REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
POCHIN MIDPOINT LIMITED |
REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
POCHIN MIDPOINT LIMITED |
POCHIN MIDPOINT LIMITED (REGISTERED NUMBER: 10250070) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Balance Sheet | 1 |
Notes to the Financial Statements | 2 |
POCHIN MIDPOINT LIMITED (REGISTERED NUMBER: 10250070) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investments | 4 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 5 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 6 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
The financial statements were approved by the Board of Directors and authorised for issue on |
POCHIN MIDPOINT LIMITED (REGISTERED NUMBER: 10250070) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Pochin Midpoint Limited is a |
Registered number: |
Registered office: |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial instruments |
Financial Instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised 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, which include trade debtors, other debtors, amounts due from group undertakings 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. Financial assets classified as receivable within one year are not amortised. |
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, including trade creditors, other creditors, and amounts owed to group undertakings, 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 are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
POCHIN MIDPOINT LIMITED (REGISTERED NUMBER: 10250070) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Fixed asset investments |
Fixed asset investments, representing interests in joint ventures, are stated at cost less provision for permanent impairment. |
If the recoverable amount of an asset is estimated to be less that its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Going concern |
The financial statements have been prepared on a going concern basis. |
The company does not have its own bank funding and is reliant on loans advanced by its parent company. Whilst current economic conditions continue to create uncertainty, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2022 - NIL). |
4. | FIXED ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Participating interests |
Loans to undertakings in which the company has a participating interest |
POCHIN MIDPOINT LIMITED (REGISTERED NUMBER: 10250070) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | FIXED ASSET INVESTMENTS - continued |
Additional information is as follows: |
Interest |
in joint |
venture |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Loans to |
joint |
ventures |
£ |
At 1 January 2023 |
New in year |
Repayment in year | ( |
) |
Other movement |
At 31 December 2023 |
Joint Venture |
Magnitude Land LLP - 50% |
United Kingdom |
The loans to the joint venture includes a provision for impairment of £3,653,469 (31 December 2022: £4,022,996). |
The accounts of Magnitude Land LLP at 31 December 2023 indicate total net assets attributable to members of £12,419,711 (31 December 2022: £9,455,728). This includes unallocated losses of £7,306,937 at 31 December 2023 (31 December 2022: £8,045,992). The net assets attributable to members, include a significant amount of interest due to Pochin Midpoint Limited. The investment is tied to a project where the return is contingent on the approval and construction of a bypass, as well as favourable market conditions. The directors are confident the project will proceed as planned and therefore no provision for the investment has been included in the accounts. |
5. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed to group undertakings |
Other creditors |
The amounts owed to group undertakings are unsecured and repayable on demand. |
The directors consider the carrying amount of creditors to be equivalent to their fair value due to their short-term nature. |
POCHIN MIDPOINT LIMITED (REGISTERED NUMBER: 10250070) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
7. | RELATED PARTY DISCLOSURES |
The company has issued deep discounted bonds to Magnitude Land LLP. |
The balance outstanding on the loans at 31 December 2023 was £9,774,918 (2022: £8,662,488). During the period ended 31 December 2023, interest of £1,404,590 (2022: £1,115,582) was charged, £658,589 (2022: £400,000) was repaid and a further £366,499 (2022: £487,300) of loans were extended in the year. |
8. | ULTIMATE CONTROLLING PARTY |
The immediate parent company as at 31 December 2023 is Northern Powerhouse Land Limited. |
The directors of the company do not consider there to be an ultimate controlling party. |