Company registration number 02836382 (England and Wales)
LANARD PROPERTIES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
LANARD PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
LANARD PROPERTIES LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment properties
4
10,800,935
10,675,000
Current assets
Cash at bank and in hand
34,586
44,257
Creditors: amounts falling due within one year
5
(3,036,861)
(2,992,206)
Net current liabilities
(3,002,275)
(2,947,949)
Total assets less current liabilities
7,798,660
7,727,051
Provisions for liabilities
(825,813)
(825,813)
Net assets
6,972,847
6,901,238
Capital and reserves
Called up share capital
6
1,250,002
1,250,002
Non-distributable profit and loss reserves
5,017,868
5,017,868
Distributable profit and loss reserves
704,977
633,368
Total equity
6,972,847
6,901,238
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 23 December 2024 and are signed on its behalf by:
Mr K K Misri
Director
Company Registration No. 02836382
LANARD PROPERTIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Share capital
Non-distributable profit and loss reserves
Distributable profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
1,250,002
4,839,586
622,270
6,711,858
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
189,380
189,380
Other movements
-
178,282
(178,282)
-
Balance at 31 March 2023
1,250,002
5,017,868
633,368
6,901,238
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
71,609
71,609
Balance at 31 March 2024
1,250,002
5,017,868
704,977
6,972,847
LANARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Lanard Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21 Lombard Street, London, EC3V 9AH.
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 freehold properties 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
The Directors have assessed the company's ability to continue as a going concern and concluded that it remains appropriate to prepare the financial statements on a going concern basis. However, a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.
The company is dependent on financing provided by its group. Following the year-end, the group refinanced its bank loan. As part of the refinance, the group is obligated to make a repayment of £3.8 million in February 2025, and is reliant on the sale of one or more of its properties to generate the necessary funds to meet this obligation. However, at the time of approving these financial statements, no sale has been finalised and uncertainty exists regarding the ability of the group to complete a sale or secure alternative funding within the required timeframe.
This uncertainty may impact the company’s ability to meet its financial obligations and casts significant doubt on its ability to continue as a going concern.
1.3
Turnover
Turnover comprises gross rents receivable from tenants. Where an agreement stipulates that a proportion of rent is payable at the outset and is non refundable the income is recognised in that period.
When rent is received in advance the income will be deferred and spread across the relevant period.
1.4
Investment properties
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.
1.5
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.
LANARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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, 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.
1.7
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.
1.8
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.
LANARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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.
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.
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.
Investment property valuation
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost. Subsequently it is measured at fair value at the reporting end date. This fair value is estimated by the directors based on prevailing fair values for similar properties. Periodically professional valuations are undertaken to ensure the accuracy of these estimates.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
LANARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
4
Investment property
2024
£
Fair value
At 1 April 2023
10,675,001
Additions
125,934
At 31 March 2024
10,800,935
Revaluation of fixed assets:
The fair value of the investment properties has been arrived at by the directors based on valuations carried out by Knight Frank LLP, an external firm of chartered surveyors, who valued the properties in accordance with the RICS Appraisal and Valuation Model. The basis of the valuation was open market value.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
4,957,253
4,831,319
Accumulated depreciation
-
-
Carrying amount
4,957,253
4,831,319
5
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts owed to group undertakings and undertakings in which the company has a participating interest
2,997,000
2,949,000
Other creditors
39,861
43,206
3,036,861
2,992,206
6
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,250,002
1,250,002
1,250,002
1,250,002
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.
LANARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Audit report information
(Continued)
- 7 -
Senior Statutory Auditor:
Miss Helen Cain BA FCA
Statutory Auditor:
Mercer & Hole LLP
8
Related party transactions
The investment properties of the company are charged in favour of the bank as security for the borrowings of the ultimate controlling party Lansk International Limited.
During the year the company received rent-free use of an office from a related party.
9
Events after the reporting date
On 31 August 2024, the Directors obtained a professional valuation of the properties which was conducted by Knight Frank LLP, an external firm of chartered surveyors who valued the properties in accordance with RICS Appraisal and Valuation Model. The fair value of the properties on this date was materially lower than the carrying amount reported in the financial statements.
The Directors have assessed this valuation against the carrying values of the properties as at 31 March 2024. Following this assessment, the Directors have concluded that the carrying values at 31 March 2024 accurately reflect the fair values of the properties as at this date which are held as long term investments, and that no adjustment is required in the financial statements.