Augur Liverpool Limited |
Notes to the Accounts |
for the year ended 31 December 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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At the balance sheet date the company had net liabilities of £9,928,601 having incurred a loss of £3,461,092 for the year. At that date the company had net current assets of £4,388,294 (2022:£3,455,944). The company is funded by an interest-free loan from its parent company which stood at a discounted amount of £11,796,103 (2022: £10,189,292) at the balance sheet date. The loan is repayable in December 2025 and the directors anticipate repaying the loan from the proceeds from the sale of land and building assets in the future and from any future surplus rental income. The parent company has continued to support the company since the year end. Since the year-end the company has confirmed the continuation of its loan facility with its bankers, which is repayable over six years. The Board has prepared cash flow projections based on what it believes are prudent assumptions. These projections indicate that, with the ongoing support of its parent company, with the bank funding available, and with careful monitoring of the company's level of expenditure, the company is expected to have sufficient funds available to meet its liabilities as and when they fall due for at least the next twelve months. On the basis of these cash flow projections and that its parent company has indicated its intention to continue supporting the company, these financial statements have been prepared on a going concern basis. |
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Revenue |
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Revenue is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. It includes revenue earned from the rendering of services. This primarily relates to the charging of rent, and service charges to tenants in respect of costs they have contractually agreed to recover. Service charge income is recognised at the point at which the related costs have been incurred and to the extent that the costs are expected to be recoverable from tenants. |
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Government grants |
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Government grants are recognised when there is reasonable assurance that the grant will be received and that the conditions applying to the grant will be met. The accounts adopt the accruals model whereby grant income received as compensation for expenses already incurred is recognised in the period that it becomes receivable. |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. |
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Stocks |
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Stocks and work-in-progress of land and buildings are measured at the lower of cost and estimated future selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock and work-in-progress sold is recognised as an expense in the period in which the related revenue is recognised. |
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1 |
Accounting policies (continued) |
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Debtors |
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Debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). |
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Loans and other liabilities |
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Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. The inter-company loan is interest-free and therefore has been discounted back to its deemed fair value based on a rate considered to be a market rate by the Board. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Leased assets |
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Any operating lease receipts are recognised as income on a straight line basis over the lease term. |
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Key accounting estimates and judgements |
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The company necessarily makes estimates and assumptions concerning its future. The resulting accounting estimates will, by definition, seldom equal the actual future outcome. The key areas where the Board have used estimates and judgements in preparing these financial statements and therefore the areas where there is a risk that the future actual outcome may vary from the estimates used are as follows: |
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Key accounting estimates and judgements (continued) |
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Carrying value of stock and work-in-progress on the balance sheet: |
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The company has considered possible outcomes in respect of the recovery by the company of development project costs incurred to date on its projects which are included within stocks and work-in-progress and their estimate of the likelihood of these outcomes arising. These estimates are used to arrive at a weighted average expected recovery of costs included in work-in-progress. This weighted average has been used to assess the need for provisions against amounts included within work-in-progress. |
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Carrying value of loans from parent company |
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The carrying value of the various interest-free loans from the parent company included in other creditors is required to be measured at amortised cost using the effective interest rate, less any impairment losses. The effective interest rate that has been used for advances in 2023 is 11.25% per annum (2022: 8.25%). |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
2 |
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2 |
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3 |
Investments |
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Other |
investments |
£ |
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Cost |
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At 1 January 2023 |
3 |
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At 31 December 2023 |
3 |
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The subsidiary undertakings have remained dormant since incorporation. All three subsidiaries have their registered office at 13 Breasy Place, Burroughs Gardens, London NW4 4AT. |
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The Company's wholly owned subsidiary undertakings at the end of the financial year were: |
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Circus Hotel Trading Ltd |
A dormant private company incorporated in England and Wales |
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Circus Holding Company Ltd |
A dormant private company incorporated in England and Wales |
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Circus Property Holding Ltd |
A dormant private company incorporated in England and Wales |
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4 |
Stocks |
2023 |
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2022 |
£ |
£ |
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Stocks and work-in progress of development land and property |
4,369,051 |
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4,712,770 |
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4,369,051 |
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4,712,770 |
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5 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Other taxes and social security |
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50,743 |
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58,352 |
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Other debtors |
336,418 |
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144,828 |
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387,161 |
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203,180 |
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6 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
- |
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991,335 |
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Trade creditors |
148,224 |
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408,194 |
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Other creditors |
457,844 |
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167,162 |
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606,068 |
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1,566,691 |
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7 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
2,560,431 |
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- |
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Deferred finance cost on bank loan |
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(39,636) |
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- |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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11,796,103 |
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10,189,292 |
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14,316,898 |
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10,189,292 |
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The amounts owed to group undertakings above are interest free and stated at their deemed fair value in accordance with the company's accounting policy. |
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8 |
Loans |
2023 |
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2022 |
£ |
£ |
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Creditors include: |
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Secured bank loans payable within one year |
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991,335 |
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Secured bank loans payable in one to two years by instalments |
- |
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- |
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Secured bank loans payable in two to five years by instalments |
840,000 |
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- |
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Secured bank loans payable after five years by instalments |
1,720,431 |
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- |
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Secured parent company loans |
13,297,773 |
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12,100,398 |
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The bank loan is secured against certain land and buildings held within stock and work-in-progress. Interest is charged at 2.75% over SONIA and it was expected to be repaid over six years by installments. |
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The amounts owed to group undertakings above are interest free and stated at their deemed fair value in accordance with the company's accounting policy. It is due for repayment in November 2025 and the parent company has indicated that this date is under review and that it intends to continue supporting the company . |
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9 |
Capital commitments |
2023 |
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2022 |
£ |
£ |
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Amounts contracted for but not provided in the accounts |
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153,112 |
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10 |
Related party transactions |
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The company has taken advantage of the exemption from disclosing transactions with its immediate parent company on the basis that it is a wholly-owned subsidiary undertaking. |
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11 |
Controlling party |
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The immediate and ultimate parent company is Augur Northwest Limited, a company incorporated in England and Wales. No statutory consolidated accounts are prepared for the group. |
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12 |
Other information |
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Augur Liverpool Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is at: |
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Unit 13 Breasy Place |
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Burroughs Gardens |
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London |
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NW4 4AT |
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The company's principal place of business is at its registered office. |
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13 |
Audit |
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The audit report on the company's full 2023 statutory accounts was unqualified. |
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The report was signed on: |
20 December 2024 |
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The report was signed by: |
Ian Daniels (Senior Statutory Auditor) for and on behalf of |
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HaysMac LLP |