Company registration number 10605955 (England and Wales)
BRIDGE ROAD SOUTHALL LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BRIDGE ROAD SOUTHALL LIMITED
COMPANY INFORMATION
Directors
G Caddell
(Appointed 27 March 2024)
P Mather
C Webb
Company number
10605955
Registered office
72 Welbeck Street
W1G 0AY
London
England
BRIDGE ROAD SOUTHALL LIMITED
CONTENTS
Page
Directors' report
1
Statement of comprehensive income
2
Balance sheet
3
Notes to the financial statements
4 - 9
BRIDGE ROAD SOUTHALL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements of Bridge Road Southall Limited (the "company") for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of property development.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G Caddell
(Appointed 27 March 2024)
D Harris
(Resigned 17 September 2024)
P Mather
R Pilkington
(Resigned 27 March 2024)
C Webb
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
G Caddell
Director
29 November 2024
BRIDGE ROAD SOUTHALL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
2023
2022
Notes
£
£
Administrative expenses
(285,942)
(470,274)
Interest receivable and similar income
10,530
192
Impairment losses on investment
5
-
(2,024,260)
Loss before taxation
(275,412)
(2,494,342)
Tax on loss
-
0
129,949
Loss for the financial year
(275,412)
(2,364,393)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 4 to 10 form part of these financial statements.

BRIDGE ROAD SOUTHALL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 3 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
5
6,050,426
6,050,426
Current assets
Stocks
83,012,343
80,301,219
Debtors - deferred tax
6
502,417
502,417
Debtors - other
6
1,799,227
1,501,043
Cash at bank and in hand
94,590
1,161,338
85,408,577
83,466,017
Creditors: amounts falling due within one year
7
(87,941,373)
(85,772,901)
Net current liabilities
(2,532,796)
(2,306,884)
Total assets less current liabilities
3,517,630
3,743,542
Provisions for liabilities
(49,500)
-
0
Net assets
3,468,130
3,743,542
Capital and reserves
Called up share capital
8,074,685
8,074,685
Profit and loss reserves
(4,606,555)
(4,331,143)
Total equity
3,468,130
3,743,542

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared 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 29 November 2024 and are signed on its behalf by:
G Caddell
Director
Company Registration No. 10605955
BRIDGE ROAD SOUTHALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information

Bridge Road Southall Limited is a private company limited by shares incorporated in England and Wales. The registered office is 72 Welbeck Street, London, England, W1G 0AY. The company number is 10605955. The date of incorporation was 7 February 2017.

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.

 

Bridge Road Southall Limited is a wholly owned subsidiary of HoneyMonster Holdco 2 Limited and the results of Bridge Road Southall Limited are included in the consolidated financial statements of the ultimate parent, Honey Monster Limited, which are available from 72 Welbeck Street, London, England, W1G 0AY.

 

The company has taken the exemption under section 1A.7 of FRS 102 from the requirement to prepare a statement of cash flows and related disclosures for the financial period.

1.2
Going concern

As at 31 December 202true3, the company had net assets of £3,468,130 (2022: £3,743,542) and made a loss after tax of £275,412 (2022: £2,364,393). The directors have considered the current financial position and results of the company. In the comparative period, a fellow group undertaking of the company obtained a loan of £74.1m from a third party and a portion of these funds were made available to this company. The loan was secured on land which was acquired by this company, for development. Post year end the land over which the loan was secured was sold and the third party loan held in the group structure was repaid. As a result of this transaction, the Directors current intention is to proceed to liquidate the company and as such the financial statements of the company have been prepared on a basis other than going concern. The financial statements do not reflect any adjustments that may be required to the carrying values of assets or liabilities, nor do they consider any additional liabilities that may arise as a result of the liquidation process as there were no commitments at the reporting date.

1.3
Fixed asset investments

Interests in subsidiaries 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.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

BRIDGE ROAD SOUTHALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.4
Borrowing costs related to fixed assets

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of acquisition of sites, the cost of infrastructure and construction works, and legal and professional fees incurred during development and direct labour costs that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
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.

1.7
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, loans to fellow group companies 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.

BRIDGE ROAD SOUTHALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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.

1.8
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.

1.9
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.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

BRIDGE ROAD SOUTHALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Carrying value of stock

In applying the company's accounting policy for the valuation of work in progress the directors are required to assess the expected selling price and costs to sell each of the units that constitute the company's work in progress. Costs includes the cost of acquisition of sites, the cost of infrastructure and construction works, and legal and professional fees incurred during development prior to sale. Estimation of the selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the market value of property.

 

Whilst the directors exercise due care and attention to make reasonable estimates, taking into account all available information in estimating the future selling price, the estimates will, in all likelihood, differ from the actual selling prices achieved in future periods and these differences may, in certain circumstances, be very significant.

Recoverability of intercompany debtors

As at 31 December 2023, the company was owed amounts by group undertakings. The amounts were utilised for the acquisition of land stock and the ongoing development and running costs. The directors intend for the land stock to be developed or sold and therefore the ability of the group companies to repay the debts is dependent upon successful development of the site so as to generate sufficient value to repay the amounts or amount generated through a sale. Based on the post year end sale as referenced at note 10, the directors consider that returns will be sufficient for all loans to be repaid and do not consider there to be any indicators of impairment.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Recoverability of intercompany debtors

An estimate of the collectable amounts due from group undertakings is made when collection of the full amount is no longer probable. Management makes a provision for doubtful debts based on its best estimates at the end of the reporting period. At the reporting date, provisions against the amounts due from group amount to £nil (2022: £nil).

Carrying value of investment in subsidiary

An estimate of the collectable amounts from subsidiary undertakings is made in consideration of the requirement to recognise impairment losses against the asset. At the reporting date, accumulated impairment losses in respect of investments in subsidiary amounted to £2,024,260 (2022: £2,024,260).

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was nil (2022: nil).

 

Remuneration paid to directors during the period was £nil (2022: £nil)

BRIDGE ROAD SOUTHALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
5
-
2,024,260
Recognised in:
Amounts written off investments
-
2,024,260

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings
6,050,426
6,050,426
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2023 & 31 December 2023
6,050,426
Carrying amount
At 31 December 2023
6,050,426
At 31 December 2022
6,050,426
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1,670,895
1,198,879
Other debtors
55,323
154,361
Prepayments and accrued income
73,009
147,803
1,799,227
1,501,043
BRIDGE ROAD SOUTHALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Debtors
(Continued)
- 9 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
502,417
502,417
502,417
502,417
Total debtors
2,301,644
2,003,460
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
-
0
28,642
Amounts owed to group undertakings
87,825,323
84,986,081
Other creditors
116,050
758,178
87,941,373
85,772,901

As at 31 December 2023, included within other creditors is an amount  of £73,502 (2022: £496,177) which is owed to group undertakings.

8
Related party transactions

During the year, Galliard Construction charged the company £nil (2022: £15,860) for construction related costs with amounts due at the reporting date of £nil (2022: £nil). Galliard Construction is a subsidiary of Galliard Group. Galliard Construction ceased to be a related party during the prior period. Firethorn Development charged the company £795,173 (2022: £nil) for construction related costs with amounts due at the reporting date of £nil (2022: £nil).

9
Financial commitments, guarantees and contingent liabilities

Solutus Advisors Limited as Security Agent has a fixed and floating charge over the property or undertaking owned of the company related to a loan provided to a group company.

10
Events after the reporting date

On 28 March 2024, the Company disposed of its stock which comprised land for development. The disposal proceeds were used to repay the third party loan facility as per note 1.2.

 

11
Ultimate controlling parent

The company is a subsidiary of HoneyMonster Holdco 2 Limited, which is an intermediate parent company. The ultimate parent company as at the balance sheet date was Honey Monster Limited. Honey Monster Limited is a joint venture company and as such there is no ultimate controlling party.

 

The consolidated accounts of this group are available to the public and can be obtained from Honey Monster Limited, 72 Welbeck Street, London, United Kingdom, W1G 0AY. No other group accounts include the results of this company.

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