Company registration number 14916032 (England and Wales)
Birch Faraday Properties Limited
FINANCIAL STATEMENTS
For The Period Ended 31 March 2024
PAGES FOR FILING WITH REGISTRAR
BIRCH FARADAY PROPERTIES LIMITED
Birch Faraday Properties Limited
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
BIRCH FARADAY PROPERTIES LIMITED
Birch Faraday Properties Limited
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
Notes
£
£
Fixed assets
Tangible assets
4
1,132,650
Investment property
5
3,650,000
4,782,650
Current assets
Debtors
6
1
Creditors: amounts falling due within one year
7
(3,999,275)
Net current liabilities
(3,999,274)
Net assets
783,376
Capital and reserves
Called up share capital
1
Other reserves
915,188
Profit and loss reserves
(131,813)
Total equity
783,376

The director of the company has 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 and signed by the director and authorised for issue on 27 January 2025
D Irozuru
Director
Company Registration No. 14916032
BIRCH FARADAY PROPERTIES LIMITED
Birch Faraday Properties Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information

Birch Faraday Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is 239 Kensington High Street, Office 103, London, United Kingdom, W8 6SN.

1.1
Reporting period

The company has shortened the first period of accounts to 31 March 2024. The period was shortened to be coternimus with other group companies.

1.2
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.

1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, despite net current liabilities of £3,999,274. Included within current liabilities are amounts payable to group companies totalling £3,993,275. With the continued support of group companies, and forecasted cash flows for the group, the company will be able to meet liabilities as they fall due. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

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:

Freehold land and buildings
2% Straight Line
Leasehold land and buildings
2% 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.

1.5
Investment property

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.

BIRCH FARADAY PROPERTIES LIMITED
Birch Faraday Properties Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

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.

BIRCH FARADAY PROPERTIES LIMITED
Birch Faraday Properties Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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.

1.9
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
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Fair value of investment properties

In determining the fair value of investment property the company uses an open market value basis by reference to market evidence of transaction prices for similar properties, as provided by its appointed independent valuer. The director considers this valuation to remain appropriate at the period end.

BIRCH FARADAY PROPERTIES LIMITED
Birch Faraday Properties Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 5 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2024
Number
Total
1
4
Tangible fixed assets
Land and buildings
£
Cost
At 5 June 2023
-
0
Additions
1,132,650
At 31 March 2024
1,132,650
Depreciation and impairment
At 5 June 2023 and 31 March 2024
-
0
Carrying amount
At 31 March 2024
1,132,650

Freehold land and buildings with a carrying amount of £1,132,650 have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

5
Investment property
2024
£
Fair value
At 5 June 2023
-
0
Additions
2,855,281
Revaluations
794,719
At 31 March 2024
3,650,000

The fair value of investment property has been arrived on the basis of a valuation carried out in March 2023 by WT Gunson, professional valuers regulated by RICS, who are not connected with this company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The director considers this valuation to reflect the fair value as at the period end.

Investment properties with a carrying amount of £3,650,000 have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

BIRCH FARADAY PROPERTIES LIMITED
Birch Faraday Properties Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 6 -
6
Debtors
2024
Amounts falling due within one year:
£
Other debtors
1
7
Creditors: amounts falling due within one year
2024
£
Amounts owed to group undertakings
3,993,275
Other creditors
6,000
3,999,275
8
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.

Senior Statutory Auditor:
Julie Flintoff BA(Hons) FCA
Statutory Auditor:
Azets Audit Services
9
Financial commitments, guarantees and contingent liabilities

The company has given security to Together Commercial Finance Limited in respect of loans provided to Birch Faraday Capital Limited. The security provided is a legal charge over fixed asset properties and investment properties.

 

The indebtedness of Birch Farday Capital Limited to Together Commercial Finance Limited at 31 March 2024 is £2,725,000.

10
Parent company

In the directors' opinion the company's ultimate parent company is Birch Faraday Capital Limited, a company incorporated in the UK. Copies of the accounts for Birch Faraday Captial Limited can be obtained from its registered office address: 239 Kensington High Street, Office 103, London, W8 6SN.

 

Birch Faraday Capital Limited is the only member of the group to prepare consolidated accounts.

The company is under the ultimate control of Darnell Irozuru, director and majority shareholder of Birch Faraday Capital Limited.

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