Company registration number 02327007 (England and Wales)
FOUR ESSEX COURT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
FOUR ESSEX COURT LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 6
FOUR ESSEX COURT LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
407,083
469,192
Current assets
Debtors falling due after more than one year
5
425,640
425,577
Debtors falling due within one year
5
1,128,801
783,081
Cash at bank and in hand
5,009
53,983
1,559,450
1,262,641
Creditors: amounts falling due within one year
6
(422,667)
(276,752)
Net current assets
1,136,783
985,889
Total assets less current liabilities
1,543,866
1,455,081
Provisions for liabilities
7
(1,512,315)
(1,424,824)
Net assets
31,551
30,257
Capital and reserves
Called up share capital
8
3
3
Profit and loss reserves
31,548
30,254
Total equity
31,551
30,257
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 16 April 2024 and are signed on its behalf by:
R. Millett K.C.
Director
Company Registration No. 02327007
FOUR ESSEX COURT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
1
Accounting policies
Company information
Four Essex Court Limited is a private company limited by shares incorporated in England and Wales. The registered office is Devonshire House, 1 Devonshire Street, London, W1W 5DR. The company's principal place of business is Essex Court Chambers, 24-28 Lincoln's Inn Fields, London, WC2A 3EG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable, net of Value Added Tax, for licensing of commercial properties during the year. Turnover is recognised when a right to consideration arises.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Short leasehold properties
Straight line basis over the life of the lease
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.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include other receivables 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. Financial assets classified as receivable within one year are not amortised.
FOUR ESSEX COURT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Classification of financial liabilities
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
Basic financial liabilities, including creditors and loans from group undertakings, are initially recognised at transaction price. 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.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.7
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.8
Provisions
Provisions are recognised where there is a present obligation as a result of past events and it is probable that a transfer of economic benefit will be required to settle the obligation.
Where the effect is significant, provisions in respect of material future liabilities are stated at their net present value, arrived at by discounting the anticipated future costs.
FOUR ESSEX COURT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements and estimates
The following estimates have had the most significant effect on amounts recognised in the financial statements.
Dilapidation provisions
The directors estimate and make provision for costs that will be incurred in yielding up the properties, that the company leases, on expiry of the leases. The actual cost of the works that need to be completed could vary from the estimates.
3
Employees
The company did not have any employees during the current or prior year.
4
Tangible fixed assets
Land and buildings
£
Cost
At 1 October 2022
1,189,401
Additions
5,202
At 30 September 2023
1,194,603
Depreciation and impairment
At 1 October 2022
720,209
Depreciation charged in the year
67,311
At 30 September 2023
787,520
Carrying amount
At 30 September 2023
407,083
At 30 September 2022
469,192
FOUR ESSEX COURT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts due from group undertakings
230,890
50,445
Other debtors
897,911
732,636
1,128,801
783,081
Amounts falling due after more than one year:
Other debtors
425,640
425,577
Total debtors
1,554,441
1,208,658
Other debtors of £425,640 (2022: £425,577) relate to rent deposits which are repayable on expiry of the leases.
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
182,532
14,417
Corporation tax
39,200
Other creditors
200,935
262,335
422,667
276,752
7
Provisions for liabilities
2023
2022
£
£
Dilapidations provision
1,462,315
1,376,824
Deferred tax liabilities
50,000
48,000
1,512,315
1,424,824
8
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
2 Ordinary Shares of £1 each
2
2
1 "A" Share of £1 each
1
1
3
3
FOUR ESSEX COURT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
8
Called up share capital
(Continued)
- 6 -
The rights of shareholders under each class are as follows:-
(a) as regards appointment of directors:
The holders of any Ordinary Shares may appoint up to two directors in aggregate and may at any time remove any such director from office and appoint another person in his or her place. The holders of any "A" Share may appoint up to three directors in aggregate and may at any time remove such director from office and appoint another person in his or her place.
(b) as regards rights and restrictions attaching to "A" Shares:
Save as the right to appoint directors above and subject to the provision below, the "A" Shares do not confer on their holders thereof any other rights or privileges, and the holders of "A" Shares have no right to participate in any return of capital (on liquidation or otherwise) or any distribution of profits and have no right to attend, speak or vote at any general meeting of the company.
The holders of "A" Shares have the right to attend, speak and vote at a general meeting of the company only if and when, at the date of notice convening such meeting, a resolution is to be proposed abrogating, varying or modifying any of the rights or privileges of the holders of the "A" Shares.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was David Marks FCA.
The auditor was TC Group.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
11,087,775
12,826,278
11
Related party transactions
The company licences all of its leasehold properties to Comcas Services Limited, its parent company.
The amount charged to Comcas Services Limited for its occupation of the leasehold properties during the year was £2,052,315 (2022: £1,886,266).
As at the balance sheet date, Comcas Services Limited owed the company £230,890 (2022: £50,445). The amount is interest free, unsecured and repayable on demand.