern assessment covers the period to 30 November 2024 and confirmation has been received that Land Securities Group PLC will support the Company until this date so long as the Company remains a subsidiary of Land Securities Group PLC. If the Company was sold within the next 12 months from 30 November 2023, confirmation has been received that Land Securities Group PLC would ensure the Company remains in a position to continue as a going concern at the point of sale. The Company’s ability to meet its future liabilities is therefore dependent on the financial performance, position and liquidity of the Group as a whole. At the Group level, considerations included potential risks and uncertainties in the business, credit, market, property valuation and liquidity risks, including the availability and repayment profile of bank facilities, as well as forecast covenant compliance. Stress testing has been carried out to ensure the Group has sufficient cash resources to continue in operation for the period to 30 November 2024. This stress testing modelled a scenario with materially reduced levels of cash receipts over the next 12 months. Based on these considerations, together with available market information and the directors’ knowledge and experience of the Company, the directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2023.

Results for the year and dividend

The results are set out in the Statement of Comprehensive Income on page 6.

The directors do not recommend the payment of a dividend for the year ended 31 March 2023 (2022: £Nil).

Directors

The directors who held office during the year and up to the date of this report unless otherwise stated were:

M J Hood 
U and I Director 1 Limited (appointed 5 October 2022)
U and I Director 2 Limited (appointed 5 October 2022)
R Upton (resigned 30 April 2022)

Indemnity

The Company has made qualifying third-party indemnity provisions for the benefit of the respective directors which were in place throughout the year and which remain in place at the date of this report.

Page 1

 
U AND I (PINCENTS LANE) LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Small companies exemption

The Directors' Report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006

Strategic report

The Company has taken advantage of the exemption under s414B of the Companies Act 2006 not to prepare a Strategic Report.

Statement of disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.


Registered Office

100 Victoria Street

London

SW1E 5JL
This report was approved by the Board and signed on its behalf.
 
 



L McCaveny, for and on behalf of U and I Company Secretaries Limited
Company Secretary

Date: 22 November 2023

Registered and domiciled in England and Wales
Registered number: 06464634
Page 2

 

 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF U AND I (PINCENTS LANE) LIMITED
 

Opinion
 
We have audited the financial statements of U and I (Pincents Lane) Limited (the ‘Company’) for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes 1 to 14, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the Company's affairs as at 31 March 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period to 30 November 2024.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

the Directors’ Report has been prepared in accordance with applicable legal requirements.

Page 3

 

 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF U AND I (PINCENTS LANE) LIMITED
 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Directors’ Report and from the requirement to prepare a Strategic Report. 

Responsibilities of the directors

As explained more fully in the directors’ responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 
 
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.   

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud.  The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (FRS 101 and the Companies Act 2006) and the relevant tax regulations in the United Kingdom, including the UK REIT regulations. 
We understood how the Company is complying with those frameworks through enquiry with the Company and by identifying the Company's policies and procedures regarding compliance with laws and regulations. We also identified those members of the Company who have the primary responsibility for ensuring compliance with laws and regulations, and for reporting any known instances of non-compliance to those charged with governance.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by reviewing the Land Securities Group risk register and through enquiry with the Company's Management during the planning and execution phases of the audit. Where the risk was considered to be higher we performed audit procedures to address each identified fraud risk, specifically the risk over valuation of investment properties and revenue recognition, including the timing of the revenue recognition and treatment of lease incentives.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved:
°Enquiry of Management, and when appropriate, those charged with governance of the Company regarding their knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
°Reading minutes of meetings of those charged with governance;
°Obtaining and reading correspondence from legal and regulatory bodies, including HMRC; and
°Journal entry testing, with a focus on manual journals and journals indicating large or unusual transactions based on our understanding of the business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk /auditorsresponsibilities. This description forms part of our auditor’s report.
Page 4

 

 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF U AND I (PINCENTS LANE) LIMITED
 

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.  




Graeme Downes (Senior statutory auditor)
For and on behalf of 
Ernst & Young LLP, Statutory Auditor
London
 23 November 2023
Page 5

 
U AND I (PINCENTS LANE) LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Notes
£000
£000
(restated)

Costs
       4
(4)
(12)

Gross loss
  
(4)
(12)

Property management and administrative expenses
       5
(60)
(127)

Impairment of trading properties and long-term developments
       8
(4,074)
-

Operating loss
  
(4,138)
(139)

Taxation
 6 
-
-

Loss and total comprehensive loss for the financial year
  
(4,138)
(139)

  
There were no recognised gains and losses for 2023 or 2022 other than those included in the Statement of Comprehensive Income.

All amounts are derived from continuing activities.

Page 6

 
U AND I (PINCENTS LANE) LIMITED
REGISTERED NUMBER:06464634

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
1 April 2021
Notes
£000
£000
(restated)
£000

  

Non-current assets
  

Right-of-use asset
 7 
80
138
-

  
80
138
-

Current assets
  

Trading properties and long term development contracts
       8
1,330
5,142
4,971

Trade and other receivables
       9
32
39
3

  
1,362
5,181
4,974

Current liabilities
  

Trade and other payables
      10 
(103)
(169)
(92)

Amounts owed to Group undertakings
      11
(5,999)
(5,613)
(5,280)

  
(6,102)
(5,782)
(5,372)

Non-current liabilities
  

Trade and other payables
    10,12
(15)
(74)
-

  
(15)
(74)
-

Net liabilities
  
(4,675)
(537)
(398)


Capital and reserves
  

Share capital
      13
-
-
-

Retained loss
  
(4,675)
(537)
(398)

Total deficit
  
(4,675)
(537)
(398)



The financial statements on pages 6 to 17 were approved by the board of directors and were signed on its behalf by: 



C Lund, for and on behalf of U and I Director 2 Limited

Date: 22 November 2023
Page 7

 
U AND I (PINCENTS LANE) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Share capital
Retained loss
Total deficit

£000
£000
£000


At 1 April 2021
-
(398)
(398)



Total comprehensive loss for the financial year (restated)
-
(139)
(139)



At 31 March 2022 (restated)
-
(537)
(537)



Total comprehensive loss for the financial year
-
(4,138)
(4,138)


At 31 March 2023
-
(4,675)
(4,675)

Page 8

 
U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.Accounting policies

 
1.1

Basis of preparation

The financial statements have been prepared on a going concern basis and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' ('FRS 101') and the Companies Act 2006. The financial statements are prepared under the historical cost convention. 
 
During the year, the Company changed its reporting framework from Financial Reporting Standard 102 ('FRS 102') the Financial Reporting
Framework applicable in the UK and Republic of Ireland (UK GAAP) to Financial Reporting Standard 101 'Reduced Disclosure Framework'
('FRS 101'). Refer to Note 2 - Changes in accounting policies and standards for further information on the impact of this change.
 
U and I (Pincents Lane) Limited (the ‘Company’) is a private company limited by shares and is incorporated, domiciled and registered in England and Wales (Registered number: 06464634). The nature of the Company’s operations is set out in the Directors' Report on page 1. The results of the Company are included with the results of Land Securities Group PLC and its subsidiaries (the 'Group') in the consolidated financial statements of Land Securities Group PLC which are available from the Company's registered office at 100 Victoria Street, London, SW1E 5JL.

The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 March 2023. The financial statements are prepared in Pounds Sterling (£) and are rounded to the nearest thousand pounds (£000) unless otherwise stated.

 
1.2

Financial reporting standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
 - paragraph 118(e) of IAS 38 Intangible Assets;
 - paragraphs 76 and 79(d) of IAS 40 Investment Property; and
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

The equivalent disclosures relating to IFRS 7, IFRS 13 & IAS 36 are included in the consolidated financial statements of Land Securities Group PLC, in which the entity is consolidated.

 
1.3

Trading properties and long term development contracts

Trading properties are those properties held for sale, or those being developed with a view to sell. Trading properties are recorded at the lower of cost and net realisable value. The net realisable value of a trading property is determined by a professional independent valuer at each reporting date. If the net realisable value of a trading property is lower than its carrying value, an impairment loss is recorded in the Statement of Comprehensive Income. If, in subsequent periods, the net realisable value of a trading property that was previously impaired increases above its carrying value, the impairment is reversed. Trading properties are presented on the Balance Sheet within current assets.

Revenue on long-term development contracts is recognised according to the stage reached in the contract by reference to the value of work completed using the percentage of completion method. An appropriate estimate of the profit attributable to work completed is recognised once the outcome of the contract can be estimated reliably. The gross amount due from customers for contract work is shown as a receivable. The gross amount due comprises costs incurred plus recognised profits less the sum of recognised losses and progress billings. Where the sum of recognised losses and progress billings exceeds costs incurred plus recognised profits, the amount is shown as a liability.

 
1.4

Trade and other receivables

Trade and other receivables are recognised initially at fair value, subsequently at amortised cost and, where relevant, adjusted for the time value of money. The Company assesses on a forward-looking basis, the expected credit losses associated with its trade receivables. A provision for impairment is made for the lifetime expected credit losses on initial recognition of the receivable. If collection is expected in more than one year, the balance is presented within non-current assets.

In determining the expected credit losses, the Company takes into account any recent payment behaviours and future expectations of likely default events (i.e. not making payment on the due date) based on individual customer credit ratings, actual or expected insolvency filings or company voluntary arrangements and market expectations and trends in the wider macro-economic environment in which our customers operate. 

Trade and other receivables are written off once all avenues to recover the balances are exhausted and the lease has ended. Receivables written off are no longer subject to any enforcement activity.

Page 9

 
U AND I (PINCENTS LANE) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.Accounting policies (continued)

  
1.5

Provisions

A provision is recognised in the Balance Sheet when the Company has a constructive or legal obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Where relevant, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

  
1.6

Share capital

Ordinary shares are classified as equity.

 
1.7

Going concern

The directors have determined that preparing the financial statements on the going concern basis is appropriate due to the continued financial support of the ultimate parent company, Land Securities Group PLC (together with its subsidiaries referred to as the ‘Group’). The directors’ going concern assessment covers the period to 30 November 2024 and confirmation has been received that Land Securities Group PLC will support the Company until this date so long as the Company remains a subsidiary of Land Securities Group PLC. If the Company was sold within the next 12 months from 30 November 2023, confirmation has been received that Land Securities Group PLC would ensure the Company remains in a position to continue as a going concern at the point of sale. The Company’s ability to meet its future liabilities is therefore dependent on the financial performance, position and liquidity of the Group as a whole. At the Group level, considerations included potential risks and uncertainties in the business, credit, market, property valuation and liquidity risks, including the availability and repayment profile of bank facilities, as well as forecast covenant compliance. Stress testing has been carried out to ensure the Group has sufficient cash resources to continue in operation for the period to 30 November 2024. This stress testing modelled a scenario with materially reduced levels of cash receipts over the next 12 months. Based on these considerations, together with available market information and the directors’ knowledge and experience of the Company, the directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2023.

  
1.8

Expenses

Property and contract expenditure is expensed as incurred.

  
1.9

Income taxation

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the tax payable on the taxable income for the year and any adjustment in respect of previous years. Deferred tax is provided in full using the Balance Sheet liability method on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the asset is realised or the liability is settled.

No provision is made for temporary differences (i) arising on the initial recognition of assets or liabilities, other than on a business combination, that affect neither accounting nor taxable profit and (ii) relating to investments in subsidiaries to the extent that they will not reverse in the foreseeable future.

  
1.10

Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company is lessee

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:
          • Office site - 3 years

Lease liabilities are measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. Variable lease payments that do not depend on an index or a rate are recognised as expenses as incurred. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, or a change in the lease payments with an equal and opposite adjustment recognised in the right-of-use asset, to the extent that this does not reduce the right-of-use asset below a nil value.

Page 10

 
U AND I (PINCENTS LANE) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.Accounting policies (continued)

  
1.11

Intercompany loans

Amounts owed to Group undertakings

Amounts owed to Group undertakings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, amounts owed to Group undertakings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the Statement of Comprehensive Income over the period of the loan, using the effective interest method.

 
1.12

Trade and other payables

Trade and other payables with no stated interest rate and payable within one year are recorded at transaction price. Trade and other payables after one year are discounted based on the amortised cost method using the effective interest rate.

  
1.13

Dividends

Final dividend distributions to the Company’s shareholders are recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders. Interim dividends are recognised when paid.


2.


Changes in accounting policies and standards

The Company presents its financial statements in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' ('FRS 101' or ‘IFRS’) from the financial year ended 31 March 2023 for the first time. For periods up to and including the year ended 31 March 2022, the Company prepared its financial statements in accordance with Financial Reporting Standard 102 the ‘Financial Reporting Framework applicable in the UK and Republic of Ireland’ ('FRS 102' or ‘UK GAAP’). The date of transition to FRS 101 was 1 April 2021. 
Accordingly, the Company has prepared financial statements that comply with FRS 101 applicable as at 31 March 2023, together with the comparative period data for the year ended 31 March 2022, as described in the summary of significant accounting policies. In preparing the financial statements, the Company’s opening statement of financial position was prepared as at 1 April 2021, the Company’s date of transition to IFRS. This note explains the principal adjustments made by the Company in restating its FRS 102 financial statements, including the statement of financial position as at 1 April 2021 and the financial statements as of, and for, the year ended 31 March 2022.
              
2.1 IFRS 1 exemptions
IFRS 1 stipulates that, in principle, the retrospective application of IFRS is required. However it provides some voluntary and mandatory exemptions from full retrospective applications. The Company has elected such exemptions with respect to the following items relevant for the Company.
              
i) Leases 
The Company has assessed whether contracts contain leases based on events and conditions existing at the date of transition. When a first-time adopter that is a lessee recognises right-of-use assets and lease liabilities, it is permitted to measure right-of-use assets and lease liabilities at the date of transition under IFRS 1. In preparing the financial statements, the Company has measured all lease liabilities at the commencement date of the lease, as it falls after the date of transition, using the present value of the remaining lease payments discounted by the lessee’s incremental borrowing rate at the commencement date of the lease. The Company has measured right-of-use assets at the commencement date of the lease, making them equal to the lease liabilities. 
              
2.2 IFRS mandatory exemptions
IFRS 1 prohibits retroactive application of IFRS to ‘estimates’, ‘derecognition of financial assets and liabilities’ and ‘classification and measurement of financial assets’. The Company applies FRS101 to such items occurring after the date of transition. 
             
 Estimates:
The estimates at 1 April 2021 and at 31 March 2022 are consistent with those made for the same dates in accordance with FRS 102 (after adjustments to reflect any differences in accounting policies). The estimates used by the Company to present these amounts in accordance with FRS 101 reflect conditions at 1 April 2021, the date of transition to FRS 101 and as at 31 March 2022.
             
2.3 Reconciliation from UK GAAP to IFRS
The changes in the Company’s financial position and operating results due to the transition from FRS102 to FRS101 are disclosed below. The transition adjustments as at 1 April 2021 have not been disclosed below as the commencement date of the lease falls after this date and so there are no adjustments to disclose at 1 April 2021. The subsequent notes relating to the balance sheet do not disclose the balances at 1 April 2021 for the same reason. 

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U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.


Changes in accounting policies and standards (continued)

1 April
2021
31 March
2022
31 March
2023
      £000
      £000
      £000

Total deficit

(398)

(536)

(4,682)
 
Net adjustment for right-of-use assets

-

(1)

-
 
Total deficit  (FRS101)

(398)

(537)

(4,682)
 

Statement of comprehensive income

-

(138)

(4,138)
 
Net adjustment for right-of-use assets

-

(1)

-
 
Statement of comprehensive income (FRS101)

-

(139)

(4,138)
 

Changes to the Balance Sheet as at 31 March 2022

Local GAAP
Reclassification and remeasurement
IFRS as at 31 March 2022
      £000
      £000
      £000
Non-current assets

Right-of-use asset

-

138

138
 

-

138

138
 
Current assets

Trading properties and long term development contracts

5,142

-

5,142
 
Trade and other receivables

45

(6)

39
 

5,187

(6)

5,181
 
Current liabilities

Trade and other payables

(110)

(59)

(169)
 
Amounts owed to Group undertakings

(5,613)

-

(5,613)
 

(5,723)

(59)

(5,782)
 
Non-current liabilities

Trade and other payables

-

(74)

(74)
 

-

(74)

(74)
 
Net liabilities

(536)

(1)

(537)
 
Capital and reserves

Share capital

-

-

-
 
Retained losses

(536)

(1)

(537)
 
Total deficit

(536)

(1)

(537)
 

Page 12

 
U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.


Changes in accounting policies and standards (continued)

Changes to the Statement of Comprehensive income for the year ended 31 March 2022

Local GAAP
Reclassification and remeasurement
IFRS as at 31 March 2022
      £000
      £000
      £000

Costs

(49)

37

(12)
 
Gross loss

(49)

37

(12)
 

Property management and administrative expenses

(89)

(38)

(127)
 
Operating loss

(138)

(1)

(139)
 
Taxation

-

-

-
 
Loss and total comprehensive loss for the financial year

(138)

(1)

(139)
 

Under FRS 102, a lease is classified as a finance lease or an operating lease. Operating lease payments are recognised as an operating expense in the statement of profit or loss on a straight-line basis over the lease term. Under FRS 101, as explained in Note 2.1, a lessee applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets and recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
At the date of transition to FRS 101, the Company applied the transitional provision and measured lease liabilities at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate at the commencement date of the lease. Right-of-use assets were measured at the amount equal to the lease liabilities adjusted by the amount of any prepaid or accrued lease payments. As a result, at 31 March 2022 the Company recognised an increase of 
£133,000 (1 April 2021: £Nil) of lease liabilities included under trade and other payables and £138,000 (1 April 2021: £Nil) of right-of-use assets. The  difference between lease liabilities and right-of-use assets has been recognised in retained earnings.
Under FRS 102, assets held under finance leases are capitalised and included in property, plant and equipment. Under FRS 101, they are presented in right-of-use assets. Additionally, depreciation increased by £35,000  and finance costs increased by £3,000 for the year ended 31 March 2022, while rent expenses are decreased by £37,000.

Page 13

 
U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Significant accounting judgements and estimates

The Company’s significant accounting policies are stated in note 1 above. Not all of these significant accounting policies require management to make difficult, subjective or complex judgements or estimates. The following is intended to provide an understanding of the policies that management consider critical because of the level of complexity, judgement or estimation involved in their application and their impact on the financial statements. These judgements involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.

Estimates

(a) Trade and other receivables

The Company is required to judge when there is sufficient objective evidence to require the impairment of individual trade receivables. It does this by assessing on a forward-looking basis, the expected credit losses associated with its trade receivables. A provision for impairment is made for the lifetime expected credit losses on initial recognition of the receivable. In determining the expected credit losses, the Company takes into account any recent payment behaviours and future expectations of likely default events (i.e. not making payment on the due date) based on individual customer credit ratings, actual or expected insolvency filings or company voluntary arrangements, likely deferrals of payments due, rent concessions and market expectations and trends in the wider macro-economic environment in which our customers operate. These assessments are made on a customer by customer basis.

The Company’s assessment of expected credit losses is inherently subjective due to the forward-looking nature of the assessments, in particular, the assessment of expected insolvency filings or company voluntary arrangements, likely deferrals of payments due and rent concessions. As a result, the value of the provisions for impairment of the Company’s trade receivables are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate. 
 
(b) Trading properties and long-term development contracts
 
Trading properties are carried at the lower of cost and net realisable value. The latter is assessed by the Company having regard to suitable valuations performed by its external valuer, JLL.
The estimation of the net realisable value of the Company’s trading properties, especially the development land and infrastructure programmes, is inherently subjective due to a number of factors, including their complexity, unusually large size, the substantial expenditure required and long timescales to completion. In addition, as a result of these timescales to completion, the plans associated with these programmes could be subject to significant variation. As a result, the net realisable values of the Company’s trading properties are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate. If the assumptions upon which the external valuer has based their valuation prove to be inaccurate, this may have an impact on the net realisable value of the Company’s properties, which would in turn have an effect on the Company’s financial condition.


4.


Revenue and costs

2023
2022
£000
£000
(restated)


Costs


Direct property or contract expenditure
(4)
(12)

Gross loss
(4)
(12)

Direct property or contract expenditure are costs incurred in the direct maintenance and upkeep of investment properties. Void costs, which include costs relating to empty properties pending redevelopment and refurbishment, costs of investigating potential development schemes which do not proceed, and costs in respect of housekeepers and outside staff directly responsible for property services, are also included.

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U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

5.


Property management and administrative expenses

Property management and administrative expenses consist of all costs of managing the property, together with the costs of rent reviews and renewals, re-lettings of the property and management services as explained in note (a) below. No staff costs or overheads are capitalised.

(a) Management services

The Company had no employees during the year (2022: None). Management services were provided to the Company throughout the year by Land Securities Properties Limited, a fellow subsidiary undertaking, charges for which amount to £Nil (2022: £89,000).

(b) Directors’ remuneration

The Group's directors' emoluments are borne by Land Securities Properties Limited. The directors of the Company, who are key management personnel of the Company, received no emoluments from Land Securities Properties Limited for their services to the Company (2022: £Nil).

(c) Auditor remuneration

The Group auditor’s remuneration is borne by Land Securities Properties Limited. The proportion of the remuneration which relates to the Company amounts to £9,632 (2022: £8,595). No non-audit services were provided to the Company during the year (2022: None).
 


6.


Income tax


2023
2022
£000
£000

Corporation tax


Income tax on loss for the year
-
-

Total income tax on loss in the Statement of Comprehensive Income
-
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022: 19%) as set out below:

2023
2022
£000
£000


Loss before tax
(4,138)
(139)


Loss before tax multiplied by UK corporation tax rate
(786)
(26)

Effects of:


Exempt property rental losses in the year
12
11

Exempt trading property impairment in the year
774
-

Group relief surrendered for a nil consideration
-
15

Total tax charge in the Statement of Comprehensive Income (as above)
-
-

Land Securities Group PLC is a Real Estate Investment Trust (REIT). As a result the Company does not pay UK corporation tax on the profits and gains from qualifying rental business in the UK provided it meets certain conditions. Non-qualifying profits and gains of the Company continue to be subject to corporation tax as normal.

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U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Right-of-use asset

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year:


Office site
£000

As at 1 April 2021


Additions
174

Depreciation expense
(36)

As at 31 March 2022 (restated)
138


Depreciation expense
(58)

As at 31 March 2023
80


8.


Trading properties and long-term development contracts

2023
2022
£000
£000

At 1 April
5,142
4,971

Acquisitions
262
171

Impairment
(4,074)
-

At 31 March
1,330
5,142


The realisable value of the Company’s trading properties at 31 March 2023 has been based on a valuation carried out at that date by JLL, external valuers. The cumulative impairment provision at 31 March 2023 in respect of development land and infrastructure was £4,074,000 (2022: £Nil).



9.


Trade and other receivables

2023
2022
£000
£000
(restated)


Other receivables
20
-

Prepayments and accrued income
-
4

Social security and other taxes
12
35

Total trade and other receivables
32
39

Page 16

 
U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Trade and other payables

2023
2022
£000
£000
(restated)


Capital payables
44
-

Current obligations under head leases (note 12)
59
58

Accruals
-
111

Total current trade and other payables
103
169


Non-current obligations under head leases (note 12)
15
74

Total trade and other payables
118
243


11.


Amounts owed to Group undertakings

2023
2022
£000
£000



Amounts owed to Group undertakings - fellow subsidiary
5,999
5,613

Total amounts owed to Group undertakings
5,999
5,613

The unsecured amounts owed to Group undertakings are repayable on demand with no fixed repayment date. Interest is charged at 4.3% per annum (2022: £Nil).


12.


Obligations under head leases


Future minimum lease payments for:

2023
2022
£000
£000
(restated)


Not later than one year
60
60

Later than one year but not more than five years
15
75

75
135


Future finance charges on head leases
(1)
(3)

Present value of head lease liabilities
74
132


The present value of minimum lease payments is analysed as follows:

2023
2022
£000
£000
(restated)


Not later than one year
59
58

Later than one year but not more than five years
15
74

74
132

The fair value of the Company's lease obligations, using a discount rate of 2.7% (2022: 2.7%) is £74,000 (2022: £131,000).
Page 17

 
U AND I (PINCENTS LANE) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Share capital



Authorised and issued
Allotted and fully paid


2023
2022
2023
2022


Number
Number
£
£

Ordinary shares of £1.00 each
1
1
1
1


1
1
1
1



14.


Parent company

The immediate parent company is U and I (GVP) Limited.

The ultimate parent company and controlling party at 31 March 2023 was Land Securities Group PLC, which is registered in England and Wales. This is the largest parent company of the Group to consolidate these financial statements.

Consolidated financial statements for the year ended 31 March 2023 for Land Securities Group PLC can be obtained from the Company Secretary at the registered office of the ultimate parent company, 100 Victoria Street, London, SW1E 5JL. This is the largest and smallest Group to include these accounts in its consolidated financial statements.
Page 18