REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Year Ended 31 May 2024 |
for |
EPSOM PROPERTY DEVELOPMENTS LIMITED |
REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Year Ended 31 May 2024 |
for |
EPSOM PROPERTY DEVELOPMENTS LIMITED |
EPSOM PROPERTY DEVELOPMENTS LIMITED (REGISTERED NUMBER: 06251390) |
Contents of the Financial Statements |
for the year ended 31 May 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Accountants' Report | 8 |
EPSOM PROPERTY DEVELOPMENTS LIMITED |
Company Information |
for the year ended 31 May 2024 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Accountants: |
Aissela |
46 High Street |
Esher |
Surrey |
KT10 9QY |
EPSOM PROPERTY DEVELOPMENTS LIMITED (REGISTERED NUMBER: 06251390) |
Balance Sheet |
31 May 2024 |
2024 | 2023 |
Notes | £ | £ |
Current assets |
Stocks |
Debtors | 4 |
Cash at bank |
Creditors |
Amounts falling due within one year | 5 |
Net current assets/(liabilities) | ( |
) |
Total assets less current liabilities | ( |
) |
Creditors |
Amounts falling due after more than one year |
6 |
Net liabilities | ( |
) | ( |
) |
Capital and reserves |
Called up share capital | 9 |
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. |
The financial statements were approved by the Board of Directors and authorised for issue on |
EPSOM PROPERTY DEVELOPMENTS LIMITED (REGISTERED NUMBER: 06251390) |
Notes to the Financial Statements |
for the year ended 31 May 2024 |
1. | Statutory information |
Epsom Property Developments Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
EPSOM PROPERTY DEVELOPMENTS LIMITED (REGISTERED NUMBER: 06251390) |
Notes to the Financial Statements - continued |
for the year ended 31 May 2024 |
2. | Accounting policies |
Basis of preparing the financial statements |
Going concern |
The financial statements are prepared on a going concern basis. |
Going concern overview: |
Financial statements are required to be prepared on a going concern basis, unless that basis is not appropriate. An entity is a going concern unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative to do so. |
If the going concern basis was not appropriate then the assets and liabilities would need to be stated on a break-up basis, which can entail reduced asset values and increased liabilities. |
Below is a summary of key matters considered by the directors to support that the going concern basis is appropriate. |
Bank loan: |
A new loan facility was agreed for a five year term from the first drawdown in May 2024, with repayments during the term to be on an interest only basis, subject to compliance with financial covenants. The bank loan is secured on the assets of the entity, plus on another property owned by a partnership in which two of the directors and one of the shareholders are partners in the partnership. |
Two directors are guarantors for the current bank loan. |
Other financing: |
Additional funding has been provided by a company under the control of a director. The funding at 31 May 2024 amounted to £580,661. There is no intention for that funding to be withdrawn and an undertaking has been given by that company to continue to provide sufficient finance for the company to continue trading for at least 12 months from the date these financial statements are approved. |
Marketplace: |
The company's stock comprises a property, the value of which is intended to be realised from the granting of long leases on residential apartments constructed by the company. |
The downturn in the property market since construction adversely affected the original anticipated market value of property in stock, however this is expected to reverse over time. In instances where the directors believe that a profit will be realised by holding back the grant of long leases until the market improves, they arrange for the property to be temporarily let on short tenancies, to generate income for the company to cover the interest on the bank loan and the company operating costs. |
Predicting changes in the values of properties over the coming 12 months is inherently difficult with so many variables affecting demand and the supply of property in particular locations. In the short-term property values could fluctuate significantly, however, in the long-term residential property values have historically proven to be resilient, showing good average growth over time. |
When short tenancies are due for expiry, the directors reassess whether the market is right to sell a long lease on the property, and if not will re-let on another short tenancy basis. Where it is decided to re-let and an existing tenant chooses not to renew, the directors are confident that the accommodation offered by the company would attract new tenants, should that be required. |
Liquidity: |
If there are significant repairs required to the property over the coming 12 months and the company has insufficient cash available at that time, the cost of the repairs will be funded by a director or a company under the control of a director. |
If needed, additional funding will also be provided by a company under the control of a director, to enable the company to meet its liabilities as they fall due. |
EPSOM PROPERTY DEVELOPMENTS LIMITED (REGISTERED NUMBER: 06251390) |
Notes to the Financial Statements - continued |
for the year ended 31 May 2024 |
Directors' conclusion on going concern: |
Having taken into consideration all of the foregoing, the directors have concluded that it remains appropriate to adopt the going concern basis for the preparation of the financial statements, as they believe the company will continue to be in business, with neither the necessity of liquidation or requirement to cease to carrying on in business for a period of at least 12 months from the date of approval of these financial statements. |
Key source of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
Stock is stated at the lower of cost and net realisable value. There is estimation uncertainty in arriving at an opinion of the net realisable value of stock due to the many influencing factors on property market values outside of the company's control. |
There is estimation uncertainty in calculating bad debt provisions. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable. |
There is estimation uncertainty in calculating deferred tax. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of. |
Turnover |
Turnover is stated net of value added tax and comprises the following: |
Rents receivable, excluding service charges and insurance matched with a specific disbursement recognised as they accrue; |
Amounts receivable from property dealing are recognised on sale completion. |
Stocks |
Stocks comprise the amounts paid or payable by the company for property purchases and development costs. |
On sale of stock property the costs are transferred to cost of sales. For part disposals of property the total costs are apportioned on a just and reasonable basis, to establish the amount transferred to cost of sales. |
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts. |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
Taxation |
Taxation for the year comprises current tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
EPSOM PROPERTY DEVELOPMENTS LIMITED (REGISTERED NUMBER: 06251390) |
Notes to the Financial Statements - continued |
for the year ended 31 May 2024 |
3. | Employees and directors |
The average number of employees during the year was NIL (2023 - NIL). |
4. | Debtors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Called up share capital not paid |
Prepayments and accrued income |
5. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 7) |
Trade creditors |
Other creditors |
Directors' current accounts | 1,576 | 1,576 |
Accruals and deferred income |
6. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Bank loans (see note 7) |
7. | Loans |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
8. | Secured debts |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
The bank loan has been secured by a first legal charge over the freehold property included in stock and a charge over the other assets of the company. |
Two directors have given a joint and several personal guarantee to secure amounts owed to the bank. |
The bank also has a charge against non-company assets, as additional security. |
EPSOM PROPERTY DEVELOPMENTS LIMITED (REGISTERED NUMBER: 06251390) |
Notes to the Financial Statements - continued |
for the year ended 31 May 2024 |
9. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1 | 2 | 2 |
10. | Related party disclosures |
Other creditors includes £1,576 (2023: £1,576) owed to a director. |
Two directors have given a personal guarantee to secure amounts owed to the bank. |
As part of the re-financing that took place during the year, a property that is owned by a partnership where two directors and one shareholder are partners in the partnership, is used as security against the bank loan. |
Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
Epsom Property Developments Limited |
The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Epsom Property Developments Limited for the year ended 31 May 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us. |
This report is made solely to the Board of Directors of Epsom Property Developments Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Epsom Property Developments Limited and state those matters that we have agreed to state to the Board of Directors of Epsom Property Developments Limited, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that Epsom Property Developments Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Epsom Property Developments Limited. You consider that Epsom Property Developments Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of Epsom Property Developments Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
Aissela |
46 High Street |
Esher |
Surrey |
KT10 9QY |