Company registration number 08310243 (England and Wales)
Arrowmere Capital 6 Limited
financial statements
For the year ended 31 December 2023
Arrowmere Capital 6 Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
Arrowmere Capital 6 Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
486,909
-
0
Investment property
6
25,705,750
25,705,750
26,192,659
25,705,750
Current assets
Debtors
7
262,639
646,184
Cash at bank and in hand
541,328
185,939
803,967
832,123
Creditors: amounts falling due within one year
8
(7,179,064)
(6,156,210)
Net current liabilities
(6,375,097)
(5,324,087)
Total assets less current liabilities
19,817,562
20,381,663
Creditors: amounts falling due after more than one year
9
(16,060,890)
(16,625,571)
Provisions for liabilities
10
(913,857)
(913,857)
Net assets
2,842,815
2,842,235
Capital and reserves
Called up share capital
12
100
100
Profit and loss reserves
2,842,715
2,842,135
Total equity
2,842,815
2,842,235

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 08310243 (England and Wales)
Arrowmere Capital 6 Limited
Notes to the financial statements
For the year ended 31 December 2023
- 2 -
1
Accounting policies
Company information

Arrowmere Capital 6 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 the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation thattrue the company has adequate resources and the support of the parent company 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
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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
15% straight line

Assets in the course of construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
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.

Arrowmere Capital 6 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

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.

Arrowmere Capital 6 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
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, bank loans 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.

1.8
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.

Arrowmere Capital 6 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 5 -
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 property is measured using the fair value model and as such requires 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.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
43,420
Adjustments in respect of prior periods
(165)
-
0
Total current tax
(165)
43,420
Deferred tax
Origination and reversal of timing differences
-
0
219,326
Total tax (credit)/charge
(165)
262,746
Arrowmere Capital 6 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 6 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
-
0
-
0
-
0
Additions
27,281
491,973
519,254
At 31 December 2023
27,281
491,973
519,254
Depreciation and impairment
At 1 January 2023
-
0
-
0
-
0
Depreciation charged in the year
-
0
32,345
32,345
At 31 December 2023
-
0
32,345
32,345
Carrying amount
At 31 December 2023
27,281
459,628
486,909
At 31 December 2022
-
0
-
0
-
0
6
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
25,705,750

Investment property comprises of commercial property. 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 the geographical locations and their rental value.

 

The company's investment properties were valued in February 2022 by an external professional valuer. The third party valuation is not materially different to the value included in the financial statements.

7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
262,639
526,288
Amounts owed by group undertakings
-
0
119,896
262,639
646,184
Arrowmere Capital 6 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
528,341
492,000
Trade creditors
1,366,191
1,766,683
Amounts owed to group undertakings
2,343,337
2,849,439
Corporation tax
44,115
90,614
Other taxation and social security
188,375
46,217
Other creditors
69,480
53,962
Accruals and deferred income
2,639,225
857,295
7,179,064
6,156,210

Bank loans of £528,341 (2022:£492,000) disclosed under creditors falling due within one year were secured by the company by way of a debenture including fixed and floating charges over the investment property and bank balances, together with a share charge from the parent company over the shares in the company.

 

9
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16,060,890
16,625,571

The bank loans are secured by way of legal mortgage and fixed charges over the properties owned by the company together with floating charges over all other assets of the company.

10
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
11
913,857
913,857
11
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Revaluations
913,857
913,857
There were no deferred tax movements in the year.
Arrowmere Capital 6 Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
11
Deferred taxation
(Continued)
- 8 -
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
13
Reserves

Included within profit and loss reserves are non-distributable reserves of £2,960,894 (2022:£2,960,894).

14
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
15
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 Andrew Charles ParkMrs Julie BlackMr Henry Phillip HillMr Samuel David AshworthMr Matthew Stephen BintMs A L BeumontMrs J Blackfalsefalse083102432023-01-012023-12-31083102432023-12-31083102432022-12-3108310243core:LandBuildings2023-12-3108310243core:OtherPropertyPlantEquipment2023-12-3108310243core:LandBuildings2022-12-3108310243core:OtherPropertyPlantEquipment2022-12-3108310243core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108310243core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108310243core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3108310243core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3108310243core:CurrentFinancialInstruments2023-12-3108310243core:CurrentFinancialInstruments2022-12-3108310243core:ShareCapital2023-12-3108310243core:ShareCapital2022-12-3108310243core:RetainedEarningsAccumulatedLosses2023-12-3108310243core:RetainedEarningsAccumulatedLosses2022-12-3108310243bus:Director12023-01-012023-12-3108310243bus:Director22023-01-012023-12-3108310243core:FurnitureFittings2023-01-012023-12-3108310243core:ConstructionInProgressAssetsUnderConstruction2023-01-012023-12-31083102432022-01-012022-12-3108310243core:UKTax2023-01-012023-12-3108310243core:UKTax2022-01-012022-12-3108310243core:LandBuildings2022-12-3108310243core:OtherPropertyPlantEquipment2022-12-31083102432022-12-3108310243core:LandBuildings2023-01-012023-12-3108310243core:OtherPropertyPlantEquipment2023-01-012023-12-3108310243core:Non-currentFinancialInstruments2023-12-3108310243core:Non-currentFinancialInstruments2022-12-3108310243bus:PrivateLimitedCompanyLtd2023-01-012023-12-3108310243bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3108310243bus:FRS1022023-01-012023-12-3108310243bus:Audited2023-01-012023-12-3108310243bus:Director32023-01-012023-12-3108310243bus:Director42023-01-012023-12-3108310243bus:Director52023-01-012023-12-3108310243bus:Director62023-01-012023-12-3108310243bus:Director72023-01-012023-12-3108310243bus:CompanySecretary12023-01-012023-12-3108310243bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP