Registered number: 03135216
NORTH WEST INDUSTRIAL ESTATES LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MAY 2024
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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COMPANY INFORMATION
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The Royal Bank of Scotland Plc
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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CONTENTS
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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Report to the directors on the preparation of the unaudited statutory financial statements of North West Industrial Estates Limited for the year ended 31 May 2024
We have compiled the accompanying financial statements of North West Industrial Estates Limited (the ‘company’) based on the information you have provided. These financial statements comprise the Statement of Financial Position of North West Industrial Estates Limited as at 31 May 2024, the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information.
We performed this compilation engagement in accordance with International Standard on Related Services 4410 (Revised), 'Compilation Engagements'.
We have applied our expertise in accounting and financial reporting to assist you in the preparation and presentation of these financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). As a member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at www.icaew.com.
These financial statements and the accuracy and completeness of the information used to compile them are your responsibility.
Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on whether these financial statements are prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
This report is made solely to the Company's directors, as a body, in accordance with the terms of our engagement letter dated 3 October 2024. Our work has been undertaken solely to prepare for your approval the financial statements of the company and state those matters that we have agreed to state to the Company's directors, as a body, in this report in accordance with our engagement letter dated 3 October 2024. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its directors, as a body, for our work or for this report.
Grant Thornton UK LLP
Chartered Accountants
Liverpool
25 February 2025
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NORTH WEST INDUSTRIAL ESTATES LIMITED
REGISTERED NUMBER:03135216
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STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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NORTH WEST INDUSTRIAL ESTATES LIMITED
REGISTERED NUMBER:03135216
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MAY 2024
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 5 to 19 form part of these financial statements.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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At 1 June 2022 (as previously stated)
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At 1 June 2022 (as restated)
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Comprehensive income for the year
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Total comprehensive income for the year
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Dividends: Equity capital
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At 1 June 2023 (as restated)
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Comprehensive income for the year
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Total comprehensive income for the year
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Dividends: Equity capital
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The notes on pages 5 to 19 form part of these financial statements.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The company is a private company limited by shares and is registered in England and Wales.
Registered Number: 03135216.
Registered Office: C/o Mason & Partners, The Corn Exchange, Brunswick Street, Liverpool, L2 0PJ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
The directors believe it is appropriate for the financial statements to be prepared on a going concern basis.
The company's bank loan facilities have been extended to December 2026. The company's forecast and projections, taking into account reasonably possible changes in the company's trading performance show that the company should be able to operate for the foreseeable future.
Although there are inevitably inherent uncertainties in the foreseeable future, the directors believe that the company's financial statements should be prepared on the going concern basis.
Turnover is the total amount of rent receivable, service charge receivable and insurance receivable by the company, excluding VAT, and is attributable to the continuing activity of property investment.
Turnover is recognised in the period to which it relates, taking into account provisions for lease incentives. Lease incentives are spread on a straight-line basis over the period to the first rent review date.
Turnover also includes income in respect of dilapidations received and these are recognised on a received basis.
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Operating leases: the Company as lessor
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Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investment property is carried at fair value determined annually by the directors guided by external valuations and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Government grants relating to tangible fixed assets are deducted from the cost of the relevant asset and released to the profit or loss on disposal. Other grants are credited to the profit or loss as the related expenditure is incurred.
This is a departure from the Companies Act 2006, which requires assets to be shown at their purchase price or production cost and hence grants to be presented as deferred income. This departure from the requirement of the Act is, in the opinion of the directors, necessary to give a true and fair view as no provision is made for depreciation of investment properties and accordingly no basis exists on which to recognise grants as deferred income. The effect of this departure is that the historical cost net book value of freehold investment properties is £1,769,372 lower than it would otherwise have been.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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The Company has no employees other than the 3 directors (2023: 3) who did not receive any remuneration (2023: £Nil).
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Dividends paid of £750.00 per A Ordinary share (2023: £750.00)
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Dividends paid of £750.00 per B Ordinary share (2023: £750.00)
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Charge for the year on owned assets
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Investments in subsidiary companies
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Loans to related companies
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The following was a subsidiary undertaking of the Company:
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The Oaks Office Park (Little Stanney) Management Company Limited
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Freehold investment property
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Long term leasehold investment property
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The 2021 valuations were made by an independent third party, on a fair value for existing use basis. The directors consider the fair value of investment property to remain consistent as at 31 May 2024.
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If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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Historic cost less any permanent diminution
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Amounts owed by related parties
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to related parties
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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The bank loans are secured by a fixed and floating charge over the company's investment property assets and negative pledge, and is repayable in July 2026. Interest is charged at 2.35% per annum, over LIBOR.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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The company has a contingent liability to the European Regional Development Fund for £903,047 (2023: £903,047) in respect of a grant received for the development of a certain investment property. This amount is repayable in the event the company ceases to comply with certain criteria within a 20 year period from December 2005.
The company has a contingent liability to the North West Development Agency for £866,325 (2023: £866,325) in respect of a grant received for the development of a certain investment property. This amount is repayable in the event the company ceases to comply with certain criteria within a 20 year period from December 2006.
In addition, during the year ended 31 May 2006, the company disposed of two properties, for which grant funding totalling £346,378 had been received. Under the terms of the agreement, the grant funding received can be recalled by the grant body as the company no longer owns the assets and, as such, a provision of £108,456 (2023: £108,456) has been made within the financial statements and is included within other creditors. The remaining amount may be recalled if further conditions are not met.
The operating leases represent leases of investment property to third parties. The leases are negotiated over various terms of the lease.
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At 31 May 2024 the Company had future minimum lease rental receipts due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Related party transactions
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Services provided to North West Industrial Estates Limited
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Services provided by North West Industrial Estates Limited
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Owed by North West Industrial Estates Limited
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Owed to North West Industrial Estates Limited
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Brunswick Business Park Limited
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The Corn Exchange Consortium
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The Oaks Management Company Limited
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Business Homes Cardonald Park Limited
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Related party transactions (continued)
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Services provided to North West Industrial Estates Limited
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Services provided by North West Industrial Estates Limited
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Owed by North West Industrial Estates Limited
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Owed to North West Industrial Estates Limited
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North West Retail Investments Limited
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Brunswick Business Park Limited
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The Corn Exchange Consortium
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Perrers Properties Limited
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The Oaks Management Company Limited
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Business Homes Cardonald Park Limited
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A provision for bad debts has been included, amounting to £1,375,123 (2023: £1,375,123) in relation to monies owed from Liverpool Film Studios Limited. The balance of £Nil (2023: £Nil) is receivable after the provision has been made.
The balance owed from North West Retail Investments Limited includes an unsecured loan amounting to £Nil (2023: £398,084) provided to the company. There is no fixed repayment date and interest is charged at 2% above the bank's base rate. Interest receivable from North West Retail Investments Limited during the year amounted to £2,023 (2023: £1,298).
Included within amounts owed by related parties is a client account due from Mason Partners LLP amounting to £3,002,830 (2023: £2,059,903). There is no fixed repayment date and interest is charged quarterly at 2% above the bank's base rate. Included in the amount owed was interest receivable from Mason Partners LLP during the year amounting to £30,741 (2023: £10,936) which remains unpaid at 31 May 2024.
The balance owed from Business Homes Cardonald Park Limited includes a loan made by North West Industrial Estates Limited, which has a carrying amount of £539,000 (2023: £531,000). The total loan balance owed from Business Homes Cardonald Park Limited amounts to £895,227 (2023: £885,227). A provision for bad debts has been included, amounting to £356,227 (2023: £354,227) in relation to monies owed from Business Homes Cardonald Park Limited. The balance is disclosed as an investment in the notes to the financial statements. The loan is unsecured.
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NORTH WEST INDUSTRIAL ESTATES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Deferred tax has previously not included unused capital losses amounting to £542,599. Under accounting standards, this can be offset against future capital gains and therefore a prior year adjustment has been processed to reduce the deferred tax provision and increase the revaluation reserve by £542,599.
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