Company Registration No. 01558287 (England and Wales)
Groundmere Limited
Financial statements
for the year ended 31 July 2024
Pages for filing with the registrar
Groundmere Limited
Contents
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
Groundmere Limited
Statement of financial position
As at 31 July 2024
1
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
4
7,599,255
8,670,000
Investments
5
6,649,702
6,135,660
14,248,957
14,805,660
Current assets
Debtors
6
252,624
194,986
Cash at bank and in hand
169,283
40,688
421,907
235,674
Creditors: amounts falling due within one year
7
(682,743)
(804,053)
Net current liabilities
(260,836)
(568,379)
Total assets less current liabilities
13,988,121
14,237,281
Provisions for liabilities
(113,819)
(305,269)
Net assets
13,874,302
13,932,012
Capital and reserves
Called up share capital
9
6,000,000
6,000,000
Revaluation reserve
855,947
790,559
Profit and loss reserves
7,018,355
7,141,453
Total equity
13,874,302
13,932,012

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 20 February 2025 and are signed on its behalf by:
John Clink CBE
Director
Company Registration No. 01558287
Groundmere Limited
Statement of changes in equity
For the year ended 31 July 2024
2
Share capital
Fair value reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2022
6,000,000
2,644,310
6,931,404
15,575,714
Year ended 31 July 2023:
Loss for the year
-
-
(1,643,702)
(1,643,702)
Fair value movement
-
0
(2,209,848)
2,209,848
-
0
Realised surplus
-
(39,890)
39,890
-
Deferred tax on fair value movement
-
395,987
(395,987)
-
Balance at 31 July 2023
6,000,000
790,559
7,141,453
13,932,012
Year ended 31 July 2024:
Loss for the year
-
-
(57,710)
(57,710)
Fair value movement
-
0
235,023
(235,023)
-
0
Realised surplus
-
68,979
(68,979)
-
Deferred tax on fair value movement
-
(238,614)
238,614
-
Balance at 31 July 2024
6,000,000
855,947
7,018,355
13,874,302
Groundmere Limited
Notes to the financial statements
For the year ended 31 July 2024
3
1
Accounting policies
Company information

Groundmere Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 Threadneedle Street, London, EC2R 8JB.

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 and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Directors have considered several factors in concluding that the adoption of a going concern basis is appropriate in the preparation of these financial statements. The income generating activities of the company are considered sufficient to enable it to meet its obligations in the coming year.

1.3
Turnover

Turnover represents rents receivable accounted for on an accruals basis. Dividend income is accounted for in the period in which the company is entitled to receipt.

1.4
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.

1.5
Cash at bank and in hand

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.

1.6
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.

Groundmere Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies (continued)
4
Basic financial assets

Basic financial assets, which include debtors, 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
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.

1.8
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.

Groundmere Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies (continued)
5
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Leases

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
Critical accounting 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 property

The valuation was made by reference to the previous third party valuation and updated with reference to market conditions.

3
Employees

The company did not employ any staff in the year (2023: no employees).

Groundmere Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
6
4
Investment property
2024
£
Fair value
At 1 August 2023
8,670,000
Revaluations
(1,070,745)
At 31 July 2024
7,599,255

Investment properties comprise of office buildings. The directors consider the value of the properties shown in the financial statements as at 31 July 2024 to represent their fair value. The properties were valued at 31 July 2024 by Nigel Gammon, a member of the Royal Institute of Chartered Surveyors employed by the Merchant Taylors' group, on the basis of market value in accordance with the Statements of Asset Valuation Practice and Guidance Notes published by the Royal Institute of Chartered Surveyors.

 

The valuation has been informed by the previous third party valuation performed by Knight Frank for the year ended 31 July 2023 and updated with reference to market conditions.

 

On a historical cost basis the investment properties would have been included at £8,336,266 (2023: £8,336,266).

 

5
Fixed asset investments
2024
2023
£
£
Other investments other than loans
6,649,702
6,135,660
Fixed asset investments revalued

The fair value of the listed investments is based on quoted market prices.

Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 August 2023
6,135,660
Additions
2,194,991
Valuation changes
568,756
Cash movement
85,291
Disposals
(2,334,996)
At 31 July 2024
6,649,702
Carrying amount
At 31 July 2024
6,649,702
At 31 July 2023
6,135,660
Groundmere Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
7
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
152,861
183,472
Other debtors
99,763
11,514
252,624
194,986
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
9,177
1,247
Amounts owed to group undertakings
374,114
649,797
Corporation tax
55,467
39,143
Other taxation and social security
97,347
10,173
Other creditors
146,638
103,693
682,743
804,053

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

8
Deferred taxation

The following are the major deferred tax liabilities recognised by the company:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
268,243
261,076
Revaluations
(154,424)
44,193
113,819
305,269
2024
Movements in the year:
£
Liability at 1 August 2023
305,269
Credit to profit or loss
(191,450)
Liability at 31 July 2024
113,819
Groundmere Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
8
9
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
6,000,000 Ordinary shares of £1 each
6,000,000
6,000,000
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Cara Turtington
Statutory Auditors:
Saffery LLP
Date of audit report:
24 February 2025
11
Related party transactions

The company has taken advantage of the exemption from disclosing transaction with members within a wholly owned group. Amounts outstanding at the year end are included in the Debtors and Creditors note.

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