Company registration number 06987720 (England and Wales)
MACE DEVELOPMENTS (GREENWICH) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MACE DEVELOPMENTS (GREENWICH) LIMITED
COMPANY INFORMATION
Directors
M Reynolds
M J Willis
Secretary
C Pate
Company number
06987720
Registered office
155 Moorgate
London
EC2M 6XB
Auditor
Glazers
843 Finchley Road
London
NW11 8NA
MACE DEVELOPMENTS (GREENWICH) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 21
MACE DEVELOPMENTS (GREENWICH) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The company is currently developing a site, in partnership with the Greater London Authority (GLA), known as Greenwich Square in South East London.
The company holds responsibility for the management of the service charge and facilities management costs for residential units on the development.
The company generated revenue of £2.38m (2022: £10m) and held development Work-in-Progress of £0.2m (2022: £0.2m).
Principal risks and uncertainties
Mace Developments (Greenwich) Limited groups its principal risks into six themes:
Treasury/Liquidity: The risk that Mace Developments (Greenwich) Limited is unable to meet its contractual or contingent obligations or does not have the appropriate amount or mix of funding and liquidity to support business activities.
Operational: The risk of loss as a result of inadequate or failed processes, human factors or external events.
Conduct: The risk of detriment to clients, partners, employees and other stakeholders, from the inappropriate supply of services, including instances of wilful or negligent misconduct.
Legal: The risk of loss or the imposition of penalties, damages or fines as a result of the failure of Mace Developments (Greenwich) Limited to meet its legal obligations, including relevant regulatory or contractual requirements.
Reputational: The risk that an action, investment, event, decision or business relationship will reduce trust in Mace Development (Greenwich) Limited’s integrity and/or competence.
Climate: The risk of suffering loss or damage due to climate change, either impacting Mace Development (Greenwich) Limited directly or by affecting its clients, employees and other stakeholders.
Principal risks
Project execution
Definition: The failure to meet contractual, legal or client expectations about the timing, quality or safety requirements of a development.
Impact: Financial and reputational loss.
Mitigation: Early identification of issues and proactive management to resolve them. Effective engagement with clients has ensured that the business continues to mitigate the impact of delays and cost overruns.
Health and Safety
Definition: The occurrence of major health and safety incidents, including fatalities.
Impact: Project disruption, significant fines and reputational damage. Potential custodial sentences for senior employees. Impact on mental health of employees who witness incidents
Mitigation: The company is part of the Mace group which has high standards of health, safety and wellbeing. It is a central part of the Mace culture. One of the company’s key values is “Safety first – going home safe and well”. Fostering a culture in which health and safety remains a priority and actions to improve health and safety are celebrated. Focus on health and safety training, the role of supervisors, compliance with Mace Way standards and best practice, knowledge sharing and working with suppliers to embed Mace standards. The implementation of new procedures to tackle evolving risks on site. Mental health training and support for employees.
MACE DEVELOPMENTS (GREENWICH) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks (ctd)
Third-Party Management
Definition: The collapse of a supply chain partner that has a significant role in the successful delivery and management of the development. The UK construction supply chain has had to adapt to the adverse cash flow impacts of the Reverse Charge regime for VAT introduced by UK HM Treasury in March 2021. The company also uses a facilities management agent to manage the service charge.
Impact: Project disruption, potential additional costs through delivery delays, loss of secured income, potential cash flow shortages, disruption to management of service charge and reputational damage.
Mitigation: Actively managing relationships with the supply chain and customers, ensuring appropriate levels of due diligence and checks of their financial strength are undertaken and kept up to date. A range of supply chain partners are engaged to control volumes of work and reduce the risk of over-reliance. Early identification of problems and robust knowledge and understanding of contractual positions. Enhanced supply chain analysis and more regular internal reporting of concerns has been implemented since March 2021. The relevant processes continue to be operated to enable Mace Developments (Greenwich) Limited to identify and act upon potential concerns regarding individual suppliers. Client credit-worthiness is appraised and assessed, and credit control procedures are followed.
Macroeconomic
Definition: Cost inflation driven by excess demand and shortages in the supply of skilled labour, materials and products. Foreign exchange fluctuations.
Impact: Increased development costs and separately, service charge costs for the residential units. The impacts of the war in Ukraine and instability in the Middle East have heightened the risk of supply chain constraints and inflation.
Mitigation: Long term fixed price contracts are agreed with the contractors for development work to limit the exposure to cost inflation. We employ an agent to manage the service charge who are bound by the RICS Service charge residential management code to ensure that appropriate procedures are followed to obtain the best outcome for leaseholders for expenditure of the service charge funds.
IT Security, resilience, Cyber and Data protection
Definition: Major business disruption caused by a cyber security incident, IT failure or breach of data protection/GDPR legislation
Impact: Major impact on the ability to effectively work for days or even weeks. Disruption to projects or clients. Significant fines for failure to comply with relevant legislation. Compromises Mace Developments (Greenwich) Limited’s reputation for competence.
Mitigation: The development work utilises development managers working on the wider Mace Group IT system. The Group has moved away from legacy systems to cloud technology, ensuring appropriate patches and revisions are in place together with an effective cyber security and Mace-wide data protection regime. The service charge is managed by an agent on behalf of the company and appropriate measures have been taken to ensure that they have adequate IT security in place.
MACE DEVELOPMENTS (GREENWICH) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Principal risks (ctd)
Sustainability and Climate change:
Definition: Major loss of revenue due to an inability to adapt to future climate scenarios. Mace Developments (Greenwich) Limited faces physical and transitional risks as a result of climate change. In addition to having to adapt to be able to operate in more volatile and extreme climate scenarios, the company faces increasingly onerous legislative frameworks and profound market changes as a result of climate change.
Impact: Potential delays on the development and damage to the completed or in progress development caused by severe weather events and acute climate change scenarios. Reputational damage as a result of being seen as a company that is not addressing climate change. Significant financial penalties for not meeting legislative requirements.
Mitigation: The Mace Group Identifies long-term climate impacts in business continuity plans and embed climate change risks assessments in all design and procurement processes. Complete horizon scanning exercises to stay ahead of policy changes and ensure our contracts and insurance policies reduce our exposure to risk effectively.
Legal, regulatory and compliance
Definition: Action taken against the business for failing to put in place effective arrangements to mitigate the risk of breaches of legislation/regulation, covenants or contract conditions.
Impact: Reputational damage. Significant financial penalties for the business. Litigation against the company from stakeholders.
Mitigation: Development managers are part of the Mace group which have implemented compliance training for all employees on existing and upcoming issues, rigorous policies and a clear disciplinary approach in the event of non-compliance. Horizon scanning exercises to look ahead for upcoming legislative and regulatory change. Mace’s top-down commitment to a culture of ethical behaviour is demonstrated through the promotion of, and compliance with, a comprehensive suite of corporate policies and formal delegations to committees and individuals.
Funding and Liquidity
Definition: Inability to secure adequate funding to meet operational liquidity needs.
Impact: Inadequate financial liquidity and funding could impact the ability of the company to meet its financial obligations as they fall due.
Mitigation: Effective performance and cash flow management on developments and appropriate budgeting for service charge costs to ensure adequate funds are collected in advance from leaseholders.
Fraud
Definition: A fraud by an employee, supplier or customer which results in financial loss for the business.
Impact: Financial loss and reputational harm.
Mitigation: the Company, as part of the Mace group, maintains an effective financial control environment. There is rigorous segregation of duties, and frequent reconciliation and analysis work is performed to identify potential issues. The Mace group operates an independent employee whistleblowing line through which malpractice can be identified anonymously.
Financial reporting
Definition: Failures in accounting controls and reporting leading to misstatement of primary financial statements.
Impact: Financial misstatement of actuals and/or of forecasts, which could result in a loss of value, financial penalties and reputational harm.
Mitigation: The Company, as part of the Mace Group, maintains and is investing to strengthen further its financial controls. The Group has invested in an enterprise-class Oracle system, the use of which brings significant coherence and control to its financial controls and reporting. The Mace group is investing to enhance its internal and assurance capabilities.
MACE DEVELOPMENTS (GREENWICH) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Key performance indicators
The Company does not yet have specific KPI’s set in place, however senior management reviews the Company’s performance by reviewing cash projections, gross profit and revenue. The reviews in the period concluded that the increase in service charge income and cost as well as the reduction in construction revenue was consistent with Director’s expectations.
M Reynolds
Director
25 July 2024
MACE DEVELOPMENTS (GREENWICH) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The company continued to trade during the year in property development and manages the service charge and facilities management costs on behalf of the residential leaseholders of sites under development.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Reynolds
M J Willis
Auditor
In accordance with the company's articles, a resolution proposing that Glazers be reappointed as auditor of the company will be put at a General Meeting.
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 company’s auditor 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 company’s auditor 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
M Reynolds
Director
25 July 2024
MACE DEVELOPMENTS (GREENWICH) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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 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.
MACE DEVELOPMENTS (GREENWICH) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MACE DEVELOPMENTS (GREENWICH) LIMITED
- 7 -
Opinion
We have audited the financial statements of Mace Developments (Greenwich) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MACE DEVELOPMENTS (GREENWICH) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MACE DEVELOPMENTS (GREENWICH) LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 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 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.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
MACE DEVELOPMENTS (GREENWICH) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MACE DEVELOPMENTS (GREENWICH) LIMITED (CONTINUED)
- 9 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Philippe Herszaft ACA
Senior Statutory Auditor
For and on behalf of Glazers
25 July 2024
Chartered Accountants
Statutory Auditor
843 Finchley Road
London
NW11 8NA
MACE DEVELOPMENTS (GREENWICH) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
Revenue
2
2,376,644
10,458,323
Cost of sales
(3,641,398)
(7,415,523)
Gross (loss)/profit
(1,264,754)
3,042,800
Administrative expenses
(146,911)
(1,254,504)
Operating (loss)/profit
3
(1,411,665)
1,788,296
Finance costs
5
(90,042)
(Loss)/profit before taxation
(1,501,707)
1,788,296
Tax on (loss)/profit
6
359,860
(359,803)
(Loss)/profit for the financial year
(1,141,847)
1,428,493
The income statement has been prepared on the basis that all operations are continuing operations.
MACE DEVELOPMENTS (GREENWICH) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Current assets
Inventories
7
212,155
212,155
Trade and other receivables
8
2,449,489
5,175,332
Cash and cash equivalents
5,459
107,498
2,667,103
5,494,985
Current liabilities
9
(5,843,341)
(7,529,376)
Net current liabilities
(3,176,238)
(2,034,391)
Equity
Called up share capital
11
2
2
Retained earnings
(3,176,240)
(2,034,393)
Total equity
(3,176,238)
(2,034,391)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 25 July 2024 and are signed on its behalf by:
M Reynolds
Director
Company registration number 06987720 (England and Wales)
MACE DEVELOPMENTS (GREENWICH) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Retained earnings
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
2
(3,462,886)
(3,462,884)
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,428,493
1,428,493
Balance at 31 December 2022
2
(2,034,393)
(2,034,391)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,141,847)
(1,141,847)
Balance at 31 December 2023
2
(3,176,240)
(3,176,238)
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information
Mace Developments (Greenwich) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 155 Moorgate, London, EC2M 6XB.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Mace Developments (Greenwich) Limited is a wholly owned subsidiary of Mace Limited and the results of Mace Developments (Greenwich) Limited are included in the consolidated financial statements of Mace Limited which are available from Companies House.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Inventories
Inventories 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 inventories to their present location and condition.
Inventories 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 inventories 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.
1.5
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.
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 statement of financial position 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 trade and other receivables 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.
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 company 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables 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.
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company 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 company.
1.8
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 income statement 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.
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 income statement, 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 when the company has 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.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Revenue
An analysis of the company's revenue is as follows:
2023
2022
£
£
Revenue analysed by class of business
Construction revenue
150,701
8,233,323
Service charges
2,225,943
2,225,000
2,376,644
10,458,323
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Revenue
(Continued)
- 17 -
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
2,376,644
10,458,323
3
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,500
9,000
4
Employees
The company did not have any directors or employees under contracts of service during the current or prior year.
5
Finance costs
2023
2022
£
£
Interest payable to group undertakings
90,042
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(1,059,000)
383,639
Adjustments in respect of prior periods
(26,933)
741
Total current tax
(1,085,933)
384,380
Deferred tax
Origination and reversal of timing differences
751,073
(24,577)
Adjustment in respect of prior periods
(25,000)
Total deferred tax
726,073
(24,577)
Total tax (credit)/charge
(359,860)
359,803
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Taxation
(Continued)
- 18 -
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
(1,501,707)
1,788,296
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(352,901)
339,776
Tax effect of expenses that are not deductible in determining taxable profit
27,254
Tax effect of income not taxable in determining taxable profit
(331,477)
Adjustments in respect of prior years
(26,933)
741
Group relief
25
Deferred tax adjustments in respect of prior years
(25,000)
Impact of deferred tax movements
319,296
Temporary differences not recognised in deferred tax
57,130
(7,968)
Taxation (credit)/charge for the year
(359,860)
359,803
7
Inventories
2023
2022
£
£
Work in progress
212,155
212,155
8
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
1,059,000
Amounts owed by group undertakings
803,927
4,349,418
Other receivables
561,562
74,841
2,424,489
4,424,259
Deferred tax asset (note 10)
25,000
751,073
2,449,489
5,175,332
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Current liabilities
2023
2022
£
£
Trade payables
62,023
52,507
Amounts owed to group undertakings
4,472,401
Corporation tax
383,639
Other payables
390,431
Accruals and deferred income
918,486
7,093,230
5,843,341
7,529,376
10
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2023
2022
Balances:
£
£
Corporate interest restriction
25,000
751,073
2023
Movements in the year:
£
Asset at 1 January 2023
(751,073)
Charge to profit or loss
726,073
Asset at 31 December 2023
(25,000)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
11
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
12
Events after the reporting date
No matters have arisen since the year end which have significantly affected or may significantly affect the company's operations.
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Related party transactions
None of the key management personnel, who are also directors, received any remuneration in the current or prior year.
In accordance with FRS 102 the company does not disclose transactions with the parent company or any members of the group.
14
Ultimate controlling party
The company is a wholly owned subsidiary of Mace Limited and its ultimate parent company is Mace Finance Limited Both companies are incorporated in England and Wales. The results of the Company are included in the consolidated accounts of Mace Finance Limited whose registered office address is 155 Moorgate, London, EC2M 6XB. Group accounts are available from Companies House.
15
Prior period adjustment
Changes to the statement of financial position
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Net assets
(2,034,391)
-
(2,034,391)
Capital and reserves
Total equity
(2,034,391)
-
(2,034,391)
Changes to the income statement
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Revenue
8,232,380
2,225,943
10,458,323
Cost of sales
(5,189,580)
(2,225,943)
(7,415,523)
Profit for the financial period
1,428,493
-
1,428,493
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
MACE DEVELOPMENTS (GREENWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Prior period adjustment
(Continued)
- 21 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Turnover
(2,225,943)
Cost of sales
2,225,943
Total adjustments
-
Profit as previously reported
1,428,493
Profit as adjusted
1,428,493
Notes to reconciliation
Greenwich Square Limited is a wholly owned subsidiary of Mace Developments (Greenwich) Ltd. It collects the service charge income on behalf of Mace Developments (Greenwich) Ltd for the Greenwich Square development. It incurs associated expenses for the development, which are then recharged to Mace Development (Greenwich) Ltd. The recharges for the income and expenses were not reported correctly in the prior year and the 2022 results have therefore been restated.
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