Company registration number 13440641 (England and Wales)
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
3
13,600,000
21,200,000
Current assets
Debtors
4
205,862
43,932
Cash at bank and in hand
1,474,008
537,016
1,679,870
580,948
Creditors: amounts falling due within one year
5
(1,038,165)
(950,096)
Net current assets/(liabilities)
641,705
(369,148)
Total assets less current liabilities
14,241,705
20,830,852
Creditors: amounts falling due after more than one year
6
(21,345,029)
(20,888,644)
Net liabilities
(7,103,324)
(57,792)
Capital and reserves
Called up share capital
100
100
Equity reserve
9
823,790
823,790
Profit and loss reserves
(7,927,214)
(881,682)
Total equity
(7,103,324)
(57,792)
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.
The financial statements were approved by the board of directors and authorised for issue on 26 November 2024 and are signed on its behalf by:
Christopher Kwun Shing LIU
Director
Company Registration No. 13440641
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Chevalier (Hammersmith Broadway) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14 David Mews, London, W1U 6EQ.
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 leasehold properties at the year end 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
These financial statements are prepared on the going concern basis.
The company has made losses of £7,045,532 in the year and there is a net deficiency of assets of £7,103,324 at the balance sheet date. However, at the time of approving the financial statements, the directors have confirmed the continued financial support from the immediate and ultimate parent companies for at least the 12 months following the approval of the financial statements and therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
1.3
Turnover
Rental income, including fixed rental uplifts, is recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives being offered to occupiers to enter into a lease, such as an initial rent-free period or a cash contribution to fit out or similar costs, are an integral part of the net consideration for the use of the property and are therefore recognised on the same straight-line basis.
1.4
Investment properties
The value of investment property is based on a valuation by an independent valuer who holds a recognised and relevant professional qualification and has recent experience in the location and class of the investment property being valued, which is property held to earn rentals and/or for capital appreciation. It is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure other than borrowing costs, which are recognised in profit or loss. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks with original maturities of three months or less.
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
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.
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 and loans from fellow group companies, 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.
1.7
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.
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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:
2024
2023
Number
Number
Total
4
4
3
Investment property
2024
£
Fair value
At 1 April 2023
21,200,000
Revaluations
(7,600,000)
At 31 March 2024
13,600,000
Investment property comprises of the commercial office at 1-3 Hammersmith Broadway, London. The property has been revalued to its fair value at the year end and the revaluation loss is included within the profit and loss account.
The valuation was performed on 31 March 2024 by an individual who is an RICS Registered Valuer and is in a position to provide an objective and unbiased valuation. The Valuer has sufficient current local and national knowledge of the particular market, together with the skills and understanding required and is competent to undertake the valuation.
The valuation report is prepared in accordance with the appropriate sections of the current RICS.
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
110,353
2,006
Other debtors
52,007
Prepayments and accrued income
43,502
41,926
205,862
43,932
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
316,000
316,000
Trade creditors
285,160
Amounts owed to group undertakings
274,880
145,544
Taxation and social security
53,611
Other creditors
21,329
29,152
Accruals and deferred income
140,796
405,789
1,038,165
950,096
Creditors include £274,880 (2023 £145,554), owed to Chevalier International Holdings Limited, the company's ultimate parent company. This amount consists of £274,840 for guarantee service fee and £40 for other expenses paid on behalf of the company. Other creditors represents accrued bank loan interest.
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
6,994,000
11,810,000
Other borrowings
14,351,029
9,078,644
21,345,029
20,888,644
There is a secured term loan facility of £12,126,000 on the Hammersmith property held by Shanghai Commercial Bank Limited. Repayments of £79,000 per quarter during the loan term are presented in creditors falling within one year, and £6,994,000 presented within creditors more than one year.
Other borrowings represent the fair value of a loan from Joyful Creator Limited consisting of an interest bearing element of £2,100,000 and a non interest bearing loan from Joyful Creator Limited for £12,251,029, calculated using an effective rate of interest under the amortised cost method. Repayments of this loan is due between 2-5 years.
7
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:
Nicholas Angel
Statutory Auditor:
Oliver Clive & Co Limited
Date of audit report:
26 November 2024
CHEVALIER (HAMMERSMITH BROADWAY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
8
Related party transactions
Included within amounts owed to group undertakings falling due within one year is a balance of £274,880 (2023: £145,544) owed to Chevalier International Holdings Limited, the company's ultimate parent company. The amount consists of £274,840 for guarantee services fee and £40 for other expenses paid on behalf of the company and is repayable in line with the company's standard creditor day terms.
Included within other borrowings falling due after more than one year is an amount of £14,351,029 (2023: £9,078,644) owed to Joyful Creator Limited, the immediate parent company, recognised in accordance with the FRS102 accounting requirements on financing transactions. This is recognised by the parent company in its legal form as £15,932,227 (2023: £9,539,598), of which £2,100,000 bears interest at 7.19%. The balance is repayable in full over 2-5 years from the balance sheet date.
Interest payable to Joyful Creator Limited included in the profit and loss account for the year amounts to £472,908 (2023: £281,344).
As a result of FRS 102 accounting treatment for the loan with Joyful Creator Limited, other gains on financial instruments of £1,165,891 (2023: £nil) were reocgnised in the profit and loss account during the year. The gain has arisen as a result of the loan being at a favourable rate of interest.
9
Parent company
The company's parent company is Joyful Creator Limited, a company incorporated in Hong Kong and whose registered office is 22/F Chevalier Commercial Centre, 8 Wang Hoi Road, Kowloon Bay, Hong Kong.
The company's ultimate controlling party is Chevalier International Holdings Limited, a company incorporated in Bermuda and whose registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.