Company registration number 14131371 (England and Wales)
BELSFIELD PROPCO LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
BELSFIELD PROPCO LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
BELSFIELD PROPCO LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
31 December 2023
31 July 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
16,083,297
Current assets
Debtors
5
37,341
118
Cash at bank and in hand
23,362
60,703
118
Creditors: amounts falling due within one year
6
(9,966,863)
(1,713)
Net current liabilities
(9,906,160)
(1,595)
Total assets less current liabilities
6,177,137
(1,595)
Creditors: amounts falling due after more than one year
7
(6,505,210)
Net liabilities
(328,073)
(1,595)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(328,074)
(1,596)
Total equity
(328,073)
(1,595)
The directors of the company have 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 by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
D P Kovacs
Director
Company registration number 14131371 (England and Wales)
BELSFIELD PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Belsfield Propco Limited is a private company limited by shares incorporated in England and Wales. The registered office is 111 Park Street, London, W1K 7JL.
1.1
Reporting period
The company was incorporated on 25 May 2022, and the previous year end was subsequently shortened to 31 July 2022 and the current financial year extended to 31 December 2023 to fall inline with group companies. Thus, the amounts presented in the financial statements may not be entirely comparable.
1.2
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Belsfield Propco Limited is a wholly owned subsidiary of Belsfield Holdco Limited and the results of Belsfield Propco Limited are included in the consolidated financial statements of MM Aurora Holdco Limited which are available from 111 Park Street, London, United Kingdom, W1K 7JL.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company has a shareholder’s deficit of £true328,073. Included within this value is a sum of £9,746,606 which is owed to the ultimate parent company. The company holds property for use within the trade of the group. The group manages the cash resources of the company and parent company and has funds available should this be required by the company.
Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is rental income and recharges, which are shown as receipts in the period for which they are due, in line with the lease agreement.
1.5
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.
BELSFIELD PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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:
Leasehold land and buildings
over the period of the lease, 150 years
Property improvements
no depreciation charged until property improvements are completed
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.
1.6
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
Cash and cash equivalents
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.
1.8
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.
BELSFIELD PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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, loans from fellow group companies 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
BELSFIELD PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD 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.
Sale and leaseback
The sale and leaseback entered into on 12 December 2022 has been considered by the Directors, and after consideration of the circumstances and by reference to the relevant accounting standards and guidance, this has been treated as a finance lease.
The asset is recorded at cost and liability has been recorded at the present value of the minimum lease payments, using the interest rate implicit in the lease of 6.3%. Lease payments are then apportioned between interest and capital using the effective interest method.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
3
3
BELSFIELD PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Leasehold land and buildings
Property improvements
Total
£
£
£
Cost
At 1 August 2022
Additions
15,568,849
618,240
16,187,089
At 31 December 2023
15,568,849
618,240
16,187,089
Depreciation and impairment
At 1 August 2022
Depreciation charged in the period
103,792
103,792
At 31 December 2023
103,792
103,792
Carrying amount
At 31 December 2023
15,465,057
618,240
16,083,297
At 31 July 2022
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1
1
Other debtors
37,340
117
37,341
118
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
158,697
713
Amounts owed to group undertakings
9,746,606
Other creditors
61,560
1,000
9,966,863
1,713
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
6,505,210
BELSFIELD PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 7 -
8
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£m
£m
Within one year
0.2
In two to five years
0.8
In over five years
648.4
649.4
Less: future finance charges
(642.9)
6.5
On 12 December 2022, the company entered into a sale and finance leaseback arrangement for a property. The finance lease payments are paid quarterly in advance. After 6 years the lease is reviewed annually and increases are in line with RPI. The lease includes purchase options at the end of the lease and no restrictions are place on the assets. The lease term is 150 years and the implicit rate of interest used within the lease is 6.3%.
The amounts are shown within other creditors in the accounts.
9
Parent company
The immediate parent undertaking is Belsfield Holdco Limited. The ultimate parent undertaking is MM Aurora Holdco Limited. The registered office of MM Aurora Holdco Limited is 111 Park Street, London, United Kingdom, W1K 7JF.
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:
Daniel Sowden
Statutory Auditor:
BHP LLP
Date of audit report:
26 September 2024