Company registration number 02378493 (England and Wales)
WEBSTER ESTATES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PAGES FOR FILING WITH REGISTRAR
WEBSTER ESTATES LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
WEBSTER ESTATES LTD
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
10,534
44,078
Investment properties
5
23,492,320
23,325,000
23,502,854
23,369,078
Current assets
Stocks
6
2,506,159
2,500,000
Debtors
7
63,665
34,750
Cash at bank and in hand
489,052
437,899
3,058,876
2,972,649
Creditors: amounts falling due within one year
8
(635,958)
(413,320)
Net current assets
2,422,918
2,559,329
Total assets less current liabilities
25,925,772
25,928,407
Creditors: amounts falling due after more than one year
9
(2,758,333)
(2,858,333)
Provisions for liabilities
11
(2,624,806)
(2,623,262)
Net assets
20,542,633
20,446,812
Capital and reserves
Called up share capital
259,152
259,152
Share premium account
119,134
119,134
Other reserves
14
10,890,429
10,890,429
Capital redemption reserve
15,826
15,826
Profit and loss reserves
9,258,092
9,162,271
Total equity
20,542,633
20,446,812
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 September 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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
WEBSTER ESTATES LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
30 SEPTEMBER 2024
30 September 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 7 February 2025 and are signed on its behalf by:
N S Thompson
Director
Company Registration No. 02378493
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
1
Accounting policies
Company information
Webster Estates Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10a, Optima Business Park, Pindar Road, Hoddesdon, EN11 0DY.
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
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence 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 is recognised at the fair value of the consideration received or receivable and is shown net of Value Added Tax. Turnover comprises of rent receivable from investment properties which is recognised on a straight line basis over the period of the lease and proceeds from the sale of trading properties which is recognised on legal completion of the sale.
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:
Plant and equipment
Motor vehicles 20% per annum on a reducing basis and office equipment 20% per annum on a straight line basis
Fixtures and fittings
20% per annum on a straight line basis
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 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 and held in a non-distributable fair value reserve.
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 4 -
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.
1.7
Stocks
Stocks which are properties held for trading which do not meet the definition of investment properties, are stated at lower of cost and estimated selling price less costs to complete and sell. Cost comprises purchase cost and the cost of any subsequent development.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Rental income from properties held as stock is shown as other income in the income statement, net of operating expenditure relating to the properties.
1.8
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.
1.9
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 statement of financial position 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.
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 5 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 trade creditors, other creditors and loans are initially recognised at transaction price and subsequently carried at amortised cost.
For loans, amortised cost is calculated using the effective interest rate method. Under the effective interest method, the interest expense is recognised at the effective interest rate which is the rate that exactly discounts future discounted payments through the expected life of the loan.
For all other financial liabilities, amortised cost is transaction price less amounts settled.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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 income statement 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.
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 6 -
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.
For investment properties measured at fair value, deferred tax is measured using the tax rates and allowances that apply to the sale of the property.
1.12
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.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
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.
Valuation of investment properties
In valuing investment properties the directors make estimates and judgements about future rental yields and property specific factors such as the success of planning applications. The carrying value of investment properties at 30 September 2024 was £23,492,320 (2023: £23,325,000) as shown in note 6.
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
3
Employees
The average monthly number of persons employed by the company during the year was:
2024
2023
Number
Number
Total
2
2
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2023
119,506
Additions
2,662
Disposals
(71,380)
At 30 September 2024
50,788
Depreciation and impairment
At 1 October 2023
75,428
Depreciation charged in the year
10,380
Eliminated in respect of disposals
(45,554)
At 30 September 2024
40,254
Carrying amount
At 30 September 2024
10,534
At 30 September 2023
44,078
5
Investment property
2024
£
Fair value
At 1 October 2023
23,325,000
Additions
167,320
At 30 September 2024
23,492,320
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Investment property
(Continued)
- 8 -
Two of the company's investment properties were formally valued as at 26 November 2023 by BNP Paribas on the basis of open market values in accordance with RICS Red Book standards. The directors have used this valuation as the basis for assessing fair value at 30 September 2024. The company's remaining investment properties were formally valued as at 14 February 2024. The directors have again used this valuation as the basis for assessing fair value at 30 September 2024.
In the prior year, while estimating fair values of investment property, the directors held back estimated costs for repairs to the roof of a property. During the current year works commenced on the roof repairs and a total amount of £167,320 has been capitalised during the year. The roof repair works are expected to finish in the year ending 30 September 2025, where more works will be capitalised.
The historical cost of these properties is £10,154,545 (2023: £9,987,225).
Security against land and buildings
The company has pledged land and buildings, having a net book value of £20,167,320 (2023: £20,000,000), to secure its bank loans by way of a fixed charge.
6
Stocks
2024
2023
£
£
Properties held for trading
2,506,159
2,500,000
The company has pledged land & buildings, having a net book value of £2,506,159 (2023: £2,500,000), to secure its bank loans by way of fixed charge.
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
24,138
Other debtors
39,527
34,750
63,665
34,750
8
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
10
100,000
100,000
Trade creditors
171,599
26,937
Corporation tax
159,279
Other taxation and social security
19,197
48,027
Other creditors
185,883
238,356
635,958
413,320
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
9
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
10
2,758,333
2,858,333
10
Loans and overdrafts
Notes
2024
2023
£
£
Bank loans
2,858,333
2,958,333
Payable within one year
8
100,000
100,000
Payable after one year
9
2,758,333
2,858,333
The company has a loan facility of £3.2m. Of this, £2.7m is interest only and is repayable on 1 April 2026. The balance of £0.5m is payable by monthly instalments over a 5 year period, with the final instalment due on 1 April 2026.
The loan is secured by fixed charges over certain of the company's investment properties and trading stock. Interest is payable on the loan at 3.78% per annum.
11
Provisions for liabilities
2024
2023
Notes
£
£
Deferred tax liabilities
12
2,624,806
2,623,262
12
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
88,216
89,137
Tax losses
-
(2,464)
Investment property fair value gains
2,536,590
2,536,589
2,624,806
2,623,262
WEBSTER ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Deferred taxation
(Continued)
- 10 -
2024
Movements in the year:
£
Liability at 1 October 2023
2,623,262
Charge to profit or loss
1,544
Liability at 30 September 2024
2,624,806
13
Other reserves
Other reserves is made up entirely of a non-distributable fair value reserves relating to the company's investment properties. The reserve represents the cumulative fair value gains on investment properties net of the related deferred tax liability arising on those gains. These amounts are recognised in profit and loss and a transfer is made each year to move the net amount recognised to other reserves.
On disposal of an investment property, the cumulative amount held in other reserves relating to the property is transferred to the profit and loss reserve.
14
Related party transactions
Hire & Fire Limited is a tenant in one of the properties in Norfolk and do not pay rent.
Hire & Fire Limited is related party by virtue of being controlled and owned by one of the directors of Webster Estates Ltd.
The company has taken advantage of the exemption available in accordance with Section 33.1A of Financial Reporting Standard 102 whereby it has not disclosed transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.