Company registration number 11492926 (England and Wales)
SOUTHWARK ESTATES (ONE) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SOUTHWARK ESTATES (ONE) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
SOUTHWARK ESTATES (ONE) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
25,607
29,265
Current assets
Stocks
5
41,871,917
30,818,011
Debtors
6
2,076,645
58,857
Cash at bank and in hand
1,259
45,774
43,949,821
30,922,642
Creditors: amounts falling due within one year
7
(20,911,183)
(14,349,399)
Net current assets
23,038,638
16,573,243
Total assets less current liabilities
23,064,245
16,602,508
Creditors: amounts falling due after more than one year
8
(23,410,109)
(16,797,531)
Net liabilities
(345,864)
(195,023)
Capital and reserves
Called up share capital
9
2,000
2,000
Profit and loss reserves
(347,864)
(197,023)
Total equity
(345,864)
(195,023)

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 12 November 2024
Omer Weinberger
Director
Company registration number 11492926 (England and Wales)
SOUTHWARK ESTATES (ONE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Southwark Estates (One) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Brock House, 19 Langham Street, London, England, W1W 6BP.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the director continues to adopt the going concern basis of accounting in preparing the financial statements.

 

The company has generated a loss in the year of £151k (2022: £21k) and has net liabilities at year end date of £345k (2022: £195k).

 

The company is developing a predominantly residential site. The company faced delays in construction due to its main contractor going into liquidation in 2023. A new contractor has taken over the project and the work on construction has recommenced. The company is still expected to make good returns on its investment, especially considering the sales achieved at such an early stage.

 

The company started taking reservations on units during the year. This strategy has helped optimise the portfolio by capitalising on the units' value and market demand. At the date of signing the accounts, the company has exchanged to sell 31 units, with a total value of £16,276,250. Management are in the final stages of getting an extension to the long term loan with the facility agreed to increase to over £99 million with the termination date expected to be in November 2027.

 

Based on the above, the director considers it appropriate to continue to adopt the going concern basis and expects the company to continue to be able to meet its liabilities in the foreseeable future.

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
8 years on a straightline basis.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SOUTHWARK ESTATES (ONE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.5
Stocks

Stock (property stock), relates to the costs incurred in the development of properties, including interest payable that is directly attributable to the development. The stock is stated at the lower of cost and net realisable value, assessed as the estimated selling price less cost to complete and sell.

 

At each balance sheet date, property stocks are assessed for impairment. If property stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss account.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
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.

SOUTHWARK ESTATES (ONE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

1.7
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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
Employees

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

2023
2022
Number
Number
Total
-
0
-
0
SOUTHWARK ESTATES (ONE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 and 31 December 2023
29,265
Depreciation and impairment
At 1 January 2023
-
0
Depreciation charged in the year
3,658
At 31 December 2023
3,658
Carrying amount
At 31 December 2023
25,607
At 31 December 2022
29,265
5
Stocks
2023
2022
£
£
Stock - development property
41,871,917
30,818,011
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
2,076,645
58,857
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
3,637,634
462,570
Other creditors
17,273,549
13,886,829
20,911,183
14,349,399
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
23,410,109
16,797,531
SOUTHWARK ESTATES (ONE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Creditors: amounts falling due after more than one year
(Continued)
- 6 -

Creditors: falling due after more than one year represents a secured loan from an unconnected party. The company has a facility agreement of £67,562,991, which is due to expire on 21 January 2025. The loan is secured over the assets of the company and attracts interest at 8% per annum. Interest of £1,673,109 has been charged and capitalised in stock in current assets.

9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
1,000
1,000
1,000
1,000
B Ordinary shares of £1 each
1,000
1,000
1,000
1,000
2,000
2,000
2,000
2,000

A Ordinary and B Ordinary shares have full rights in the company with respect to voting, dividend and distribution.

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Material uncertainty relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate as highlighted in note 1.2 in the accounts.

 

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in note 1.2 to the financial statements concerning the company's ability to continue as a going concern and the director's future plans for the company.

 

The company incurred a loss of £150,841 during the year ended 31 December 2023 and have a net liability of £345,864 on the balance sheet. Notwithstanding the forgoing, the director is confident that the company will be able to obtain adequate resources in order to continue to meet its liabilities as they fall due for the foreseeable future and for at least twelve months from the date of approval of these financial statements. Accordingly, the financial statements do not include any adjustments that would result if the company were unable to continue as a going concern.

Senior Statutory Auditor:
Asgher Sultan
Statutory Auditor:
ZMS Solutions Limited
Date of audit report:
12 November 2024
SOUTHWARK ESTATES (ONE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
11
Related party transactions

Included in other debtors is an amount of £865,246 (2022: other creditors £835,982) owed from Avanton Capital Ltd, a company controlled by the director.

 

Included in other debtors is an amount of £1,136,646 (2022: £nil) owed from Southwark Estates (One) Hold Co Ltd, a company having significant interest in Southwark Estates (One) Limited.

 

Included in other debtors is an amount of £21,737 (2022: £nil) owed from Avanton Ltd, a company controlled by the director.

 

Included in other debtors is an amount of £16,389 (2022: other creditors £16,389) owed from Avanton OKR (2) Limited, a company having significant interest in Southwark Estates (One) Limited.

 

There are no terms of repayment or interest attached to any of these amounts.

 

 

Included in other creditors is an amount of £11,357,815 (2022: £10,244,300) due to Housing Growth Partnership III LP and £5,776,988 (2022: £4,495,700) due to Southwark Estates (One) Hold Co Ltd. Both companies have significant interest in Southwark Estates (One) Limited. There are no terms of repayment or interest attached to these amounts.

 

12
Directors' transactions

The director has a provided personal guarantee for development cost overruns, the maximum aggregate amount payable by the guarantor is limited to £6,756,299 plus all interest accruing on such sum and all costs, fees and expenses in respect of it, which have accrued and become payable by the personal guarantor to the Finance Parties.

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