Registered number: 08727321
RSH Real Estate Limited
Unaudited
Directors' Report and Financial Statements
for the year ended 31 December 2023
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RSH Real Estate Limited
Company Information
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168 Shoreditch High Street
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168 Shoreditch High Street
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RSH Real Estate Limited
Contents
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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RSH Real Estate Limited
Directors' Report
for the year ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The company's principal activity during the year was that of renting its property.
The profit for the year, after taxation, amounted to £1,205,983 (2022 - £170,767).
No dividends were paid in either this or the prior financial year.
The directors who served during the year were:
The company has no plans for any significant developments.
This report was approved by the board on 19 June 2024 and signed on its behalf.
Page 1
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RSH Real Estate Limited
Chartered Accountants' Report to the Board of Directors on the preparation of the Unaudited Statutory Financial Statements of RSH Real Estate Limited for the year ended 31 December 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of RSH Real Estate Limited for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the board of directors of RSH Real Estate Limited, as a body, in accordance with the terms of our engagement letter dated 18 November 2022. Our work has been undertaken solely to prepare for your approval the financial statements of RSH Real Estate Limited and state those matters that we have agreed to state to the board of directors of RSH Real Estate Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than RSH Real Estate Limited and its board of directors, as a body, for our work or for this report.
It is your duty to ensure that RSH Real Estate Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of RSH Real Estate Limited. You consider that RSH Real Estate Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of RSH Real Estate Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
London
20 June 2024
Page 2
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RSH Real Estate Limited
Statement of Comprehensive Income
for the year ended 31 December 2023
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Interest payable and similar expenses
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There was no other comprehensive income for 2023 (2022:£NIL).
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The notes on pages 6 to 11 form part of these financial statements.
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Page 3
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RSH Real Estate Limited
Registered number: 08727321
Balance Sheet
as at 31 December 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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Total assets less current liabilities
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Provisions for liabilities
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The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 June 2024.
The notes on pages 6 to 11 form part of these financial statements.
Page 4
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RSH Real Estate Limited
Statement of Changes in Equity
for the year ended 31 December 2023
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Non-distributable reserve
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Transfer to/from profit and loss account
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Share capital
This represents the nominal value of shares that have been issued by the company.
Share premium
This reserve represents the excess of the fair value of the consideration receivable on the issue of ordinary share capital, net of direct costs incurred in their issue, over the nominal value of those shares (which is recognised as called up share capital). Share premium may only be utilised to write-off any expenses incurred or commissions paid on the issue of those shares, or to pay up new shares to be allocated to members as fully paid bonus shares.
Non-distributable reserve
This reserve represents non-distributable fair value movements on the investment property, less corresponding tax provisions.
Profit and loss account
This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company's shareholders and removing any non-distributable fair value movements and corresponding tax provisions.
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Page 5
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RSH Real Estate Limited
Notes to the Financial Statements
for the year ended 31 December 2023
RSH Real Estate Limited is a private, limited liability company incorporated in England and Wales. The company's registered number is 08727321. The company's registered office is 2nd Floor, 168 Shoreditch High Street, London, E1 6RA. The address of the company's principal place of business is Abbeygate House, Challenge Road, Ashford, Middlesex, TW15 1AX. The company's principal activity is that of the rental of its property.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
In accordance with UK GAAP, the company annually assesses whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the ability of the company to continue as a going concern and meet its obligation as they become due for one year after the date that the financial statements are issued. This evaluation is based on relevant conditions and events that are known or reasonably knowable at this date. The financial statements have been prepared on the going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company 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.
Rental income is recognised in the statement of comprehensive income on a straight-line basis over the term of the lease.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the directors, necessary in order to give a true and fair view of the financial position of the company and is otherwise compliant with the Companies Act 2006. If this departure from the Act had not been made, the profit for the financial year would have been reduced by depreciation. However, depreciation is only one of many factors reflected in the annual valuation and the amount attributable to this factor cannot reasonably be separately identified or quantified.
Page 6
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RSH Real Estate Limited
Notes to the Financial Statements
for the year ended 31 December 2023
2.Accounting policies (continued)
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.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other amounts receivable and payable, loans from banks and other third parties and loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other amounts receivable and payable, are initially measured at the 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, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.
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.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
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.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Page 7
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RSH Real Estate Limited
Notes to the Financial Statements
for the year ended 31 December 2023
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 8
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RSH Real Estate Limited
Notes to the Financial Statements
for the year ended 31 December 2023
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires the directors to make judgments, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following judgment has had the most significant impact on amounts recognised in the financial statements:
Investment property
The company holds an investment property with a fair value of £6,580,000 at the year-end (see note 5). In order to determine the fair value of the investment property the company has periodically engaged independent valuation specialists with experience in the location and nature of the property being valued. They have used a valuation technique based on comparable market data. This is reviewed annually by the Directors of the company. The determined fair value of the investment property is most sensitive to fluctuations in the property market.
Taxation
Provision has been made in the financial statements for deferred tax amounting to £1,106,154 at the reporting date. This provision is based upon an estimate of the future tax charge in respect of the investment property.
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The average monthly number of employees, including directors, during the year was 2 (2022 - 2).
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Page 9
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RSH Real Estate Limited
Notes to the Financial Statements
for the year ended 31 December 2023
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Freehold investment property
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The 2023 valuations were made by the Directors of the company. The last formal valuation was undertaken by Matthews & Goodman LLP, commercial property advisors and RICS registered valuers, on an open market value for existing use basis on 16 June 2022, on an open market value for existing use basis.
If the investment property had been accounted for under the historic cost accounting rules, the property would have been measured at £1,970,187.
Page 10
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RSH Real Estate Limited
Notes to the Financial Statements
for the year ended 31 December 2023
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Prepayments and accrued income
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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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The company's immediate parent undertaking is Abbeygate LLC, an entity incorporated in the US.
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