Starmount (Securities) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, 31 Kentish Town Road, London, NW1 8NL. The principal place of business is Unit 3, Delta Court, Manor Way, Borehamwood, Herts., WD6 1FJ.
The principal activity of the company is that of property investment and to act as a holding company. The principal activities of the main subsidiaries are property dealing and developing and investing in properties.
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 £.
In accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), no depreciation is provided in respect of freehold investment properties and leasehold investment properties with over 20 years to run. Although the Companies Act would normally require the systematic annual depreciation of fixed assets, the directors believe that this policy of not providing depreciation is necessary in order for the accounts to give a true and fair view, since the current value of investment properties and changes in that current value, are of prime importance rather than a calculation of systematic annual depreciation. Depreciation is only one of the many factors reflected in the annual valuation, and the amount which might otherwise have been shown cannot be separately identified or quantified.
The company's policy is to provide depreciation on all fixed assets other than on investment properties as stated above.
Property purchases and disposals
Purchases and disposals of investment properties are recognised where contracts have been completed during the accounting period. Net surpluses in excess of book values arising on the sale of investment properties are taken to the profit and loss account.
Property maintenance and refurbishment costs
Irrecoverable running costs directly attributable to specific properties within the company's portfolio are charged to the profit and loss account as costs of sales. Costs incurred in the improvement of the portfolio which, in the opinion of the directors, are not of a capital nature are written off to the profit and loss account as incurred.
Administration expenses
All costs not directly attributable to the individual properties are treated as administration expenses.
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.
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, including creditors, bank loans and loans from fellow group companies 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.
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.
Related party transactions
The company has taken advantage of the exemption from disclosing transactions with members of the group as they are wholly owned.
In the application of the company’s accounting policies, the directors are 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.
The average monthly number of persons (including directors) employed by the company during the year was:
Investment property comprise both freehold and long leasehold properties and include freehold properties which are jointly owned with other parties as tenants in common.
All of the company's investment properties were valued at 30 November 2023 by Marc Robson B.Sc. (Estate Management) and a member of NAEA Propertymark. The valuations were carried out on an open market value basis. An appropriate all risk yield was applied to the rental income stream of each property to derive the capital value. The all risk yield factors in the following considerations; recent private treaty and auction investment sales; length of lease remaining and the risk of the tenant not renewing; quality of the town and how much supply/voids are in the location, whether rents are increasing/decreasing and then factoring this into the rental income stream; size of the unit and the condition of the unit.
The company's investment properties as at 30 November 2023 included long leasehold properties value at £1,330,000 (2022 - £1,248,000) and related historical cost amounted to £1,214,777 at 30 November 2023 (£1,214,777).
The historical cost of investment properties including long leasehold properties at 30 November 2023 was £31,376,144 (2022 - £31,617,268).
Details of the company's subsidiaries at 30 November 2023 are as follows:
Amounts owed by group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.
Financial instruments are measured at historic cost. Debtors due after more than one year comprise of mortgages to unrelated parties at market rates in respect of properties disposed to these parties by companies within the group. All creditors are due within one year and repayable on demand.
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account - This reserve records retained earnings and accumulated losses.
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
The late Sir Sigmund Sternberg (who passed away in October 2016 without drawing a pension) and the late Mr. Martin Slowe (who passed away on 17 April 2023) had entered into an agreement with the company which entitled them to a pension upon their retirement or termination of employment with the group.
The late Sir Sigmund Sternberg and the late Mr. Martin Slowe established the group over forty years ago and had been directors since then. In consideration of their long service to the group, the company entered into a covenant with each of them on 11 August 2011 whereby the company undertook to pay an annual pension upon their retirement. However, subsequent to the passing away of Mr Martin Slowe during the year, the company's obligation to pay an annual pension has ceased.
The company has given unlimited guarantees to the bankers of one subsidiary, Martin Slowe Estates Limited, to secure any borrowings. The company did not have any borrowings at any time during the current or previous year.
Related parties
The company is not controlled by any single party.
R M Slowe, P A Grossmith-Dwek and N Tamir are all directors or the company. M A M Slowe was a director of the company until his death on 17 April 2023. P A Grossmith-Dwek is the son-in-law of the late M A M Slowe. R M Slowe is M A M Slowe's brother and a trustee of M Slowe's family settlements.
Transactions with related parties
Included in other creditors (amounts falling due within one year), are loans to the company by related parties as follows:
Amount due to M A M Slowe, R M Slowe, P A Grossmith-Dwek either personally or parties related to them £1,017,345 (2022 - £4,558,674).
Interest payable to various related parties in respect of the loans to the company was as follows:
Amount payable to M A M Slowe, R M Slowe, P A Grossmith-Dwek either personally or parties related to them £130,431 (2022 - £22,992).
All the loans to the company that were outstanding as at the year end are unsecured and are repayable on demand. Interest was paid during the year on these loans at 3% which is regarded as a fair market rate. The total amount of interest paid in respect of the above loans that remained unpaid at the year end and included accruals and deferred income was £3,004 (2022 - £16,213).
Dividends paid to related parties were as follows:
Executors of the Estate of Sir Sigmund Sternberg Deceased £310,562 (2022 - £310,562)
M V Sternberg OBE KC KCFO £39,613 (2022 - £39,613)
Parties related to M A M Slowe £224,999 (2022 - £224,999)
Parties related to N Tamir £25,352 (2022 - £25,352)
The company is exempt from disclosing transactions with members of the group as they are wholly owned, other than amounts owed by group undertakings as disclosed in note 7.
Key management personnel
The directors are also the key management personnel.