Company registration number 05277165 (England and Wales)
O&H Q7 LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
O&H Q7 LIMITED
COMPANY INFORMATION
Directors
D S Gabbay
A Gabbay
E A Shahmoon
R A Shahmoon
C Hanouka
L E Shahmoon
A J Dalah
Secretary
C Hanouka
Company number
05277165
Registered office
Ground Floor Trinity Court
Trinity Street
Peterborough
Cambridgeshire
PE1 1DA
Auditor
Goodman Jones LLP
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
O&H Q7 LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 16
O&H Q7 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The directors present their annual report and financial statements for the year ended 29 February 2024.
Principal activities
The principal activity of the company continued to be that of the trading of land.
Results and dividends
The loss for the year, after taxation, amounted to £10,063,891 (2023: £4,254,676 profit).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D S Gabbay
A Gabbay
E A Shahmoon
R A Shahmoon
C Hanouka
L E Shahmoon
A J Dalah
Qualifying third party indemnity provisions
Qualifying third party indemnity provisions for the benefit of the company's directors were paid during the year by other companies to which the directors are also appointed. These provisions remain in force at the reporting date.
Auditor
In accordance with the company's articles, a resolution proposing that Goodman Jones LLP be reappointed as
auditor of the company 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.
O&H Q7 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Going concern
The directors have considered the company's financial position and future prospects, believing that the company continues to remain a going concern. Further details of this are included in the notes to the financial statements.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
E A Shahmoon
Director
31 October 2024
O&H Q7 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF O&H Q7 LIMITED
- 3 -
Opinion
We have audited the financial statements of O&H Q7 Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, 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 29 February 2024 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.
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 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.
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.
O&H Q7 LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF O&H Q7 LIMITED
- 4 -
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.
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.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:
O&H Q7 LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF O&H Q7 LIMITED
- 5 -
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Reading minutes of meetings of those charged with governance;
Obtaining and reading correspondence from legal and regulatory bodies including HMRC;
Identifying and testing journal entries;
Challenging assumptions and judgements made by management in their significant accounting estimates.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above. The further removed instances of non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, 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 or intentional misrepresentations, or through collusion.
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.
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.
Paul Bailey (Senior Statutory Auditor)
For and on behalf of Goodman Jones LLP
31 October 2024
Chartered Accountants
Statutory Auditor
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
O&H Q7 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
1,730,323
10,445,347
Cost of sales
(2,723,297)
(3,917,261)
Gross (loss)/profit
(992,974)
6,528,086
Administrative expenses
(1,820,790)
(1,262,225)
Provisions against developments
(7,318,436)
Operating (loss)/profit
(10,132,200)
5,265,861
Interest receivable and similar income
1,435
2,142
(Loss)/profit before taxation
(10,130,765)
5,268,003
Tax on (loss)/profit
6
66,874
(1,013,327)
(Loss)/profit for the financial year
(10,063,891)
4,254,676
The profit and loss account has been prepared on the basis that all operations are continuing operations.
O&H Q7 LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 7 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Current assets
Stocks
7
72,434,011
69,145,779
Debtors
8
145,816
992,905
Cash at bank and in hand
4,822
6,189
72,584,649
70,144,873
Creditors: amounts falling due within one year
9
(13,076,062)
(7,890,831)
Net current assets
59,508,587
62,254,042
Provisions for liabilities
10
(12,303,955)
(4,985,519)
Net assets
47,204,632
57,268,523
Capital and reserves
Called up share capital
12
2
2
Revaluation reserve
22,678,854
22,616,045
Profit and loss reserves
24,525,776
34,652,476
Total equity
47,204,632
57,268,523
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 31 October 2024 and are signed on its behalf by:
E A Shahmoon
Director
Company registration number 05277165 (England and Wales)
O&H Q7 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
2
22,696,282
38,317,563
61,013,847
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
4,254,676
4,254,676
Dividends
-
-
(8,000,000)
(8,000,000)
Transfer of revaluation of investment properties
-
(80,237)
80,237
-
Balance at 28 February 2023
2
22,616,045
34,652,476
57,268,523
Year ended 29 February 2024:
Loss and total comprehensive income for the year
-
-
(10,063,891)
(10,063,891)
Transfer of revaluation of investment properties
-
62,809
(62,809)
-
Balance at 29 February 2024
2
22,678,854
24,525,776
47,204,632
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
1
Accounting policies
Company information
O&H Q7 Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor Trinity CourtTrinity Street, Peterborough, Cambridgeshire, PE1 1DA.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
In making their assessment of the ability of the company to continue as a going concern, the directors have prepared detailed cash flow projections for the company. The parent undertaking, O&H Strategic Land Limited, has prepared the same on a consolidated basis. These projections have been prepared to February 2028 and include sensitivities in cash inflows for potential reductions in activities. These projections show, in all scenarios, that the group remains liquid, however each individual company (including O&H Q7 Limited) has limited or no cash.true
The company has received a letter from the parent company (O&H Strategic Land Limited) confirming that the parent company operates a cash management treasury function for the O&H Strategic Land Limited group. The cash is pooled and held within O&H Strategic Land Limited. The letter confirms that they are holding that cash and that the directors of this group continue to have full and unfettered access to it.
On this basis, the directors consider that both the group and the company will be able to discharge their obligations in the ordinary course of business for a period of at least twelve months from the date when the financial statements are authorised for issue and consider it appropriate to continue to prepare these financial statements on a going concern basis.
1.3
Turnover
Turnover represents rental income arising in the United Kingdom from the letting of land and related activities less value added tax. Turnover is recognised on an accruals basis. Sales of stock of land and development properties is recognised on legal completion.
1.4
Interest income
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 10 -
1.5
Finance costs
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
1.6
Stocks
Stock relates to the cost of land purchased for development and is stated at the lower of cost and net realisable value.
In determining cost for these purposes, stock acquired from third parties includes purchase price and any other costs incurred in bringing the inventories to their present location and condition
Where properties held in stock were transferred from investment property, the cost is the fair value at the date the land was transferred into stock.
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.
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.
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 11 -
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.
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
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
Rental Income
Rental income represents rent receivable for the letting of property in the United Kingdom.
Benefits to lessees in the form of rent free periods are treated as a reduction in the overall return of the lease and in accordance with section 20 of FRS 102, are recognised on a straight line basis over the lease. Capital contributions paid to tenants are shown as a debtor and amortised over the period of the lease.
However, the company has taken advantage of the optional exemption available on transition to FRS102 which allows lease incentives on leases entered into before the date of transition to the standard (1 March 2014) to continue to be charged over the shorter period to the first market rent review rather than the term of the lease.
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.12
Where assets leased to a third party give rights approximating to ownership (finance leases), the assets are treated as if they had been sold outright. The amount removed from the fixed assets is the net book value on disposal of the asset. The profit on disposal, being the excess of the present value of the minimum leases payments over net book value is credited to profit or loss.
Lease payments are analysed between capital and interest components so that the interest element of the payment is credited to profit or loss over the term of the lease and represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts owed by the lessee.
All other leases are treated as operating leases. Their annual rentals are charged to profit or loss on a straight line basis over the term of the lease.
1.13
Short term debtors are measured at transaction price, less any provision for impairment.
1.14
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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.
Stocks
The carrying value of stocks requires management judgement in determining the profitability of each project at the point of sale. The group gives consideration to the status or each project, stage of development, current tenants and revenues and market conditions, when ensuring stocks are valued at the lower of cost and net realisable value.
Provisions
Provisions recognised in the accounts are calculated based on the forecast overall profitability of each site within the development. This takes into account the time scales of development and the contractual requirements such as S106 commitments and other onerous arrangements.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rental income
633,105
490,127
Other income
1,097,218
945,062
Development sales
-
9,010,158
1,730,323
10,445,347
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
3
Turnover and other revenue
(Continued)
- 13 -
2024
2023
£
£
Other revenue
Interest income
1,435
2,142
4
Operating profit
Audit and taxation fees are borne by fellow subsidiaries.
5
Employees
The company has no employees (2023 - Nil) other than directors, who did not receive any remuneration (2023 - £Nil).
6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,035,250
Adjustments in respect of prior periods
(66,874)
(1,864)
Total current tax
(66,874)
1,033,386
Deferred tax
Origination and reversal of timing differences
(20,059)
Total tax (credit)/charge
(66,874)
1,013,327
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(10,130,765)
5,268,003
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 24.50% (2023: 19.00%)
(2,482,037)
1,000,921
Tax effect of expenses that are not deductible in determining taxable profit
41,831
Group relief
2,415,163
(7,502)
Under/(over) provided in prior years
(1,864)
Change in tax rates re deferred tax liability
(20,059)
Taxation (credit)/charge for the year
(66,874)
1,013,327
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
6
Taxation
(Continued)
- 14 -
Factors that may affect future tax charges
The Finance Bill 2021, published on 11 March 2021, increased the main rate of Corporation tax to 25% for the year commencing 1 April 2023.
The deferred taxation liability has therefore been calculated at 25%, being the rate substantively enacted at the Balance Sheet date.
7
Stocks
2024
2023
£
£
Land held for development
72,434,011
69,145,779
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
98,924
869,384
Other debtors
64,237
Prepayments and accrued income
46,892
59,284
145,816
992,905
9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
274,331
848,431
Amounts owed to related parties
12,272,974
5,013,083
Corporation tax
1,067,411
Other taxation and social security
142,408
133,793
Other creditors
17,582
21,782
Accruals and deferred income
368,767
806,331
13,076,062
7,890,831
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 15 -
10
Provisions for liabilities
2024
2023
£
£
Development Provision Accruals
8,380,936
1,062,500
Deferred tax liabilities
11
3,923,019
3,923,019
12,303,955
4,985,519
Movements on provisions apart from deferred tax liabilities:
Development Provision Accruals
£
At 1 March 2023
1,062,500
Additional provisions in the year
7,318,436
At 29 February 2024
8,380,936
The development provisions accrual relates to S106 arrangements in place on the company as a result of property development activities of the group. The timing of settlement is uncertain but will fall within the next 10 years.
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Appropriation gains rolled forward
3,923,019
3,923,019
There were no deferred tax movements in the year.
12
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
O&H Q7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
13
Financial commitments, guarantees and contingent liabilities
Bonds, guarantees and indemnities to the sum of £114,905 (2023: £114,905) have been issued by the company in favour of Anglian Water Services Limited.
The company has a charge of £4,479,443 (2023: £4,479,443) against part of its development land with George Rupert Anson ensuring security for the cost of carrying out works.
14
Operating lease commitments
Lessor
The company leases out the properties under non-cancellable operating leases for the following future minimum lease payments. There are no contingent rents.
2024
2023
£
£
Within one year
238,897
216,778
Between two and five years
534,352
492,194
In over five years
591,128
691,415
1,364,377
1,400,387
15
Parent company
At 29 February 2024 the company's ultimate parent company was O&H Strategic Land Holdings Limited, a company registered in Jersey.
O&H Strategic Land Limited, a company registered in Jersey, is the immediate parent company and the parent of the smallest group in which O&H Q7 Limited is a member.
There is no ultimate controlling party of the company.
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