REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
London BTR Investments |
(Fulbourne Road Block F) Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
London BTR Investments |
(Fulbourne Road Block F) Limited |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
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 | 3 |
Balance sheet | 4 |
Statement of changes in equity | 6 |
Notes to the financial statements | 7 |
London BTR Investments |
(Fulbourne Road Block F) Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
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 loss for the period is £993,092 (2022: profit £380,463). The directors do not recommend the payment of a dividend for the period ended 31 December 2023. |
GOING CONCERN |
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. Further detail is provided in the accounting policies of the financial statements. |
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 |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
Period |
24.5.22 |
Year Ended | to |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER |
Administrative expenses | ( |
) | ( |
) |
OPERATING LOSS | ( |
) | ( |
) |
Interest receivable and similar income |
346,104 | (1,132 | ) |
(Loss)/gain on revaluation of investment property |
(1,306,011 |
) |
508,794 |
(LOSS)/PROFIT BEFORE TAXATION |
4 |
( |
) |
Tax on (loss)/profit | 5 | ( |
) | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR |
( |
) |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Investment property | 6 |
CURRENT ASSETS |
Debtors | 7 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
9 |
( |
) |
PROVISIONS FOR LIABILITIES | 11 | ( |
) | ( |
) |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings | 13 | ( |
) |
SHAREHOLDERS' (DEFICIT)/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. |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Balance Sheet - continued |
31 December 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - |
Balance at 31 December 2022 | 380,463 |
Changes in equity |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 31 December 2023 | ( |
) | ( |
) |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
London BTR Investments (Fulbourne Road Block F) 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 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. |
Investment property |
Investment Property under construction is held at fair value, based on independent CBRE (UK) Limited valuation, acting in the capacity of External Valuers as defined in the RICS Red Book. |
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 |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
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. |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The directors have reviewed the trading prospects and projected cash flows of the business, which include the re-tendering of construction contracts relating to sites including London BTR Investments (Fulbourne Road Block F) Limited ("the Company"), which were originally contracted to be constructed by Inland Homes plc, which entered Administration in October 2023. Following this, contract works on the sites were re-tendered to third parties with a view to contracting with alternative parties to enable completion of the developments. The re-tendering process is at an advanced stage and nearing finalisation. Once complete, this will enable the construction works to recommence. As a result of cost inflation, and reflecting that the replacement contractors are taking on partially completed works, the re-tendering process has highlighted that there will be cost increases in comparison to the original contracts with Inland Homes. Claims under bonds taken out at the time of the original acquisition of the Inland Homes sites together with retentions will be utilised to offset the majority of these increased costs. Any shortfall would be expected to be met by additional equity from the joint venture partners in London BTR Investments Limited. |
The Administration of Inland Homes plc triggered a breach of covenants relating to certain of the Group’s bank facilities. However, the Group has strong relationships with its lenders and continues to work and communicate with them to find an optimum solution to the benefit of all stakeholders. The lenders remain supportive and the Board is confident that it will be able to resolve the breach and enable debt funding to resume once the contract re-tendering is complete and construction re-commences. |
Pending finalisation of the appointment of alternative contractors under construction contracts to the satisfaction of lenders, the Company will remain in breach of the bank facilities related to these sites. As a result of this technical breach, the lenders could call upon their debt and as such the debt related to these facilities has been classified as repayable on demand. The Board expects to resolve this situation following the appointment of alternative contractors and finalisation of new construction contracts. This process is at an advanced stage. Once complete, the construction works will recommence. The directors consider that action by the lenders to call upon its debt is unlikely, but acknowledge that this represents a material uncertainty. |
The directors believe that adopting the going concern basis in preparing the consolidated financial statements is appropriate. |
Finance income |
Interest income from interest rate derivative hedges are accounted for on an accruals basis. |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY ESTIMATION UNCERTAINTIES |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Actual results may differ from these estimates and judgements. |
Critical Accounting estimates and assumptions: |
(i) Fair value of investment property |
The matters taken into account when assessing the fair value of investment property are detailed in the accounting policy on investment property. |
4. | (LOSS)/PROFIT BEFORE TAXATION |
No expenses associated with this note were incurred in the year. |
5. | TAXATION |
Analysis of tax expense |
Period |
24.5.22 |
Year Ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax |
Total tax expense in statement of comprehensive income |
Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
24.5.22 |
Year Ended | to |
31.12.23 | 31.12.22 |
£ | £ |
(Loss)/profit before income tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
(225,770 |
) |
96,456 |
Effects of: |
Expenses not recognised | 24 | 209 |
Tax rate changes | 1,965 | 30,528 |
Losses carried forward | 256,966 | 6 |
Tax expense |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Additions |
Revaluations | (797,217 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2022 | 508,794 |
Valuation in 2023 | (1,306,011 | ) |
Cost | 12,297,218 |
11,500,001 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other debtors |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 10) |
Trade creditors |
Amounts owed to group undertakings |
Other creditors |
Accruals and deferred income |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 10) |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | FINANCIAL LIABILITIES - BORROWINGS |
The financial liability borrowing for the period is £8,221,909 (2022: £7,454,692) 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. |
The developer contracted to build some of the Group’s sites, entered administration in October 2023. This event triggered a breach of the long stop date of some of the bank facilities within the debt pool. As outlined earlier in these financial statements, the Group is at an advanced stage in re-tendering the remaining construction work to be completed with alternative parties. Pending the appointment of alternative contractors and finalisation of construction contracts to the satisfaction of lenders, the Company remains in technical breach of the bank facilities. As a result of the technical breach, the debt related to these facilities has been classified as repayable on demand. |
11. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Deferred tax |
£ |
Balance at 1 January 2023 |
Provided during year | 33,185 |
Balance at 31 December 2023 |
The deferred tax liability relates to unrealised property revaluations. |
12. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary Shares | £1 | 100 | 100 |
London BTR Investments |
(Fulbourne Road Block F) Limited (Registered number: 14127000) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Deficit for the year | ( |
) |
At 31 December 2023 | ( |
) |
14. | POST BALANCE SHEET EVENT REGARDING THE 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. |