REGISTERED NUMBER: |
Unaudited Financial Statements For The Year Ended 29 February 2024 |
for |
Primetower Properties Limited |
REGISTERED NUMBER: |
Unaudited Financial Statements For The Year Ended 29 February 2024 |
for |
Primetower Properties Limited |
Primetower Properties Limited (Registered number: 02938378) |
Contents of the Financial Statements |
For The Year Ended 29 February 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
Primetower Properties Limited |
Company Information |
For The Year Ended 29 February 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
Primetower Properties Limited (Registered number: 02938378) |
Balance Sheet |
29 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investment properties | 5 |
Tangible assets | 6 |
Investments | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Share premium | 13 |
Retained earnings | 13 |
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. |
Primetower Properties Limited (Registered number: 02938378) |
Balance Sheet - continued |
29 February 2024 |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Primetower Properties Limited (Registered number: 02938378) |
Notes to the Financial Statements |
For The Year Ended 29 February 2024 |
1. | STATUTORY INFORMATION |
Primetower Properties Limited is a |
2. | STATEMENT OF COMPLIANCE |
The financial statements have been prepared under the historical cost convention unless otherwise |
specified within these accounting policies and in accordance with Section 1A of Financial Reporting |
Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and |
the Companies Act 2006. |
The presentation currency is pounds sterling. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The Company made a loss after tax of £176,031 in the financial year (2022 - profit of £55,529), The company expects to remain profitable going forward. The Company is dependent on the continued provision of external and internal financing for its ongoing operations. |
The Company has the full backing of the owners, as well as a supportive bank and the Directors |
consider the Company has sufficient cash to cover all financial obligations. The Directors have prepared detailed financial forecasts to support this assessment. |
The owners have agreed not to seek repayment of their various loans to the Company until there are |
sufficient funds to do so. |
On this basis, the Directors consider it appropriate to prepare the financial statements on the going |
concern basis. |
Preparation of consolidated financial statements |
The financial statements contain information about Primetower Properties Limited as an individual |
company and do not contain consolidated financial information as the parent of a group. The company |
has taken the option under Section 399 of the Companies Act 2006 not to prepare consolidated |
financial statements. |
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 |
Investments |
Shares in subsidiary companies are held at cost on the Balance Sheet. The subsidiary companies do |
not trade and their carrying value is £2. |
Stock |
Land owned is shown at cost. The directors have reviewed the recoverability and consider that there is |
no need to provide for losses in respect of any land held. In order to fully recover these costs the |
Company must obtain planning permission on many of these sites. The directors consider that this is |
achievable. |
Tax Losses |
The company has tax losses which it expects to off-set against future taxable profits. . The 2015 asset of £358,496 has been carried forward and no deferred tax asset recognised in respect of the period from 1 March 2015 to 28 February 2023. From 2020 onwards the company has made a profit and is now utillising the tax losses. |
Primetower Properties Limited (Registered number: 02938378) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, |
rebates, value added tax and other sales taxes. |
Turnover represents amounts invoiced, excluding value added tax, in respect of the sale of property |
and the provision of construction services. |
Turnover from property sales is recognised on legal completion of the sale and not on exchange of |
contracts. |
Investment properties - freeholds |
Investment properties are the freeholds of completed developments where only leasehold interests |
have been sold. As freeholder, the company receives ground rent as specified in the leases granted. |
Freeholds are valued at ground rent multiplied by a market appropriate valuation. |
All of the freehold properties owned have leases in excess of 80 years with ground rent doubling every |
25 years. Because of the period over which these rents are receivable, the directors consider that it is |
not appropriate to amortise freeholds. |
The directors assess the value of the freeholds on an annual basis and if there is a diminution in the |
value this will be charged to the Profit and Loss Account. At the year end the directors do not |
consider that any diminution in value has occurred. |
Tangible fixed assets |
Office Equipment | - |
Motor vehicles | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stock and work in progress |
Stocks and work-in-progress are stated at the lower of cost and net realisable value. Cost is calculated using the first-in-first-out method and consists of material and sub-contract labour costs together with interest and bank arrangement fees from project specific borrowing. |
Full provision is made for losses on all contracts in the year in which they are first foreseen. |
Primetower Properties Limited (Registered number: 02938378) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Company only 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, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
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. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. |
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 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. |
Primetower Properties Limited (Registered number: 02938378) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
3. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates two defined contribution pension schemes. |
Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Project interest and arrangement fees |
Where interest and bank arrangement fees relate to a specific development project this interest is |
charged to the Profit and Loss Account in the same accounting period as the sales from the development of which the loan relates. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other |
short-term highly liquid investments with maturities of three months or less and bank overdrafts. |
In the balance sheet, bank overdrafts are shown within borrowings in current liabilities. |
Borrowings |
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Profit and Loss Account over the period of the borrowings using the effective interest method. |
Bank and professional fees payable on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some of all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. Once the loan is drawn-down the fee is capitalised as prepayment and amortised over the period of the facility to which it relates. |
All other borrowing costs, including interest on loans that are not site specific, are recognised in the Income Statement in the period in which they are incurred. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
5. | INVESTMENT PROPERTIES |
Freeholds |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Primetower Properties Limited (Registered number: 02938378) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
6. | TANGIBLE FIXED ASSETS |
Office | Motor | Computer |
Equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2023 |
and 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
7. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
8. | STOCKS |
2024 | 2023 |
£ | £ |
Work-in-progress |
9. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Directors' current accounts | 157,445 | - |
VAT |
Prepayments |
Amounts falling due after more than one year: |
Deferred tax asset | 356,913 | 356,913 |
Aggregate amounts |
Primetower Properties Limited (Registered number: 02938378) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts |
Trade creditors |
Social security and other taxes |
Other creditors |
Directors' current accounts | 871,865 | - |
Accrued expenses |
Bank borrowing of £1,350,000 is secured by a guarantee from a director. |
Directors loan account balances earn interest at 1%pa and are repayable on demand. |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares | £1 | 11,234 | 11,234 |
13. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 March 2023 | 4,349,566 |
Profit for the year |
At 29 February 2024 | 4,530,353 |
Primetower Properties Limited (Registered number: 02938378) |
Notes to the Financial Statements - continued |
For The Year Ended 29 February 2024 |
14. | RELATED PARTY DISCLOSURES |
Balances with directors |
At 29 February 2024 the Company owed £871,865 (2023 - 1,616,277) to directors. |
The company pays interest at 1% on loans from directors of £610,000 (2023 - £730,000). All other loans are interest free. |
The company has carried out construction services for Reef Developments Limited, a company owned by the son of a shareholder/director. These services were provided at cost plus 10% and were £375,269 in 2024 (2023 - £452,109l). |
At 29 February 2024 the Company was owed £2,059.219 (2023 - £1,749,006) by Park Place Properties Limited, a company owned and controlled by the same shareholders and directors. |
At 29 February 2024 the Company was owed £91,729 (2023 - £89,328) by Primetower Leisure Limited, a company owned and controlled by the same shareholders and directors. The Company charged a management charge of £nil (2022 - £12,000) for administration and management. |
At 29 February 2024 the Company was owed £31,996 (2023 - £33,773) by Park Place Management, a partnership controlled by the shareholders. During the year the Company paid rent of £30,000 (2023 - £30,000) to Park Place Management. |