Company Registration No. 04325501 (England and Wales)
GRAMMONT PROPERTIES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
GRAMMONT PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
GRAMMONT PROPERTIES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment properties
5
44,220,234
45,450,000
Current assets
Debtors
6
2,074,215
2,015,771
Cash at bank and in hand
654,649
570,016
2,728,864
2,585,787
Creditors: amounts falling due within one year
7
(6,556,007)
(6,960,831)
Net current liabilities
(3,827,143)
(4,375,044)
Total assets less current liabilities
40,393,091
41,074,956
Creditors: amounts falling due after more than one year
8
(23,010,231)
(22,860,926)
Provisions for liabilities
Deferred tax liability
9
2,422,840
2,388,534
(2,422,840)
(2,388,534)
Net assets
14,960,020
15,825,496
Capital and reserves
Called up share capital
10
1
1
Investment property reserve
14,319,004
14,442,440
Profit and loss reserves
641,015
1,383,055
Total equity
14,960,020
15,825,496

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 27 January 2025 and are signed on its behalf by:
D  Uzel
Director
Company Registration No. 04325501
GRAMMONT PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information

Grammont Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, United Kingdom, NW1 3ER.

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 investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors have considered the effect on the Company’s activities of the current global economic challenges. Despite economic conditions, the Directors have determined that due to the diverse portfolio of the Company there is limited risk in relation to tenants not fulfilling their rental and other obligations. To date, the company has not experienced difficulties in receiving rental amounts due from tenants. The directors are in the process of seeking a refinance of their property portfolio on expiry of their existing loan facilities in September 2025. Early indications show that the company is in a strong position in the market and are confident in completing the refinance in the coming months. true

 

The company has significant net current liabilities which arise as a result of amounts owed to group undertakings. The directors have confirmed that related entities will not recall the amounts owed until the company is able to meet its current liability obligations.

 

Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operation 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, property insurance premiums, service charges receivable and dilapidations receivable excluding value added tax.

 

Recognition of rental income takes into account the terms of the lease including any lease incentives which are spread over the length of the lease.

 

Property insurance premiums and service charges receivable are recognised over the period it relates to. Where the tenant pays in advance, the company defers that amount and recognises it as turnover over the period it relates to on a straight line basis.

 

Where the right to consideration arises from the occurrence of a critical event the turnover is recognised when the event occurs.

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. The gain or loss on valuation is recognised in profit or loss and is subsequently transferred within equity to the "investment property reserve" together with the associated deferred tax.

GRAMMONT PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.5
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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

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 and non bank loans, 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.

1.6
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.

1.7
Taxation

The tax expense represents deferred tax.

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.

1.8

Investment property reserve

The investment property reserve comprises the fair value uplift on the company's investment property net of the associated deferred tax. Any movement in the fair value of the investment property and/or the deferred tax associated with it during the year is transferred from the profit and loss account into this reserve as a reserve movement in the Statement of Changes in Equity. This reserve is non-distributable.

GRAMMONT PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.

Fair value of investment properties

Investment properties are stated at fair value with changes in fair value being recognised in the profit and loss account. The directors have determined there has been no change in fair value of the investment properties since the valuation conducted by Knight Frank in July 2023. This view is based on market activity and conditions, consideration of rental yields and the view is supported by Knight Frank. There is significant judgement involved in arriving at the fair value of the properties.

Deferred tax has been recognised on the investment property based on the estimated fair value at the year-end date.

3
Employees

There were no employees during the year or previous year.

4
Interest receivable and similar income
2024
2023
£
£
Interest receivable and similar income includes the following:
Profit share from LLP that the company is a member of
16,510
12,481
5
Investment property
2024
£
Fair value
At 1 April 2023
45,450,000
Additions
98,234
Disposals
(1,328,000)
At 31 March 2024
44,220,234
GRAMMONT PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Investment property
(Continued)
- 5 -

The fair value of the investment properties has been arrived at on the basis of a valuation carried out in July 2023 by Knight Frank Chartered Surveyors, who are not connected with the company. The valuation has been carried out using the investment method whereby market values of the freehold and leasehold interests in the properties have been derived, subject to existing tenancies and taking into account comparable investment and rental transactions, together with evidence of demand with the vicinity of the subject properties.

The directors do not consider there to be any material changes to the fair value of the investment properties from the balance sheet date and July 2023 when the valuation took place and therefore believe the fair value of the investment properties recognised in the accounts is not materially misstated.

The historic cost of the investment properties held by the company as at 31 March 2024 is £27,497,851 (2023: £28,633,034).

6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
203,483
220,968
Other debtors
1,816,755
1,794,803
Accrued income
53,977
-
0
2,074,215
2,015,771

Included within other debtors is £1,770,596 (2023: £1,754,086) owed to an LLP in which this company is a designated member. This amount is unsecured, interest free and payable on demand.

7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
18,044
940
Amounts owed to group undertakings
4,628,106
5,884,647
Corporation tax
137,279
-
0
Other taxation and social security
91,143
70,568
Other creditors
893,024
470,345
Accruals and deferred income
788,411
534,331
6,556,007
6,960,831

Amounts due to group undertakings are unsecured, interest free and repayable on demand.

GRAMMONT PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
8
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Non bank loans
23,010,231
22,860,926

The maturity date of the non bank loans is 17 September 2025. The company has non bank loans principal of £23,224,435. As at 31 March 2024, the loan had a net carrying value £23,010,231 (2023: £22,860,926) after amortised transaction costs. The loan is secured by a legal charge over certain assets of the company. Interest is payable quarterly at an interest rate of 2.7% per annum. The principal amount of the non bank loans is repaid on maturity.

9
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
17,128
17,128
Tax losses
11,725
(3,120)
Investment property
2,374,526
2,374,526
2,403,379
2,388,534
10
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1
1
1
1
1
11
Audit report information

As the profit and loss account 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.

The senior statutory auditor was Mandy Janes.
The auditor was HW Fisher Audit.
GRAMMONT PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
12
Financial commitments, guarantees and contingent liabilities

The company has given cross party guarantees with group and related entities for non bank loans provided to these entities. At the balance sheet date, the non bank loan principal owed to lenders by these related entities for the non bank loans was £15,275,595 (2023: £15,275,595).

13
Related party transactions

At the beginning of the year, the company owed the directors £141,555 (2023: £48,819 other debtor). During the year advances of £1,519,050 (2023: £423,814) were made and repayments of £1,173,094 (2023: £516,550) were made. At the year end, the company owed the directors £487,511 (2023: £141,555 creditor) and this is included within other creditors (2023: other creditors).

 

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