Company registration number 10562095 (England and Wales)
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
3
221,000,000
221,000,000
Current assets
-
-
Creditors: amounts falling due within one year
4
(220,999,999)
(220,999,999)
Net current liabilities
(220,999,999)
(220,999,999)
Net assets
1
1
Capital and reserves
Called up share capital
5
1
1
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved and signed by the director and authorised for issue on 13 November 2024
Mr L Kirschel
Director
Company registration number 10562095 (England and Wales)
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Consolidated Developments Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 114a Cromwell Road, London, SW7 4AG.
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.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Consolidated Development Holdings Limited is a wholly owned subsidiary of Consolidated Holdings Limited and the results of Consolidated Development Holdings Limited are included in the consolidated financial statements of Consolidated Holdings Limited which are available from 3rd Floor, 114a Cromwell Road, SW7 4AG.
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
The Director, along with the senior management of the “Group” (being Consolidated Developments Limited, Outernet London Limited and all its subsidiaries) have reviewed forecasts and budgets for the coming year, which have been drawn up with appropriate regard for the current economic environment and the circumstances in which the Group operates. These were prepared with reference to historical and current industry knowledge and considering the future strategy of the Group.
2023 was a challenging year for the Group, with rising interest rates and companies in their first full year of trade, using up significant cash reserves. Despite equity injections early in the year, in December 2023, Consolidated Developments Limited defaulted on the quarterly interest payment on its loan and continues to do so at the date of approval of these financial statements. The Company is part of a cross-guarantee arrangement with Consolidated Developments Limited.
As a result, there is a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern.
In response to these matters, the Group has taken the following actions:
Since the date of default on the loan, we continue to work constructively with the senior bank lender, St Giles Issuer S.a r.l., to find appropriate next steps for the St Giles estate . It is the bank’s present intention to work supportively with the business with the expectation that both entities continue to trade and generate revenue.
The existing operations have been generating increasing funds in 2024 to contribute to the short-term operating cash requirements. Management is confident that incremental sales revenue over the next twelve months will improve group liquidity yet further. Despite the improving cashflow, we do not expect to fully pay the bank interest due on the loan advanced by St Giles Issuer S.a r.l., to Consolidated Developments Limited over the next twelve months.
As a result of these considerations, at the time of approving the financial statements, the Director considers that the Group will have sufficient resources to continue in operational existence for the foreseeable future, despite the degree of uncertainty that exists. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
1.3
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.
1.4
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.
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.8
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
221,000,000
221,000,000
4
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
220,999,999
220,999,999
5
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
6
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 is unqualified and includes the following:
CONSOLIDATED DEVELOPMENTS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Audit report information
(Continued)
- 6 -
Opinion
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its results 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.
Senior Statutory Auditor:
Matthew Eade
Statutory Auditor:
Bright Grahame Murray
Date of audit report:
18 November 2024
7
Parent company
The company's parent undertaking is St Giles Obligor Limited, a company company registered in England and Wales.
The ultimate parent undertaking is Consolidated Holdings Limited, a company registered in England and Wales.
The following are the parents of the largest and smallest groups in which this company's results are consolidated:
Largest group
Consolidated Holdings Limited
Smallest group
Consolidated Holdings Limited