Company registration number 11403585 (England and Wales)
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr M Ingall
Mr F P Graham-Watson
Company number
11403585
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 DEVELOPMENT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 23
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The Group's principal activities is property development based in the United Kingdom. The principal activity of the company is that of a holding company.

Business and strategic review

During the year, the group made significant progress on Old Granada Studios and the infrastructure of the St Johns estate. The group achieved practical completion on the development of The Globe Building back in 2022 and the costs to complete works have been mainly incurred in 2023.

 

Turnover has declined to £34.6m (2022: £40m) due to the Manchester Goods Yard Development and The Globe Building development having significantly reduced activity in 2023 compared to 2022. Income is principally derived from the development management income generated by the St John’s development, Manchester.

 

There have not been any other significant changes in the group’s principal activities in the year under review.

 

Future Developments

The group will continue to work on the Old Granada Studios development, the infrastructure and public realm across the St Johns estate. The expected Practical Completion date for the Old Granada Studios development is now around June 2025.

Principal risks and uncertainties

 

Liquidity

Although the improved economic climate has reduced the pressure on working cash flow, the lack of availability of sufficient external capital could limit the group’s ability to both develop and build out schemes. The directors ensure that all the group’s development schemes are fully funded before they start on site. The directors closely manage the day to day liquidity position through detailed daily and monthly cash flow forecasts which are reviewed regularly by the board.

 

Health and Safety

The group has dedicated, well trained health and safety staff and extensively uses third parties to monitor compliance. Training and site procedures are reviewed regularly to ensure the highest standards are continually maintained. Health and safety is reported on in detail at all board meetings.

Key performance indicators

Allied London Development Holdings Limited manages its operations on a project basis and for this reason the company’s directors believe that further key performance indicators for the group and company are not necessary or appropriate for an understanding of the development, performance or position of the business.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other information and explanations

Activities

The principal activities of the Group are property investment, trading and development. The directors do not envisage a major change in the nature or level of the Group’s activity in the year ahead. The directors continue to monitor the state of the market with a view to safeguarding the interests of shareholders and other stakeholders. The directors continue to explore future opportunities.

 

Going Concern

The group has Net Current Liabilities as at 31 December 2023 of £177k (2022: £83k).

 

The group has £243,530 that is owed to related parties as at 31 December 2023. These are repayable on demand and not interest bearing. However, the directors have received confirmation from the parties that these liabilities will not be demanded within the next 12-month period from the signing date of the accounts. Remaining liabilities falling due within one-year are settled following the receipt of fee income. Furthermore, the group had a cash balance of £2.1m at the year-end.

 

Management has undertaken a thorough group going concern review which has included forecasts from 12 months from signing date of the financial statements to ensure the company will continue to be able to meet its liabilities for the next year from the signing date of the accounts. The forecasts included some sensitivity on the fee income obtained.

 

Therefore, the board considers that the group will be able to continue to trade as a going concern and meet its liabilities as they fall due.

On behalf of the board

Mr F P Graham-Watson
Director
30 September 2024
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further 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 M Ingall
Mr F P Graham-Watson
Auditor

Sumer Auditco Limited were appointed as auditor to the company and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr F P Graham-Watson
Director
30 September 2024
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Allied London Development Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:

Basis for opinion

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 group and parent 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.

Conclusions 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.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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:

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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:

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 parent 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 parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the Directors (as required by auditing standards) and discussed with the Directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; laws related to Health and Safety, Employment, UK Companies Act, Pension Legislation and Tax Legislation.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outline below to detect material misstatement due to fraud:

 

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.

Use of 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
30 September 2024
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
34,604,109
40,038,560
Cost of sales
(34,653,247)
(40,094,356)
Gross loss
(49,138)
(55,796)
Administrative expenses
(44,500)
(27,500)
Tax on loss
6
-
0
-
0
Loss for the financial year
12
(93,638)
(83,296)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
9
11,353,183
12,018,662
Cash at bank and in hand
2,073,865
1,407,699
13,427,048
13,426,361
Creditors: amounts falling due within one year
10
(13,603,882)
(13,509,557)
Net current liabilities
(176,834)
(83,196)
Capital and reserves
Called up share capital
11
100
100
Profit and loss reserves
12
(176,934)
(83,296)
Total equity
(176,834)
(83,196)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mr F P Graham-Watson
Director
Company registration number 11403585 (England and Wales)
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
7
700
700
Current assets
Debtors
9
100
100
Creditors: amounts falling due within one year
10
(700)
(700)
Net current liabilities
(600)
(600)
Net assets
100
100
Capital and reserves
Called up share capital
11
100
100

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £0 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mr F P Graham-Watson
Director
Company registration number 11403585 (England and Wales)
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
-
0
100
Year ended 31 December 2022:
Loss and total comprehensive income
-
(83,296)
(83,296)
Balance at 31 December 2022
100
(83,296)
(83,196)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(93,638)
(93,638)
Balance at 31 December 2023
100
(176,934)
(176,834)
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
£
Balance at 1 January 2022
100
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
Balance at 31 December 2022
100
Year ended 31 December 2023:
Profit and total comprehensive income
-
Balance at 31 December 2023
100
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
15
666,166
(4,438,644)
Net increase/(decrease) in cash and cash equivalents
666,166
(4,438,644)
Cash and cash equivalents at beginning of year
1,407,699
5,846,343
Cash and cash equivalents at end of year
2,073,865
1,407,699
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Allied London Development Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is C/O Allied London, Suite 1, Bonded Warehouse, 18 Lower Byrom Street, Manchester, Greater Manchester, England, M3 4AP.

 

The group consists of Allied London Development Holdings Limited and all of its subsidiaries.

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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company’s accounting policies.

 

The financial statements are prepared in sterling, which is the functional currency of the group and the company. Monetary amounts in these financial statements are rounded to the nearest thousand.

 

The consolidated financial statements comprise the financial statements of Allied London Development Holdings Limited and its subsidiaries.

 

The period end date for all subsidiary undertakings within the Group is 31 December 2023 and the accounting policies applied are consistent throughout the Group.

 

All intra-group transactions and balances are eliminated on consolidation.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

The Group accounts comprise the accounts of the company, subsidiary undertakings, joint ventures and associates made up to 31 December 2023 or, in the case of undertakings acquired or disposed of during the year, for the year of ownership, under the acquisition method of accounting.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Allied London Development Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The group has Net Current Liabilities as at 31 December 2022 of £177k (2022: £83k). The group has £243,530 that is owed to related parties as at 31 December 2023. These are repayable on demand and not interest bearing. However, the directors have received confirmation from the parties that these liabilities will not be demanded within the next 12-month period from the signing date of the accounts. Remaining liabilities falling due within one-year are settled following the receipt of fee income. Furthermore, the group had a cash balance of £2.1m at the year-end.

 

Management has undertaken a thorough group going concern review which has included forecasts from 12 months from signing date of the financial statements to ensure the company will continue to be able to meet its liabilities for the next year from the signing date of the accounts. The forecasts included some sensitivity on the fee income obtained.

 

Therefore, the board considers that the group will be able to continue to trade as a going concern and meet its liabilities as they fall due.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Turnover

Turnover which is exclusive of service charges and VAT, includes rental income receivable from both operating and finance leases and trading income. This is attributable to the group's principal activity wholly undertaken in the United Kingdom. Trading income relates to the sale of stock.

 

The rental income received under the finance lease is apportioned between rental income and repayment of the debtor balance. Over the whole period of the lease, the finance lease income equals the gross earnings from the lease i.e. the amount by which the total of the receipts expected by the lessor exceeds the cost of the leased asset. The receipts expected by the lessor consist of the total rentals payable by the lessee, together with any residual value of the asset which is receivable by the lessor, whether or not that residual value is guaranteed.

1.6
Fixed asset investments

Investment in subsidiaries are measured at cost less accumulated impairment.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

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 group 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 group 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.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the group 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 group.

1.10
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 group’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 balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except:

 

 

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax.

 

Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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
Turnover
2023
2022
£
£
Turnover analysed by class of business
Development fees
34,604,109
40,038,560
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
44,500
27,500
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
2
2
2
2

The group had no employees during the year other than directors, who received no remuneration.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
6
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(93,638)
(83,296)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(23,410)
(15,826)
Tax effect of utilisation of tax losses not previously recognised
(25,736)
(483,216)
Unutilised tax losses carried forward
49,146
499,042
Taxation charge
-
-
7
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
8
-
0
-
0
700
700
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
700
Carrying amount
At 31 December 2023
700
At 31 December 2022
700
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Manchester Quays Developments (G&S) Limited
1
Development Company
Ordinary
100.00
Manchester Quays Developments (MGY) Limited
1
Development Company
Ordinary
100.00
Manchester Quays Developments (N&D) Limited
1
Development Company
Ordinary
100.00
Manchester Quays Developments (OGS) Limited
1
Development Company
Ordinary
100.00
Manchester Quays Developments (St Johns) Limited
1
Development Company
Ordinary
100.00
Manchester Quays Developments (SJP) Limited
1
Development Company
Ordinary
100.00
Manchester Quays Developments (SV) Limited
1
Dormant Company
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
C/O Allied London, Suite 1, Bonded Warehouse, 18 Lower Byrom Street, Manchester, Greater Manchester, M3 4AP
9
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,065,146
3,272,475
-
0
-
0
Other debtors
5,789
-
100
100
Prepayments and accrued income
10,282,248
8,746,187
-
0
-
0
11,353,183
12,018,662
100
100

All debtors are due for repayment within one year. The charge for bad debts to the Statement of Comprehensive Income during the year was £nil (2022: £nil).

10
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,368,138
1,793,072
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
700
700
Other taxation and social security
646,406
472,181
-
-
Other creditors
513,181
5,061,349
-
0
-
0
Accruals and deferred income
11,076,157
6,182,955
-
0
-
0
13,603,882
13,509,557
700
700

The amounts due to related parties are repayable on demand and not interest bearing.

ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100

Called up share capital represents the nominal value of shares issued. All shares carry no fixed right to income and rank pari-passu in every respect.

12
Reserves
Profit and loss reserves

The profit and loss reserves reflect cumulative profits and losses net of distributions to shareholders.

 

Called up share capital

Called up share capital represents the nominal value of the shares issued.

13
Related party transactions

The group has taken advantage of the exemption allowed by Financial Reporting Standard 102, "Related party disclosures" Section 33.1A 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.

 

Capital Properties (UK) Two Limited

The directors of Allied London Development Holdings Limited are also directors of Capital Properties (UK) Two Limited. The group owes £243,530 to Capital Properties (UK) Two Limited (2022: £445,169).

 

Manchester Quays Limited

The directors of Allied London Development Holdings Limited are also directors of Manchester Quays Limited. The group owes £nil to Manchester Quays Limited (2022: £4,531,895).

14
Controlling party

The directors consider the ultimate controlling party to be M Ingall, who is also a director of the company.

15
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Loss for the year after tax
(93,638)
(83,296)
Movements in working capital:
Decrease/(increase) in debtors
665,479
(3,627,241)
Increase/(decrease) in creditors
94,325
(728,107)
Cash generated from/(absorbed by) operations
666,166
(4,438,644)
ALLIED LONDON DEVELOPMENT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
16
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,407,699
666,166
2,073,865
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr M IngallMr F P Graham-Watsonfalsefalse11403585bus:Consolidated2023-01-012023-12-31114035852023-01-012023-12-3111403585bus:Director12023-01-012023-12-3111403585bus:Director22023-01-012023-12-3111403585bus:RegisteredOffice2023-01-012023-12-31114035852023-12-3111403585bus:Consolidated2022-01-012022-12-3111403585bus:Consolidated2023-12-3111403585core:ShareCapitalbus:Consolidated2023-12-3111403585core:ShareCapitalbus:Consolidated2022-12-3111403585core:ShareCapital2023-12-3111403585core:ShareCapital2022-12-3111403585core:ShareCapitalbus:Consolidated2021-12-3111403585core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-3111403585core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3111403585core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3111403585core:ShareCapital2021-12-31114035852022-12-3111403585bus:Consolidated2022-12-3111403585bus:Consolidated2021-12-31114035852022-01-012022-12-3111403585core:CurrentFinancialInstruments2023-12-3111403585core:CurrentFinancialInstruments2022-12-3111403585core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3111403585core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3111403585core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3111403585core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3111403585core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3111403585core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3111403585bus:PrivateLimitedCompanyLtd2023-01-012023-12-3111403585bus:FRS1022023-01-012023-12-3111403585bus:Audited2023-01-012023-12-3111403585bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3111403585bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP