Company registration number 06516374 (England and Wales)
URBANBUBBLE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
URBANBUBBLE LTD
COMPANY INFORMATION
Director
M P Howard
Company number
06516374
Registered office
Sevendale House
7 Dale Street
Manchester
M1 1JA
Auditor
Sumer Auditco Limited
The Beehive
City Place
Gatwick
RH6 0PA
URBANBUBBLE LTD
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
URBANBUBBLE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The director presents the strategic report for the year ended 30 June 2023.

Review of the business

urbanbubble experienced a significant year of growth to June 2023, with revenues climbing by £5.1m (44%) from £11.6m to £16.7m, along with an EBITDA of £1.1m (6.6%). The delivery of this result, in line with the forecast, promotes the strong planning and modelling that underpins our business.

 

We have an ambitious and progressive five-year business plan to June 2027 which will see the business grow revenues from £12m to £45m, and profits rise to 11% EBITDA in the same period. 2023, being our first year in this five year plan is an encouraging start to our journey.

 

Year-end 2024 sees revenues climb again by £8m to £25m, and EBITDA should be close to £2m (8%). Cash and balance sheet strengthening will be attained in in YE 2024 providing a further leap forward for our business in terms of strong working capital and financial stability without the need for any capital investment to fuel growth.

 

The success of our business can be attributed to a number of factors. The first is the diligent planning of the business out of the pandemic of 2020/2021. The second is the strategic partnerships made in 2015 to 2019 with quality developers and institutional investors to operate their communities. Third is the significant upward pressure on rents in the UK due to the supply imbalance; organically increasing our revenues which are tied with rent. Finally, the passion, commitment and hard work of the now, 500 FTE that serve urbanbubble nationally caring for communities and residents.

 

urbanbubble is split into two key directorates; Residential and Build the Rent. Residential deals with leasehold management activity including traditional block management, residential lettings, maintenance and new scheme consultancy. The Built to Rent side of the business encompasses institutional management, including Build to Rent, Co-living Operations, Research, Insights and Consultancy and Single-Family Operations.

 

During the year the business has fully appointed the Executive Leadership Team and Senior Management Teams. Both Residential and Build to Rent have strong Senior Management Teams led by their respective Directors, who sit on the Executive Leadership Team. Building in strategic and management strength during 2023 was an important milestone to allow urbanbubble to manage future scale. urbanbubble’s FTE has increased by 30% to 385 employees employed nationally.

 

Revenue growth levels across both Residential and Build to Rent sit at circa. 35%. Build to Rent constitutes 60% of revenues, and Residential 40%. Both are expected to grow a further 30% for the next two years.

 

Both platforms have welcomed new communities and instructions into their portfolios. Build to Rent have launched seven new communities within the period, seeing urbanbubble expand to a large-scale national operator, managing schemes within England, Scotland and Wales. The largest Build to Rent scheme launched within 2023 was 1100 homes in Wandsworth.

 

urbanbubble currently have over 17,000 homes under management across circa. 83 schemes within both Build to Rent and Residential. A strong, confirmed pipeline of circa. 7,000 units up to 2027 further cements urbanbubble’s future growth plans.

 

On behalf of the board

M P Howard
Director
13 February 2024
URBANBUBBLE LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The director presents his annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company continued to be that of property management and consultancy.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £509,354. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

M P Howard
Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 financial statements, the director is required to:

 

 

The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

URBANBUBBLE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
On behalf of the board
M P Howard
Director
13 February 2024
URBANBUBBLE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF URBANBUBBLE LTD
- 4 -
Opinion

We have audited the financial statements of Urbanbubble Ltd (the 'company') for the year ended 30 June 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 director's 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 of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

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 director is 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 our 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 this 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 our audit:

URBANBUBBLE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF URBANBUBBLE LTD
- 5 -
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 strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the Directors (as required by auditing standards) and discussed with the Directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; laws related to Health and Safety and Employment, UK Companies Act and Tax Legislation.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

URBANBUBBLE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF URBANBUBBLE LTD
- 6 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

 

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

The financial statements of the company for the year ended 30 June 2022 were not audited, as an exemption from audit was claimed under s.382 of the Companies Act 2006.

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.

Stuart Stead
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
13 February 2024
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
URBANBUBBLE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
2023
2022
£
£
Turnover
3
16,660,656
11,585,581
Cost of sales
(10,790,876)
(7,322,928)
Gross profit
5,869,780
4,262,653
Administrative expenses
(4,813,323)
(3,600,725)
Other operating (expenses)/income
(3,637)
43,455
Operating profit
4
1,052,820
705,383
Interest receivable and similar income
7
16,406
13,070
Interest payable and similar expenses
8
(36,304)
(25,494)
Provision against related party loans
9
-
(41,878)
Profit before taxation
1,032,922
651,081
Taxation
10
597,208
458
Profit for the financial year
1,630,130
651,539

The profit and loss account has been prepared on the basis that all operations are continuing operations.

URBANBUBBLE LTD
BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
112,456
65,032
Investments
13
50
50
112,506
65,082
Current assets
Debtors
15
4,897,762
3,731,012
Cash at bank and in hand
323,513
69,081
5,221,275
3,800,093
Creditors: amounts falling due within one year
16
(3,171,739)
(2,699,364)
Net current assets
2,049,536
1,100,729
Total assets less current liabilities
2,162,042
1,165,811
Creditors: amounts falling due after more than one year
17
(333,226)
(474,553)
Provisions for liabilities
(19,098)
(2,316)
Net assets
1,809,718
688,942
Capital and reserves
Called up share capital
21
5
5
Profit and loss reserves
1,809,713
688,937
Total equity
1,809,718
688,942
The financial statements were approved and signed by the director and authorised for issue on 13 February 2024
M P Howard
Director
Company Registration No. 06516374
URBANBUBBLE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
5
177,398
177,403
Year ended 30 June 2022:
Profit and total comprehensive income
-
651,539
651,539
Dividends
11
-
(140,000)
(140,000)
Balance at 30 June 2022
5
688,937
688,942
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,630,130
1,630,130
Dividends
11
-
(509,354)
(509,354)
Balance at 30 June 2023
5
1,809,713
1,809,718
URBANBUBBLE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
284,233
11,015
Interest paid
(36,304)
(25,494)
Income taxes refunded
1,049
404,074
Net cash inflow from operating activities
248,978
389,595
Investing activities
Purchase of tangible fixed assets
(81,557)
-
0
Proceeds from disposal of joint ventures
-
0
(50)
Repayment of loans
715,540
(268,149)
Interest received
16,406
13,070
Net cash generated from/(used in) investing activities
650,389
(255,129)
Financing activities
Repayment of bank loans
(135,581)
(141,911)
Dividends paid
(509,354)
(140,000)
Net cash used in financing activities
(644,935)
(281,911)
Net increase/(decrease) in cash and cash equivalents
254,432
(147,445)
Cash and cash equivalents at beginning of year
69,081
216,526
Cash and cash equivalents at end of year
323,513
69,081
URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
1
Accounting policies
Company information

Urbanbubble Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Sevendale House, 7 Dale Street, Manchester, M1 1JA.

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.

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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.3
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.4
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:

Leasehold improvements
Over the term of the lease
Fixtures, fittings & equipment
20% p.a. Straight line basis
Computer equipment
25% p.a. Straight line basis
Motor vehicles
10% p.a. Straight line basis

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.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 12 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet 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 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.

URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, 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.

URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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.

1.10
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 profit and loss account 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 profit and loss account, 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.

URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Property management and consultancy
16,660,656
11,585,581
URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2022
£
£
Other revenue
Interest income
16,406
13,070
Grants received
-
44,025
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
82,650
-
Government grants
-
(44,025)
Fees payable to the company's auditor for the audit of the company's financial statements
15,054
-
0
Depreciation of owned tangible fixed assets
34,133
29,353
Operating lease charges
22,627
43,376
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
385
296

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
12,336,086
8,497,971
Social security costs
224,225
358,615
Pension costs
26,604
65,282
12,586,915
8,921,868
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
130,967
113,557
URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,813
-
0
Other interest income
12,593
13,070
Total income
16,406
13,070
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,813
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
36,217
25,494
Other finance costs:
Other interest
87
-
0
36,304
25,494
9
Amounts written off investments
2023
2022
£
£
Amounts written back to/(written off) current loans
-
(41,878)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(330,186)
-
0
Adjustments in respect of prior periods
(283,804)
1,931
Total current tax
(613,990)
1,931
Deferred tax
Origination and reversal of timing differences
16,782
(2,389)
Total tax credit
(597,208)
(458)
URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Taxation
(Continued)
- 18 -

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,032,922
651,081
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
206,584
123,705
Tax effect of expenses that are not deductible in determining taxable profit
25,436
34,419
Permanent capital allowances in excess of depreciation
(2,115)
-
0
Research and development tax credit
(834,589)
(158,582)
Remeasurement of deferred tax for changes in tax rates
7,476
-
0
Taxation credit for the year
(597,208)
(458)
11
Dividends
2023
2022
£
£
Final paid
509,354
-
0
Interim paid
-
0
140,000
509,354
140,000
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2022
167,799
24,951
134,700
42,528
369,978
Additions
-
0
8,775
72,782
-
0
81,557
At 30 June 2023
167,799
33,726
207,482
42,528
451,535
Depreciation and impairment
At 1 July 2022
114,954
24,951
128,361
36,680
304,946
Depreciation charged in the year
16,779
896
13,240
3,218
34,133
At 30 June 2023
131,733
25,847
141,601
39,898
339,079
Carrying amount
At 30 June 2023
36,066
7,879
65,881
2,630
112,456
At 30 June 2022
52,845
-
0
6,339
5,848
65,032
URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in joint ventures
14
50
50
14
Joint ventures

Details of the company's joint ventures at 30 June 2023 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Aliiance City Living Limited
England & Wales
Ordinary Shares
50.00
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,838,437
1,816,290
Corporation tax recoverable
700,995
88,054
Other debtors
169,745
769,250
Prepayments and accrued income
1,188,585
1,057,418
4,897,762
3,731,012
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
18
152,432
146,686
Trade creditors
787,681
598,171
Amounts owed to undertakings in which the company has a participating interest
50
50
Taxation and social security
1,578,734
1,628,424
Other creditors
406,865
248,398
Accruals and deferred income
245,977
77,635
3,171,739
2,699,364

The bank loan is secured by a debenture dated 10 June 2020 under the Coronavirus Business Interruption Scheme "CBILs" and personal guarantee by the director.

 

17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
333,226
474,553
URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
17
Creditors: amounts falling due after more than one year
(Continued)
- 20 -

The bank loan is secured by a debenture dated 10 June 2020 under the Coronavirus Business Interruption Scheme "CBILs" and personal guarantee by the director.

 

18
Loans and overdrafts
2023
2022
£
£
Bank loans
485,658
621,239
Payable within one year
152,432
146,686
Payable after one year
333,226
474,553
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
19,098
2,316
2023
Movements in the year:
£
Liability at 1 July 2022
2,316
Charge to profit or loss
16,782
Liability at 30 June 2023
19,098

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,604
65,282

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5
5
5
5
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
161,136
139,560
Between two and five years
178,153
290,750
339,289
430,310
23
Related party transactions
Transactions with related parties

Included in the profit and loss account are amounts written off against related party balances totalling £nil (2022 - £41,878).

 

Included in other creditors is an amount of £50 (2022: £50) due to Alliance City Living Limited. Recharges to Alliance City Living Limited totaled £927,887 (2022: £985,859). Included within trade debtors is an amount owed by Alliance City Living Limited of £134,105 (2022: £71,336). Urbanbubble Limited holds 50% of the share capital of this company.

 

24
Ultimate controlling party

Urbanbubble Ltd is a wholly owned subsidiary of Urbanbubble Holdings Ltd, a company registered in England and Wales.

 

Consolidated financial statements are prepared by Urbanbubble Holdings Ltd, Sevendale House, 7 Dale Street, Manchester, England, M1 1JA.

 

The ultimate controlling party is M P Howard by virtue of his shareholding in Urbanbubble Holdings Ltd.

URBANBUBBLE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
25
Directors' transactions

Loans have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Director's loan
2.00
715,540
352,989
11,609
(1,080,138)
-
715,540
352,989
11,609
(1,080,138)
-

Dividends totalling £0 (2022 - £140,000) were paid in the year in respect of shares held by the company's directors.

26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,630,130
651,539
Adjustments for:
Taxation credited
(597,208)
(458)
Finance costs
36,304
25,494
Investment income
(16,406)
(13,070)
Depreciation and impairment of tangible fixed assets
34,133
29,353
Other gains and losses
-
41,878
Movements in working capital:
Increase in debtors
(1,269,349)
(1,137,371)
Increase in creditors
466,629
413,650
Cash generated from operations
284,233
11,015
27
Analysis of changes in net debt
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
69,081
254,432
323,513
Borrowings excluding overdrafts
(621,239)
135,581
(485,658)
(552,158)
390,013
(162,145)
URBANBUBBLE LTD
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023
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