RC Hoxton Limited is a private company limited by shares incorporated in England and Wales. The registered office is Seebeck House 1 Seebeck Place, Knowlhill, Milton Keynes, Buckinghamshire, United Kingdom, MK5 8FR.
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 £.
Exemptions for qualifying entities under FRS102, Section 1A
FRS 102, Section 1A allows a Small Entity, as defined, certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the Shareholders.
The company qualifies as a Small Entity as it meets the Small Entity criteria and hence has prepared these consolidated financial statements in accordance with FRS 102, Section 1A which sets out the presentation and disclosure requirements applicable to small entities, whilst the recognition and measurement requirements of the other sections would apply.
A Small Entity is not required to comply with disclosure requirements of Sections 8 - 35 of FRS 102 and hence the qualifying partnership has not presented:
a Statement of Cash Flows; and
Financial instruments disclosures with regards to risk and capital management disclosures
At the date of approving these financial statements the Directors have assessed cashflow forecasts and budgets for the company. As such the Directors have a reasonable expectation that the company will continue to meet its obligations as they fall due and can continue in operational existence for a period of at least 12 months from the date these financial statement are approved.
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.
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.
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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the period end date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The items in these financial statements where these judgements and estimates have been made include valuation of the investment property.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
In accordance with the accounting standards adopted by the company, the investment property is stated at fair value as at the period end date.
The Directors have used their own experience and reference to open market prices of similar properties to determine a fair value at the balance sheet date. However, any technique or method used to determine a fair value is inherently subjective due to a number of factors including the individual nature of the property, its location and the expectation of future rentals and development potential. As a result, the valuations placed on the investment property are subject to a degree of uncertainty and are made on the basis of assumptions that may not prove to be accurate, particularly in years of volatility or low transaction flow in the market. As a result, if the assumptions prove to be inaccurate, actual results of operations and realisation of the investment property could differ from the estimates set forth in these financial statements, and the difference could be significant.
The company acquired the investment property on 14 November 2019, with a view to further developing the property for it then to be rented.
The fair value of the investment property has been arrived at, by the directors, on the basis of a valuation made on an open market value basis by reference to market evidence of transaction prices for similar properties. At 31 March 2023, the Directors have assessed this value to be £2,025,594.
As detailed in Note 8, the loan to the company for the purpose of acquisition and development is secured against the above investment property and would be repayable on full disposal of the investment property.
The average monthly number of persons (including directors) employed by the company during the year was:
The long-term loans are secured by fixed charge over the investment property as detailed in note 4.
The terms of the loan during the year were were follows:
-Interest Rate: 9.5%-10.5% per annum with interest being calculated on a daily basis and rolled into the loan balance as above.
- A monthly fee of £1,000 payable for the duration of the loan.
Following the securing of a tenant in October 2023, the loan was extended on the following terms:
- Loan Redemption date: 20 January 2024
- Interest Rate 11.5% per annum with interest being calculated on a daily basis and rolled into the loan balance as above.
- A monthly fee of £1,000 payable for the duration of the loan.
On 8 February 2024, the loan facility was renegotiated on the following terms:
- Loan Redemption date: 20 October 2018
- Loan amount: £2,220,838 which included all rolled up interest to 8 February 2024.
- A monthly fee of £1,000 payable to the lender for the duration of the loan.
- Interest is accrued daily based upon an 'adjusted base rate' + 'margin'.
- The 'adjusted base rate' is defined as:
A percentage amount equal to the official bank rate of the Bank of England as published by the Bank of England from time to time (“Base Rate”) subject to the following adjustments:
(a) if Base Rate varies (either up or down) then the Adjusted Base Rate will vary (either up or down) by half the amount;
(b) if Base Rate is less than 3.75%, the Adjusted Base Rate shall be deemed to be 3.75%; and
(c) if Base Rate is more than 5.25%, the Adjusted Base Rate shall be deemed to be 5.25%.
- The 'margin' is defined as:
Period Margin % p.a.
From the date of this Agreement until 31 December 2024 6.25%
From 1 January 2025 until 31 October 2027 3.75%
From 1 November 2027 until 31 January 2028 6.25%
From 1 February 2028 until the repayment of all liabilities
under the Finance Documents 3.75%
- Interest is payable as follows:
Accrued interest on the loan is to be paid via monthly payments to the Lender of £11,000 per month, subject to the following:
(a) the first interest payment instalment is due on 31 December 2024;
(b) the Borrower is not required to make interest payment instalments on 30 November 2027, 31 December 2027 and 31 January 2028; and
(c) monthly interest payment instalments will commence again on 28 February 2028.
During the year the company entered into the following transactions with related parties:
Riverside Capital Group Limited are a related party by virtue of common Directors:
In accordance with the Asset Management Agreement between Riverside Capital Group Ltd ('Asset Manager') and RC Hoxton Limited , the company is liable to make an annual fee payment for asset management services provided. During the period ended 31 March 2023 £17,500 (2022: £17,500) was due to the Asset manager.
Riverside Capital Group Ltd were paid £12,500 in respect of Development Management Fees.
PIN DM Ltd are a related party by virtue of common Directors:
The Loan detailed in Note 8 is provided by PIN DM Ltd. During the year the company accrued interest totalling £170,673 on the loan. At the balance sheet date the total amount owing to PIN DM Ltd amounted to £2,036,069.
The parent company of RC Hoxton Limited is RC Hoxton Holdings Limited and its registered office is Seebeck House 1 Seebeck Place, Knowlhill, Milton Keynes, Buckinghamshire, United Kingdom, MK5 8FR.