Company registration number 07795768 (England and Wales)
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
COMPANY INFORMATION
Directors
Mr D A Benzie
Mr C E Dickson
Company number
07795768
Registered office
115B Innovation Drive
Milton Park
Milton
Abingdon
OX14 4RZ
Accountants
Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the period ended 30 September 2023.

Review of the business

Roadside Real Estate (Maldon) Limited (“the Company”) is a subsidiary of Roadside Real Estate PLC.

 

Roadside Real Estate Plc acquired 100% of the Company’s share capital on 7 January 2020. This was part of the wider business combination between the Dickson Controlled Entities (the company and three other companies considered to be under common control) and Roadside Real Estate PLC. The results of the Company are consolidated in the financial results of Roadside Real Estate PLC for the period ended 30 September 2023 and the period ended 2 July 2022.

 

The principal activity of the Company is focused on tenant led commercial property development in the South East of England.

Principal risks and uncertainties

The key risks the Company faces are:

 

Accurate Appraisal of Proposed Developments

 

The ability for the Company to correctly appraise the costs associated with the development and the marketability of the end product is critical to its success. External factors, such as tenant demands, construction costs, government policy and interest rates all have a bearing on the potential success of the Company.

 

Investment Property Appraisal

 

Investment properties are properties which the Company owns, does not occupy for its own use and are held for either long term rental yields, or capital appreciation, or both. Investment properties also include property that is being developed or constructed for future use as an investment property by the Company.

 

At the end of a financial period the fair value is determined by a range of valuation techniques. There are a number of significant assumptions in these development appraisal valuations and a change in these assumptions could result in a significant change in the fair value of investment properties and therefore have a material effect on the Company’s results.

Key performance indicators

Key performance indicators are as follows:

 

 

A number of developments are currently in the pipeline, with GDV in excess of £15m.

On behalf of the board

Mr D A Benzie
Director
20 February 2025
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 2 -

The directors present their annual report and financial statements for the period ended 30 September 2023.

Principal activities

The principal activity of the company is focused on tenant led commercial property development in the South East of England.

Results and dividends

The results for the period are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr D A Benzie
Mr C E Dickson
Mr G M Langridge-Brown
(Resigned 5 April 2024)
Mr C M Reynolds
(Resigned 5 April 2024)
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr D A Benzie
Director
20 February 2025
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
- 4 -
Opinion

We have audited the financial statements of Roadside Real Estate (Maldon) Limited (previously Barkby Real Estate Limited) (the 'company') for the period ended 30 September 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED) (CONTINUED)
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and taxation legislation.

 

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED) (CONTINUED)
- 6 -

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and revenue recognition. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and reviewing accounting estimates for biases, corroborating revenue recognised by the client through agreement to supporting documentation and ensuring accounting policies are appropriate under the United Kingdom Generally Accepted Practice and applicable law.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

John Charlton
Senior Statutory Auditor
For and on behalf of Crowe U.K. LLP, Statutory Auditor
London, United Kingdom
20 February 2025
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
INCOME STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 7 -
Period
Year
ended
ended
30 September
2 July
2023
2022
Notes
£
£
Revenue
-
4,200,000
Cost of sales
-
0
(1,763,882)
Gross profit
-
2,436,118
Distribution costs
-
0
(315)
Administrative expenses
(190,135)
(102,493)
Operating (loss)/profit
3
(190,135)
2,333,310
Finance costs
6
(1,295,181)
(402,162)
Fair value gains and losses on investment properties
8
(855,878)
-
(Loss)/profit before taxation
(2,341,194)
1,931,148
Tax on (loss)/profit
7
-
0
-
0
(Loss)/profit and total comprehensive income for the financial period
(2,341,194)
1,931,148
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2023
30 September 2023
- 8 -
30 September
2 July
2023
2022
Notes
£
£
£
£
Non-current assets
Investment property
8
4,770,000
2,491,648
Current assets
Inventories
9
168,849
209,934
Trade and other receivables
10
3,255,697
4,315
Cash and cash equivalents
410
51
3,424,956
214,300
Current liabilities
11
(4,811,358)
(767,992)
Net current liabilities
(1,386,402)
(553,692)
Total assets less current liabilities
3,383,598
1,937,956
Non-current liabilities
11
(5,530,000)
(1,743,164)
Net (liabilities)/assets
(2,146,402)
194,792
Equity
Called up share capital
14
500
500
Retained earnings
(2,146,902)
194,292
Total equity
(2,146,402)
194,792
The financial statements were approved by the board of directors and authorised for issue on 20 February 2025 and are signed on its behalf by:
Mr D A Benzie
Director
Company registration number 07795768 (England and Wales)
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 9 -
Share capital
Retained earnings
Total
£
£
£
Balance at 2 July 2021
500
(1,736,856)
(1,736,356)
Year ended 2 July 2022:
Profit and total comprehensive income
-
1,931,148
1,931,148
Balance at 2 July 2022
500
194,292
194,792
Period ended 30 September 2023:
Loss and total comprehensive income
-
(2,341,194)
(2,341,194)
Balance at 30 September 2023
500
(2,146,902)
(2,146,402)
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 10 -
1
Accounting policies
Company information

Roadside Real Estate (Maldon) Limited (previously Barkby Real Estate Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 115B Innovation Drive, Milton Park, Abingdon, Oxfordshire, OX14 4RZ and the place of business is Crofts Furlong Farm, Great Milton, Oxford. The principle activity of the company is property development.

1.1
Reporting period

The accounting period has been extended such that the accounts are for the period ended 30 September 2023. As such the results for the current period are not entirely comparable.

1.2
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101,"Reduced Disclosure Framework" ("FRS 101") and in accordance with applicable accounting standards.

 

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 on the historical cost basis. The principal accounting policies adopted are set out below.

 

Changes in accounting standards, amendments and interpretation not yet effective

The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Financial Reporting Council (FRC) that are mandatory for the current reporting period.

 

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Specifically, the amendment to FRS 101 applicable from 1 January 2023 (Amendment to FRS 101 Reduced Disclosure Framework - Effective date of IFRS 17) has not been applied in preparing this historical financial information.

 

None of these amendments are expected to have a material impact on the Company.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 11 -

As permitted by FRS101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts Roadside Real Estate Plc. The group accounts of Roadside Real Estate Plc are available to the public and can be obtained as set out in note 18.

 

These financial statements cover the financial period from 3 July 2022 to 30 September 2023.

 

These accounts have been prepared to 30 September 2023, consistent with Barkby Group policy.

1.3
Going concern

The Directors assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The Directors make this assessment in respect of a period of at least one year from the date of signing of the accounts. The company is reliant on funding from its parent company Roadside Real Estate plc (formerly Barkby Group plc) in order to meet its obligations. The Directors have received assurances from the parent company that it will continue to support the company, including not recalling any intercompany balances due where such a recall might cause the company not to continue as a going concern, to enable it to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements. The Directors have also received assurances that no related party balances will be recalled. At the date of signing of the accounts the Together Finance facility has been renewed for another 12 months until January 2026.true

 

The Directors have completed profitability and cash flow forecasts as part of the wider consideration of going concern. Based on this review and the availability of support from the Company's ultimate parent company, Roadside Real Estate plc (formerly Barkby Group plc), the Directors consider that the going concern basis of accounting in preparing the accounts is appropriate.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Revenue is recognised when the company transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.5
Investment property

Investment properties are properties which the Company owns, does not occupy for its own use and are held for either long term rental yields, or capital appreciation, or both. Investment properties also include property that is being developed or constructed for future use as investment property by the Company.

Investment properties comprise freehold land and buildings and are measured at fair value.

At the end of a financial period the fair value are determine by a range of valuation techniques, including independent valuations prepared in accordance with the current edition of the Appraisal and Valuation Standards published by the Royal Institution of Chartered Surveyors and valuations prepared based on the discounted future net cash inflows the site is expected to generate in its forecast use, taking into account the current status of the site and the expected costs to complete the development. The fair value based on these development appraisals, therefore reflects current market conditions, future rental income (where lease agreements have been contractual agreed) and the residual value of site after taking into account the costs and revenue from the development of the property.

There are a number of significant assumptions in these development appraisal valuations and a change in these assumptions could result in a significant change in the fair value of investment properties and therefore have a material effect on the Company’s results.

A transfer to the fair value reserve is made for all fair value gains in the period from retained earnings. Where there have been previous fair value gains transferred to the fair value reserve and fair value losses have been incurred in the year then a transfer is made to retained earnings to offset as much of the fair value losses as possible.

At each subsequent reporting date, investment properties are re-measured to their fair value. Movements in fair value are included in the income statement.

Development properties

Development properties are valued at the lower of cost and net realisable value. Cost includes the costs of purchasing the property and the costs of developing the property to its current condition. When the property has been transferred from investment property, cost includes the fair value of the property at the point it is transferred to development as its deemed cost. Net realisable value reflects the estimated selling price of the property less the costs to complete the development and sell the property.

A transfer from the fair value reserve to retained earnings is made if any net realisable value provision is required on any development property where gains had previously been recorded as an investment property.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

 

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Fair value measurement

IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.

1.7
Cash and cash equivalents

Cash and cash equivalents 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 assets

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

 

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and BREL's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which BREL has applied the practical expedient, BREL initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which BREL has applied the practical expedient are measured at the transaction price determined under IFRS 15. Further details of how transaction price is determined for each revenue stream is detailed within the revenues accounting policy.

Financial assets held at amortised cost

BREL measures financial assets at amortised cost if both of the following conditions are met:

 

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. BREL's financial assets held at amortised cost includes VAT recoverable and other receivables.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

BREL recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that TAL expects to receive, discounted at an approximation of the original. effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. BREL's financial liabilities include trade and other payables and amounts due to related parties.

 

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 15 -
2
Critical accounting estimates and judgements

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. If the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

 

Key sources of estimation uncertainty

 

Valuation of work in progress

The work in progress is valued in the accounts at the lower of cost and estimated selling price less costs to complete and sell. If management consider any changes to the valuation these are processed from when management consider these changes to have occurred.

 

Valuation of Investment Property

The fair value of investment property reflects, amongst other things, assumptions about rental income from future leases and the possible outcome of planning applications in consideration of current market conditions. Where fair value is based on their ultimate redevelopment potential, the valuation has been arrived at based on development appraisals undertaken to estimate the residual value of the landholding after due regard to the cost of, and revenue from, the development of the property.

The Directors’ values reported are based on significant assumptions and a change in fair values could have a material impact on the Group’s results. This is due to the sensitivity of fair value to the assumptions made as regards to variances in development costs compared to management’s own estimates.

 

3
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the period is stated after charging/(crediting):
£
£
Cost of inventories recognised as an expense
-
0
1,763,882

The fee payable for the audit of the company was borne by the company's ultimate parent company, Roadside Real Estate Plc.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 16 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
1,000
-
5
Employees

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

2023
2022
Number
Number
Directors
4
4
6
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,295,181
396,680
Interest payable to group undertakings
-
0
5,482
1,295,181
402,162
7
Taxation
2023
2022
£
£

The charge for the period can be reconciled to the (loss)/profit per the income statement as follows:

2023
2022
£
£
(Loss)/profit before taxation
(2,341,194)
1,931,148
Expected tax (credit)/charge based on a corporation tax rate of 21.00% (2022: 19.00%)
(491,651)
366,918
Utilisation of tax losses not previously recognised
-
0
(320,321)
Unutilised tax losses carried forward
491,651
-
0
Group relief
-
0
(46,597)
Taxation charge for the period
-
-
ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 17 -
8
Investment property
2023
£
Cost
At 3 July 2022
2,491,648
Additions through acquisition
1,145,879
Transfers from inventories
1,988,352
Fair value adjustment
(855,879)
At 30 September 2023
4,770,000

The Directors’ valuations are based on what is determined to be the highest and best use and professional guidance is utilised where appropriate. When considering the highest we consider the properties actual and potential uses which are physically, legally and financially viable. Where the highest and best use differs from the existing use, then we consider the cost and the likelihood of achieving and implementing this change in arriving at its valuation. In the current period, the Group’s investment properties have been valued by an independent professional valuer in accordance with approved RICS methodology.

9
Inventories
2023
2022
£
£
Work in progress
216,716
275,807
Work in progress written off
(47,867)
(65,873)
168,849
209,934
10
Trade and other receivables
2023
2022
£
£
VAT recoverable
36,544
-
Amounts owed by fellow group undertakings
3,124,301
-
0
Amounts owed by related parties
94,852
-
Other receivables
-
4,315
3,255,697
4,315

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

 

Other debtors are the company's cash held by the company's lawyers in their client account.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 18 -
11
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Borrowings
12
4,425,545
-
0
5,530,000
1,743,164
Trade and other payables
13
385,813
401,430
-
0
-
0
Taxation and social security
-
366,562
-
-
4,811,358
767,992
5,530,000
1,743,164
12
Borrowings
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Borrowings held at amortised cost:
Other loans
4,425,545
-
5,530,000
1,743,164

The borrowings of the company are secured over a fixed charge of the land included as part of the property development.

13
Trade and other payables
2023
2022
£
£
Trade payables
307,940
291,290
Amounts owed to fellow group undertakings
272
13,922
Amounts owed to related parties
-
0
42,254
Accruals and deferred income
61,239
53,964
Deferred consideration
16,362
-
0
385,813
401,430
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
500
500
500
500

All ordinary shares have full and equal rights to participate in voting and in dividends and capital distributions.

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 19 -
15
Capital risk management

Capital management

The Company's objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide the returns for the Roadside Real Estate Group and its shareholders, and benefits for other stakeholders, to operate within the terms of the Roadside Real Estate Group's loan agreements and to maintain an optimal capital structure to reduce the cost of capital.

 

General objectives, policies and processes - risk management

The Company is exposed through its operations to financial instrument risks in the areas of credit risk and liquidity risk. The Board reviews each of these risks and agrees policies for managing them that seek to reduce as far as possible without unduly affecting the Company's competitiveness and flexibility. The policy foreach of the above risks is described in more detail below.

 

Credit risk

Credit risk is the risk that the property project fails to complete and funds are not realised to settle the Company's obligations to third parties. The Company only undertakes projects where there is a defined future tenant or prospect for sale of the property.

 

Liquidity risk

Liquidity risk arises from BREL the Company's management of working capital and is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due. The Company's policy is to review funding in line with operational cash flow requirements and arrange sufficient funding from related parties:

ROADSIDE REAL ESTATE (MALDON) LIMITED (PREVIOUSLY BARKBY REAL ESTATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 20 -
16
Related party transactions
Remuneration of key management personnel

No remuneration has been paid to the directors, who are key management personnel, during the current and prior year.

 

Other transactions with related parties

As noted in section 1.3 Going Concern, the Company has access to funding from Tarncourt Investments LLP, a related party. During the year the Company repaid £73,267.05 to Tarncourt Investments LLP.

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Parent company
272
-
0
Other Group subsidiaries
-
0
13,922
Other related parties
-
0
42,254
272
56,176

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Other Group subsidiaries
3,124,031
-
Other related parties
94,852
-
3,218,883
-
Other information

Mr C Dickson has provided a personal guarantee to the lenders in relation to borrowings of the company.

17
Controlling party

The ultimate (and immediate) parent company is Roadside Real Estate Plc (formerly Barkby Group Plc). The results of the company are consolidated in the financial reports of Roadside Real Estate Plc. The consolidated financial statements of Roadside Real Estate Plc are available at www.roadsideplc.com/investor/documents/, or by writing to Roadside Real Estate Plc, 115N Innovation Drive, Milton Park, Abingdon, Oxfordshire OX14 4RZ.

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