Registered number: OC331817
PLYMOUTH GROVE RESIDENTIAL LLP
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
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PLYMOUTH GROVE RESIDENTIAL LLP
REGISTERED NUMBER: OC331817
BALANCE SHEET
AS AT 31 MARCH 2023
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Debtors: amounts falling due within one year
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Creditors: Amounts Falling Due Within One Year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Loans and other debts due to members within one year
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Members' capital classified as equity
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Loans and other debts due to members
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Page 1
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PLYMOUTH GROVE RESIDENTIAL LLP
REGISTERED NUMBER: OC331817
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small LLPs regime.
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, with respect to accounting records and the preparation of financial statements.
The financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.
The entity has opted not to file the statement of comprehensive income in accordance with the provisions applicable to entities subject to the small LLPs regime.
The financial statements were approved and authorised for issue by the members and were signed on their behalf by:
The notes on pages 3 to 8 form part of these financial statements.
Page 2
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PLYMOUTH GROVE RESIDENTIAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Plymouth Grove Residential LLP is a limited liability partnership, limited by members' capital, and incorporated in England and Wales, registered number OC331817. The registered office is Landmark House, Station Road, Cheadle Hulme, Cheadle, England, SK8 7BS.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3).
The financial statements are presented in sterling which is the functional currency of the LLP and rounded to the nearest £.
The following principal accounting policies have been applied:
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Compliance with accounting standards
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The financial statements have been prepared using FRS102 The Financial Reporting Standard applicable in the UK and the Republic of Ireland, including the disclosure and presentation requirements of Section 1A applicable to small companies. There were no material departures from that standard.
The financial statements have been prepared on a going concern basis. The designated members acknowledge that the LLP is in a net liability position at the period end. The swap position which are out of the money, were entered into to manage the LLP's exposure to variability in cashflows required to service its loan obligations. In assessing the appropriateness of the going concern basis of preparation, the members have taken into account the key risks of the business, and have considered the LLP's business model and availability of cash resources. The LLP has structured its finance in such a way that indexed rental income received will allow the company to meet its liabilities, including loan financing as they fall due. The members have as required undertaken to financially support the LLP. Accordingly, the members consider that it is appropriate to prepare the financial statements on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue for the rendering of services is recognised in the period in which the services are provided in accordance with rental agreement.
Interest payable is recognised using the effective interest method, which takes into account related fees and transaction costs.
Page 3
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PLYMOUTH GROVE RESIDENTIAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Investment property is carried at fair value determined annually and derived from the rental income yield of the property appropriately discounted. Changes in fair value are recognised in the Statement of Comprehensive Income.
Interest income is recognised in profit or loss using the effective interest method.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Derivatives, including interest rate swaps and inflation rate swaps, 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 income as appropriate. The LLP does not currently apply hedge accounting for interest rate and inflation rate derivatives.
Page 4
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PLYMOUTH GROVE RESIDENTIAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements in conformity with FRS 102 section 1A requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from estimates.
Critical accounting estimates and assumptions
The LLP makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the actual results.
Critical areas of judgement
The LLP makes judgements in applying its accounting policies as described below:
In the UK the FCA, LIBOR regulator, announced that it will cease to compel banks to publish LIBOR, and any sterling inter-bank rate published will be deemed to be 'not representative' after 31 December 2021. In the UK Market, the new risk free rate will be SONIA, administered by the Bank of England. The LLP is in the process of transitioning from LIBOR rates to SONIA.
An estimation is required on future SONIA rates when accounting for loan facilities held at amortised cost, based on current market data. Actual rates will vary from forecast over the loan lifetime, rendering the effective interest rate calculated as an estimate subject to these variations.
The valuation of the interest rate swaps held requires estimation of the cost of capital associated with the loan facility and future SONIA rates over the lifetime of the swap which is based on current market data.
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 if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future periods.
The LLP had no employees during the period (2022 - nil).
The investment properties were valued by independent surveyors in June 2021. Mr RA Everton, a designated member of the LLP, does not consider the valuation to be different as at 31 March 2023.
Page 5
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PLYMOUTH GROVE RESIDENTIAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Financial instrument (swap)
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Page 6
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PLYMOUTH GROVE RESIDENTIAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Creditors: Amounts falling due after more than one year
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Financial instrument (swap)
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Other loan comprise a loan accounted for at amortised cost. The loan is repayable in full at the end of the loan term.
The loan is secured by a charge over all property and assets of the LLP, present and future.
For details of interest rate range refer to note 11.
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The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
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Repayable other than by instalments
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Other financial Instruments
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The fair value of the LLP's derivatives are as follows:
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Derivative financial liabilities measured at fair value through profit or loss comprise of interest rate swaps used to manage the LLP's exposure to variability in cashflows in respect of the LLP's loan obligations.The SWAP position matures in 2042, matching that of the loan. The fair value is determined using the forward curve for SONIA and based on market values of equivalent instruments at the balance sheet date.
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Page 7
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PLYMOUTH GROVE RESIDENTIAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Loans and other debts due to members
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Other amounts due to members
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Loans and other debts due to members may be further analysed as follows:
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Falling due within one year
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Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.
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Related party transactions
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At the balance sheet date £1,335,177 (2022 - due to £1,172,534) was due from Plymouth Grove Residential Investment LP, a Limited Partnership in which Mr R A Everton and Mrs J A Everton are limited partners.
Mr R A Everton and Mrs J A Everton rented office space from the LLP and were charged £1,000 (2022 - £1,000) during the year.
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The LLP is controlled by the designated member Mr R A Everton.
Page 8
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