Cherwell Investments Limited
Unaudited Financial Statements
For the year ended 30 April 2024
Pages for Filing with Registrar
Company Registration No. 03198619 (England and Wales)
Cherwell Investments Limited
Company Information
Directors
T Holroyd
L Howgate
Company number
03198619
Registered office
1 Cherwell Mews
London
England
SW11 1AF
Accountants
Moore Kingston Smith LLP
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Cherwell Investments Limited
Balance Sheet
As at 30 April 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
93,566
112,281
Tangible assets
5
200,936
252,738
Investment properties
6
48,232,530
48,456,530
Investments
7
1,491,167
1,196,454
50,018,199
50,018,003
Current assets
Debtors
8
4,704,450
3,870,831
Cash at bank and in hand
320,983
197,418
5,025,433
4,068,249
Creditors: amounts falling due within one year
9
(1,093,786)
(1,268,592)
Net current assets
3,931,647
2,799,657
Total assets less current liabilities
53,949,846
52,817,660
Creditors: amounts falling due after more than one year
10
(24,282,456)
(24,158,998)
Provisions for liabilities
12
(5,543,435)
(5,459,458)
Net assets
24,123,955
23,199,204
Capital and reserves
Called up share capital
13
2
2
Revaluation reserve
22,121,505
22,064,482
Profit and loss reserves
2,002,448
1,134,720
Total equity
24,123,955
23,199,204

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 April 2024 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.

Cherwell Investments Limited
Balance Sheet (Continued)
As at 30 April 2024
Page 2

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 21 January 2025 and are signed on its behalf by:
T Holroyd
Director
Company Registration No. 03198619
Cherwell Investments Limited
Statement of Changes in Equity
For the year ended 30 April 2024
Page 3
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
2
22,324,884
1,017,707
23,342,593
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
72,543
72,543
Dividends
-
-
(215,932)
(215,932)
Transfer of unrealised fair value gains on investment properties
-
200,000
(200,000)
-
Transfer of fair value gains on investment properties disposed of
(420,000)
420,000
Transfer of movement on deferred tax provision for fair value gains
-
(40,402)
40,402
-
Balance at 30 April 2023
2
22,064,482
1,134,720
23,199,204
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
-
1,182,751
1,182,751
Dividends
-
-
(258,000)
(258,000)
Transfer of unrealised fair value gains on investment properties
-
401,000
(401,000)
-
Transfer of fair value gains on investment properties disposed of
(260,000)
260,000
-
Transfer of movement on deferred tax provision for fair value gains
-
(83,977)
83,977
-
Balance at 30 April 2024
2
22,121,505
2,002,448
24,123,955
Cherwell Investments Limited
Notes to the Financial Statements
For the year ended 30 April 2024
Page 4
1
Accounting policies
Company information

Cherwell Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Cherwell Mews, London, England, SW11 1AF.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of 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 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.

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.

1.2
Turnover
Turnover represents rent receivable.
1.3
Intangible fixed assets - goodwill
Goodwill transferred from fixed asset investments arose after the trade was hived up from a former subsidiary undertaking. The trade involved the development of a number of residential flats.

Goodwill is amortised in equal instalments over the useful economic life of the residential flats. It is amortised at a rate of 5% for residental flats let out and in the event of a disposal the remaining goodwill attributable to that residential flat is amortised in full in the year of disposal.
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.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer equipment
25% straight line
Motor vehicles
25% straight line

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.

Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
Page 5
1.5
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.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Although this accounting policy is in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), it is a departure from the general requirements of the Companies Act 2006 for all tangible fixed assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities 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.

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.

Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
Page 6
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, 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
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.

Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
Page 7
1.11
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.

1.12
Retirement benefits
The company operates a defined contribution pension scheme. The assets from the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.
1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Valuation of investment properties

The investment properties owned by the company have been revalued as at 30 April 2024 by the directors on a fair value basis.

Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
Page 8
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
4
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
584,829
Amortisation and impairment
At 1 May 2023
472,548
Amortisation charged for the year
18,715
At 30 April 2024
491,263
Carrying amount
At 30 April 2024
93,566
At 30 April 2023
112,281
Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
Page 9
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 May 2023
273,665
Additions
16,749
At 30 April 2024
290,414
Depreciation and impairment
At 1 May 2023
20,927
Depreciation charged in the year
68,551
At 30 April 2024
89,478
Carrying amount
At 30 April 2024
200,936
At 30 April 2023
252,738
6
Investment property
2024
£
Fair value
At 1 May 2023
48,456,530
Disposals
(625,000)
Revaluations
401,000
At 30 April 2024
48,232,530

The portfolio of properties was valued on an open market basis on 30 April 2024 by the directors of the company.

 

On an historical cost basis these would have been included at an original cost of £20,567,589 (2023: £20,932,589).

7
Fixed asset investments
2024
2023
£
£
Investments
1,491,167
1,196,454

Fixed asset investments are recognised at cost.

Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
7
Fixed asset investments
(Continued)
Page 10
Movements in fixed asset investments
Shares in group undertakings
Other investments
Total
£
£
£
Cost or valuation
At 1 May 2023
-
1,196,454
1,196,454
Additions
155,713
139,000
294,713
At 30 April 2024
155,713
1,335,454
1,491,167
Carrying amount
At 30 April 2024
155,713
1,335,454
1,491,167
At 30 April 2023
-
1,196,454
1,196,454
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
68,787
146,834
Amounts owed by group undertakings
2,648,943
2,660,219
Other debtors
1,986,720
1,063,778
4,704,450
3,870,831
9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
14,805
51,153
Amounts owed to group undertakings
54,645
54,645
Corporation tax
147,992
231,776
Other taxation and social security
12,466
9,785
Other creditors
729,786
764,101
Accruals and deferred income
134,092
157,132
1,093,786
1,268,592
Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
Page 11
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
24,011,430
24,011,430
Other creditors
271,026
147,568
24,282,456
24,158,998

The loans and overdraft are secured on a first priority legal charge over various properties owned by the company.

Creditors which fall due after five years are as follows:
2024
2023
£
£
Payable other than by instalments
3,327,030
3,327,030
11
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
12
5,543,435
5,459,458
12
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
5,543,435
5,459,458
2024
Movements in the year:
£
Liability at 1 May 2023
5,459,458
Charge to profit or loss
83,977
Liability at 30 April 2024
5,543,435
Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
Page 12
13
Called up share capital
2024
2023
£
£
Issued and fully paid
2 Ordinary shares of £1 each
2
2
Cherwell Investments Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
Page 13
14
Related party transactions

As at the year end;

 

The balance owed by the company to its parent company, Cherwell Group Limited, was £40,000 (2023: £40,000). The company declared dividends of £110,166 (2023: £215,932) to Cherwell Group Limited during the year.

 

The company owed Cherwell Estates Limited, a fellow subsidiary of Cherwell Group Limited, £14,645 (2023: £14,645).

 

The balance due to the company from Holroyd Investments Limited, was £421,405 (2023: £321,405), Holroyd Investments Limited has a material interest in the ultimate parent undertaking. Cherwell Investments Limited have provided security on behalf of Holroyd Investments Limited in respect of a debt due from Holroyd Investments Limited to a third party. The security is in the form of investment property included in these accounts at a valuation of £5,880,000.

 

The balance due to the company from Cherwell Battersea Bridge Road Limited was £2,116,757 (2023: £2,338,814), The company owns a majority shareholding in Cherwell Battersea Bridge Road Limited.

 

The balance due to the company from Cherwell Wokingham Limited was £110,781 (2023: £nil), The company owns a majority shareholding in Cherwell Wokingham Limited.

 

During the year the company received dividends from Cherwell Putney Limited of £524,210 (2023: £nil). The company owns a majority shareholding in Cherwell Putney Limited.

 

The balance due to the company from Cherwell Group Construction Limited was £503,117 (2023: £221,548). T G Holroyd has a material interest in this company. During the year the company charged rent of £10,000 (2023: £36,153) to Cherwell Group Construction Limited and was charged £nil (2023: £360,000) in construction services.

 

The balance due to the company from Cherwell (Lillie Road) Limited was £234,685 (2023: £53,962), T G Holroyd has a material interest in this company.

 

The company was owed £518,729 (2023: £126,788) by T G Holroyd and £2,500 (2023: £2,500) by L Howgate, the directors of the company.

 

The company was owed £100,000 (2023: £60,000) by J Holroyd, a parent of a director.

 

The company owed £100,000 (2023: £100,000) to H Turner, a sibling of a director of the company and £17,500 (2023: £17,500) to A Holroyd, spouse of a director.

 

At the year end, the company was owed £286,881 (2023: £286,881) by Uncharted Wine Company Limited. T G Holroyd has a material interest in this company.

15
Parent company

The immediate parent undertaking is Cherwell Group Limited (reg. no 03198530) and the ultimate parent undertaking is Cherwell Holroyd Limited (reg. no 13225038). Both companies are incorporated in England & Wales. The registered office of both companies is 1 Cherwell Mews, London, SW11 1AF.

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