Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31false442023-04-01Buying and selling of propertiesfalsefalsefalse 01974162 2023-04-01 2024-03-31 01974162 2022-04-01 2023-03-31 01974162 2024-03-31 01974162 2023-03-31 01974162 2022-04-01 01974162 1 2023-04-01 2024-03-31 01974162 1 2022-04-01 2023-03-31 01974162 3 2023-04-01 2024-03-31 01974162 5 2023-04-01 2024-03-31 01974162 5 2022-04-01 2023-03-31 01974162 6 2023-04-01 2024-03-31 01974162 6 2022-04-01 2023-03-31 01974162 7 2023-04-01 2024-03-31 01974162 7 2022-04-01 2023-03-31 01974162 d:Exceptional 2023-04-01 2024-03-31 01974162 d:Exceptional 2022-04-01 2023-03-31 01974162 e:CompanySecretary1 2023-04-01 2024-03-31 01974162 e:Director1 2023-04-01 2024-03-31 01974162 e:Director2 2023-04-01 2024-03-31 01974162 e:RegisteredOffice 2023-04-01 2024-03-31 01974162 d:FurnitureFittings 2023-04-01 2024-03-31 01974162 d:FurnitureFittings 2024-03-31 01974162 d:FurnitureFittings 2023-03-31 01974162 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01974162 d:FreeholdInvestmentProperty 2024-03-31 01974162 d:FreeholdInvestmentProperty 2023-03-31 01974162 d:FreeholdInvestmentProperty 2 2023-04-01 2024-03-31 01974162 d:CurrentFinancialInstruments 2024-03-31 01974162 d:CurrentFinancialInstruments 2023-03-31 01974162 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 01974162 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 01974162 d:ReportableOperatingSegment1 2023-04-01 2024-03-31 01974162 d:ReportableOperatingSegment1 2022-04-01 2023-03-31 01974162 d:UKTax 2023-04-01 2024-03-31 01974162 d:UKTax 2022-04-01 2023-03-31 01974162 d:ShareCapital 2024-03-31 01974162 d:ShareCapital 2022-04-01 2023-03-31 01974162 d:ShareCapital 2023-03-31 01974162 d:ShareCapital 2022-04-01 01974162 d:RevaluationReserve 2023-04-01 2024-03-31 01974162 d:RevaluationReserve 2024-03-31 01974162 d:RevaluationReserve 3 2023-04-01 2024-03-31 01974162 d:RevaluationReserve 2022-04-01 2023-03-31 01974162 d:RevaluationReserve 2023-03-31 01974162 d:RevaluationReserve 2022-04-01 01974162 d:RevaluationReserve 6 2022-04-01 2023-03-31 01974162 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 01974162 d:RetainedEarningsAccumulatedLosses 2024-03-31 01974162 d:RetainedEarningsAccumulatedLosses 3 2023-04-01 2024-03-31 01974162 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 01974162 d:RetainedEarningsAccumulatedLosses 2023-03-31 01974162 d:RetainedEarningsAccumulatedLosses 2022-04-01 01974162 d:OtherDeferredTax 2024-03-31 01974162 d:OtherDeferredTax 2023-03-31 01974162 e:OrdinaryShareClass1 2023-04-01 2024-03-31 01974162 e:OrdinaryShareClass1 2024-03-31 01974162 e:OrdinaryShareClass1 2023-03-31 01974162 e:FRS102 2023-04-01 2024-03-31 01974162 e:Audited 2023-04-01 2024-03-31 01974162 e:FullAccounts 2023-04-01 2024-03-31 01974162 e:PublicLimitedCompanyPLCNotQuotedOnAnyExchange 2023-04-01 2024-03-31 01974162 2 2023-04-01 2024-03-31 01974162 4 2023-04-01 2024-03-31 01974162 5 2023-04-01 2024-03-31 01974162 f:PoundSterling 2023-04-01 2024-03-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01974162









LONDON & CITY PROPERTIES PLC









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
LONDON & CITY PROPERTIES PLC
 
 
COMPANY INFORMATION


Directors
R Rains 
R S Rains 




Company secretary
R Rains



Registered number
01974162



Registered office
Haslers
Old Station Road

Loughton

Essex

IG10 4PL




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
LONDON & CITY PROPERTIES PLC
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2
Directors' Responsibilities Statement
 
3
Independent Auditors' Report
 
4 - 7
Statement of Comprehensive Income
 
8
Balance Sheet
 
9
Statement of Changes in Equity
 
10
Statement of Cash Flows
 
11
Analysis of Net Debt
 
12
Notes to the Financial Statements
 
13 - 24


 
LONDON & CITY PROPERTIES PLC
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their strategic report on the affairs of the company for the year ended 31 March 2024.

Business review
 
The financial results for the year are set out on page 8. The profit for the financial year was £211,061 (2023: loss £755,675). As at 31 March 2024, the total shareholder funds were £9,301,207 (2023: £9,201,012). Profit before revaluation of investment properties movement and taxation amounted to £66,061 (2023: loss £330,403).
 

Principal risks and uncertainties
 
The company is subject to a number of risks and uncertainties based around the general performance of the property sector  and the housing market such as the state of the current UK and world  economy and BOE interest rates. In addition, other local social economic factors specific to each property in the portfolio can also introduce risks and uncertainties in terms of yields and property valuations. 
The directors believe that the company has adequate reserves, is in a strong financial position and is small enough to react quickly to any major factors impacting the property sector and can minimise the risks and any uncertainties it faces.

Financial key performance indicators
 
The directors consider that the company's key performance indicator is the maximization of margins on property development projects. The directors believe that the company has achieved its targets when its performance is judged against this indicator.


This report was approved by the board on 19 September 2024 and signed on its behalf.



R Rains
Director

Page 1

 
LONDON & CITY PROPERTIES PLC
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Results and dividends

The profit for the year, after taxation, amounted to £66,061 (2023 - loss £482,420).

The directors proposed a dividend payment of a £145,000 (2023: £Nil).

Directors

The directors who served during the year were:

R Rains 
R S Rains 

Future developments

The directors are satisfied with the state of the company's affairs at the balance sheet date. The company has  seen an increase in its reserve position, directors believe that the company is in a healthy state in regards to its net current assets and borrowings.
The directors are cautious about how the company's portfolio will perform in the forthcoming twelve months but believe that the company is in a healthy position to ride out any short term problems that may arise from the effect of the overall economic state of the market.
They will continue to concentrate on larger developments and also look to diversify the company's activities by seeking business opportunities in a wider geographical area and through continued efforts in maximising rental income on its portfolio.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.
Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 489 of the Companies Act 2006.

This report was approved by the board on 19 September 2024 and signed on its behalf.
 





R Rains
Director

Page 2

 
LONDON & CITY PROPERTIES PLC
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
LONDON & CITY PROPERTIES PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON & CITY PROPERTIES PLC
 

Opinion


We have audited the financial statements of London & City Properties PLC (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 March 2024 and of its profit 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.


Basis for opinion


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
LONDON & CITY PROPERTIES PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON & CITY PROPERTIES PLC (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the 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.


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 directors' 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 set out on page 3, 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.


Page 5

 
LONDON & CITY PROPERTIES PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON & CITY PROPERTIES PLC (CONTINUED)


Auditors' 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 Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:
•  had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act and tax legislation etc; and 
•  do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These include operational and employment laws and regulations including health and safety regulations, environmental regulations, GDPR and Subcontractor requirements. 
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries with management and those responsible for legal and compliance frameworks. We corroborated our enquiries through review of correspondence with regulatory bodies and gaining an understanding of the entity level controls of the company in respect of these areas and the controls in place to reduce opportunity for fraudulent transactions. 
We discussed among the audit engagement team including relevant internal tax specialists, regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. We also communicated the applicable laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 
As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our specific procedures performed to address it are described below:
The principal risks related to management override in relation to posting of non-standard transactions in respect of revenue and misstatement of expenses in relation to work in progress. 
 
Procedures performed to address these were as follows:
• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
 
• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud, 
• Assessing the appropriateness of accounting estimates and challenging any significant assumptions or judgements made by management, 
 
Page 6

 
LONDON & CITY PROPERTIES PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONDON & CITY PROPERTIES PLC (CONTINUED)



• Reviewing revenue recognition policies and general policies in relation to work in progress. We assessed the accuracy and completeness of the management’s estimates through developing a detailed understanding of the contract stage and reviewing post year end activity and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





Charalambos Patsalides (Senior Statutory Auditor) FCCA ACA
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

19 September 2024
Page 7

 
LONDON & CITY PROPERTIES PLC
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
-
1,179,900

Cost of sales
  
(56,160)
(1,164,602)

Gross (loss)/profit
  
(56,160)
15,298

Administrative expenses
  
(309,387)
(242,102)

Exceptional administrative expenses
  
-
(501,000)

Other operating income
 5 
383,499
349,842

Other operating charges
  
(24,719)
(31,976)

Operating loss
  
(6,767)
(409,938)

Interest receivable and similar income
  
143,212
79,535

Profit/(loss) before tax
  
136,445
(330,403)

Tax on profit/(loss)
 9 
(70,384)
(152,017)

Profit/(loss) for the financial year
  
66,061
(482,420)

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
-
(273,255)

  
145,000
-

Other comprehensive income for the year
  
145,000
(273,255)

Total comprehensive income for the year
  
211,061
(755,675)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

The notes on pages 13 to 24 form part of these financial statements.

Page 8

 
LONDON & CITY PROPERTIES PLC
REGISTERED NUMBER: 01974162

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
508
598

Investment property
 14 
1,740,000
1,595,000

  
1,740,508
1,595,598

Current assets
  

Stocks
 15 
4,700,801
3,074,456

Debtors: amounts falling due within one year
 16 
1,456,317
751,047

Cash at bank and in hand
 17 
2,109,870
4,500,404

  
8,266,988
8,325,907

Creditors: amounts falling due within one year
 18 
(399,624)
(415,944)

Net current assets
  
 
 
7,867,364
 
 
7,909,963

Total assets less current liabilities
  
9,607,872
9,505,561

Provisions for liabilities
  

Deferred tax
 19 
(340,799)
(304,549)

  
 
 
(340,799)
 
 
(304,549)

Net assets
  
9,267,073
9,201,012


Capital and reserves
  

Called up share capital 
 20 
50,000
50,000

Revaluation reserve
 21 
1,022,397
913,647

Profit and loss account
 21 
8,194,676
8,237,365

  
9,267,073
9,201,012


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 September 2024.




R Rains
Director

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
LONDON & CITY PROPERTIES PLC
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2023
50,000
913,647
8,237,365
9,201,012


Comprehensive income for the year

Profit for the year
-
-
66,061
66,061

Net fair value movements
-
108,750
36,250
145,000


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(145,000)
(145,000)


At 31 March 2024
50,000
1,022,397
8,194,676
9,267,073


The notes on pages 13 to 24 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2022
50,000
1,186,902
8,446,530
9,683,432


Comprehensive income for the year

Loss for the year
-
-
(482,420)
(482,420)

Net fair value movements
-
(273,255)
273,255
-
Total comprehensive income for the year
-
(273,255)
(209,165)
(482,420)


At 31 March 2023
50,000
913,647
8,237,365
9,201,012


The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
LONDON & CITY PROPERTIES PLC
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
66,061
(482,420)

Adjustments for:

Depreciation of tangible assets
90
105

Interest received
(143,212)
(55,953)

Taxation charge
70,384
152,017

(Increase)/decrease in stocks
(1,626,345)
231,616

(Increase)/decrease in debtors
(705,270)
953,067

Increase/(decrease) in creditors
13,319
(2,205)

Corporation tax (paid)
(63,773)
(35,617)

Net cash generated from operating activities

(2,388,746)
760,610


Cash flows from investing activities

Sale of investment properties
-
210,000

Interest received
143,212
55,953

Net cash from investing activities

143,212
265,953

Cash flows from financing activities

Dividends paid
(145,000)
-

Net cash used in financing activities
(145,000)
-

Net (decrease)/increase in cash and cash equivalents
(2,390,534)
1,026,563

Cash and cash equivalents at beginning of year
4,500,404
3,473,841

Cash and cash equivalents at the end of year
2,109,870
4,500,404


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,109,870
4,500,404

2,109,870
4,500,404


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
LONDON & CITY PROPERTIES PLC
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

4,500,404

(2,390,534)

2,109,870

Debtors due with one year


4,500,404
(2,390,534)
2,109,870

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

London & City Properties PLC is a public company, limited by shares, domiciled in England and Wales, registration number 01974162. The registered office is Haslers, Old Station Road, Loughton, Essex, IG10 4PL. The principal activity of the company is that of property development.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue represents the sale of investment property and that a sale completes upon exchange of contracts.
Rental income is presented under other operating income and that income is recognised in the period that the service relates.

 
2.3

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 13

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.4

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.5

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Fixtures and fittings
-
15%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.8

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.9

Stocks

Stock represents property held for the purpose of development and are expected to be sold in future period.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
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 director's do not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of trading properties
-
1,179,900

-
1,179,900


All turnover arose within the United Kingdom.

Page 16

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Other operating income

2024
2023
£
£

Rent receivable
369,349
335,322

Management charges receivable
14,150
14,520

383,499
349,842



6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
13,800
14,040

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
22,010
32,562

22,010
32,562


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
2
2



Directors
2
2

4
4

Page 17

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
-
11,589

-
11,589



9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
34,134
63,249


34,134
63,249


Total current tax
34,134
63,249

Deferred tax


Origination and reversal of timing differences
36,250
88,768

Total deferred tax
36,250
88,768


Tax on profit/(loss)
70,384
152,017
Page 18

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 -  19  %). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
136,445
(330,403)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -  19  %)
34,111
(62,777)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
95,190

Capital allowances for year in excess of depreciation
-
31,360

Marginal Relief
1,701
-

Other differences leading to an increase (decrease) in the tax charge
(1,678)
(524)

Deferred tax movements
36,250
88,768

Total tax charge for the year
70,384
152,017


Factors that may affect future tax charges

The main corporation tax rate increased from 19% to 25% with effect from 1 April 2023 with a marginal
rate applicable when taxable profits are between £50,000 to £250,000. This results in the increase in tax
rate shown above.
The deferred taxation balances have been measured using 25%, which is the enacted rate applicable in
the reporting periods when the timing differences reverse.


10.


Factors that may affect future tax charges

There were no factors that may affect future tax charges. 


11.


Dividends

2024
2023
£
£


Dividends analysis
145,000
-

145,000
-

Page 19

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Exceptional items

2024
2023
£
£


Bad debt write off
-
501,000

-
501,000

Please see Note 21, Related party transactions, for detail on the bad debt write off.


13.


Tangible fixed assets





Fixtures and fittings

£



Cost or valuation


At 1 April 2023
10,239



At 31 March 2024

10,239



Depreciation


At 1 April 2023
9,641


Charge for the year on owned assets
90



At 31 March 2024

9,731



Net book value



At 31 March 2024
508



At 31 March 2023
598

Page 20

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Investment property


Freehold investment property

£



Valuation


At 1 April 2023
1,595,000


Surplus on revaluation
145,000



At 31 March 2024
1,740,000

The 2024 valuations were made by the directors, on an open market value for existing use basis.



At 31 March 2024



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
2023
£
£


Historic cost
376,804
376,804

376,804
376,804


15.


Stocks

2024
2023
£
£

Work in progress
3,331,835
2,026,663

Finished properties
1,368,966
1,047,793

4,700,801
3,074,456


Page 21

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Debtors

2024
2023
£
£


Trade debtors
3,339
1,475

Other debtors
1,406,554
695,329

Prepayments and accrued income
46,424
54,243

1,456,317
751,047



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,109,870
4,500,404

2,109,870
4,500,404



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
53,573
47,131

Corporation tax
34,134
63,773

Other taxation and social security
829
440

Other creditors
297,293
293,100

Accruals and deferred income
13,795
11,500

399,624
415,944



19.


Deferred taxation




2024


£






At beginning of year
(304,549)


Charged to profit or loss
(36,250)



At end of year
(340,799)

Page 22

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
19.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Provision for liabilities
(340,799)
(304,549)

(340,799)
(304,549)


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



50,000 (2023 - 50,000) Ordinary shares of £1.00 each
50,000
50,000



21.


Reserves

Revaluation reserve

The investment property revaluation reserve represents cumulative effects of fair value adjustments net of deferred tax and other adjustments.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

Page 23

 
LONDON & CITY PROPERTIES PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Related party transactions

Key management compensation totalled £5,763 (2023: £11,589).
During the year, the company received net rentals of £17,178 (2023: £23,582) from entites who have common control. 
During the year, the company paid net rentals of £35,988 (2023: £29,898) to entites who have common control.
During the year, the company paid net rentals of £138,539 (2023: £151,069) to key management personel.
Profit participation totalled £NIL (2023: £359,942) was paid to entites who have common control.
The company received an admin fee of £12,000 (2023: £12,000) from an entity who has common control.
The following balances were due (to)/from at the balance sheet date:


2024
2023
£
£

Key management personnel
5,763
13,378
Entities under common control
326,287
314,296

The loans due from entities under common control are interest free and repayable on demand.


23.


Controlling party

The ultimate controlling party is R Rains.

 
Page 24