Company registration number 07733022 (England and Wales)
ALLIED LONDON ONE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ALLIED LONDON ONE LIMITED
COMPANY INFORMATION
Directors
Mr S P Gorasia
Mr M Ingall
Mr J Raine
Mr F P Graham-Watson
Company number
07733022
Registered office
C/O Allied London
Suite 1, Bonded Warehouse
18 Lower Byrom Street
Manchester
M3 4AP
Auditor
Sumer Auditco Limited
The Beehive
City Place
Gatwick
RH6 0PA
ALLIED LONDON ONE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 17
ALLIED LONDON ONE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of property investments.
Results and dividends
The company made a loss in the year of £5,870,666 (2022: £3,613,358 profit restated).
No ordinary dividends were paid in the current or prior year. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S P Gorasia
Mr M Ingall
Mr J Raine
Mr F P Graham-Watson
Auditor
Sumer Auditco Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
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ALLIED LONDON ONE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
In preparing the report, the directors have taken advantage of the small companies exemption provided by Section 415A of the Companies Act 2006.
On behalf of the board
Mr S P Gorasia
Director
7 October 2024
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ALLIED LONDON ONE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLIED LONDON ONE LIMITED
Opinion
- 3 -
We have audited the financial statements of Allied London One Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainties relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
We draw attention to Note 1.2 of the financial statements, which states the company is loss making in the year as a result of the downward revaluation of investment property, resulting in the the statement of financial position being in a net liabilities position at the year end, Further to this, the downward revaluation has meant that bank covenants have been breached, making the bank loan due in full on demand. The lenders of these facilities holds a charge over the company and these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
ALLIED LONDON ONE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLIED LONDON ONE LIMITED (CONTINUED)
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As a part of our audit in accordance with the United Kingdom Generally Accepted Accounting Practice; and the requirements of the Companies Act 2006 we exercise professional judgment and maintain professional skepticism throughout the audit. Based on our understanding and accumulated knowledge of the company and the sector in which it operates we considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. These included but were not limited to those that relate to the form and content of the financial statements. These included but were not limited to those that relate to the form and content of the financial statements, such as the company accounting policies, United Kingdom Generally Accepted Accounting Practice, The UK Companies Act 2006. All team members were briefed to ensure they were aware of any relevant regulations in relation to their work.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principle risks were related to posting inappropriate journal entries, management bias in accounting estimates and improper revenue recognition associated with year end cut off. Our audit procedures included, but were not limited to:
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ALLIED LONDON ONE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLIED LONDON ONE LIMITED (CONTINUED)
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to recoverability of trade receivables, investment property and completeness of accruals and other provisions;
- Revenue year end cut off procedures through agreeing the rental for the period as per the lease agreement to the rental recognised for the financial period, including any considerations required in respect of rent free periods.
- Identifying and testing journal entries, in particular any journal entries posted with specific unusual narrative, manual journals to revenue and cash and review of journals containing round numbers;
- Enquiry of management and those charged with governance around actual and potential litigation, claims and fraud;
- Reviewing minutes of meetings of those charged with governance.
- Obtained an understanding of the company is complying with those legal and regulatory frameworks by making enquiries to management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes and other evidence gathered during the course of the audit.
- Obtaining an understanding of the internal control relent to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control; and
- Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Except for the matter described in the 'Material uncertainty related to going concern' section, we have determined that there are no other key matters to be communicated in our report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Stuart Stead
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
7 October 2024
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
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ALLIED LONDON ONE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
as restated
Notes
£
£
Turnover
3,148,648
3,070,744
Cost of sales
(378,285)
(226,980)
Gross profit
2,770,363
2,843,764
Administrative expenses
(1,153,144)
(632,520)
Operating profit
3
1,617,219
2,211,244
Interest receivable and similar income
(179)
194
Interest payable and similar expenses
5
(1,959,623)
(539,230)
Fair value gains and losses on investment properties
7
(7,375,682)
2,593,138
(Loss)/profit before taxation
(7,718,265)
4,265,346
Tax on (loss)/profit
1,847,599
(651,988)
(Loss)/profit for the financial year
(5,870,666)
3,613,358
The profit and loss account has been prepared on the basis that all operations are continuing operations.
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ALLIED LONDON ONE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investment property
7
30,422,069
37,517,599
Current assets
Debtors
8
3,006,013
3,089,767
Cash at bank and in hand
567,906
1,057,466
3,573,919
4,147,233
Creditors: amounts falling due within one year
9
(27,927,160)
(8,625,033)
Net current liabilities
(24,353,241)
(4,477,800)
Total assets less current liabilities
6,068,828
33,039,799
Creditors: amounts falling due after more than one year
10
(2,734,977)
(21,987,683)
Provisions for liabilities
(166,500)
(2,014,099)
Net assets
3,167,351
9,038,017
Capital and reserves
Called up share capital
13
500
500
Profit and loss reserves
14
3,166,851
9,037,517
Total equity
3,167,351
9,038,017
These financial statements have been prepared 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 7 October 2024 and are signed on its behalf by:
Mr S P Gorasia
Director
Company registration number 07733022 (England and Wales)
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ALLIED LONDON ONE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
500
5,424,159
5,424,659
Year ended 31 December 2022:
Profit and total comprehensive income
-
3,613,358
3,613,358
Balance at 31 December 2022
500
9,037,517
9,038,017
Year ended 31 December 2023:
Loss and total comprehensive income
-
(5,870,666)
(5,870,666)
Balance at 31 December 2023
500
3,166,851
3,167,351
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ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
Company information
Allied London One Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Allied London, Suite 1, Bonded Warehouse, 18 Lower Byrom Street, Manchester, M3 4AP.
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 £1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
In June 2023, the bank exercised their right to issue a valuation on the investment property. It is of their opinion that the property is valued at £30,422,069. This reduction resulted in a breach of the covenant on the bank facility. As such, the full loan value is due for repayment within 12 months.
The company is in a net current liability position as at 31 December 2023 of £24,353,241 (2022: £4,477,800). The company has various debt obligations it is required to meet and as a result has undertaken a thorough review to ensure the company will continue to be able to meet its liabilities for a periods of at least 12 months from the signing date of the financial statements. The most significant of these are related party and bank loans.
The company has £7,599,370 (2022: £7,059,218) owed to group undertakings as at the balance sheet date. These are repayable on demand and not interest bearing. However, the directors have received confirmation that these liabilities will not be demanded within the next 12 month period from the signing date of the accounts. No additional funds are anticipated in the company's cashflow forecasts. Furthermore, the company had a cash balance of £567,906 (2022: £1,057,466) as at the balance sheet date.
Whilst there is some uncertainty within any assumption, the financial statements have been prepared on a going concern basis as the board considers that the company will be able to continue to trade as a going concern and meet its liabilities as they fall due.
1.3
Turnover
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Turnover is recognised at the fair value of the consideration received or receivable in respect of rental income 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of rent is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
1.4
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.
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:
Motor vehicles
25% Straight Line
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.
1.5
Investment property
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.
1.6
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.
1.7
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
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, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
1.9
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.
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ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
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.
1.10
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.
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.
Leases
Determine whether leases entered into by the company either as a lessor or a lessee are to recognised as a operating lease or finance lease as defined in Section 20 of FRS 102. The decision is based on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. Finance lease obligations have been presented in note 10.
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ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
3,500
10,500
Bad debts
134,039
28,150
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
4
4
The company had no employees during the current and prior year, other than the directors, whom received no remuneration.
5
Interest payable and similar expenses
2023
2022
£
£
Interest payable and similar expenses includes the following:
Interest on bank overdrafts and loans
1,632,743
221,939
Interest on finance leases and hire purchase contracts
325,306
317,291
Other interest
1,574
1,959,623
539,230
6
Tangible fixed assets
Motor vehicles
£
Cost
At 1 January 2023 and 31 December 2023
52,576
Depreciation and impairment
At 1 January 2023 and 31 December 2023
52,576
Carrying amount
At 31 December 2023
At 31 December 2022
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ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Investment property
2023
£
Fair value
At 1 January 2023
37,517,599
Additions
280,152
Revaluations
(7,375,682)
At 31 December 2023
30,422,069
The directors, who have significant experience in the valuating of similar real estate, have given a fair vlaue on an existing use basis at 31 December 2023 of £30,422,069 (2022: £37,517,599 restated).
This also includes £2,657,599 (2022: £2,657,599) in respect of the Head Lease for which an equivalent finance lease liability is recognised (Note 10) and expenditure of £325,306 (2022: £317,291) incurred during the year.
The valuation has identified there to have been a decrease in value of the investment property in the year of £7,375,682 (2022: increase £2,593,138 - which includes a Prior Period Adjustment, see Note 18).
The directors valuation is based on an external valuation, undertaken in June 2023 by an external, independent valuer having an appropriate recognised professional qualification and recent experience in the location and class of properties being valued. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The valuation was carried out in accordance with RICS valuation Global Standards June 2017.
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
29,756,069
29,475,917
Accumulated depreciation
(4,700,314)
(4,105,193)
Carrying amount
25,055,755
25,370,724
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
648,684
314,248
Other debtors
2,240,978
2,669,996
Prepayments and accrued income
116,351
105,523
3,006,013
3,089,767
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ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Debtors
(Continued)
The amounts due from group undertakings and related parties are repayable on demand and not interest bearing.
Included within other debtors is £2,188,030 (2022: £2,536,841) arising from rent free periods which will be realised in periods after more than one year.
9
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
11
18,589,417
350,000
Trade creditors
605,933
73,179
Amounts owed to group undertakings
7,599,370
7,059,218
Taxation and social security
299,325
254,841
Other creditors
100,473
175,678
Accruals and deferred income
732,642
712,117
27,927,160
8,625,033
The amounts due to group undertakings are repayable on demand and not interest bearing.
10
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
11
19,320,084
Obligations under finance leases
12
2,734,977
2,667,599
2,734,977
21,987,683
11
Loans and overdrafts
2023
2022
£
£
Bank loans
18,589,417
19,670,084
Payable within one year
18,589,417
350,000
Payable after one year
19,320,084
- 15 -
ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Loans and overdrafts
(Continued)
The loan is due for repayment on 31 October 2024. Interest on the loan is charged at 2.62% above the SONIA GBP Compound rate (2022: 2.62% above the SONIA GBP Compound rate). The loan is secured by a fixed charge against the property and debentures in place from both the company and its parent company Allied London Leeds Holding Company Three Limited.
75% of the loan is hedged (50% capped, 25% swapped). The interest rate is capped at 6.25% of the SONIA rate and had a fair value of £471 (2022: £502,526). The interest rate swap is 5.92% SONIA swap rate and had a fair value of £(84,374) (2022: £270,068) as at the balance sheet date. This has resulted in a hedge valuation (liability)/asset of £(83,903) (2022: 772,594) as at the balance sheet date.
The loan balance includes unamortised arrangement fees of £153,813 (2022: £313,036) and the hedge valuation asset of £(83,903) (2022: £772,594).
12
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
In over five years
2,734,977
2,667,599
Finance lease payments represent rentals payable by the company for land and buildings. No restrictions are placed on the use of the buildings. The lease term is 150 years with 143 years remaining as at the balance sheet date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
13
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
500
500
500
Called up share capital represents the nominal value of the shares issued. All shares carry no fixed right to income and rank pari-passu in every respect.
14
Reserves
Profit and loss reserves
The profit and loss account represents cumulative profits and losses net of dividends paid and other adjustments.
15
Financial commitments, guarantees and contingent liabilities
The company is guarantor of loans to the balance of £4,000,000 (2022: £4,000,000) taken out by an associated company, All Work and Social Leeds Dock Limited. These loans are also secured over the assets of the associated company.
16
Related party transactions
The company has taken advantage of the exemption allowed by Section 33.1A ("Related Party Disclosures") of the Financial Reporting Standard 102, not to disclose related party transactions with entities that are 100% owned members of the same group. There are no other related party transactions other than as disclosed.
- 16 -
ALLIED LONDON ONE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Parent company
The immediate parent company is Allied London Leeds Holding Company Three Limited, a company incorporated in England and Wales.
Ultimate controlling party
The ultimate parent company is Capital Holdco Limited, a company registered in the British Virgin islands.
18
Prior period adjustment
It has been identified that the investment property balance has been understated as a result of rent free periods provided to tenants being capitalised. These have subsequently been recognised through the statement of profit and loss.
A further adjustment has been made in for the increase in deferred tax on this revaluation adjustment. This has been calculated at 25% as the effective rate.
Reconciliation of changes in equity
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Adjustment of rent free debtors
-
2,536,841
Deferred tax
-
(634,210)
Total adjustments
-
1,902,631
Equity as previously reported
5,424,659
7,135,386
Equity as adjusted
5,424,659
9,038,017
Analysis of the effect upon equity
Profit and loss reserves
-
1,902,631
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Adjustment of rent free debtors
2,536,841
Deferred tax
(634,210)
Total adjustments
1,902,631
Profit as previously reported
1,710,727
Profit as adjusted
3,613,358
- 17 -
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr S P GorasiaMr M IngallMr J RaineMr F P Graham-Watsonfalsetrue077330222023-01-012023-12-3107733022bus:Director12023-01-012023-12-3107733022bus:Director22023-01-012023-12-3107733022bus:Director32023-01-012023-12-3107733022bus:Director42023-01-012023-12-3107733022bus:RegisteredOffice2023-01-012023-12-31077330222023-12-31077330222022-01-012022-12-3107733022core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3107733022core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31077330222022-12-3107733022core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107733022core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3107733022core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3107733022core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3107733022core:CurrentFinancialInstruments2023-12-3107733022core:CurrentFinancialInstruments2022-12-3107733022core:Non-currentFinancialInstruments2023-12-3107733022core:Non-currentFinancialInstruments2022-12-3107733022core:ShareCapital2023-12-3107733022core:ShareCapital2022-12-3107733022core:RetainedEarningsAccumulatedLosses2023-12-3107733022core:RetainedEarningsAccumulatedLosses2022-12-3107733022core:ShareCapital2021-12-3107733022core:RetainedEarningsAccumulatedLosses2021-12-3107733022core:MotorVehicles2023-01-012023-12-310773302212023-01-012023-12-310773302212022-01-012022-12-3107733022core:MotorVehicles2022-12-3107733022core:MotorVehicles2023-12-3107733022core:MotorVehicles2022-12-31077330222022-12-3107733022core:MoreThanFiveYears2023-12-3107733022core:MoreThanFiveYears2022-12-3107733022bus:PrivateLimitedCompanyLtd2023-01-012023-12-3107733022bus:FRS1022023-01-012023-12-3107733022bus:Audited2023-01-012023-12-3107733022bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP