Company registration number 06684862 (England and Wales)
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
4
10,609,936
1,602,699
Investments
5
1
1
10,609,937
1,602,700
Current assets
Stocks
-
266,196
Debtors
6
4,310,991
4,704,987
Cash at bank and in hand
344,634
18,790
4,655,625
4,989,973
Creditors: amounts falling due within one year
7
(9,810,904)
(481,214)
Net current (liabilities)/assets
(5,155,279)
4,508,759
Total assets less current liabilities
5,454,658
6,111,459
Creditors: amounts falling due after more than one year
8
(5,392,187)
(5,757,000)
Net assets
62,471
354,459
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
62,371
354,359
Total equity
62,471
354,459
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
Mr T J H Webber
Director
Company registration number 06684862 (England and Wales)
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Pendle Enterprise & Regeneration (2) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kenyon Road, Lomeshaye Industrial Estate, Nelson, Lancashire, BB9 5SP.
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 on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant upon the financial support of its shareholders trueand external financiers in order to meet its liabilities as they fall due. The shareholders have indicated that their support will continue for the foreseeable future and there is no indication that the terms of the agreement with the external financiers will not continue as anticipated. As a result, the directors have continued to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for development work done, and rent and other fees receivable, 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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.6
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.
1.7
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 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.
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.
1.8
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
8
9
4
Investment property
2024
£
Fair value
At 1 April 2023
1,602,699
Additions
9,007,237
At 31 March 2024
10,609,936
The investment properties are included at the directors' opinion of open market value as at 31 March 2024. This valuation is deemed to be equal to the historic cost of the properties.
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
5
Fixed asset investments
2024
2023
£
£
Other investments other than loans
1
1
Fixed asset investments not carried at market value
Investments are held at cost.
The unlisted investment represents a £1 share held in Pendle Enterprise and Regeneration (Brierfield Mill) Limited.
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
143,644
8,251
Amounts owed by group undertakings
3,955,000
4,695,000
Other debtors
212,347
1,736
4,310,991
4,704,987
At 31 March 2024 the company was owed £Nil (2023 - £640,000) by Pendle Enterprise and Regeneration Limited and £3,955,000 (2023 - £4,055,000) by Pendle Enterprise and Regeneration (Brierfield Mill) Limited.
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
6,429,665
Trade creditors
26,521
9,072
Other creditors
3,354,718
472,142
9,810,904
481,214
The bank loan is secured over one of the company's investment properties.
Other creditors include amounts of £3,003,728 (2023 - £400,000) owed to companies under common control.
PENDLE ENTERPRISE & REGENERATION (2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
5,392,187
5,757,000
Other creditors includes loan notes issued by the company to Barnfield Investment Properties Limited and Pendle Borough Council. The amounts due are £3,772,857 (2023 - £3,544,517) and £1,619,331 (2023 - £1,521,326) respectively.
The loan notes are unsecured and bear interest at the rate of 2% over the Barclays Bank plc base rate, they are repayable at the discretion of the company and the directors have resolved that they do not intend to repay these loans within 12 months of the date of approval of the financial statements.
Other creditors also includes an amount of £Nil (2023 - £691,157) due to a shareholder in respect of a trading balance.
9
Called up share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
70 A Ordinary shares of £1 each
70
70
30 B Ordinary shares of £1 each
30
30
100
100
10
Related party transactions
During the year the company incurred purchases of goods and other recharges totalling £8,736,103 (2023 - £1,542,972) on commercial terms, from a company under common control.
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:
Jane Smith
Statutory Auditor:
Pierce C A Limited
Date of audit report:
11 September 2024