Company registration number 06774064 (England and Wales)
Hurstwood Properties (R) Limited
financial statements
For the year ended 31 December 2023
Hurstwood Properties (R) Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 8
Hurstwood Properties (R) Limited
Balance sheet
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
4
48,575,000
48,575,000
Current assets
Debtors
5
4,129,967
3,850,587
Cash at bank and in hand
1,421,051
1,526,121
5,551,018
5,376,708
Creditors: amounts falling due within one year
6
(5,967,523)
(6,059,285)
Net current liabilities
(416,505)
(682,577)
Total assets less current liabilities
48,158,495
47,892,423
Creditors: amounts falling due after more than one year
7
(24,950,000)
(25,450,000)
Provisions for liabilities
8
(1,686,689)
(1,707,288)
Net assets
21,521,806
20,735,135
Capital and reserves
Called up share capital
12
12
Share premium account
550,000
550,000
Capital redemption reserve
8
8
Profit and loss reserves
20,971,786
20,185,115
Total equity
21,521,806
20,735,135
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 19 September 2024 and are signed on its behalf by:
Mr S J Ashworth
Mr A C Park
Director
Director
Company registration number 06774064 (England and Wales)
Hurstwood Properties (R) Limited
Notes to the financial statements
For the year ended 31 December 2023
- 2 -
1
Accounting policies
Company information
Hurstwood Properties (R) 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 freehold properties and to include 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 that the company has adequate resources 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.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable in respect of property rental income (comprising rents, service charges and insurance rents) accounted for on an accruals basis, all net of VAT.
1.4
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 it's fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the income statement. Deferred tax is provided on these gains at the rate expected to apply when the property is sold. Any deferred tax assets created can only be offset against future gains. As these future gains are not certain the deferred tax assets will not be recognised.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
Hurstwood Properties (R) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 3 -
1.6
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.
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.
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.
1.7
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.
Hurstwood Properties (R) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
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 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.
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.
1.9
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.
Hurstwood Properties (R) 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.
Crucial 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
4
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
48,575,000
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 basis for an existing use basis. The valuation has been based on the directors' knowledge of the portfolio of investment properties taking into account of the geographical locations and their estimated rental value.
The company's investment properties were valued in May 2023 by an external professional valuer and the directors have taken this into account in coming to their assessment.
Hurstwood Properties (R) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
4
Investment property
(Continued)
- 6 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
37,228,654
-
Accumulated depreciation
-
-
Carrying amount
37,228,654
-
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,551,689
2,704,973
Amounts owed by group undertakings
57,422
346,237
Amounts owed by related undertakings
488,984
767,493
Other debtors
1,872
1,884
Prepayments and accrued income
30,000
30,000
4,129,967
3,850,587
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
500,000
500,000
Amounts owed to group undertakings
2,431,072
2,651,072
Amounts owed to related undertakings
86,232
14,232
Corporation tax
311,706
315,326
Other taxation and social security
264,944
285,874
Other creditors
632,797
602,443
Accruals and deferred income
1,740,772
1,690,338
5,967,523
6,059,285
Bank loans of £500,000 (2022:£500,000) disclosed within creditors due within one year are secured by a fixed and floating charge covering all the property held by the company.
Hurstwood Properties (R) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
24,950,000
25,450,000
Bank loans of £24,950,000 (2022: £25,450,000) disclosed within creditors due within one year are secured by a fixed and floating charge covering all the property held by the company.
8
Provisions for liabilities
2023
2022
£
£
Unbilled rates
54,703
75,302
Deferred tax liabilities
9
1,631,986
1,631,986
1,686,689
1,707,288
The provision relates to the directors' best estimate of the company's obligation regarding unbilled rates relating to previous accounting periods. The timing of any payments in this regard is unknown.
Movements on provisions apart from deferred tax liabilities:
Unbilled rates
£
At 1 January 2023
20,599
Utilisation of provision
(20,599)
At 31 December 2023
54,703
9
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
1,631,986
1,631,986
There were no deferred tax movements in the year.
Hurstwood Properties (R) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 8 -
10
Reserves
Included within profit and loss reserves are non-distributable reserves of £10,164,077 (2022:£10,164,077).
11
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
Date of audit report:
23 September 2024
12
Ultimate parent company
The company is a 100% owned subsidiary of Hurstwood 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.