Company registration number 01317608 (England and Wales)
B A M ESTATE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 DECEMBER 2023
FILLETED ACCOUNTS
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
B A M ESTATE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 11
B A M ESTATE LIMITED
BALANCE SHEET
AS AT
24 DECEMBER 2023
24 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
5
777,811
769,905
Investment property
6
6,515,911
6,419,617
Investments
7
3
3
7,293,725
7,189,525
Current assets
Debtors
8
534,834
391,669
Cash at bank and in hand
16,211
12,311
551,045
403,980
Creditors: amounts falling due within one year
9
(518,917)
(489,542)
Net current assets/(liabilities)
32,128
(85,562)
Total assets less current liabilities
7,325,853
7,103,963
Provisions for liabilities
10
(1,515,379)
(1,491,840)
Net assets
5,810,474
5,612,123
Capital and reserves
Called up share capital
11
195
195
Revaluation reserve
12
575,844
567,349
Other reserves
4,190,062
4,114,475
Profit and loss reserves
13
1,044,373
930,104
Total equity
5,810,474
5,612,123
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 April 2024 and are signed on its behalf by:
D D Rosenfelder
A Green
Director
Director
Company registration number 01317608 (England and Wales)
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
B A M Estate Limited is a private company limited by shares incorporated in England and Wales. The registered office is Estate Office, 18b Avenue Mansions, Finchley Road, London, NW3 7AU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and for this company primarily relates to rental income on properties.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
subject to annual revaluation
Fixtures, fittings & equipment
25% straight line
Computer equipment
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Land and property, which is property used within the business, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in reserves.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 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.
Classification of financial liabilities
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.
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
1.9
Equity instruments
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 5 -
2
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 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Property Valuation
The company directors revalue the investment properties and land and buildings annually on the basis of the rental income which they generate
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Property Valuation
The valuation of investment property and land and buildings represents a key estimation uncertainty.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
17
16
Some of the salary costs are accounted for the Leaseholder account.
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
177
Deferred tax
Origination and reversal of timing differences
23,539
358,041
Total tax charge
23,539
358,218
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
4
Taxation
(Continued)
- 6 -
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
2,832
44,347
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 25 December 2022
755,107
131,491
886,598
Additions
890
890
Revaluation
11,327
11,327
At 24 December 2023
766,434
132,381
898,815
Depreciation and impairment
At 25 December 2022
116,693
116,693
Depreciation charged in the year
4,311
4,311
At 24 December 2023
121,004
121,004
Carrying amount
At 24 December 2023
766,434
11,377
777,811
At 24 December 2022
755,107
14,798
769,905
6
Investment property
2023
£
Fair value
At 25 December 2022
6,419,617
Revaluations
96,294
At 24 December 2023
6,515,911
Investment property comprises of residential properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at the year end by the Directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 7 -
7
Fixed asset investments
2023
2022
£
£
Investment in subsidiary
3
3
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings and undertakings in which the company has a participating interest
335,675
227,776
Other debtors
199,159
163,893
534,834
391,669
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
14,154
70,435
Corporation tax
177
Other taxation and social security
12,287
12,933
Other creditors
492,476
405,997
518,917
489,542
10
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
1,515,379
1,491,840
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
195
195
195
195
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 8 -
12
Revaluation reserve
2023
2022
£
£
At the beginning of the year
-
611,696
Prior year adjustment
567,349
As restated
567,349
611,696
Revaluation surplus arising in the year
11,327
Deferred tax on revaluation of tangible assets
(2,832)
(44,347)
At the end of the year
575,844
567,349
13
Profit and loss reserves
The Reserves include a revaluation reserve which has arisen from unrealised increases in the valuation of land and buildings held and the other reserve has arisen from unrealised increases in the valuation of investment properties held. Both are non distributable.
14
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified and the auditor reported as follows:
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
14
Audit report information
(Continued)
- 9 -
We have audited the financial statements of B A M Estate Limited (the 'company') for the year ended 24 December 2023 which comprise , the balance sheet and notes to the financial statements, including 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, except for the possible effects of the matter described in the 'Basis for qualified opinion' section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 24 December 2023 and of its 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 qualified opinion
The company owns land and buildings and investment properties and its accounting policy is to revalue these to fair value at each reporting date. The directors have revalued the properties as at 24 December 2023 but we were unable to obtain sufficient appropriate audit evidence to support their valuation. We were also unable to satisfy ourselves by alternative means concerning the balance sheet values of investment property of £6,515,911 and land and buildings of £766,434, using other audit procedures. Consequently, we were unable to determine whether any adjustments to these amounts, or related adjustments to deferred taxation or the revaluation reserve, were necessary.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 qualified opinion.
Senior Statutory Auditor:
Neil Heyes FCA
Statutory Auditor:
Rayner Essex LLP
15
Financial commitments, guarantees and contingent liabilities
The Company's bankers have a legal charge over 35-44 and 45 Avenue Mansions, Finchley Road, London NW3 7AV.
16
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
4,199
5,599
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 10 -
17
Related party transactions
Transactions with related parties
During the year BAM Estate Management Ltd paid £11,692 (2022: £11,338) for services to a business controlled by one of the directors of the company.
£811 (2022: £1,732) was paid to an agent controlled by the wife of a director.
In the prior year, £10,000 (2023: £Nil) was paid to a director in respect of professional fees.
18
Prior period adjustment
Reconciliation of changes in equity
25 December
24 December
2021
2022
£
£
Adjustments to prior year
Revaluation reserve
611,696
567,349
Profit and loss reserve
(6,173,663)
(6,173,664)
Other reserve
4,428,168
4,114,475
Total adjustments
(1,133,799)
(1,491,840)
Equity as previously reported
6,988,152
7,103,963
Equity as adjusted
5,854,353
5,612,123
Analysis of the effect upon equity
Revaluation reserve
611,696
567,349
Other reserves
4,428,169
4,114,475
Profit and loss reserves
(6,173,664)
(6,173,664)
(1,133,799)
(1,491,840)
Reconciliation of changes in profit/(loss) for the previous financial period
2022
£
Adjustments to prior year
Deferred taxation
(358,041)
Profit as previously reported
115,811
Loss as adjusted
(242,230)
B A M ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
18
Prior period adjustment
(Continued)
- 11 -
Notes to reconciliation
Accounting for investment property
The prior period adjustment relates to a correction to the accounting treatment for investment property. Previously the investment property was recorded as property plant and equipment on the balance sheet. A prior period adjustment has been made to reclassify these to investment property. Deferred taxation has been accounted for on the revaluation reserve of the investment property and freehold property.
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