Company registration number 07856407 (England and Wales)
ELEVATE PROPERTY GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
ELEVATE PROPERTY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr S P Dodd
Mr M J Diskin
Company number
07856407
Registered office
St Pauls House
23 St Pauls Square
Birmingham
West Midlands
England
B3 1RB
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
Lloyds Bank Plc
Caxton Gate
3 Corporation Street
Birmingham
B2 4LP
ELEVATE PROPERTY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 38
ELEVATE PROPERTY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Review of the business

The group's financial results for the year and its financial position at the year end can be found in the financial statements.

In summary, the group incurred a loss before taxation of £6,942,527 compared to a profit of £5,169,790 (as restated) generated in the previous year, from turnover of £28,388,812 in 2023 and £18,099,073 in 2022.

Cash funds held at 30 November 2023 have decreased by £1,030,341 to £1,096,298.

The group consolidated balance sheet is showing net assets of £17,110,576 at the 30 November 2023 (2022: £22,244,066).

The results for the year are in line with the directors expectations taking into account current market conditions.

Principal risks and uncertainties

The directors consider that the principal risks and uncertainties of the business are those relating to competition within the industry sector and the current economic environment.

 

Issues reported in the 2022 remain and include rising construction costs, onerous building regulations, rising insurance costs in the construction industry, long delays in the planning process, high cost of debt, higher cost of equity and increased equity requirements, cash calls for additional costs associated with projects in delay.

 

All of these risks are monitored regularly by directors to ensure that to ensure that they are managed effectively.

 

The directors are also concerned about the effects of the new “Building Safety Act” brought in as a result of the cladding crisis. This is a particularly onerous Act and changes the usual course of business for the construction of apartment blocks, which is the principal activity of the group. There are also wider implications to consider given the changes in legislation and a requirement for an “ultimately responsible person (Duty Holder)” for all buildings.

Key performance indicators

The directors consider the key performance indicators to be gross and net profit margins, cash balances and net assets position on the balance sheet. These are however likely to be affected by rising office costs, contingent liabilities, interest and equity costs.

 

Fair values of investment properties

As advised in the strategic report included in the 2022 accounts, the group have carried out an independent revaluation of the investment assets in the year to 30 November 2023, the results of which have been included in this years accounts.

 

Joint Venture Partners

The directors are very much aware of the rising cost of debt supporting the equity participation of its JV partners in various projects undertaken. New terms are available at higher cost adding further pressure to the viability of current schemes.

 

Restructure

A recent restructure of the director’s roles and responsibilities includes a provision for equity stakes and performance-based profit share.

ELEVATE PROPERTY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

On behalf of the board

Mr S P Dodd
Director
29 August 2024
ELEVATE PROPERTY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company and group continued to be that of property development.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £244,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S P Dodd
Mr M J Diskin
Financial instruments
Liquidity risk

The group actively manages its working capital requirements to ensure it has sufficient funds for its operations. The group funds medium term and long term developments via specific development loans. Investment properties are funded via term loans.

Interest rate cash flow risk

The group has interest bearing assets and interest bearing liabilities. Interest bearing assets consist of short term deposits and cash balances which earn interest at variable rates. The group has a policy of maintaining short term deposits and cash balances at a level sufficient to fund its operations. The directors will revisit the appropriateness of this policy should the group's operations or cash balances change in size or nature.

Auditor

The auditor, Ormerod Rutter Limited is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ELEVATE PROPERTY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S P Dodd
Director
29 August 2024
ELEVATE PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELEVATE PROPERTY GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Elevate Property Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 the financial statements:

Basis for opinion

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 group and parent 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 opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ELEVATE PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELEVATE PROPERTY GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company, the group as a whole and the industry, we identified that the principal risks of non-compliance with laws and regulations including those that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates and judgemental areas of the financial statements such as valuation of investments and goodwill. Audit procedures performed included:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ELEVATE PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELEVATE PROPERTY GROUP LIMITED
- 7 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Ormerod FCA (Senior Statutory Auditor)
For and on behalf of Ormerod Rutter Limited
29 August 2024
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
ELEVATE PROPERTY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
28,388,812
18,099,073
Cost of sales
(25,399,781)
(10,847,721)
Gross profit
2,989,031
7,251,352
Administrative expenses
(1,898,336)
(1,362,518)
Other operating income
39,851
266,052
Operating profit
4
1,130,546
6,154,886
Share of profits of associates and joint ventures
849,590
1,493,435
Interest receivable and similar income
8
6,062
7,300
Interest payable and similar expenses
9
(2,730,039)
(2,416,642)
Amounts written off investments
10
(6,198,686)
(69,189)
(Loss)/profit before taxation
(6,942,527)
5,169,790
Tax on (loss)/profit
11
53,036
(922,861)
(Loss)/profit for the financial year
31
(6,889,491)
4,246,929
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ELEVATE PROPERTY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
14
-
0
953,425
Tangible assets
15
417,856
791,123
Investment property
16
19,107,652
21,946,775
Investments
17
987,262
2,098,582
20,512,770
25,789,905
Current assets
Stocks
21
38,361,533
29,812,770
Debtors
22
1,988,857
2,222,721
Cash at bank and in hand
1,096,298
2,126,639
41,446,688
34,162,130
Creditors: amounts falling due within one year
23
(20,605,270)
(17,814,266)
Net current assets
20,841,418
16,347,864
Total assets less current liabilities
41,354,188
42,137,769
Creditors: amounts falling due after more than one year
24
(21,767,428)
(17,045,015)
Provisions for liabilities
Provisions
26
1,934,211
-
0
Deferred tax liability
27
541,974
848,688
(2,476,185)
(848,688)
Net assets
17,110,575
24,244,066
Capital and reserves
Called up share capital
29
251
251
Non-distributable reserve
30
184,528
2,499,734
Profit and loss reserves
31
16,925,796
21,744,081
Total equity
17,110,575
24,244,066

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
29 August 2024
Mr S P Dodd
Director
Company registration number 07856407 (England and Wales)
ELEVATE PROPERTY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
15
365,125
725,197
Investment property
16
1,185,000
-
0
Investments
17
124,114
290,643
1,674,239
1,015,840
Current assets
Debtors
22
17,782,203
21,536,283
Cash at bank and in hand
574,472
2,037,868
18,356,675
23,574,151
Creditors: amounts falling due within one year
23
(1,571,712)
(3,061,006)
Net current assets
16,784,963
20,513,145
Total assets less current liabilities
18,459,202
21,528,985
Creditors: amounts falling due after more than one year
24
(421,667)
(651,667)
Provisions for liabilities
Deferred tax liability
27
8,629
10,308
(8,629)
(10,308)
Net assets
18,028,906
20,867,010
Capital and reserves
Called up share capital
29
251
251
Profit and loss reserves
31
18,028,655
20,866,759
Total equity
18,028,906
20,867,010

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,594,104 (2022 - £4,047,595 profit).

These financial statements have been prepared 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 29 August 2024 and are signed on its behalf by:
29 August 2024
Mr S P Dodd
Director
Company registration number 07856407 (England and Wales)
ELEVATE PROPERTY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021
251
3,475,815
17,768,571
21,244,637
Year ended 30 November 2022:
Profit and total comprehensive income
-
(976,081)
5,223,010
4,246,929
Dividends
12
-
-
(1,247,500)
(1,247,500)
Balance at 30 November 2022
251
2,499,734
21,744,081
24,244,066
Year ended 30 November 2023:
Loss and total comprehensive income
-
(2,315,206)
(4,574,285)
(6,889,491)
Dividends
12
-
-
(244,000)
(244,000)
Balance at 30 November 2023
251
184,528
16,925,796
17,110,575
ELEVATE PROPERTY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021
251
18,066,664
18,066,915
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
4,047,595
4,047,595
Dividends
12
-
(1,247,500)
(1,247,500)
Balance at 30 November 2022
251
20,866,759
20,867,010
Year ended 30 November 2023:
Profit and total comprehensive income
-
(2,594,104)
(2,594,104)
Dividends
12
-
(244,000)
(244,000)
Balance at 30 November 2023
251
18,028,655
18,028,906
ELEVATE PROPERTY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
4,109,039
9,745
Interest paid
(2,730,039)
(2,416,642)
Income taxes (paid)/refunded
(1,832,069)
10,707
Net cash outflow from operating activities
(453,069)
(2,396,190)
Investing activities
Purchase of business
(1,417,461)
-
Purchase of tangible fixed assets
(9,309)
(356,146)
Proceeds from disposal of tangible fixed assets
177,189
102,000
Purchase of investment property
(4,792,740)
-
Proceeds from disposal of investment property
1,599,714
3,476,197
Distributions received from joint ventures
1,794,371
-
Proceeds from disposal of investments
-
6,412
Interest received
6,062
5,487
Other income received from investments
-
0
1,811
Net cash (used in)/generated from investing activities
(2,642,174)
3,235,761
Financing activities
Repayment of bank loans
2,308,902
217,820
Dividends paid to equity shareholders
(244,000)
(1,247,500)
Net cash generated from/(used in) financing activities
2,064,902
(1,029,680)
Net decrease in cash and cash equivalents
(1,030,341)
(190,109)
Cash and cash equivalents at beginning of year
2,126,639
2,316,748
Cash and cash equivalents at end of year
1,096,298
2,126,639
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
1
Accounting policies
Company information

Elevate Property Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is St Pauls House, 23 St Pauls Square, Birmingham, West Midlands, B3 1RB.

 

The group consists of Elevate Property Group Limited and all of its subsidiaries.

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.

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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Elevate Property Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 November 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable on legal completion for property sales and sales of services provided in the normal course of business are shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Ground rents are recognised on a straight-line basis over the period of the lease.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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:

Leasehold land and buildings
Over leased term
Fixtures and fittings
25% reducing balance
Computers
33% on cost
Motor vehicles
25% reducing balance
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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 recognised in the profit and loss account.

1.8
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.

 

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. 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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Borrowing costs related to fixed assets

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
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.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.14
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal 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 group 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 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 group after deducting all of its liabilities.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
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.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rental income
1,017,333
1,167,784
Revenue in relation to property sales
27,371,479
16,931,289
28,388,812
18,099,073
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
28,388,812
18,099,073
2023
2022
£
£
Other revenue
Interest income
6,062
5,489
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
42,576
35,677
Impairment of owned tangible fixed assets
340,000
-
Loss on disposal of tangible fixed assets
670,940
51,188
Profit on disposal of investment property
(848,129)
-
0
Amortisation of intangible assets
-
115,567
Impairment of intangible assets
953,425
-
0
Operating lease charges
38,112
12,743
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
33,900
32,250
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
9
12
9
10

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,019,124
753,316
1,019,124
753,316
Social security costs
131,046
19,446
131,046
19,446
Pension costs
55,812
16,681
55,812
16,681
1,205,982
789,443
1,205,982
789,443
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
221,758
141,990
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,062
1,765
Other interest income
-
3,724
Total interest revenue
6,062
5,489
Income from fixed asset investments
Income from participating interests - joint ventures
-
0
1,811
Total income
6,062
7,300
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
2,726,575
2,400,259
Other interest
3,464
16,383
Total finance costs
2,730,039
2,416,642

Borrowing costs excluded from interest payable and included in the cost of assets during the year are as follows:

2023
2022
£
£
Construction contracts
239
152,328
10
Amounts written off investments
2023
2022
£
£
Gain on disposal of financial assets held at cost
-
6,412
Changes in the fair value of investment properties
(6,032,147)
(75,601)
Other gains and losses
(166,539)
-
(6,198,686)
(69,189)

The group's investment properties were revalued during the year, resulting in a fair value loss of £6,032,148. Further details are included in note 16.

 

The group also revalued its investments, resulting in an impairment charge of £166,539.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
732,644
927,848
Adjustments in respect of prior periods
(7,130)
-
0
Total current tax
725,514
927,848
Deferred tax
Origination and reversal of timing differences
(2,831)
(277)
Arising on investment property fair value movements
(775,719)
(4,710)
Total deferred tax
(778,550)
(4,987)
Total tax (credit)/charge
(53,036)
922,861

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(6,942,527)
5,169,790
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.05% (2022: 19.00%)
(1,600,252)
982,260
Tax effect of expenses that are not deductible in determining taxable profit
983,766
200,935
Tax effect of income not taxable in determining taxable profit
(839)
(132,824)
Tax effect of utilisation of tax losses not previously recognised
(606)
(998)
Unutilised tax losses carried forward
-
0
(5,285)
Change in unrecognised deferred tax assets
445,794
-
0
Adjustments in respect of prior years
(7,130)
-
0
Group relief
-
0
(121,227)
Chargeable gains
126,231
-
0
Taxation (credit)/charge
(53,036)
922,861
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
244,000
1,247,500
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Goodwill
14
953,425
-
Property, plant and equipment
15
340,000
-
Fixed asset investments
17
166,539
-
Recognised in:
Cost of sales
953,425
-
Administrative expenses
340,000
-
Amounts written off investments
166,539
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
14
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
1,155,667
Amortisation and impairment
At 1 December 2022
202,242
Impairment losses
953,425
At 30 November 2023
1,155,667
Carrying amount
At 30 November 2023
-
0
At 30 November 2022
953,425
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.

More information on impairment movements in the year is given in note 13.

15
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
675,000
329,863
50,550
18,188
1,073,601
Additions
-
0
1,805
7,504
-
0
9,309
At 30 November 2023
675,000
331,668
58,054
18,188
1,082,910
Depreciation and impairment
At 1 December 2022
4,055
226,046
47,830
4,547
282,478
Depreciation charged in the year
335
35,745
3,086
3,410
42,576
Impairment losses
340,000
-
0
-
0
-
0
340,000
At 30 November 2023
344,390
261,791
50,916
7,957
665,054
Carrying amount
At 30 November 2023
330,610
69,877
7,138
10,231
417,856
At 30 November 2022
670,945
103,817
2,720
13,641
791,123
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
15
Tangible fixed assets
(Continued)
- 27 -
Company
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
675,000
182,115
14,373
18,188
889,676
Additions
-
0
1,805
7,504
-
0
9,309
At 30 November 2023
675,000
183,920
21,877
18,188
898,985
Depreciation and impairment
At 1 December 2022
4,055
142,032
13,845
4,547
164,479
Depreciation charged in the year
335
22,871
2,765
3,410
29,381
Impairment losses
340,000
-
0
-
0
-
0
340,000
At 30 November 2023
344,390
164,903
16,610
7,957
533,860
Carrying amount
At 30 November 2023
330,610
19,017
5,267
10,231
365,125
At 30 November 2022
670,945
40,083
528
13,641
725,197

More information on impairment movements in the year is given in note 13.

16
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 December 2022
21,946,774
-
Additions
4,792,740
1,338,750
Disposals
(1,599,714)
-
Net gains or losses through fair value adjustments
(6,032,148)
(153,750)
At 30 November 2023
19,107,652
1,185,000

The fair value of the group's investment properties, which are all freehold, has been arrived at on the basis of a valuation carried out by an independent firm, Lambert Smith Hampton during February 2024. The valuation was not a formal Red Book valuation, in that the properties were not inspected and no investigations were undertaken in relation to condition, available services, planning, ground conditions, contamination and deleterious materials.

 

The valuer adopted the investment approach or income capitalisation method of valuation which provides an indication of value by taking the income generated by the properties with an allowance for its market rent, and capitalising this at an appropriate yield based on sales of other similar properties for which transactional information is available. The valuer adjusted these comparables to reflect differences in age, size, condition, location, covenant, lease term and any other factors.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
17
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
18
-
0
-
0
861
851
Investments in associates
19
328,708
332,337
1
1
Investments in joint ventures
20
535,305
1,476,457
3
3
Other investments
123,249
289,788
123,249
289,788
987,262
2,098,582
124,114
290,643
Movements in fixed asset investments
Group
Shares in associates and joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 December 2022
1,808,794
289,788
2,098,582
Profit from joint ventures and associates
849,590
-
849,590
Dividends received
(1,794,371)
-
(1,794,371)
At 30 November 2023
864,013
289,788
1,153,801
Impairment
At 1 December 2022
-
-
-
Impairment losses
-
166,539
166,539
At 30 November 2023
-
166,539
166,539
Carrying amount
At 30 November 2023
864,013
123,249
987,262
At 30 November 2022
1,808,794
289,788
2,098,582
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
17
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries, associates and joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 December 2022
855
289,788
290,643
Additions
10
-
10
At 30 November 2023
865
289,788
290,653
Impairment
At 1 December 2022
-
-
-
Impairment losses
-
166,539
166,539
At 30 November 2023
-
166,539
166,539
Carrying amount
At 30 November 2023
865
123,249
124,114
At 30 November 2022
855
289,788
290,643
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
18
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Elevate Design Build Limited
1
100 Ordinary shares
100.00
-
Elevate Investments Limited
1
3 Ordinary shares
100.00
-
Eloquio London Limited
1
100 Ordinary shares
100.00
-
Falconhurst Limited
1
2 Ordinary shares
100.00
-
Landmarque Investments Limited
1
1 Ordinary shares
100.00
-
Honduras Wharf (Birmingham) Limited
1
2 Ordinary shares
100.00
-
Grandview (Sambourne Lane) Limited
1
2 Ordinary shares
100.00
-
Queensway House (Birmingham) Limited
1
2 Ordinary shares
100.00
-
St Pauls House (Birmingham) Limited
1
2 Ordinary shares
100.00
-
Tennant Street (Birmingham) Limited
1
2 Ordinary shares
100.00
-
Charlotte Street (Birmingham) Limited
1
1 Ordinary shares
100.00
-
Camden Street (Birmingham) Limited
1
1 Ordinary shares
100.00
-
Cliveland Street (Birmingham) Limited
1
1 Ordinary shares
100.00
-
Elevate Commercial Investments Limited
1
100 Ordinary shares
100.00
-
Sapcote Barns (Birmingham) Limited
1
1 Ordinary shares
100.00
-
Liversage Street (Derby) Limited
1
2 Ordinary shares
100.00
-
Homelands (Gotherington) Limited
1
1 Ordinary shares
100.00
-
VW Ashford Limited
1
1 Ordinary shares
100.00
-
EPG Muller Limited
1
10 Ordinary shares
100.00
-
VW Ashford (Hotel) Limited
1
1 Ordinary shares
100.00
-
Wagon Lane (Birmingham) Limited
1
10 Ordinary shares
100.00
-
Sapcote Yard (Birmingham) Limited
1
2 Ordinary shares
100.00
-
John Street (Derby) Limited
1
100 Ordinary shares
100.00
-
Wool Growers (Ashford) Limited
1
100 Ordinary shares
100.00
-
Priory House (Birmingham) Limited
1
100 Ordinary shares
100.00
-
Price Street (Birmingham) Limited
1
100 Ordinary shares
100.00
-
P G (Solihull) Limited
1
100 Ordinary shares
100.00
-
Chapmans Yard (Birmingham) Limited
1
1 Ordinary shares
100.00
-
Gooch Street (Birmingham) Limited
1
100 Ordinary shares
-
100.00
Ariel House (Sheldon) Limited
1
10 Ordinary
100.00
-
Upper Gough Street Limited
1
100 Ordinary
-
100.00
Edith Walk (Malvern) LLP
1
Members interest
-
66.67

Registered office addresses (all UK unless otherwise indicated):

1
St Pauls House, 23 St Pauls Square, Birmingham, West Midlands, England, B3 1RB
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
18
Subsidiaries
(Continued)
- 31 -

Parent company guarantee of unaudited subsidiaries

 

Elevate Property Group Limited as the parent company of the group has provided a statutory guarantee to its subsidiary undertakings for all outstanding liabilities to which those subsidiaries are subject as at 30 November 2023. This enables them to take the BIS exemptions from obtaining a signed statutory audit opinion under 479A of the Companies Act 2006.

 

The companies provided with a statutory guarantee are Elevate Design Build Limited (Company No: 06067696), Falconhurst Limited (Company No: 05281693), Landmarque Investments Limited (Company No: 05896546), Honduras Wharf (Birmingham) Limited (Company No: 09008337), Queensway House (Birmingham) Limited (Company No: 09686847), St Pauls House (Birmingham) Limited (Company No: 09686694), Tennant Street (Birmingham) Limited (Company No: 09686686), Charlotte Street (Birmingham) Limited (Company No: 10880044), Camden Street (Birmingham) Limited (Company No: 10899162), Cliveland Street (Birmingham) Limited (Company No: 10850086), Elevate Commercial Investments Limited (Company No: 11437133), Sapcote Barns (Birmingham) Limited (Company No: 10775594), Liversage Street (Derby) Limited (Company No: 10804957), Homelands (Gotherington) Limited (Company No: 11966261), VW (Ashford) Limited (Company No: 10851552), EPG Muller Limited (Company No: 11056732), VW Ashford (Hotel) Limited (Company No: 11170672), Wagon Lane (Birmingham) Limited (Company No: 11727357), Sapcote Yard (Birmingham) Limited (Company No: 11936606), John Street (Derby) Limited (Company No: 12358540), Wool Growers (Ashford) Limited (Company No: 12398100), Priory House (Birmingham) Limited (Company No: 13153238), Price Street (Birmingham) Limited (Company No: 12940893), P G (Solihull) Limited (Company No: 11198312), Chapmans Yard (Birmingham) Limited (Company No: 13421379), Gooch Street (Birmingham) Limited (Company No: 12338616), Ariel House (Sheldon) Limited (Company No: 15126799) and Upper Gough Street Limited (Company No: 13406658).

19
Associates

Details of associates at 30 November 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
FRD Associates limited
1
Ordinary A
33
Sambourne (Astwood) Limited
1
Ordinary A
33

Registered office addresses (all UK unless otherwise indicated):

 

1. St Pauls House, 23 St Pauls Square, Birmingham, West Midlands, England, B3 1RB

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
20
Joint ventures

Details of joint ventures at 30 November 2023 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Indirect
Victoria Way Ashford (Hotel) LLP
1
Members' interest
50.00
-
Homer Road (Solihull) LLP
1
Members' interest
-
50.00
Trent Bridge Phase II LLP
1
Members' interest
-
50.00
Meadow Lane Phase 3 LLP
1
Members' interest
-
50.00
QH Coventry Limited
1
Ordinary shares
50.00
-
Trent Bridge Quays Limited
1
Ordinary shares
50.00
-
Eastern Avenue (Gloucester) Limited
1
Ordinary shares
50.00
-
24 Solihull Limited
1
Ordinary shares
-
50.00
Victoria Way Ashford LLP
1
Members' interest
-
50.00

Registered office addresses (all UK unless otherwise indicated):

 

1. St Pauls House, 23 St Pauls Square, Birmingham, West Midlands, England, B3 1RB

21
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
38,361,533
29,812,770
-
-
22
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
35,950
45,694
-
0
-
0
Amounts owed by group undertakings
-
-
17,104,453
20,824,856
Amounts owed by undertakings in which the company has a participating interest
1,163,486
1,134,230
260,190
281,696
Other debtors
547,869
759,034
417,560
404,731
Prepayments and accrued income
241,552
283,763
-
0
25,000
1,988,857
2,222,721
17,782,203
21,536,283
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
23
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
25
11,048,918
13,462,429
230,000
230,000
Trade creditors
3,503,990
825,606
104,821
62,000
Amounts owed to group undertakings
-
0
-
0
666,378
2,718,427
Amounts owed to undertakings in which the group has a participating interest
174,714
15,452
172,280
-
0
Corporation tax payable
736,202
1,840,677
-
0
7,366
Other taxation and social security
163,908
39,729
94,653
24,957
Other creditors
3,392,851
662,517
46,649
3,728
Accruals and deferred income
1,584,687
967,856
256,931
14,528
20,605,270
17,814,266
1,571,712
3,061,006
24
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
25
21,767,428
17,045,015
421,667
651,667
25
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
32,816,346
30,507,444
651,667
881,667
Payable within one year
11,048,918
13,462,429
230,000
230,000
Payable after one year
21,767,428
17,045,015
421,667
651,667

Bank loans are secured by way of a fixed and floating charge over all assets of the group.

26
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Remediation provisions
1,934,211
-
-
-
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
26
Provisions for liabilities
(Continued)
- 34 -
Movements on provisions:
Remediation provisions
Group
£
Additional provisions in the year
1,934,211

During the year, the group created remediation provisions as a result of the introduction of The Building Safety Act 2022 ("the Act"). The Act imposes new legal obligations on developers, amongst others, to protect leaseholders from paying for all, or some of, the costs of remediating relevant historical building safety defects.

27
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
17,258
11,461
Revaluations
524,716
837,227
541,974
848,688
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
8,629
10,308
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022
848,688
10,308
Credit to profit or loss
(778,550)
(1,679)
Arising on business combination
471,836
-
Liability at 30 November 2023
541,974
8,629
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 35 -
28
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
55,812
16,681

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

29
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
25
25
25
25
Ordinary of £1 each
226
226
226
226
251
251
251
251

Both Ordinary and Ordinary A shares have the right to receive notice of and to attend and vote at general meetings of the company. to participate in the profits of the company available for distribution in such amounts and in such a manner as the company may resolve in general meeting, and in the event of a winding-up. participate in the distribution of any assets of the company(including uncalled shares at the commencement of the winding-up) remaining after paying and discharging the debts and liabilities of the company and the costs of the winding-up.

 

30
Non-distributable reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,499,734
3,475,815
-
-
Non distributable profits in the year
(2,315,206)
(976,081)
-
-
At the end of the year
184,528
2,499,734
-
-

The non-distributable reserve represents unrealised fair value gains of certain investment properties compared to their value under historical cost accounting.

31
Reserves
Profit and loss reserves

The profit and loss reserves comprise of the cumulative profits or losses of the Company or Group.

 

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 36 -
32
Acquisition of a business

On 20 February 2023 the group acquired the entire issued percent of the issued capital of Upper Gouch Street Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Inventories
3,127,162
1,887,345
5,014,507
Trade and other payables
(3,123,130)
-
(3,123,130)
Tax liabilities
(2,080)
-
(2,080)
Deferred tax
-
(471,836)
(471,836)
Total identifiable net assets
1,952
1,415,509
1,417,461
Goodwill
-
Total consideration
1,417,461
The consideration was satisfied by:
£
Cash
1,417,461
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
-
Loss after tax
(23,811)
33
Controlling party

The ultimate controlling party is Mr S P Dodd.

ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 37 -
34
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(6,889,491)
4,246,929
Adjustments for:
Share of results of associates and joint ventures
(849,590)
(1,493,435)
Taxation (credited)/charged
(53,036)
922,861
Finance costs
2,730,039
2,416,642
Investment income
(6,062)
(7,300)
(Gain)/loss on disposal of tangible fixed assets
(177,189)
51,188
Fair value loss on investment properties
6,032,147
75,601
Amortisation and impairment of intangible assets
953,425
115,567
Depreciation and impairment of tangible fixed assets
382,576
35,677
Other gains and losses
166,539
(6,412)
Increase in provisions
1,934,211
-
Movements in working capital:
Increase in stocks
(3,534,256)
(7,816,714)
Decrease in debtors
233,864
693,911
Increase in creditors
3,185,862
775,230
Cash generated from operations
4,109,039
9,745
35
Analysis of changes in net debt - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
2,126,639
(1,030,341)
1,096,298
Borrowings excluding overdrafts
(30,507,444)
(2,308,902)
(32,816,346)
(28,380,805)
(3,339,243)
(31,720,048)
36
Prior period adjustment
Adjustments to equity - group
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to profit for the previous financial period
2022
Notes
£
Adjustments to prior year
Change in fair value of investment property
1
(956,971)
Deferred tax on fair value
1
(11,910)
Total adjustments
(968,881)
ELEVATE PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
36
Prior period adjustment
(Continued)
- 38 -
Adjustments to equity - company
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Notes to reconciliation
Fair value adjustments - group

The prior year profit before tax has been restated to reflect the fair value movement of investment properties which had been previously reported directly within the non-distributable reserve on the balance sheet.

 

The previously reported profit before tax of £6,126,761, has been reduced by £956,971 which represents the previous years fair value movement which was directly reported on the balance sheet.

 

The deferred tax on fair value was again reported directly within the non-distributable reserves and the previously reported tax of £903,751 has been adjusted by £11,910 for deferred tax previously provided on the fair value movement of investment property.

 

The net profit effect is a reduction of £968,881 to the profit after tax of £5,223,010 to arrive at a restated profit after tax of £4,254,129.

 

There is no impact on the equity position due to the movement being transferred to non-distributable reserves. The prior period adjustment is purely to reflect the fair value movement within the profit and loss account under FRS102 and not included directly within non-distributable reserves which had previously been reported.

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