REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
PRESTIGIC HOLDINGS LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
PRESTIGIC HOLDINGS LIMITED |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 May 2024 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 4 |
PRESTIGIC HOLDINGS LIMITED |
COMPANY INFORMATION |
for the year ended 31 May 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
STATEMENT OF FINANCIAL POSITION |
31 May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
Investment property | 6 |
CURRENT ASSETS |
Debtors | 7 |
Cash at bank |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Share premium |
Fair value reserve | 11 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
STATEMENT OF FINANCIAL POSITION - continued |
31 May 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 May 2024 |
1. | Statutory information |
Prestigic Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The financial statements contain information about Prestigic Holdings Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
In applying the company's accounting policies the directors are required to make judgements in determining the carrying amounts of assets and liabilities. |
The critical judgements made by the directors relate to assessing: |
the impairment provision required against the cost of the unlisted investments, |
the recoverability of monies due from the joint ventures and the impact this has on the company, |
the fair value of investment properties. |
Turnover |
Turnover represents fees, commissions and rental income. Revenue is recognised when the outcome of a transaction can be estimated reliably, by reference to the stage of completion of the transaction at the end of the reporting period. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Freehold land is not subject to depreciation. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
2. | Accounting policies - continued |
Investment property |
The company classifies land and buildings as investment property when it is held to earn rentals or for capital appreciation, or both. Investment properties are initially measured at cost which comprises the purchase price and any directly attributable expenditure. |
Investment properties are subsequently remeasured to fair value at each reporting date with changes in fair value recognised in profit or loss. Fair values are reviewed by independent qualified valuers. |
Financial instruments |
Financial instruments are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds both basic and non-basic financial instruments which comprise unlisted investments, cash and cash equivalents, other debtors, trade and other creditors. |
Unlisted investments - these include investments in a limited liability partnership and interests in former JANE investments. These are initially recognised at the transaction price and are subsequently measured at cost less any provision for impairment. |
Cash and cash equivalents - these include cash in hand and deposits held with banks. |
Other debtors - these are initially recognised at the transaction price and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount expected to be receivable, net of any impairment. |
Trade and other creditors - these are initially measured at the transaction price and are subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount expected to be payable. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Deferred tax on investment properties held at fair value is measured using the rates and allowances that would apply to the sale of the assets. |
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. |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
2. | Accounting policies - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The group of which this company is the parent undertaking owns a portfolio of commercial properties tenanted by quality tenants and financed in the main by bank loans repayable by instalments. |
The £1,571,086 (2023 - £1,790,886) owed by group undertakings is due from Fortdene Limited which has net assets of £4,846,962 (2023 - £5,238,216). The directors are confident that Fortdene Limited will be able to repay the amount owed in due course. |
Whilst the company is subject to litigation (note 15) the group has sufficient reserves with which to fund the litigation and settle any liabilities that may occur under any adverse judgement. |
As a consequence the directors believe that the company is well placed to manage its business risks successfully. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
3. | Employees and directors |
The average number of employees during the year was |
4. | Tangible fixed assets |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
Cost |
At 1 June 2023 |
and 31 May 2024 |
Depreciation |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
Net book value |
At 31 May 2024 |
At 31 May 2023 |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
5. | Fixed asset investments |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
Cost |
At 1 June 2023 |
and 31 May 2024 | 2,222,305 |
Provisions |
At 1 June 2023 |
and 31 May 2024 | - | 1,000,000 | 1,000,000 |
Net book value |
At 31 May 2024 | 1,222,305 |
At 31 May 2023 | 1,222,305 |
The company holds 100% of the issued ordinary share capital of the following subsidiary companies, both of which are engaged in property investment and are registered in England and Wales: |
Fortdene Limited |
Grovespear Limited |
The company also holds 100% of the share capital of Prestigic Finance Limited which is engaged in finance leasing. This company is also registered in England and Wales. |
The company is a designated member of AGWF Property LLP, a limited liability partnership registered in England and Wales which manages its own properties. |
Unlisted investments includes the company's capital contribution in AGWF Property LLP of £718,838 (2023 - £718,838) and its interests in the former JANE investments of £1,460,484 (2023 - £1,460,484). Impairment provisions of £nil (2023 - £nil) and £1,000,000 (2023 - £1,000,000) respectively have been made against these investments. All but one of the underlying investment properties has now been sold but the recovery of these funds is subject to litigation (note 15). |
6. | Investment property |
Total |
£ |
Fair value |
At 1 June 2023 |
and 31 May 2024 |
Net book value |
At 31 May 2024 |
At 31 May 2023 |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
6. | Investment property - continued |
Fair value at 31 May 2024 is represented by: |
£ |
Valuation in 2015 | 180,000 |
Valuation in 2021 | 45,000 |
Cost | 70,000 |
295,000 |
The investment property held at 31 May 2024 was valued as at that date at £295,000 (2023 - £295,000). The property was valued by Adrian Goldsmith, a director, on an open market value basis. |
The property was also valued by Patrick Gardner (MRICS) on 5 April 2023 on an open market value basis at £295,000. |
The original cost of the property was £70,000 (2023- £70,000). |
7. | Debtors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
Amounts owed by related parties | 145,166 | 145,166 |
Loan | - | 16,436 |
Directors' loan accounts | 64,262 | 71,433 |
Corporation tax |
Deferred tax asset |
Accelerated capital allowances |
Amounts owed by related parties represents rental profits due from AGWF Property LLP. The recovery of these amounts is the subject of litigation (note 15). |
8. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Amounts owed to related parties | 61,467 | 61,467 |
Accruals and deferred income |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
9. | Deferred tax |
£ |
Balance at 1 June 2023 | ( |
) |
Charged to Income | 3,166 |
Balance at 31 May 2024 | ( |
) |
10. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | .01 | 118 | 118 |
11. | Reserves |
Fair |
value |
reserve |
£ |
At 1 June 2023 |
and 31 May 2024 |
12. | Contingent liabilities |
The company is included in a group registration for VAT purposes and is therefore jointly and severally liable for all other group companies' unpaid debts in this connection, amounting to £32,623 (2023 - £43,852). |
The company is subject to litigation under which there is a possible but uncertain obligation to transfer economic benefits in settlement of legal fees incurred in defending its position or, in the event that it is not successful in its defence, in settling any judgement against it (note 15). |
Legal proceedings have been served by the other party to the company's joint venture in AGWF Property LLP who claims that Prestigic Holdings Limited should be liable for £187,682 in legal fees and costs in relation to failed proceedings taken by AGWF Property LLP with the benefit of legal advice. The directors believe that this claim is out of time and that the amount is overstated. |
13. | Directors' advances, credits and guarantees |
At the start of the year one director of this company owed £71,433 to the company. These amounts were repaid during the year and further amounts of £64,262 were drawn by the director. These amounts were repaid after the year end. No interest was payable or receivable on these loans and there were no fixed terms for repayment. |
14. | Ultimate controlling party |
The controlling party is Adrian Richard Goldsmith. |
PRESTIGIC HOLDINGS LIMITED (REGISTERED NUMBER: 03256692) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
15. | Litigation in respect of joint ventures |
The company is currently involved in litigation brought by the other parties to the company's joint ventures, principally concerning the interpretation of the joint venture agreements. These parties are related parties of the company. These financial statements reflect the company's understanding of its own position in relation to those joint venture agreements. The company is counterclaiming in respect of other matters under the joint venture agreements. |
In the event that the company is successful in its defence and counterclaim the amounts included in unlisted investments due from AGWF Property LLP of £718,838 (2023 - £718,838) and the former JANE investments of £460,484 (2023 - £460,484), together with the amounts due from related parties of £145,166 (2023 - £145,166) will be recoverable in full, subject to the funds being available. This totals £1,324,488 (2023 - £1,324,488). |
Funds of approximately £1,050,000 (including interest) were held in escrow pending judgement. Net property assets of approximately £200,000 and approximately £146,000 in cash were held within the various joint ventures under the claimant's control, subject to a Court Order that if any properties are sold or funds taken by the claimant 27% of the net proceeds of sale or amount taken must be transferred to escrow. The company has counterclaimed against the main claimant whose published financial statements indicate that that company has sufficient assets to satisfy the remainder of the debt for which it would be liable as it has taken funds from the joint venture bank accounts. The claimants have also given certain undertakings by way of security of costs and under a Court Order with a Penal notice not to dissipate assets until any sums wrongfully taken from the joint venture have been repaid. Based on all of the above factors the directors believe that if the company is successful in its defence and counterclaim it would be able to recover the amounts included in these financial statements in full. |
In the event that the company is unsuccessful in any or all aspects of its defence some or all of the assets of £1,324,488 (2023 - £1,324,488) detailed above would not be recoverable. It is possible that the company could also have a liability although this cannot be quantified. Based on the information available to the directors they believe that no such liability would exist. |
The future costs relating to the cases going to trial have not been included in these financial statements as they cannot be estimated reliably. |
The group which this company controls had a consolidated net asset value of £8,944,995 at 31 May 2024 (2023 - £9,391,398). The assets mostly comprise investment properties which can be refinanced or disposed of when and if necessary in order to fund legal expenses or an adverse judgement. |