REGISTERED NUMBER: 12107734 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
PROPERTY UK ESTATES LIMITED |
REGISTERED NUMBER: 12107734 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
PROPERTY UK ESTATES LIMITED |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Profit and Loss Account | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
PROPERTY UK ESTATES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
First Floor, Winston House |
349 Regents Park Road |
London |
N3 1DH |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The director presents his strategic report of the company and the group for the year ended 28 February 2023. |
PRINCIPAL ACTIVITIES |
The Group's principal activities are trading in residential properties and property investment. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risk for the company is a reduction in property values; if a property is held in stock for a long period this risk increases. In order to mitigate the risk, the company is continuously trading stock as mentioned below. |
OUR STRATEGIC PRIORITIES |
The Group has two objectives: |
- to deliver attractive long-term returns; |
- to uphold Property UK Estates' reputation for integrity and reliability. |
The Group's primary financial objective is to maximise returns at acceptable levels of risk. |
BUSINESS REVIEW |
The results for the period and financial position of the company are as shown in the annexed financial statements |
. |
The company has concentrated on trading property since it was incorporated. The majority of properties were purchased with the intention of renovating them and then selling them. This ensures that the company is continuously trading stock and does not hold on to stock for a long period with the result of mitigating risk to the company. |
As is evidenced by the results (see below), the above policy has worked well for the company and the company is showing a healthy gross profit. |
GROUP PERFORMANCE |
2023 realised a turnover of £53.5m (2022: £77.2m). This represents a decrease of 31% compared to the previous year. The gross profit margin is 10.2% (2022: 11.25%). Profit before tax decreased by 40.5% to £4.63m (2022: £7.79m). |
FINANCIAL PERFORMANCE |
The Group's shareholders funds now stand at £16.6m (2022: £12.8m). The growth has been driven by high levels of purchases and sales during the year. |
FINANCIAL CAPACITY AND LIQUIDITY |
The Group is well positioned to take advantage of opportunities as they arise. The Group's financial capacity stood at £655k (2022: £542k) which is cash at bank. |
The director considers that there are no non-financial performance measurements relevant to the business. |
ON BEHALF OF THE BOARD: |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 28 February 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of trading in properties. |
DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2023. |
DIRECTOR |
FINANCIAL INSTRUMENTS |
The Group's principal assets are other receivables. The Group's principal liabilities are other creditors. |
Credit risk |
The Director monitors credit risk closely and considers that its current policies and procedures meet its objectives of managing exposure to credit risk. The Group has no significant concentrations of credit risk. |
Currency risk |
The Group was not exposed to currency risk during the period. |
Liquidity risk |
The Group was not exposed to liquidity risk during the period. |
Interest rate risk |
The Group was not exposed to interest risk during the period. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Melinek Fine LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROPERTY UK ESTATES LIMITED |
Opinion |
We have audited the financial statements of PROPERTY UK ESTATES LIMITED (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 28 February 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROPERTY UK ESTATES LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROPERTY UK ESTATES LIMITED |
Auditors' 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 a Report of the Auditors 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. |
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; through verbal and written communications with those charged with governance and other management; and via inspection of the company's regulatory and legal correspondence. |
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations. |
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company. |
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: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and 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 the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigation. We identified the following area as most likely to have such an affect, being property legislation. |
International Standards on Auditing (UK) (ISAs (UK)) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements. |
In relation to fraud, we performed the following specific procedures in addition to those already noted: |
Challenging assumptions made by management in its significant accounting estimates. |
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account |
combinations, journal entries crediting cash or any revenue account, journal entries posted by senior management. |
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud; |
Ensuring that testing undertaken on both the performance statements and the Balance Sheet includes a number of items selected on a random basis. |
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements. |
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 International Standards on Auditing (UK)(ISAs (UK)). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, |
and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROPERTY UK ESTATES LIMITED |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
First Floor, Winston House |
349 Regents Park Road |
London |
N3 1DH |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
CONSOLIDATED |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
TURNOVER | 53,508,800 | 77,168,007 |
Cost of sales | 48,028,709 | 68,486,244 |
GROSS PROFIT | 5,480,091 | 8,681,763 |
Administrative expenses | 995,992 | 950,493 |
4,484,099 | 7,731,270 |
Other operating income | 95,665 | 42,724 |
OPERATING PROFIT | 4 | 4,579,764 | 7,773,994 |
Income from other participating interests | 65,588 | 33,221 |
4,645,352 | 7,807,215 |
Interest payable and similar expenses | 5 | 13,105 | 17,164 |
PROFIT BEFORE TAXATION | 4,632,247 | 7,790,051 |
Tax on profit | 6 | 871,559 | 1,473,841 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,760,688 | 6,316,210 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,760,688 | 6,316,210 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,760,688 |
6,316,210 |
Total comprehensive income attributable to: |
Owners of the parent | 3,760,688 | 6,316,210 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
CONSOLIDATED BALANCE SHEET |
28 FEBRUARY 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | - | 227 |
Investments | 10 |
Interest in joint venture |
Share of gross assets | 461,765 | 481,388 |
Share of gross liabilities | (325,241 | ) | (410,452 | ) |
136,524 | 70,936 |
Other investments | 50 | 150 |
Investment property | 11 | 167,652 | - |
304,226 | 71,313 |
CURRENT ASSETS |
Stocks | 12 | 19,570,214 | 12,554,461 |
Debtors | 13 | 1,226,851 | 1,137,433 |
Cash at bank | 655,043 | 541,976 |
21,452,108 | 14,233,870 |
CREDITORS |
Amounts falling due within one year | 14 | 5,199,545 | 1,509,082 |
NET CURRENT ASSETS | 16,252,563 | 12,724,788 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
16,556,789 |
12,796,101 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 100 | 100 |
Profit and loss account | 17 | 16,556,689 | 12,796,001 |
SHAREHOLDERS' FUNDS | 16,556,789 | 12,796,101 |
The financial statements were approved by the director and authorised for issue on 29 February 2024 and were signed by: |
N Teitelbaum - Director |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
COMPANY BALANCE SHEET |
28 FEBRUARY 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Profit and loss account | 17 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 3,709,713 | 6,279,783 |
The financial statements were approved by the director and authorised for issue on |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Called up | Profit |
share | and loss | Total |
capital | account | equity |
£ | £ | £ |
Balance at 1 March 2021 | 100 | 6,479,791 | 6,479,891 |
Changes in equity |
Total comprehensive income | - | 6,316,210 | 6,316,210 |
Balance at 28 February 2022 | 100 | 12,796,001 | 12,796,101 |
Changes in equity |
Total comprehensive income | - | 3,760,688 | 3,760,688 |
Balance at 28 February 2023 | 100 | 16,556,689 | 16,556,789 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Called up | Profit |
share | and loss | Total |
capital | account | equity |
£ | £ | £ |
Balance at 1 March 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2023 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,630,619 | 1,808,917 |
Interest paid | (13,105 | ) | (17,164 | ) |
Tax paid | (1,336,895 | ) | (1,641,737 | ) |
Net cash from operating activities | 280,619 | 150,016 |
Cash flows from investing activities |
Purchase of fixed asset investments | - | (33,321 | ) |
Purchase of investment property | (167,652 | ) | - |
Dividends received | - | 33,221 |
Net cash from investing activities | (167,652 | ) | (100 | ) |
Cash flows from financing activities |
Amount withdrawn by directors | 100 | - |
Net cash from financing activities | 100 | - |
Increase in cash and cash equivalents | 113,067 | 149,916 |
Cash and cash equivalents at beginning of year |
2 |
541,976 |
392,060 |
Cash and cash equivalents at end of year | 2 | 655,043 | 541,976 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
as restated |
£ | £ |
Profit before taxation | 4,632,247 | 7,790,051 |
Depreciation charges | 227 | 227 |
Finance costs | 13,105 | 17,164 |
Finance income | (65,588 | ) | (33,221 | ) |
4,579,991 | 7,774,221 |
(Increase)/decrease in stocks | (7,015,753 | ) | 14,167,564 |
(Increase)/decrease in trade and other debtors | (89,518 | ) | 197,405 |
Increase/(decrease) in trade and other creditors | 4,155,899 | (20,330,273 | ) |
Cash generated from operations | 1,630,619 | 1,808,917 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 655,043 | 541,976 |
Year ended 28 February 2022 |
28.2.22 | 1.3.21 |
as restated |
£ | £ |
Cash and cash equivalents | 541,976 | 392,060 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.22 | Cash flow | At 28.2.23 |
£ | £ | £ |
Net cash |
Cash at bank | 541,976 | 113,067 | 655,043 |
541,976 | 113,067 | 655,043 |
Total | 541,976 | 113,067 | 655,043 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
1. | STATUTORY INFORMATION |
PROPERTY UK ESTATES LIMITED is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The parent company has taken advantage of the following disclosure exemption in preparing these Financial Statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". |
- the requirements of Section 7 Statement of Cash Flows. |
Turnover |
The whole of the turnover is attributable to the principal activity of the company, being the trading in residential properties in the United Kingdom. Turnover comprises net proceeds from sales of residential properties. |
Tangible fixed assets |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stock represents residential properties bought with the intention of selling them. Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors. |
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 payables or receivables, are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. 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 case of an out-right short-term loan not at market rate, the financial asset is measured, initially, at the present value of the future cash flows discounted at a market |
rate of interest for a similar debt instrument and subsequently at amortised costs. |
Acquisitions and disposals |
Acquisitions and disposals of the properties are considered to take place at the date of legal completion, and are included in the Financial Statements accordingly, as this is deemed to be the point where the majority of risks and rewards of ownership vest. |
3. | EMPLOYEES AND DIRECTORS |
There were no staff costs for the year ended 28 February 2023 nor for the year ended 28 February 2022. |
The average number of employees during the year was NIL (2022 - NIL). |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
2023 | 2022 |
as restated |
£ | £ |
Director's remuneration | - | - |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
as restated |
£ | £ |
Depreciation - owned assets | 227 | 228 |
Auditors' remuneration | 15,600 | 7,200 |
Formation costs | 468 | - |
Non-audit services | 56,324 | 66,371 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Other interest | 13,105 | 17,164 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 871,559 | 1,473,841 |
Tax on profit | 871,559 | 1,473,841 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before tax | 4,632,247 | 7,790,051 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
880,127 |
1,480,110 |
Effects of: |
Income not taxable for tax purposes | (12,462 | ) | (6,312 | ) |
Depreciation in excess of capital allowances | 43 | 43 |
Subsidiary losses | 3,851 | - |
Total tax charge | 871,559 | 1,473,841 |
7. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | PRIOR YEAR ADJUSTMENT |
The comparative figure for turnover has been grossed up for costs in the sum of £1,577,701 relating to the sales that were deducted from turnover last year. The comparative gross and net profit is not affected by this adjustment. |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Computer |
equipment |
£ |
COST |
At 1 March 2022 |
and 28 February 2023 | 682 |
DEPRECIATION |
At 1 March 2022 | 455 |
Charge for year | 227 |
At 28 February 2023 | 682 |
NET BOOK VALUE |
At 28 February 2023 | - |
At 28 February 2022 | 227 |
10. | FIXED ASSET INVESTMENTS |
Group |
Shares in | Interest |
group | in joint |
undertakings | venture | Totals |
£ | £ | £ |
COST |
At 1 March 2022 | 150 | 70,936 | 71,086 |
Additions | - | 65,588 | 65,588 |
At 28 February 2023 | 150 | 136,524 | 136,674 |
PROVISIONS |
Reclassification | 100 | - | 100 |
At 28 February 2023 | 100 | - | 100 |
NET BOOK VALUE |
At 28 February 2023 | 50 | 136,524 | 136,574 |
At 28 February 2022 | 150 | 70,936 | 71,086 |
Interest in joint venture |
Joint ventures |
Heart Housing Ltd |
The above named company is a joint venture as there are 2 investors, with every business decision being unanimous. |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2022 |
Additions |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Rosesky Properties Ltd |
Registered office: First Floor Winston House, 349 Regents Park Road, London N3 1DH, United Kingdom |
Nature of business: Trading in residential properties |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Home and Countries UK |
Registered office: First Floor Winston House, 349 Regents Park Road, London N3 1DH, United Kingdom |
Nature of business: Trading in residential properties |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Crestsky Ltd |
Registered office: 34 Hillcrest Avenue, London, United Kingdom, NW11 0EN |
Nature of business: Trading in residential properties |
% |
Class of shares: | holding |
Ordinary | 100.00 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
Additions | 167,652 |
At 28 February 2023 | 167,652 |
NET BOOK VALUE |
At 28 February 2023 | 167,652 |
12. | STOCKS |
Group |
2023 | 2022 |
as restated |
£ | £ |
Stocks | 19,570,214 | 12,554,461 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Amounts owed by group undertakings | - | - |
Other debtors | 1,025,270 | 1,137,333 |
Directors' current accounts | - | 100 | - | 100 |
Prepayments and accrued income | 201,581 | - |
1,226,851 | 1,137,433 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Trade creditors | 70,606 | - |
Amounts owed to group undertakings | - | 100 |
Tax | 877,940 | 1,343,276 |
Other creditors | 4,181,729 | 86,934 |
Accruals and deferred income | 69,270 | 78,772 |
5,199,545 | 1,509,082 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
15. | FINANCIAL INSTRUMENTS |
GROUP |
2023 | 2022 |
£ | £ |
Financial assets measured at amortised cost | 1,025,270 | 1,137,433 |
Financial liabilities measured at amortised cost | 4,252,335 | 95,134 |
Financial assets measured at amortised cost are comprised of other debtors. |
Financial liabilities measured at amortised cost are comprised of trade creditors of £70,606 (2022: £0), other creditors of £4,181,729 (2022: £86,934) and accruals of £0 (2022: £8,200). |
COMPANY |
2023 | 2022 |
£ | £ |
Financial assets measured at amortised cost | 16,448,762 | 12,733,762 |
Financial liabilities measured at amortised cost | 17,683 | 11,583 |
Financial assets measured at amortised cost are comprised of other debtors. |
Financial liabilities measured at amortised cost are comprised of trade creditors of £4,600 (2022: £0), amounts owed to group undertakings and other creditors of £13,083 (2022: £6,983) and accruals of £0 (2022: £4,600). |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary | 1 | 100 | 100 |
17. | RESERVES |
Group |
Profit |
and loss |
account |
£ |
At 1 March 2022 | 12,796,001 |
Profit for the year | 3,760,688 |
At 28 February 2023 | 16,556,689 |
PROPERTY UK ESTATES LIMITED (REGISTERED NUMBER: 12107734) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
17. | RESERVES - continued |
Company |
Profit |
and loss |
account |
£ |
At 1 March 2022 |
Profit for the year |
At 28 February 2023 |
18. | RELATED PARTY DISCLOSURES |
Included within group other debtors is £460,658 (2022: £773,244) due from companies with a common director and/or shareholder. |
Included within group other creditors is £4,162,701 (2022: £85,510) due to companies with a common director and/or shareholder. |
The intra-group balances of £21,571,745 (2022: £12,732,900) have been eliminated on consolidation. |
19. | FINANCIAL COMMITMENTS |
Financial commitments at the year end of £1,454,999 (2022: £1,242,000) related to properties that were exchanged prior to the 28 February 2023 but not completed until post year end. The properties were financed with cash at bank. |
20. | ULTIMATE CONTROLLING PARTY |
Mr N Teitelbaum has ultimate control over the company by virtue of his majority shareholding. |