Registered number: 14678961
GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
UNAUDITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2024
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
COMPANY INFORMATION
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Park Limited (appointed 21 February 2023)
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Whitebridge Limited (appointed 21 February 2023)
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G S Hull (appointed 21 February 2023, resigned 17 May 2023)
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R J S Burton (appointed 17 May 2023, resigned 8 May 2024)
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J C C Wilson (appointed 8 May 2024)
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
CONTENTS
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 FEBRUARY 2024
The directors present their report and the financial statements for the period ended 28 February 2024.
The directors who served during the period were:
Park Limited (appointed 21 February 2023)
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Whitebridge Limited (appointed 21 February 2023)
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G S Hull (appointed 21 February 2023, resigned 17 May 2023)
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R J S Burton (appointed 17 May 2023, resigned 8 May 2024)
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This report was approved by the board on 24 October 2024 and signed on its behalf.
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
FOR THE PERIOD ENDED 28 FEBRUARY 2024
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Great Western Road Property Company Limited for the period ended 28 February 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the Board of Directors of Great Western Road Property Company Limited, as a body, in accordance with the terms of our engagement letter dated [date]. Our work has been undertaken solely to prepare for your approval the financial statements of Great Western Road Property Company Limited and state those matters that we have agreed to state to the Board of Directors of Great Western Road Property Company Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Great Western Road Property Company Limited and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Great Western Road Property Company Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Great Western Road Property Company Limited. You consider that Great Western Road Property Company Limited is exempt from the statutory audit requirement for the period.
We have not been instructed to carry out an audit or review of the financial statements of Great Western Road Property Company Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
24 October 2024
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 FEBRUARY 2024
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(Loss)/profit for the financial period
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Other comprehensive income for the period
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Total comprehensive income for the period
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The notes on pages 6 to 11 form part of these financial statements.
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
REGISTERED NUMBER: 14678961
STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of the Companies Act 2006.
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 Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 October 2024.
The notes on pages 6 to 11 form part of these financial statements.
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 FEBRUARY 2024
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Comprehensive income for the period
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Other comprehensive income for the period
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Total comprehensive income for the period
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Total transactions with owners
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The notes on pages 6 to 11 form part of these financial statements.
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2024
The company is a private company limited by shares, registered in England and Wales, company number 14678961. The address of the registered office is Birchin Court, 5th Floor, 19-25 Birchin Lane, London EC3V 9DU. The principal activity of the company is property development.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Statement of Financial Position when the
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In preparing these financial statements, the directors have made the following key judgement:
-Determine whether there are indicators of impairment of inventory held by the company.
Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. Inventories are valued by the directors using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that the development property is unique and value can only ultimately be reliably tested in the market itself.
The director's assessment of the current market value of the property is the deposit paid plus capitalised costs to 28 February 2024, GBP14,220,471. It is the directors intention to obtain an independent market valuation of the property for the next year end.
The directors consider the going concern basis to be appropriate as they have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
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The Company has no employees other than the directors, who did not receive any remuneration.
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980 Great West Road Brentford
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On 25 October 2023, the company paid a non-refundable deposit of GBP12,000,000 plus VAT to purchase the property known as 980 Great West Road, Brentford, Middlesex, TW8 9GS, as per the Sale and Purchase agreement dated 3 November 2023. Under the agreement, the company will pay the purchase price of GBP60,000,000 plus VAT on the completion date, 31 October 2024. The company has incurred GBP2,220,471 of development costs as of 28 February 2024.
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2024
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Included in amounts owed to group undertakings is a short term loan payable to Great Western Road Holding Company Limited of GBP15,362,802. The loan is interest free and repayable on demand.
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Allotted, called up and fully paid
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100 Ordinary shares of £1.00 each
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Related party transactions
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The entire share capital of the company is owned by Great Western Road Holding Company Limited, a company incorporated in the Isle of Man with registered office at Commerce House, 1 Bowring Road, Ramsey, Isle of Man, IM8 2LQ.
During the period, the company received services and recharged costs totalling GBP2,664,565 from Brentside Developments Limited, a company in which one of the ultimate shareholders in the parent company has an interest.
Apart from the loan due to Great Western Road Holding Company Limited, there are no other related party transactions requiring disclosure under FRS 102A.
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GREAT WESTERN ROAD PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2024
In the opinion of the directors, there is no overall controlling party.
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