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Registration number: 10620409

Red Square Development Property Ltd

Unaudited Filleted Financial Statements

for the Year Ended 28 February 2023

 

Red Square Development Property Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Red Square Development Property Ltd

Company Information

Directors

J. Silverstone

M.R. Silverstone

Registered office

273 Eversholt Street
London
NW1 1BA

Bankers

National Westminster Bank plc
166 Camden High Street
London
NW1 0NS

Accountants

M.H.Smith Ltd trading as AIMS - Accountants for Business
Chartered accountants
3 Ambassador Drive
Halewood Village
Liverpool
Merseyside
L26 6LT

 

Red Square Development Property Ltd

(Registration number: 10620409)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

72,396

69,913

Current assets

 

Stocks

5

5,047,000

3,459,000

Debtors

6

313,938

479,116

Cash at bank and in hand

 

1,962,018

1,785,142

 

7,322,956

5,723,258

Creditors: Amounts falling due within one year

7

(378,476)

(796,320)

Net current assets

 

6,944,480

4,926,938

Total assets less current liabilities

 

7,016,876

4,996,851

Creditors: Amounts falling due after more than one year

7

(7,012,868)

(4,139,814)

Net assets

 

4,008

857,037

Capital and reserves

 

Called up share capital

8

101

101

Retained earnings

3,907

856,936

Shareholders' funds

 

4,008

857,037

For the financial year ending 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Red Square Development Property Ltd

(Registration number: 10620409)
Balance Sheet as at 28 February 2023

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
J. Silverstone
Director

 

Red Square Development Property Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
273 Eversholt Street
London
NW1 1BA

These financial statements were authorised for issue by the Board on 28 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard FRS 102 Section 1A smaller entities and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Red Square Development Property Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold property

Not depreciated

Office equipment

20% on reducing balance basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Red Square Development Property Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 5).

 

Red Square Development Property Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

4

Tangible assets

Long leasehold land and buildings
£

Office equipment
£

Total
£

Cost or valuation

At 1 March 2022

66,570

5,682

72,252

Additions

-

5,179

5,179

Disposals

-

(1,937)

(1,937)

At 28 February 2023

66,570

8,924

75,494

Depreciation

At 1 March 2022

-

2,339

2,339

Charge for the year

-

1,457

1,457

Eliminated on disposal

-

(698)

(698)

At 28 February 2023

-

3,098

3,098

Carrying amount

At 28 February 2023

66,570

5,826

72,396

At 28 February 2022

66,570

3,343

69,913

Included within the net book value of land and buildings above is £66,570 (2022 - £66,570) in respect of long leasehold land and buildings.
 

5

Stocks

2023
£

2022
£

Other inventories

5,047,000

3,459,000

6

Debtors

Current

2023
£

2022
£

Trade debtors

-

20,000

Prepayments

2,738

-

Other debtors

311,200

459,116

 

313,938

479,116

 

Red Square Development Property Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

197,685

135,988

Trade creditors

 

2,111

891

Taxation and social security

 

139,413

626,156

Accruals and deferred income

 

39,267

16,548

Other creditors

 

-

16,737

 

378,476

796,320

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

7,012,868

4,139,814

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

B Ordinary share of £1 each

1

1

1

1

 

101

101

101

101

 

Red Square Development Property Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

3,569,465

1,535,498

Other borrowings

3,443,403

2,604,316

7,012,868

4,139,814

2023
£

2022
£

Current loans and borrowings

Bank borrowings

197,685

135,988

Bank borrowings

The Secure Trust Bank plc bank loan no. 1 is denominated in sterling with a nominal interest rate of its commercial lending rate 7.50%, and the final instalment is due on 6 November 2030. The carrying amount at year end is £1,488,490 (2022 - £1,586,486).

The bank loan is secured by fixed and floating charge over the assets of the company including 12 properties

The National Westminster Bank plc business interruption loan is denominated in sterling with a nominal interest rate of the bank base rate plus 4.21%, and the final instalment is due on 7 May 2026. The carrying amount at year end is £65,000 (2022 - £85,000).

The bank loan is secured by the amount held in the company's National Westminster Bank plc current account.

The Secure Trust Bank plc bank loan no. 2 is denominated in sterling with a nominal interest rate of its commercial lending rate 4.95%, and the final instalment is due on 9 August 2032. The carrying amount at year end is £2,213,660 (2022 - £Nil).

The bank loan is secured by a fixed and floating charge over the assets of the company including 8 properties

10

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £1,475,100.00 (2022 - £1,800,000.00) per each B Ordinary share

 

1,475,100

 

1,800,000

         
 

Red Square Development Property Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

11

Related party transactions

2023

At 1 March 2022
£

Advances to director
£

Repayments by director
£

At 28 February 2023
£

J. Silverstone

Loan

355,764

41,000

355,764

41,000

         
       

 

2022

At 1 March 2021
£

Advances to director
£

At 28 February 2022
£

J. Silverstone

Loan

-

355,764

355,764

       
     

 

Loans to related parties

2023

Key management
£

Total
£

At start of period

355,764

355,764

Advanced

41,000

41,000

Repaid

(355,764)

(355,764)

At end of period

41,000

41,000

2022

Key management
£

Total
£

Advanced

355,764

355,764

At end of period

355,764

355,764

Terms of loans to related parties

Interest has been charged at the beneficial loan rate of 2.25%. The loan was repaid on 23.11.2023.