Company registration number 04401303 (England and Wales)
RLW ESTATES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
RLW ESTATES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
RLW ESTATES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
4
7,600,986
7,600,986
Debtors
200
6
Cash at bank and in hand
32,966
11,244
7,634,152
7,612,236
Creditors: amounts falling due within one year
5
(8,196)
(3,035)
Net current assets
7,625,956
7,609,201
Creditors: amounts falling due after more than one year
6
(11,040,434)
(11,040,434)
Net liabilities
(3,414,478)
(3,431,233)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(3,414,578)
(3,431,333)
Total equity
(3,414,478)
(3,431,233)
The director of the company has elected not to include a copy of the profit and loss account 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 and signed by the director and authorised for issue on 6 September 2024
C W Goldsmith
Director
Company Registration No. 04401303
RLW ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
RLW Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Warehouse, 33 Bridge Street, Cambridge, United Kingdom, CB2 1UW.
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 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is undertaking a speculative property development and therefore the future of the company is dependent on the success of that project, sufficient funding being provided by the shareholder to bring the project to completion and the shareholder loans remaining in place until adequate funds are available. At the time of approving the financial statements, the directors have a reasonable expectation that adequate resources are available to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Stocks
Work in progress comprises costs incurred in respect of property developments and is stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price allowing for further costs of completion and disposal.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.
1.4
Cash at bank and in hand
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.
1.5
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 balance sheet 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.
RLW ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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.
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, 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 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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.6
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 profit and loss account 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.
RLW ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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 profit and loss account, 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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
The main area of judgement is the valuation of stock included in these financial statements. Note 5 provides more detail in relation to this.
3
Employees
The average monthly number of persons (including directors) employed and paid by the company during the year was:
2023
2022
Number
Number
Total
4
Stocks
2023
2022
£
£
Stocks
7,600,986
7,600,986
RLW ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Stocks
(Continued)
- 5 -
Work in progress comprises costs relating to the potential development of a site including expenditure relating to the planning permission applications. During the prior year the Local Authority resolved to grant planning consent and the directors believe that work in progress is correctly included at cost. If further planning permission conditions for the site cannot be met it may be necessary to write down the value of the work in progress.
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,236
35
Corporation tax
3,930
Other creditors
3,030
3,000
8,196
3,035
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
10% Unsecured loan notes
7,786,000
7,786,000
Interest on loan notes
3,254,434
3,254,434
11,040,434
11,040,434
Interest on loan notes accrues on a day to day basis, compounded bi-annually on 30 June and 31 December in each year and such interest shall be repayable on repayment of the principal amount of the note. On 1 January 2012 it was agreed to suspend loan note interest until such time it is agreed by shareholders the interest should be reinstated. The cumulative amount of interest suspended, and not charged in these accounts is £23,651,011 (2022 - £20,388,306).
The 10% loan stock is redeemable in September 2025 unless the company decides to repay it earlier.
7
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:
Mr Mark Jackson FCA DChA
Statutory Auditor:
Azets Audit Services
RLW ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
8
Related party transactions
During the year RLW Estates Limited paid management fees of £4,000 (2022 - £4,000) to Turnstone Estates Limited, a 50% shareholder in the company.
At the year end RLW Estates Limited owed £5,520,217 (2022 - £5,520,217) to Turnstone Estates Limited and also to The Royal London Mutual Insurance Society Limited in respect of loan notes and interest charged. On 1 January 2012 it was agreed to suspend loan note interest until such time it is agreed by shareholders the interest should be reinstated.
9
Control
In the opinion of the directors there is no individual controlling party.