At the year end the company owed £598,709 (2022 £1,060,449) to a company holding a participating interest. The loan was repayable on demand and no interest was charged during the year.
The amounts due to participating interests due after one year of £24,369 (2022 £111,247) consists of 200,000 Redeemable Shares of £1 each, less repayments of £172,707, with the balancing figure of £2,924 (2022 £16,047) represented by a capital contribution of £88,157 (2022 £91,906) included within "Other reserves" less imputed interest charges to date of £85,233 (2022 £75,039).
The Redeeemable Shares are accounted for on an amortised cost basis becuase they represent debt on which neither interest nor dividends are payable, the imputed interest is capitalised within the cost of the investment property. The Capital Contribution will unwind on the sale of the investment property by means of a transfer of the Capital Contribution to the Profit and Loss Account.