Registered number: 10963130
SDH ESTATES LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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SDH ESTATES LIMITED
COMPANY INFORMATION
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SDH ESTATES LIMITED
CONTENTS
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Statement of Changes in Equity
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Notes to the Financial Statements
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SDH ESTATES LIMITED
REGISTERED NUMBER: 10963130
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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SDH ESTATES LIMITED
REGISTERED NUMBER: 10963130
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023
The director considers that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by and were signed by:
The notes on pages 4 to 11 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 4 to 11 form part of these financial statements.
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
SDH Estates Limited is a private company, limited by shares, incorporated in England and Wales with registration number 10963130. The registered office address is Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis which assumes the continued financial support of the director, who has provided confirmation of hi intention to provide such financial support as is neccessary for the company to continue its operations for the foreseeable future and at least 12 months from the date of signing of the financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the company has transferred the significant risks and rewards of ownership to the buyer;
∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks of properties held for resale are valued at the lower of cost and net realisable value.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees, including directors, during the year was 1 (2022 - 1).
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Charge for the year on owned assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The bank loan included above (2022 - £1,081,048 due after one year) includes accrued interest at a rate of 4.5% per annum above the Bank of England Base Rate, and is secured by a registered charge over the properties.
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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The additional £72,213 bank loan for 2023, is secured by a registered charge over the property and includes accrued interest at a rate of 1.15% for the year.
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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On 12 July 2021 a loan facility of £1.3m was taken out with Coutts & Co. During the year and additional £321,387 was drawn down (£1,050,682 drawn in 2022). Interest accrues at a rate equivalent to 4.5% per annum above the Bank's Base Rate. Interest is compounded quarterly on the final business day of March, June, September and December. The loan is repayable once the final property sale is completed and is anticipated to be repaid within 12 months of the year end. The loan is secured by a fixed and floating charge over the remaining property.
On 20 July 2023 an additional loan facility of £610,000 was taken out with Portman Structured Finance Limited. During the year £72,213 was drawn down. Interest accrues at 1.15% per month until 31 July 2024 and 2.5% per month thereafter and the loan repayment is to be reviewed 31 July 2024.
In July 2023 a further loan facility of £305,000 has been taken out with the Trustees of the RD SD and MS SD Trusts. During the year £305,000 was drawn down. The loan is interest free and shall be repayable following completion of the property sale and no later than the repayment of the Portman Structured Finance loan.
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Financial assets measured at fair value through profit or loss
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Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
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Authorised, allotted, called up and fully paid
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100 (2022 - 100) Ordinary shares of £1 each
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Other reserves
The £255,260 “Other loans” included in Note 9 relates to a loan of £305,000 (2022 - £Nil) from the Trustees of the RD SD and MS SD Trusts, which is interest free, and shall be repayable following completion of the sale thereof and no later than the repayment of the Portman Structured Finance loan. As the loan has been provided at below market rate, FRS102 requires the loan to be measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost using the effective interest method. The directors have assessed the market rate of interest to be 4.5% above Bank of England base rate on the date of each drawdown. The difference between the book value and the fair value on each drawdown is recognised as a capital contribution in other reserves. The capital contribution amounted to £53,838 for the year ended 30 September 2023 (2022 - £Nil).
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SDH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Related party transactions
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Included within the Profit and Loss account is the sale of a vehicle, originally held as stock, to a related company Zenith Vehicle Management Limited, a company under common control. Both the sale and purchase were for £112,136 and considered on open market terms.
Included within Note 9 is a loan of £305,000 which was taken out with the Trustees of the RD SD and MS SD Trusts, Trusts of which the director is a beneficiary. As the loan has been provided below market value, an adjustment has been made to reflect fair value as detailed in Note 14.
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