Company registration number 06064617 (England and Wales)
LUGANO DEVELOPMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LUGANO DEVELOPMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
LUGANO DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
23,121
12,655
Current assets
Debtors
5
10,796,335
10,336,516
Creditors: amounts falling due within one year
6
(18,030,360)
(17,533,568)
Net current liabilities
(7,234,025)
(7,197,052)
Net liabilities
(7,210,904)
(7,184,397)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(7,210,905)
(7,184,398)
Total equity
(7,210,904)
(7,184,397)
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
Mr G R Jackson
Director
Company registration number 06064617 (England and Wales)
LUGANO DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Lugano Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lugano Building, 57 Melbourne Street, Newcastle upon Tyne, NE1 2JQ. The company number is 06064617.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is wholly reliant on its ultimate holding company, Lugano Group Limited, for financial support. true
The parent company and wider group remain financially healthy and will continue to support the company. As such the directors believe the company remains a going concern and the financial statements have been prepared on a going concern basis, despite the negative balance sheet position.
1.3
Turnover
Turnover represents amounts receivable for management charges net of VAT and discounts.
1.4
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:
Plant and machinery
20 - 33% straight line
Fixtures, fittings & equipment
20% straight line
Motor vehicles
25% 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.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
LUGANO DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
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.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price
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.
1.7
Taxation
The tax expense represents the tax currently payable.
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.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.9
Retirement benefits
Pension contributions are made to a defined contribution scheme.
LUGANO DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
10
11
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
173,950
Additions
18,000
At 31 December 2023
191,950
Depreciation and impairment
At 1 January 2023
161,295
Depreciation charged in the year
7,534
At 31 December 2023
168,829
Carrying amount
At 31 December 2023
23,121
At 31 December 2022
12,655
LUGANO DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
58,987
38,620
Amounts owed by group undertakings
10,719,948
10,275,911
Other debtors
17,400
21,985
10,796,335
10,336,516
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
26,558
163,656
Amounts owed to group undertakings
17,778,110
16,942,651
Taxation and social security
216,757
419,483
Other creditors
8,935
7,778
18,030,360
17,533,568
7
Financial commitments, guarantees and contingent liabilities
The company's banking facilities are secured by a debenture dated 13 December 2021 and cross guarantees from the parent company and other wholly owned subsidiaries within the Lugano Group. The exact amount owed by this company under these securities at any one time cannot be separately identified.
8
Related party transactions
The company acts as the UK agent for the Lugano group of companies, in their property management activities. All such transactions are reflected in these accounts.
At the year end the company was owed £10,719,948 (2022 - £10,275,911) by and owed £17,778,110 (2022 - £16,942,651) to various companies in the Lugano group of companies. These amounts are shown under amounts owed from group undertakings and to group undertakings, respectively.
9
Directors' transactions
At the year end there was a balance due from the directors of £9,427 (2022 - £7,026) which is included in other debtors. This loan is interest free and repayable on demand.