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Registered Number: 07005392
England and Wales

 

 

 

PROSPECT HOLDINGS (READING) LIMITED


Abridged Accounts
 


Period of accounts

Start date: 01 January 2023

End date: 31 December 2023
 
 
Notes
 
2023
£
  2022
£
Fixed assets      
Intangible fixed assets 3 1,133,523    1,523,090 
Tangible fixed assets 4 965,740    1,042,656 
Investments 5 415,110    415,110 
2,514,373    2,980,856 
Current assets      
Debtors 904,787    1,619,165 
Cash at bank and in hand 1,608,118    490,819 
2,512,905    2,109,984 
Creditors: amount falling due within one year (1,468,044)   (1,462,734)
Net current assets 1,044,861    647,250 
 
Total assets less current liabilities 3,559,234    3,628,106 
Creditors: amount falling due after more than one year (591,967)   (746,006)
Provisions for liabilities (15,901)   (28,241)
Net assets 2,951,366    2,853,859 
 

Capital and reserves
     
Called up share capital 1,000    1,000 
Share premium account 844,000    844,000 
Profit and loss account 2,106,366    2,008,859 
Shareholders' funds 2,951,366    2,853,859 
 


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

Directors' responsibilities:
  1. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
  2. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. In accordance with Section 444 of the Companies Act 2006 the income statement has not been delivered to the Registrar of Companies.

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with section 444(2A).
The financial statements were approved by the board of directors on 30 July 2024 and were signed on its behalf by:


-------------------------------
C J Wells
Director
1
General Information
Prospect Holdings (Reading) Limited is a private company, limited by shares, registered in England and Wales, registration number 07005392, registration address 24 King Street, Reading, Berkshire, RG1 2HE.

The presentation currency is £ sterling.
1.

Accounting policies

Significant accounting policies
Statement of compliance
These financial statements have been prepared in compliance with FRS 102(1A) The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
Basis of preparation
The financial statements have been prepared under the historical cost convention as modified by the revaluation of land and buildings and certain financial instruments measured at fair value in accordance with the accounting policies.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates about the carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant and actual results may differ from these estimates.

The key source of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements relates to the freehold properties described in note 5 to the financial statements.

The properties are stated in the financial statements at fair value based on a valuation performed by the directors of the company and based on their expertise in the property market.


Going concern
The accounts are prepared on a going concern basis. The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.
Turnover
Turnover represents net invoiced sales of services, excluding value added tax. Commissions in respect of property sales are recognised on exchange of contract, letting commission and property management income is recognised in accordance with the terms of the landlord and tenants agreement.
Operating lease rentals
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the statement of income, 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 statement of financial position date.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 and 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.
Employee benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

Employees are remunerated by way of salaries, commissions and performance related bonuses.

Intangible assets
Intangible assets represent the rent books acquired from other unconnected businesses and the acquisition of the business of two connected estate agencies.

The rent book acquired is recognised as an intangible asset on the basis that it will generate future rental income.

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful life. The cost of the rent books are being written off over a period of 5 years and the intangible assets acquired in the business combination are being written off over a period of 10 years.

If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations.




Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold improvements - 16.67% straight line
Office equipment - 25% straight line
Fixtures and fittings - 33.33% straight line
Computer equipment - 25% straight line


At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.


Depreciation is not provided in respect of the freehold properties. Although this policy is in accordance with FRS 102, it represents a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. The directors consider that this policy is necessary in order that the financial statements may give a true and fair view because values and changes in current values are of prime importance rather than the calculation of systemic annual depreciation. Depreciation is only one of many factors reflected in the valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.
Fixed asset investments
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.
Debtors
Short term debtors are measured at transaction price less any impairment. Loans receivable are measured at initially at fair value, net of transaction costs, and are measured subsequently at amortised costs using the effective interest method.
Creditors
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 subsequently measured at amortised costs using the effective interest method.
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 trade and other receivables 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 rate 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.


Impairment of financial assets

Basic financial assets are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.


Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.


Classification of financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into. Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, 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 receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.


Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
The carrying amounts of the company's financial assets and liabilities at the year end are disclosed in the notes to the financial statements.











2.

Average number of employees

Average number of employees during the year was 129 (2022 : 128).
3.

Intangible fixed assets

Cost Other   Total
  £   £
At 01 January 2023 2,920,961    2,920,961 
Additions  
Disposals  
Revaluations (7,500)   (7,500)
At 31 December 2023 2,913,461    2,913,461 
Amortisation
At 01 January 2023 1,397,871    1,397,871 
Charge for year 382,067    382,067 
On disposals  
At 31 December 2023 1,779,938    1,779,938 
Net book values
At 31 December 2023 1,133,523    1,133,523 
At 31 December 2022 1,523,090    1,523,090 


4.

Tangible fixed assets

Cost or valuation Land and Buildings   Plant and Machinery   Fixtures and Fittings   Computer Equipment   Improvements to property   Total
  £   £   £   £   £   £
At 01 January 2023 844,245    54,504    125,173    263,455    260,811    1,548,188 
Additions       7,590      7,590 
Disposals          
At 31 December 2023 844,245    54,504    125,173    271,045    260,811    1,555,778 
Depreciation
At 01 January 2023   27,276    98,755    201,954    177,547    505,532 
Charge for year   9,576    12,391    31,489    31,050    84,506 
On disposals          
At 31 December 2023   36,852    111,146    233,443    208,597    590,038 
Net book values
Closing balance as at 31 December 2023 844,245    17,652    14,027    37,602    52,214    965,740 
Opening balance as at 01 January 2023 844,245    27,228    26,418    61,501    83,264    1,042,656 


5.

Investments

Cost Investments in group undertakings   Total
  £   £
At 01 January 2023 2,146,479    2,146,479 
Additions  
Transfer to/from tangible fixed assets  
Disposals  
Revaluations (1,731,369)   (1,731,369)
At 31 December 2023 415,110    415,110 
The revaluations of £1,731,369 relate to prior year investments in companies where the business acquired has been incorporated into Prospect Holdings (Reading) Limited.

6.

Director’s loan

DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

At the balance sheet date there were credit balances on the following directors' loan accounts:

C Wells £172,030 (2022: £17,658)
J May £59,075 (2022: £22,588)
M Towell £Nil (2022: £Nil)

The loans are repayable on demand and interest is charged to or by the company at base rate plus 7%. The directors consider that this constitutes a fair market rate.


7.

Debtors: amounts falling due within one year

.   2023
£
  2022
£
Trade Debtors 208,900  208,141 
Amounts Owed by Group Undertakings 70,172  281,102 
Amounts owed by Participating Interests 363,783  912,638 
Prepayments & Accrued Income 255,407  183,331 
Other Debtors 6,525  33,953 
904,787  1,619,165 

8.

Creditors: amounts falling due within one year

.   2023
£
  2022
£
Trade Creditors 154,856  297,687 
Bank Loans & Overdrafts 153,980  210,680 
Amounts owed to Participating Interests 9,422 
Corporation Tax 213,531  141,113 
PAYE & Social Security 17,917 
Accruals and Deferred Income 317,275  350,560 
Other Creditors 25,767  36,959 
Directors' Current Accounts 231,105  40,246 
VAT 362,108  367,572 
1,468,044  1,462,734 

9.

Creditors: amounts falling due after more than one year

.   2023
£
  2022
£
Bank Loans & Overdrafts 591,967  746,006 
591,967  746,006 

10.

Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
.   2023
£
  2022
£
Within one year 174,038  173,008 
Between one and five years 406,673  323,535 
In more than five years 259,688  313,113 
840,399  809,656 

11.

Secured debts

The following secured debts are included within creditors   2023
£
  2022
£
Bank loans 89,250  169,825 

The loans, which are held with Svenska Handelsbanken Ab, are secured by a debenture comprising fixed and floating charges over all the present and future assets of this company with a legal charge, including a specific charge over the Maidenhead property.  Guarantees by J May and C Wells have been provided.


12.

Ultimate Controlling Party

The Ultimate Controlling Party is the majority shareholder, C J Wells.
2