Company Registration No. 03728013 (England and Wales)
CHARLOTTE STREET ESTATES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
CHARLOTTE STREET ESTATES LIMITED
COMPANY INFORMATION
Director
S E Elias
Company number
03728013
Registered office
2nd Floor
1 Ashley Road
Altrincham
WA14 2DT
Auditor
Lopian Gross Barnett & Co
1st Floor Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS
CHARLOTTE STREET ESTATES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
CHARLOTTE STREET ESTATES LIMITED
BALANCE SHEET
AS AT
30 DECEMBER 2022
30 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investment properties
5
7,208,994
7,157,881
Investments
6
100
100
7,209,094
7,157,981
Current assets
Debtors
7
1,127,200
1,097,251
Cash at bank and in hand
121,006
108,787
1,248,206
1,206,038
Creditors: amounts falling due within one year
8
(823,250)
(775,172)
Net current assets
424,956
430,866
Total assets less current liabilities
7,634,050
7,588,847
Creditors: amounts falling due after more than one year
9
(2,454,643)
(2,498,053)
Net assets
5,179,407
5,090,794
Capital and reserves
Called up share capital
10
2
2
Non-distributable profits reserve
11
(377,325)
(377,325)
Profit and loss reserves
5,556,730
5,468,117
Total equity
5,179,407
5,090,794
The director of the company has elected not to include a copy of the profit and loss account 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 and signed by the director and authorised for issue on 13 February 2024
S E Elias
Director
Company Registration No. 03728013
CHARLOTTE STREET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Charlotte Street Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 1 Ashley Road, Altrincham, WA14 2DT.
1.1
Accounting convention
The financial statements are prepared under the historical cost convention.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover represents amounts receivable for rentals and services net of VAT.
Revenue is recognised on the commencement of and in accordance with a lease, adjusted for any incentives as required by FRS102.
1.3
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.4
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.
1.5
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.
CHARLOTTE STREET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.6
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.
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
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.
CHARLOTTE STREET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
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.
1.8
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was 0 (2021: 0).
4
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
14,621
62,354
Deferred tax
Origination and reversal of timing differences
(66,656)
Total tax charge/(credit)
14,621
(4,302)
CHARLOTTE STREET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2022
- 5 -
5
Investment property
2022
£
Fair value
At 1 January 2022
7,157,881
Additions
51,113
At 30 December 2022
7,208,994
The fair value of the investment property has been arrived at on the basis of a valuation carried out by the director who has extensive experience within the property sector. Methods adopted include comparing property values to similar properties, and future selling prices where applicable. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The company considered the previous year's valuation and the state of the market to determine the fair values of the investment properties.
6
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
100
100
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
118,253
122,517
Other debtors
1,008,947
974,734
1,127,200
1,097,251
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
45,000
45,000
Trade creditors
1,745
8,716
Other taxation and social security
79,591
82,758
Other creditors
696,914
638,698
823,250
775,172
CHARLOTTE STREET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2022
- 6 -
9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
2,454,643
2,498,053
The Bank loan is secured by fixed charges over the company's property.
10
Called up share capital
2022
2021
Ordinary share capital
£
£
Issued and fully paid
A ordinary shares of £1 each
1
1
B ordinary shares of £1 each
1
1
2
2
11
Non-distributable profits reserve
2022
2021
£
£
At the beginning and end of the year
(377,325)
(377,325)
12
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 Jason Selig BA ACA CTA DChA.
The auditor was Lopian Gross Barnett & Co.
13
Financial commitments, guarantees and contingent liabilities
The company has cross guarantees with regards to the loan with the following connected companies:- Portland Street Estates Ltd and King Street Estates Ltd.
14
Related party transactions
There were no related party transactions outside the normal course of business.