Fashion Street Regeneration Limited
Financial Statements
For the year ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 03675760 (England and Wales)
Fashion Street Regeneration Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 10
Fashion Street Regeneration Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,434
3,842
Investment properties
5
16,750,000
24,327,000
Investments
6
37,500
37,500
16,788,934
24,368,342
Current assets
Debtors
8
278,106
258,858
Cash at bank and in hand
1,045,147
1,123,375
1,323,253
1,382,233
Creditors: amounts falling due within one year
9
(5,080,996)
(1,608,845)
Net current liabilities
(3,757,743)
(226,612)
Total assets less current liabilities
13,031,191
24,141,730
Creditors: amounts falling due after more than one year
10
-
(3,300,000)
Provisions for liabilities
Deferred tax liability
11
(3,035,673)
(4,930,448)
(3,035,673)
(4,930,448)
Net assets
9,995,518
15,911,282
Capital and reserves
Called up share capital
12
101,000
101,000
Revaluation reserve
6,274,508
15,959,029
Profit and loss reserves
3,620,010
(148,747)
Total equity
9,995,518
15,911,282

The directors of the company have 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.

Fashion Street Regeneration Limited
Balance Sheet (Continued)
As at 31 March 2024
Page 2
The financial statements were approved by the board of directors and authorised for issue on 9 September 2024 and are signed on its behalf by:
M Beckett
Director
Company Registration No. 03675760
Fashion Street Regeneration Limited
Statement of Changes in Equity
For the year ended 31 March 2024
Page 3
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
101,000
17,841,759
105,404
18,048,163
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(1,256,881)
(1,256,881)
Interim dividends
-
-
(880,000)
(880,000)
Transfer fair value loss on investment property to non-distributable reserve
-
(2,510,307)
2,510,307
-
Transfer deferred tax charge on revaluation of investment property to non-distributable reserve
-
627,577
(627,577)
-
Balance at 31 March 2023
101,000
15,959,029
(148,747)
15,911,282
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
(5,115,764)
(5,115,764)
Bonus issue of share capital
12
3,979,000
(3,979,000)
-
-
Interim dividends
-
-
(800,000)
(800,000)
Reduction of share capital
12
(3,979,000)
-
3,979,000
-
0
Transfer fair value loss on investment property to non-distributable reserve
-
(7,607,362)
7,607,362
-
Transfer deferred tax credit on revaluation of investment property to non-distributable reserve
-
1,901,841
(1,901,841)
-
Balance at 31 March 2024
101,000
6,274,508
3,620,010
9,995,518
Fashion Street Regeneration Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 4
1
Accounting policies
Company information

Fashion Street Regeneration Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2.6, Second Floor, 11-29 Fashion Street, London, E1 6PX.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of 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 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 investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the balance sheet date the company has net assets of £9,995,518 (2023: £15,911,282) but net current liabilities of £3,757,743 (2023: £226,612). The position of net current liabilities arose as a result of the company's bank loan of £3.8m reaching the end of its term within one year of the balance sheet date. However, as explained in note 11, the company has refinanced this loan post year end for a further 5 years.

 

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

1.3
Turnover

Turnover is comprised of rental and associated income and is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 

Rental income is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging a lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:

Fixtures and fittings
33% straight line

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.

Fashion Street Regeneration Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 5
1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

 

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

Basic financial instruments are measured at amortised cost. The company has no other financial instruments or basic financial instruments measured at fair value.

1.9
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.

1.10
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.

Fashion Street Regeneration Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 6
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.

2
Interest receivable and similar income
2024
2023
£
£
Profit share from fixed asset investments
39,732
59,910
Correction in relation to prior periods
-
(156,779)
Subtotal
39,732
(96,869)
Other interest receivable
5,384
3,028
Total
45,116
(93,841)
3
Employees

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

2024
2023
Number
Number
Total
-
0
-
0
Fashion Street Regeneration Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 7
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023 and 31 March 2024
10,798
Depreciation and impairment
At 1 April 2023
6,956
Depreciation charged in the year
2,408
At 31 March 2024
9,364
Carrying amount
At 31 March 2024
1,434
At 31 March 2023
3,842
5
Investment property
2024
£
Fair value
At 1 April 2023
24,327,000
Additions
30,362
Revaluations
(7,607,362)
At 31 March 2024
16,750,000

Investment property represents a multi-let office building in the Spitalfields area of London.

 

The fair value of investment property has been arrived at on the basis of a directors' valuation as at 31 March 2024. The directors valuation matches a valuation prepared by a third party bank appointed valuer, who prepared a valuation as at 21 June 2024 for the purposes of loan security. The directors do not believe there was any material change in the value of the property between the balance sheet data and the valuation date.

If the investment property had been accounted for under the historic cost accounting rules, the property would have a value of £3,706,795 (2023: £3,676,433).

6
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
37,500
37,500
Fashion Street Regeneration Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 8
7
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
132 Commercial Street LLP
United Kingdom
Property investment
Members capital
75.00

The investment in subsidiary is stated at cost.

8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
144,879
123,860
Other debtors
133,227
134,998
278,106
258,858
9
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
3,800,000
500,000
Trade creditors
3,914
4,007
Corporation tax
212,750
169,917
Other taxation and social security
70,979
44,366
Other creditors
993,353
890,555
5,080,996
1,608,845

Other creditors includes tenant rent deposits and interest on deposits totalling £574,276 (2023: £555,395). These deposits are held in separate bank accounts, the balances of which are included in cash at bank on the balance sheet.

 

The bank loan of £500,000 shown as repayable within one year in the prior year was refinanced during the current year, with a new repayment date matching the £3,300,000 bank loan shown in the prior year of note 11.

Fashion Street Regeneration Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 9
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
-
0
3,300,000

The bank loan is secured on a fixed charge over the Fashion Street property. There is a Composite Guarantee between Fashion Street Regeneration Limited and 132 Commercial Street LLP.

 

The bank loan was repayable in June 2024.

 

Subsequent to the balance sheet date, the bank loan was refinanced with the same bank, with an additional £1.1m of loan being provided, bringing the total loan to £4.9m. The loan is an interest only loan with a repayment date of 23 June 2029. Interest is charged at a rate of 2.2% above SONIA. The loan is secured over the property of the company and a composite guarantee with 132 Commercial Street LLP.

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:
£
£
Accelerated capital allowances
245,975
238,910
Unrealised gain on investment property
2,789,698
4,691,538
3,035,673
4,930,448
12
Called up share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
Ordinary A shares of £1 each
50,000
50,000
Ordinary B shares of £1 each
50,000
50,000
Ordinary C shares of £1 each
1,000
1,000
101,000
101,000

During the year, the company made a bonus issue of 1,989,500 A Shares and 1,989,500 B shares. Subsequently, share capital was reduced by the same amounts.

Fashion Street Regeneration Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 10
13
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.

Senior Statutory Auditor:
Guy Richardson
Statutory Auditor:
Moore Kingston Smith LLP
14
Related party transactions

During the year, the company purchased goods and services amounting to £36,044 (2023: £50,224) from Transformer Management Limited, a company in which M Beckett has a controlling interest. The purchases were made at an arms length basis. There were no amounts outstanding to or from the company at the year end (2023: £nil).

 

The company has been invoiced for services amounting to £3,640 (2023: £3,640) from Transformer Properties Limited, a company in which M Beckett has a controlling interest. The purchases were made at an arms length basis. There were no amounts outstanding to or from the company at the year end (2023: £nil).

 

The company benefits from a profit share agreement for an entity over which it holds significant influence 132 Commercial LLP which has been disclosed within interest receivable and similar income. The transactions are made at an arms length basis. As at the year end there was an amount owning to 132 Commercial LLP of £21,247 (2023: £20,979).

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