REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 29 February 2024 |
for |
QD Commercial Group (Property) Limited |
REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 29 February 2024 |
for |
QD Commercial Group (Property) Limited |
QD Commercial Group (Property) Limited (Registered number: 02299209) |
Contents of the Financial Statements |
for the Year Ended 29 February 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
QD Commercial Group (Property) Limited |
Company Information |
for the Year Ended 29 February 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants & Business Advisers |
Alexandra House |
43 Alexandra St |
Nottingham |
Nottinghamshire |
NG5 1AY |
SOLICITORS: |
80 Mount Street |
Nottingham |
NG1 6HH |
QD Commercial Group (Property) Limited (Registered number: 02299209) |
Balance Sheet |
29 February 2024 |
2024 | 2023 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Tangible assets | 4 |
CREDITORS |
Amounts falling due within one year | 5 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 6 |
Revaluation reserve | 7 |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
QD Commercial Group (Property) Limited (Registered number: 02299209) |
Notes to the Financial Statements |
for the Year Ended 29 February 2024 |
1. | STATUTORY INFORMATION |
QD Commercial Group (Property) Limited is a |
The principal activity of the company is that of a property holding company. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of freehold and long leasehold properties at open market value. |
The financial statements are prepared in sterling, which is the functional currency of the entity rounded to the nearest £'000. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements: |
Revaluation of trading properties - the company carries its properties at fair value, with changes in fair value recognised in other comprehensive income. The directors engage independent valuation specialists to determine fair value for these properties. The valuer uses approved valuation techniques applying an existing use basis. The valuation is sensitive to changes in market conditions and economic factors, including demand for such retail sites by other parties. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable for rental income from commercial properties. |
Tangible fixed assets |
Land and Buildings | - |
Long leasehold | - |
Long leasehold improvements are written off over the remaining term of the lease, which exceeds fifty years at the balance sheet date. Freehold buildings are disposed of before reaching the end of their useful economic lives. |
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. |
Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss. |
QD Commercial Group (Property) Limited (Registered number: 02299209) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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. |
Impairment |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. |
Deferred income |
Capital contributions from landlords are treated as deferred credits. These are released to the income statement in accordance with the depreciation policy of the underlying fixed assets. |
QD Commercial Group (Property) Limited (Registered number: 02299209) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The company has been trading since the re-organisation of the QD Stores group in 2013. Whilst the company is profitable, its property portfolio is financed by inter-company loans with other QD Commercial Group Holdings group companies. |
The company relies on the financial support of the parent undertaking, QD Commercial Group Holdings Limited to pay its debts as they fall due. This support takes the form of an inter-company loan account. The directors, who are also directors and shareholders of the parent company, have confirmed that QD Commercial Group Holdings Limited will not call in this loan if to do so would cause the company undue financial hardship. Whilst this is the intention of the directors, the inter-company loan is classified in the accounts as falling due within one year, as they are legally repayable on demand. |
The directors have further confirmed that this support will be provided for the foreseeable future, defined as being no less than twelve months from the date of signing the accounts. |
The directors conclude that it is appropriate for the accounts to be prepared on the going concern basis. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2023 - NIL). |
4. | TANGIBLE FIXED ASSETS |
Land and | Long |
Buildings | leasehold | Totals |
£'000 | £'000 | £'000 |
COST OR VALUATION |
At 1 March 2023 |
Additions |
Revaluations |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Revaluation adjustments | ( |
) | ( |
) | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
QD Commercial Group (Property) Limited (Registered number: 02299209) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
4. | TANGIBLE FIXED ASSETS - continued |
Freehold land and buildings and long leasehold properties are included within tangible fixed assets at valuations of £66,289,000 and £10,517,000 respectively, as adjusted for movements in those asset classes during 2024. |
The above properties were professionally revalued as at 29 February 2024 on an open market value existing use basis. Valuations were carried out by Lambert Smith Hampton and Birchall Steel Consultant Surveyors. The cost of depreciable assets included in land and buildings at 29 February 2024 was £46,308,478 (2023 - £40,770,732). |
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would be recognised if the assets had been carried under the historical cost model are as follows: |
Freehold property |
Cost - £40,769,278 (2023 - £35,275,896) |
Aggregate depreciation - £8,951,399 (2023 - £8,172,656) |
Carrying amount - £31,817,879 (2023 - £27,103,240). |
Long leasehold property |
Cost - £10,505,877 (2023 - £10,505,877) |
Aggregate depreciation - £2,666,982 (2023 - £2,527,043) |
Carrying amount - £7,838,895 (2023 - £7,978,834). |
5. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£'000 | £'000 |
Amounts owed to group undertakings |
Taxation and social security |
At the year end, HSBC Bank PLC held legal charges over a number of the group's freehold and long leasehold properties.The parent company, QD Commercial Group Holdings Limited holds a fixed and floating charge over all of the property and undertakings of the company as security for any debts owing to it from time to time. |
6. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
7. | RESERVES |
Revaluation |
reserve |
£'000 |
At 1 March 2023 |
Revaluation of fixed assets | 5,774 |
Deferred tax on revaluation of |
fixed assets | (2,166 | ) |
At 29 February 2024 |
8. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
QD Commercial Group (Property) Limited (Registered number: 02299209) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
9. | CONTINGENT LIABILITIES |
The company, together with its parent undertaking and fellow subsidiary undertakings, has given cross guarantees in favour of HSBC Bank plc to secure monies owing to the bank by the undertakings from time to time. At 29 February 2024 monies owing to the bank by the parent undertaking and fellow subsidiary undertakings amounted to £17,582,423 (2023 - £17,463,854). |
The company, together with its parent undertaking and fellow subsidiary undertakings, is jointly and severally liable for the combined value added tax liability of the group which, at 29 February 2024 totalled £1,362,609 (2023 - £1,647,749). All of this amount specifically relates to QD Commercial Holdings Limited (the group holding company). |
10. | ULTIMATE CONTROLLING PARTY |
The controlling party is QD Commercial Group Holdings Limited. |
QD Commercial Group Holdings Limited is the parent company, registered in England and Wales. |
The registered office and principal place of business of the ultimate parent company is that of QD Commercial Group (Property) Limited. |
The only consolidated accounts prepared that incorporate the results of QD Commercial Group (Property) Limited are those of QD Commercial Group Holdings Limited. The consolidated accounts are available from Companies House. |
The ultimate controlling party is Mr N D Rubins and Mr D Rubins, as majority shareholders of QD Commercial Group Holdings Limited. |