Company registration number 05700163 (England and Wales)
INDUSTRIAL REALISATION (WEST LONDON) LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
INDUSTRIAL REALISATION (WEST LONDON) LTD
CONTENTS
Page
Strategic report
1
Statement of comprehensive income
2
Balance sheet
3
Statement of changes in equity
4
Notes to the financial statements
5 - 11
INDUSTRIAL REALISATION (WEST LONDON) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

We aim to present a balanced and comprehensive review of the development and performance of the year and its position at the year end. Our review is consistent with the size and nature of our business and is within the context of the risks and opportunities we face.

Review of the business

The company, in conjunction with its parent company Industrial Realisation Plc, continued to let a number of commercial property units in West London.

 

We consider that our key financial performance indicators are those that communicate the financial performance of the company as a whole, being Turnover, and Net profit before taxation. Investment properties are valued, by the director who is a Fellow of the Royal Institute of Chartered Surveyors, at £3,850,000.

 

During the period under review the company continued to operate profitably. Turnover has increased by 3.1% in the year to £257,098 from £249,286. Net profit before tax has increased to £458,792 from £95,898, in respect of the reported profit £367,500 relates to an uplift in market value of the properties.

 

The principal risk and uncertainty facing the company is the possibility of void rental periods which will impact negatively on the profitability of the business. During the period under review void periods were not significant overall. The directors believe the current rentals to be competitive and have been successful in finding new tenants, whilst at the same time exploring the possibility of other revenue streams.

 

Overall, whilst the business environment remains challenging for many smaller businesses like ourselves, the directors are satisfied with the performance of the company and group to date.

 

A Gardner
Secretary
26 November 2024
INDUSTRIAL REALISATION (WEST LONDON) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
2024
2023
£
£
Profit for the year
389,296
93,376
Other comprehensive income
-
-
Total comprehensive income for the year
389,296
93,376
INDUSTRIAL REALISATION (WEST LONDON) LTD
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
334,094
152,777
Investment property
5
3,850,000
3,482,500
4,184,094
3,635,277
Current assets
Debtors
6
5,996
17,682
Cash at bank and in hand
245,906
128,257
251,902
145,939
Creditors: amounts falling due within one year
7
(1,282,929)
(1,087,270)
Net current liabilities
(1,031,027)
(941,331)
Total assets less current liabilities
3,153,067
2,693,946
Provisions for liabilities
Deferred tax liability
8
194,711
124,886
(194,711)
(124,886)
Net assets
2,958,356
2,569,060
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
2,958,355
2,569,059
Total equity
2,958,356
2,569,060

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:
D F Gardner
Director
Company registration number 05700163 (England and Wales)
INDUSTRIAL REALISATION (WEST LONDON) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2022
1
2,475,683
2,475,684
Year ended 31 May 2023:
Profit and total comprehensive income
-
93,376
93,376
Balance at 31 May 2023
1
2,569,059
2,569,060
Year ended 31 May 2024:
Profit and total comprehensive income
-
389,296
389,296
Balance at 31 May 2024
1
2,958,355
2,958,356
INDUSTRIAL REALISATION (WEST LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
1
Accounting policies
Company information

Industrial Realisation (West London) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Acorn House, 33 Churchfield Road, London, W3 6AY.

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.

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

Atruet 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 represents rental income receivable.
1.4
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.

In accordance with SSAP19, the investment property portfolio of the company is revalued annually on an open market value basis, with an external valuation being carried out every five years. Any revaluation surplus or deficit arising is taken to the revaluation reserve except where the deficit is considered to be permanent. Permanent deficits are taken to the profit and loss account.

No depreciation or amortisation is provided in respect of freehold or leaseholds of over 50 years held as investment properties. The requirment of Companies Act legislation is to depreciate all properties, but that requirment conflicts with the generally accepted accounting principle set out in SSAP 19. The directors believe that, as these properties are not held for consumption but investment, to depreciate them would not give a true and fair view, and that it is necessary to adopt SSAP19 in order to give a true and fair view. Depreciation is only one of the many factors reflected in the annual valuation, and the amount which might otherwise have been shown cannot be seprately identified or quantified.
Fixtures, fittings & equipment
Enter depreciation rate via StatDB - cd77
Integral features
20 years SL

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.

1.5
Investment property

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. Changes in fair value are recognised in profit or loss.

INDUSTRIAL REALISATION (WEST LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 6 -
1.6
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.

1.7
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

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.

INDUSTRIAL REALISATION (WEST LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 7 -
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.

1.9
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
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
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.

INDUSTRIAL REALISATION (WEST LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 8 -
1.12
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.

1.13
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
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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:

2024
2023
Number
Number
Total
-
0
-
0
INDUSTRIAL REALISATION (WEST LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
4
Tangible fixed assets
Fixtures, fittings & equipment
Integral features
Total
£
£
£
Cost
At 1 June 2023
15,216
148,004
163,220
Additions
16,548
187,917
204,465
At 31 May 2024
31,764
335,921
367,685
Depreciation and impairment
At 1 June 2023
3,043
7,400
10,443
Depreciation charged in the year
6,352
16,796
23,148
At 31 May 2024
9,395
24,196
33,591
Carrying amount
At 31 May 2024
22,369
311,725
334,094
At 31 May 2023
12,173
140,604
152,777
5
Investment property
2024
£
Fair value
At 1 June 2023
3,482,500
Net gains or losses through fair value adjustments
367,500
At 31 May 2024
3,850,000

Investment property comprises of 9 units included in the financial statements at their valuation of £3,850,000. The valuation has been undertaken by the Directors on an open market value basis.    

6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,352
4,950
Other debtors
644
12,732
5,996
17,682
INDUSTRIAL REALISATION (WEST LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
332
1,036
Amounts owed to group undertakings
158,550
158,550
Corporation tax
-
0
7,418
Other taxation and social security
9,147
-
0
Other creditors
1,088,940
901,103
Accruals and deferred income
25,960
19,163
1,282,929
1,087,270
8
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Investment property revaluations
194,711
124,886
2024
Movements in the year:
£
Liability at 1 June 2023
124,886
Charge to profit or loss
69,825
Liability at 31 May 2024
194,711
9
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary shares of £1 each
1
1
1
1
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.

INDUSTRIAL REALISATION (WEST LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Audit report information
(Continued)
- 11 -
Senior Statutory Auditor:
Kishor Pandya FCA
Statutory Auditor:
Clarke & Co
Date of audit report:
26 November 2024
11
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

At the end of the year, funds of £1,002,337 in total were outstanding to the directors of Industrial Realisation (West London) Ltd. Interest on the loans is charged at 1% over bank of England base rate.

12
Ultimate controlling party

The ultimate parent company is Industrial Realisation Plc, a company registered in England and Wales. The registered office is Acorn House, 33 Churchfield Road, London, W3 6AY.

The company holds 100% shareholding in Industrial Realisation (West London) Ltd.

2024-05-312023-06-01false26 November 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedD F GardnerA GardnerJ M GilchristT K GilchristW D Sewell-GardnerE T GilchristA Gardnerfalsefalse057001632023-06-012024-05-3105700163bus:CompanySecretaryDirector12023-06-012024-05-31057001632022-06-012023-05-3105700163core:RetainedEarningsAccumulatedLosses2022-06-012023-05-3105700163core:RetainedEarningsAccumulatedLosses2023-06-012024-05-31057001632024-05-31057001632023-05-3105700163core:FurnitureFittings2024-05-3105700163core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2024-05-3105700163core:FurnitureFittings2023-05-3105700163core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-05-3105700163core:CurrentFinancialInstrumentscore:WithinOneYear2024-05-3105700163core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3105700163core:CurrentFinancialInstruments2024-05-3105700163core:CurrentFinancialInstruments2023-05-3105700163core:ShareCapital2024-05-3105700163core:ShareCapital2023-05-3105700163core:RetainedEarningsAccumulatedLosses2024-05-3105700163core:RetainedEarningsAccumulatedLosses2023-05-3105700163core:ShareCapital2022-05-3105700163core:RetainedEarningsAccumulatedLosses2022-05-3105700163bus:Director12023-06-012024-05-3105700163core:FurnitureFittings2023-06-012024-05-3105700163core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-06-012024-05-3105700163core:FurnitureFittings2023-05-3105700163core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-05-31057001632023-05-3105700163bus:PrivateLimitedCompanyLtd2023-06-012024-05-3105700163bus:SmallCompaniesRegimeForAccounts2023-06-012024-05-3105700163bus:FRS1022023-06-012024-05-3105700163bus:Audited2023-06-012024-05-3105700163bus:Director22023-06-012024-05-3105700163bus:Director32023-06-012024-05-3105700163bus:Director42023-06-012024-05-3105700163bus:Director52023-06-012024-05-3105700163bus:Director62023-06-012024-05-3105700163bus:CompanySecretary12023-06-012024-05-3105700163bus:FullAccounts2023-06-012024-05-31xbrli:purexbrli:sharesiso4217:GBP