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Registration number: 10152027

Prepared for the registrar

SA2 Properties Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 October 2023

 

SA2 Properties Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 8

 

SA2 Properties Limited

Company Information

Directors

Mr S Abuede

Mrs S Abuede

Registered office

23 Middleton Park Circus
Leeds
West Yorkshire
LS10 4LX

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

SA2 Properties Limited

(Registration number: 10152027)
Balance Sheet as at 31 October 2023

Note

2023
 £

2022
 £

Fixed assets

 

Tangible assets

4

3,490

3,878

Investment property

5

611,000

393,604

 

614,490

397,482

Current assets

 

Debtors

6

-

3,000

Cash at bank and in hand

 

559

4,641

 

559

7,641

Creditors: Amounts falling due within one year

7

(77,219)

(77,649)

Net current liabilities

 

(76,660)

(70,008)

Total assets less current liabilities

 

537,830

327,474

Creditors: Amounts falling due after more than one year

7

(327,298)

(337,042)

Deferred tax liabilities

8

(41,240)

(599)

Net assets/(liabilities)

 

169,292

(10,167)

Capital and reserves

 

Called up share capital

1

1

Profit and loss account

169,291

(10,168)

Total equity

 

169,292

(10,167)

For the financial year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 11 April 2024 and signed on its behalf by:
 


Mr S Abuede
Director

 

SA2 Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
23 Middleton Park Circus
Leeds
West Yorkshire
LS10 4LX
United Kingdom

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. The company is reliant on the continued support of the bank lenders, who have loaned the company £338,121.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

 

SA2 Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the rental of the investment properties.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

10% of written down value

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers or the directors. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

SA2 Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

3

Staff numbers

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

 

SA2 Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

4

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost

At 1 November 2022

4,324

4,324

At 31 October 2023

4,324

4,324

Depreciation

At 1 November 2022

446

446

Charge for the year

388

388

At 31 October 2023

834

834

Carrying amount

At 31 October 2023

3,490

3,490

At 31 October 2022

3,878

3,878

 

5

Investment properties

£

At 1 November 2022

393,604

Fair value adjustments

217,396

At 31 October 2023

611,000

The investment property has been revalued based on the current estimated market value.

There has been no valuation of investment property by an independent valuer.

 

6

Debtors

2023
 £

2022
 £

Other debtors

-

3,000

 

-

3,000

 

SA2 Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

7

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

9

10,823

11,072

Trade creditors

 

1,045

-

Amounts due to related parties

10

61,266

63,266

Social security and other taxes

 

969

281

Other creditors

 

2,000

2,000

Accrued expenses

 

1,116

1,030

 

77,219

77,649

Due after one year

 

Loans and borrowings

9

327,298

337,042

 

8

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Capital allowances in excess of depreciation

526

Revaluation of property

40,714

41,240

2022

Liability
£

Capital allowances in excess of depreciation

599

599

 

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

10,823

11,072

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

327,298

337,042

The bank loans and borrowings are secured against the investment property.

 

SA2 Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

10

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.
 

Summary of transactions with parent

GIA Group Limited
 (Parent Company)
 As at the balance sheet date, the company owed GIA Group Limited £50,000 (October 2022 - £50,000). No interest is charged on the loan and there are no set repayment terms.
 

Summary of transactions with other related parties

SA2 Limited
 (The directors and shareholders are also directors and shareholders in SA2 Limited)
 As at the balance sheet date, the company owed SA2 Limited £11,226 (October 2022 - £13,266). There are no fixed repayment terms and no interest is charged.