Crestvale Properties Limited |
Notes to the Accounts |
for the year ended 31 August 2023 |
|
|
1 |
Accounting policies |
|
|
Basis of preparation |
|
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). |
|
|
Turnover |
|
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
|
|
Tangible fixed assets |
|
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, as follows: |
|
|
Fixtures, fittings, tools and equipment |
over 5 years |
|
|
Investments |
|
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. The Company jointly owns a portfolio of properties in Kent which was acquired during the year. This portfolio is owned equally with a third party and the Company recognises in Stocks, Turnover and Cost of Sales its proportionate share of the assets and transactions during the year. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
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. |
|
|
Creditors |
|
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. |
|
|
Taxation |
|
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. |
|
|
2 |
Employees |
2023 |
|
2022 |
Number |
Number |
|
|
Average number of persons employed by the company |
2 |
|
1 |
|
|
|
|
|
|
|
|
|
|
3 |
Turnover analysis |
2023 |
|
2022 |
£ |
£ |
|
Turnover for the year comprises: |
|
Rental income and sale of properties |
2,151,796 |
|
958,568 |
|
|
|
|
|
|
|
2,151,796 |
|
958,568 |
|
|
|
|
|
|
|
|
|
|
4 |
Tangible fixed assets |
|
|
|
|
Land and buildings |
|
Fixtures & fittings |
|
Total |
£ |
£ |
£ |
|
Cost |
|
At 1 September 2022 |
- |
|
16,469 |
|
16,469 |
|
Additions |
2,350,000 |
|
- |
|
2,350,000 |
|
Recategorisation |
(2,350,000) |
|
- |
|
(2,350,000) |
|
At 31 August 2023 |
- |
|
16,469 |
|
16,469 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 September 2022 |
- |
|
14,322 |
|
14,322 |
|
Charge for the year |
- |
|
1,285 |
|
1,285 |
|
At 31 August 2023 |
- |
|
15,607 |
|
15,607 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 August 2023 |
- |
|
862 |
|
862 |
|
At 31 August 2022 |
- |
|
2,147 |
|
2,147 |
|
As detailed in Note 5, during the year the Company acquired a portfolio of properties as part of a dividend distribution from its subsidiary company, Landpalm Limited. Those properties had been held as fixed assets by that company and so were recorded as fixed assets upon the transfer of ownership. Subsequently, the Company recategorised the properties as Stock alongside its other property assets. |
|
5 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
|
Cost |
|
At 1 September 2022 |
102 |
|
Additions |
3,150,000 |
|
Impairment of investment (see below) |
(3,150,000) |
|
|
At 31 August 2023 |
102 |
|
|
|
|
|
|
|
|
|
|
On 31 January 2023 the Company acquired the entire share capital of Landpalm Holdings Limited for £3.15 million. The consideration was paid by way of the issue of £2.4 million of Loan Notes (see Note 8) plus £750,000 cash. |
|
Landpalm Holdings Limited was an inactive holding company whose sole asset was the entire share capital of Landpalm Limited, a property company. After the acquisition of the Landpalm group, ownership of the shares in Landpalm Limited was transferred to Crestvale Properties Limited and Landpalm Holdings Limited was dissolved. |
|
Landpalm Limited subsequently declared a dividend equivalent to its net Reserves and settled the payment of the dividend by transferring ownership of its properties and all rights and obligations to Crestvale Properties Limited at book value plus a balancing cash element. |
|
Consequently, following this dividend the company impaired the cost of its investment in Landpalm to reflect the dividend and the decrease in value of the subsidiary. |
|
|
6 |
Debtors |
2023 |
|
2022 |
£ |
£ |
|
|
Trade debtors |
10,826 |
|
16,567 |
|
Amounts owed by group undertakings and undertakings and related parties |
|
2,262,717 |
|
1,359,179 |
|
Other debtors |
139,623 |
|
214,150 |
|
|
|
|
|
|
2,413,166 |
|
1,589,896 |
|
|
|
|
|
|
|
|
|
|
7 |
Creditors: amounts falling due within one year |
2023 |
|
2022 |
£ |
£ |
|
|
Trade creditors |
32,363 |
|
28,394 |
|
Taxation and social security costs |
107,368 |
|
121,546 |
|
Other creditors |
2,932,334 |
|
2,284,638 |
|
|
|
|
|
|
3,072,065 |
|
2,434,578 |
|
|
|
|
|
|
|
|
|
|
8 |
Creditors: amounts falling due after one year |
2023 |
|
2022 |
£ |
£ |
|
|
Bank loans |
7,001,984 |
|
7,130,163 |
|
Loan Notes |
2,400,000 |
|
- |
|
|
|
|
|
|
9,401,984 |
|
7,130,163 |
|
|
|
|
|
|
|
|
|
|
Loan Notes |
|
As part of the consideration for the acquisition of the Landpalm group (see Note 5) the Company issued £2.4 million of unsecured Loan Notes 2030. |
|
The Loan Notes are subdivided into units of £50,000, carry no interest and the units are repayable by the Company on 31 January 2030 or such earlier date as may be agreed by mutual consent between the Loan Note Holder and the Company. |
|
The Loan Notes may only be transferred with the approval and written consent of the Company. |
|
|
9 |
Loans |
2023 |
|
2022 |
£ |
£ |
|
Creditors include: |
|
|
Secured bank loans |
7,001,984 |
|
7,130,163 |
|
|
|
|
|
|
|
|
|
|
The bank borrowings are secured against the assets of the company and are repayable between one and five years from the balance sheet date. |
|
|
10 |
Related party transactions |
2023 |
|
2022 |
£ |
£ |
|
Crestvale Properties (LH) Limited |
|
Crestvale Properties (LH) Limited is a wholly owned subsidiary to whom the company transferred certain assets upon the demerger of the group in the previous year. |
|
Amount due from/(to) related party |
|
1,359,179 |
|
1,359,179 |
|
|
Landpalm Limited |
|
Landpalm Limited is a wholly owned subsidiary. |
|
Amount due from/(to) related party |
|
903,538 |
|
20,000 |
|
|
D W Stanley |
|
D W Stanley is a director of the Company and resulting from the acquisition of the Landpalm group during the year the Company had a debt to Mr Stanley. This amount has been repaid in full after the year end. |
|
Amount due from/(to) related party |
|
(750,000) |
|
- |
|
|
11 |
Controlling party |
|
|
The company is a wholly owned subsidiary of Crestvale Properties Holdings Limited. In the opinion of the directors, there is no ultimate controlling party. |
|
|
12 |
Other information |
|
|
Crestvale Properties Limited is a private company limited by shares and incorporated in England. Its registered office is: |
|
26/26 Great Portland Street |
|
London |
|
W1W 8QT |