REGISTERED NUMBER: |
BENTS PROPERTY LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 |
REGISTERED NUMBER: |
BENTS PROPERTY LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 |
BENTS PROPERTY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
BANKERS: |
6 Market Place |
Wigan |
Lancashire |
WN1 1QS |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
STATEMENT OF FINANCIAL POSITION |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Investment property | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 11 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Fair value reserve | 12 |
Hedging reserve | ( |
) |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | STATUTORY INFORMATION |
Bents Property Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 06470506 and its registered office address is Bents Garden Centre, Warrington Road, Leigh End, Glazebury, Warrington, WA3 5NT. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The company has net assets of £14,649,615 (2023: £14,180,044) and net current liabilities of £8,782,624 (2023: £13,703,188) at the statement of financial position date, the profit before tax for the financial year was £851,019 (2023: £1,012,955). In excess of 98% of the company's rental income relates to a lease with a fellow group undertaking, which expires in 10 years. Included within creditors is an amount of £8,412,450 (2023: £8,188,225) owed to a fellow subsidiary. The directors of the fellow subsidiary have confirmed that this support will be available for the foreseeable future. The company is also financed by bank loans which mature in 2026. |
On this basis, the directors consider that the company will have adequate reserves to continue to trade for the foreseeable future and continue to adopt the going concern basis in the preparation of the financial statement. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates. |
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. |
Estimating the fair value of the investment property, given a lack of comparable market data. The fair value of investment property included in the accounts, is based on the directors experience and the the use of experts. |
Revenue |
Revenue is recognised on property rentals on a straight line basis over the period of the lease. Amounts received in advance are deferred and recognised as they fall due. |
Investment property |
Investment properties are initially measured at cost and subsequently measured at fair value whilst a reliable measure of fair value is available without undue cost or effort. Changes in fair value are recognised in the income statement. |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Where the company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Derivatives |
The company enters into interest rate swap contracts in order to manage its exposure to interest rate risk. |
Derivatives are initially measured at fair value at the date a derivative contract is entered into and are subsequently measured to fair value at each reporting end date. The resulting gain or loss is recognised in other comprehensive income immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the income statement depends on the nature of the hedge relationship. |
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as financial liability. |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Hedge accounting |
To qualify for hedge accounting, the company documents the hedged item, the hedging instrument and the hedging relationship between them, and the causes of the hedge ineffectiveness (such as different maturities, nominal amounts or variable rates, and counterparty credit risk). |
The company elects to adopt hedge accounting for interest rate swaps where: |
- | the interest rate swap is a qualifying hedging instrument with an external party that hedges interest rate risk on a loan, part of the nominal amount of a loan, or a group of loans managed together that share the same risk and that qualify as a hedged item, |
- | the hedging relationship between the interest rate swap and the interest rate risk on the loan is consistent with the risk management objectives for undertaking hedges (i.e. to manage the risk that fixed interest rates become unfavourable in comparison to current market rates or the variability in cash flows arising from variable interest rates); and |
- | the change in the fair value of the interest rate swap is expected to move inversely to the change in the fair value of the interest rate risk on the loan. |
Cash flow hedge - hedge of variable interest rate risk |
Where an interest rate swap that converts variable rate debt into fixed rate debt qualifies for hedge accounting, it is accounted for as a cash flow hedge. The cumulative change in the fair value of the interest rate swap is recognised in other comprehensive income up to the amount of the cumulative fair value movement on the variable rate debt that is attributable to the variable interest rate risk. Any excess fair value gains or losses on the interest rate swap not recognised in other comprehensive income are recognised in the income statement. The gains and losses recognised in other comprehensive income are recorded as a separate component of equity (the cash flow hedge reserve). |
Net cash settlements on the interest rate swap are recognised in the income statement in the periods when the net cash settlements accrue. The cash flow hedge reserve is reclassified to the income statement when the variable rate interest is recognised in the income statement. |
Hedge accounting is discontinued when a floating to fixed rate swap expires, is sold, terminated or exercised, or when the conditions for hedge accounting are no longer met or the company documents its election to discontinue hedge accounting. Any fair value gains or losses accumulated in the cash flow hedge reserve are reclassified to the income statement, either when the variable interest rate expense is recognised in the income statement, or immediately on discontinuation of hedge accounting if future variable interest rate cash flows are no longer expected to occur. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
4. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 February 2023 |
Additions |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
If investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 24,742,418 | 24,408,855 |
Investment property was valued on an open market basis on 27 September 2023 by CBRE Ltd an independent property valuation company. The property is maintained to a similar excellent condition, there has been no decline in activity from the tenant so the value in use remains the same and there are no empty units. Therefore, the directors are of the opinion that this represents the fair value at the statement of financial position date. |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 8) |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 8) |
Other creditors |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 4,792,383 |
8. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 4,792,383 |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans | 10,500,000 | 11,068,793 |
The bank loans are secured by a fixed and floating charge over the company's investment properties and land adjoining Warrington Road, Glazebury, Leigh, Lancashire. |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
10. | FINANCIAL INSTRUMENTS |
2024 | 2023 |
£ | £ |
Carrying amount of financial liabilities |
Measured at fair value through other comprehensive income |
- Other financial liabilities | - | 37,039 |
11. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Investment property | 917,410 | 917,410 |
Interest rate swaps | - | (9,260 | ) |
1,957,627 | 1,929,189 |
Deferred |
tax |
£ |
Balance at 1 February 2023 |
Provided during year |
Balance at 31 January 2024 |
12. | RESERVES |
Fair value reserve |
The cumulative fair value gains and losses in respect of investment properties and associated deferred tax. |
Hedging reserve |
Gains and losses arising on fixed to floating interest rate swaps which have been designated as hedges for hedge accounting purposes and associated deferred tax. |
Profit and loss reserves |
Cumulative profit and loss net of distribution to owners. |
13. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
14. | FINANCIAL COMMITMENTS |
The company has a cross guarantee and debenture with Bents Garden Centre Limited, a fellow subsidiary undertaking, and Bents Holdings Limited, the parent company, to secure bank loan facilities with Barclays Bank plc. At 31 January 2024 the respective bank borrowings totalled £10,500,000 (2023: £11,068,793). |
BENTS PROPERTY LIMITED (REGISTERED NUMBER: 06470506) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
15. | ULTIMATE CONTROLLING PARTY |
Bents Holdings Limited is the immediate parent company and for which consolidated accounts including Bents Property Limited are prepared, and these are available from Bents Garden Centre, Warrington Road, Leigh End, Glazebury, Warrington, WA3 5NT. |