REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
London BTR Investments |
(Beam Park Block T) Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
London BTR Investments |
(Beam Park Block T) Limited |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company information | 1 |
Report of the directors | 2 |
Statement of comprehensive income | 4 |
Balance sheet | 5 |
Statement of changes in equity | 7 |
Notes to the financial statements | 8 |
London BTR Investments |
(Beam Park Block T) Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of investment in and development of build to rent property ("BTR") in Greater London. |
DIRECTORS |
Other changes in directors holding office are as follows: |
RESULTS AND DIVIDENDS |
The profit for the year is £163,588 (2022: £2,599,415). The directors do not recommend the payment of dividends for the current or prior periods. |
GOING CONCERN |
The directors have reviewed the trading prospects and projected cash flows of the business and on that basis the directors have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Report of the Directors |
for the Year Ended 31 December 2023 |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT |
Other income | 210,600 | - |
848,547 | 13,450 |
Revaluation of derivatives | 5 | (48,796 | ) | - |
(Loss)/gain on revaluation of investment property |
(575,544 |
) |
3,522,305 |
224,207 | 3,535,755 |
Interest payable and similar expenses |
6 |
( |
) |
PROFIT BEFORE TAXATION | 7 |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Derivative financial instruments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Balance Sheet - continued |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
The financial statements were approved by the Board of Directors and authorised for issue on |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 | 3,014,862 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
London BTR Investments (Beam Park Block T) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparation |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
• | the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group. |
Turnover |
Rental income from investment property is accounted for under an accruals basis. |
Tangible fixed assets |
Fixtures and fittings | - |
Investment property |
Investment property, including that which is being constructed for future use as investment property, is measured initially at its cost including related transaction costs. After initial recognition, investment property is carried at fair value. The investment properties are valued by CBRE who are qualified valuation experts and hold a recognised and relevant professional qualification. The valuation basis of market value conforms to international valuation standards. The valuation is based on market evidence of investment yields, expected gross to net income rates and actual and expected rental values. Gains or losses arising from arising from changes in the fair value of the investment property are included in profit from operations in the income statement of the period in which they arise. |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised on the Company’s statement of financial position when the Company becomes a party to the contractual provisions of the instrument. |
The company uses derivatives financial instruments, specifically caps, to manage interest rate risk. The group does not use derivative financial instruments for speculative purposes. Derivatives are recognised in the Statement of Financial Position at fair value on the date the transaction is entered into and are subsequently re-measured at their fair values at year end. Changes in the fair value of derivatives are recognised in the Statement of Comprehensive Income. |
Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire, or when the financial asset and substantially all the risk and rewards are transferred. A financial liability is derecognised when it is extinguished, discharge, cancelled or expires. |
Taxation |
Tax on the profit or loss for the period comprises current tax and deferred tax. Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments to tax payable in respect of previous years. |
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at the date that will result in an obligation to pay more, or a right to pay less or to receive more tax with the following exceptions: |
1) The recognition of deferred tax assets is limited to the extent that the Company anticipates making sufficient taxable profits in the future to absorb the reversal of the underlying timing differences. |
2) Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Impairment |
When there is an indication of impairment, the company reviews the carrying value of its assets to determine whether those assets have suffered an impairment loss. The recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to determine the recoverable amount of an individual asset the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment losses are recognised as an expense immediately. |
Where an impairment subsequently reverses, the carrying amount of the asset (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 (cash-generating unit) in prior years. |
Finance income |
Interest income from interest rate derivative hedges are accounted for on an accruals basis. |
Going concern |
The directors have reviewed the trading prospects and projected cash flows of the business and on that basis the directors have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY ESTIMATION |
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below: |
Investment property valuation |
Investment properties both completed and under construction are held at fair value, based on independent CBRE (UK) Limited valuations, acting in the capacity of External Valuers as defined in the RICS Red Book. |
Derivative financial instruments valuation |
Derivative financial instruments are held at fair value, based on independent Chatham Financial valuations, acting in the capacity of External Valuers. |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | OTHER INCOME |
2023 | 2022 |
as restated |
£ | £ |
Other income |
Other income represents amounts payable by a contractor in respect of later than expected delivery of assets where the delay is attributable to the contractor. |
5. | REVALUATION OF DERIVATIVES |
2023 | 2022 |
as restated |
£ | £ |
Loss on revaluation of derivatives | 48,796 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Bank loan interest |
7. | PROFIT BEFORE TAXATION |
The profit before taxation is stated after charging: |
2023 | 2022 |
as restated |
£ | £ |
Depreciation - owned assets |
8. | TAXATION |
Analysis of tax expense |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
Tax |
Deferred tax | ( |
) |
Total tax expense in statement of comprehensive income |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION - continued |
Factors affecting the tax expense |
The tax assessed for the year is lower (2022 - higher) than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before income tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
49,134 |
671,793 |
Effects of: |
Disallowed expenses | - | 3,067 |
Capital allowance | (2,278 | ) | (312,937 | ) |
Pre-commencement expenses | - | (1,828 | ) |
Group relief | - | 351,523 |
Tax rate changes | (1,542 | ) | 224,722 |
Tax expense |
9. | PRIOR YEAR ADJUSTMENT |
Interest rate caps were taken out within the group during 2022. Their treatment in the accounts of the relevant group companies has been restated in both the current and prior years. This has resulted in the restatement of the prior year taxation balance of London BTR Investments (Beam Park Block T) Ltd as detailed below. |
2022 |
£'000 |
Net Assets - Original | 3,070,726 |
Deferred Tax Creditor (additional deferred tax) | (55,764 | ) |
Net Assets - Restated | 3,014,962 |
The effect of the restatement on the Income Statement is as follows |
Profit per Original statement | 2,655,179 |
Additional Deferred Tax (additional deferred tax) | (55,764 | ) |
Profit Restated | 2,599,415 |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
and |
fittings |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | DERIVATIVE FINANCIAL INSTRUMENTS |
The fair value of derivative financial instruments was £176,710 (2022: £nil) which is made up of a interest rate hedge. |
The derivative financial instrument was entered into in December 2023 and expires in December 2026. The notional loan amount is £10.1m with a strike rate of 4.0%. |
The cash payment or rebate is a function of the difference between strike rate per the agreement and the SONIA compounding rate with a 5 day look back. |
The loss in fair value of the derivative financial instrument in the year was £48,796 (2022: £nil). |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Additions |
Revaluations | (575,544 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | INVESTMENT PROPERTY - continued |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2021 | 566,762 |
Valuation in 2022 | 3,522,305 |
Valuation in 2023 | (575,544 | ) |
Cost | 13,986,477 |
17,500,000 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Other debtors |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
VAT | - | 20,462 |
Other creditors |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Bank loans (see note 16) |
16. | FINANCIAL LIABILITIES - BORROWINGS |
The financial liability borrowing for the period is £10,065,000 (2022: £nil) which is made up of a non-current bank loan. |
The bank loan is utilised to fund the Company’s investment in private rented sector property. |
Interest is charged at commercial rates and the loan facility is secured on the company's investment property. |
London BTR Investments |
(Beam Park Block T) Limited (Registered number: 12935353) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
as restated |
£ | £ |
Deferred tax |
Deferred tax |
£ |
Balance at 1 January 2023 |
Provided during year | (26,053 | ) |
Balance at 31 December 2023 |
The deferred tax liability relates to unrealised property revaluations. |
18. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary Shares | £1 | 100 | 100 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
20. | POST BALANCE SHEET EVENT REGARDING ULTIMATE CONTROLLING PARTY |
With effect from 29 July 2024, London BTR Investments LP is regarded by the directors as being the company's ultimate parent company. Prior to this date London BTR Investments Ltd was regarded by the directors as the company's ultimate parent company. |