Company registration number 06774012 (England and Wales)
Arrowmere Capital 3 Limited
financial statements
For the year ended 31 December 2023
Arrowmere Capital 3 Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
3 - 7
Arrowmere Capital 3 Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
5
87,495
87,495
Current assets
Debtors
6
2,195,283
2,242,626
Cash at bank and in hand
4,303
36,267
2,199,586
2,278,893
Creditors: amounts falling due within one year
7
(336,377)
(345,140)
Net current assets
1,863,209
1,933,753
Total assets less current liabilities
1,950,704
2,021,248
Provisions for liabilities
8
(82,266)
Net assets
1,950,704
1,938,982
Capital and reserves
Called up share capital
9
3
3
Profit and loss reserves
1,950,701
1,938,979
Total equity
1,950,704
1,938,982
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
Mr S J Ashworth
Mr A C Park
Director
Director
Company registration number 06774012 (England and Wales)
Arrowmere Capital 3 Limited
Statement of changes in equity
For the year ended 31 December 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
3
1,926,620
1,926,623
Year ended 31 December 2022:
Profit and total comprehensive income
-
12,359
12,359
Balance at 31 December 2022
3
1,938,979
1,938,982
Year ended 31 December 2023:
Profit and total comprehensive income
-
11,722
11,722
Balance at 31 December 2023
3
1,950,701
1,950,704
Arrowmere Capital 3 Limited
Notes to the financial statements
For the year ended 31 December 2023
- 3 -
1
Accounting policies
Company information
Arrowmere Capital 3 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Peter Street, Manchester, England, M2 5GP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements cover the company as an individual entity.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value.
1.2
Turnover
Turnover comprises revenue recognised by the company in respect of property rental income (comprising rents, service charge and insurance rents) accounted for on an accruals basis, all net of VAT.
1.3
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account. Deferred tax is provided on these gains at the rate expected to apply when the property is sold.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.4
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 debtors 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.
Arrowmere Capital 3 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
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 creditors, and loans from fellow group companies 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.5
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.
Arrowmere Capital 3 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.6
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Valuation of investment property
Investment properties are measured using the fair value model and as such require significant judgement from the directors. The valuation has been based on the directors' knowledge of the portfolio of investment properties taking account of geographical locations, estimated rental values and external valuations undertaken in the period.
Arrowmere Capital 3 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,562
2,840
5
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
87,495
The fair value of the investment property has been determined by the directors of the company, on an open market value for existing use basis. The valuation has been based on the directors' knowledge of the portfolio of investment properties taking account of geographical locations and their estimated rental value.
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
51,018
18,219
Amounts owed by group undertakings
2,144,265
2,224,407
2,195,283
2,242,626
Arrowmere Capital 3 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
76
Amounts owed to group undertakings
231,902
229,440
Amounts owed to related undertakings
97,202
80,202
Corporation tax
6,500
5,303
Other taxation and social security
773
8,885
Accruals and deferred income
21,234
336,377
345,140
8
Provisions for liabilities
2023
2022
£
£
Unbilled rates
-
82,266
The provision in the previous year related to the directors best estimate of the company's obligation regarding unbilled rates relating to previous accounting periods. The provision was reversed in the year.
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3
3
3
3
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Susan Redmond FCA
Statutory Auditor:
DJH Audit Limited
11
Ultimate parent company
The company is a 100% owned subsidiary of Arrowmere Holdings Limited, which is the ultimate parent company. The ultimate parent company prepares consolidated financial statements as at 31 December 2023 and these financial statements may be obtained from 40 Peter Street, Manchester, M2 5GP.
2023-12-312023-01-01false23 September 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedMr Stephen John AshworthMr Matthew Stephen BintMr Samuel David AshworthMr Andrew Charles ParkMr Henry Phillip HillMs A L BeumontMrs J Blackfalsefalse067740122023-01-012023-12-31067740122023-12-31067740122022-12-3106774012core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3106774012core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3106774012core:CurrentFinancialInstruments2023-12-3106774012core:CurrentFinancialInstruments2022-12-3106774012core:ShareCapital2023-12-3106774012core:ShareCapital2022-12-3106774012core:RetainedEarningsAccumulatedLosses2023-12-3106774012core:RetainedEarningsAccumulatedLosses2022-12-3106774012core:ShareCapital2021-12-3106774012core:RetainedEarningsAccumulatedLosses2021-12-3106774012bus:Director12023-01-012023-12-3106774012bus:Director42023-01-012023-12-3106774012core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31067740122022-01-012022-12-3106774012core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3106774012core:UKTax2023-01-012023-12-3106774012core:UKTax2022-01-012022-12-31067740122022-12-3106774012bus:PrivateLimitedCompanyLtd2023-01-012023-12-3106774012bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3106774012bus:FRS1022023-01-012023-12-3106774012bus:Audited2023-01-012023-12-3106774012bus:Director22023-01-012023-12-3106774012bus:Director32023-01-012023-12-3106774012bus:Director52023-01-012023-12-3106774012bus:Director62023-01-012023-12-3106774012bus:CompanySecretary12023-01-012023-12-3106774012bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP