Company registration number 04252158 (England and Wales)
RESTLANE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
RESTLANE LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 17
RESTLANE LIMITED
COMPANY INFORMATION
Directors
R Tchenguiz
N Martin
Company number
04252158
Registered office
5th Floor Leconfield House
Curzon Street
London
W1J 5JA
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
Business address
5th Floor Leconfield House
Curzon Street
London
W1J 5JA
RESTLANE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present their annual report and financial statements of Restane Limited for the year ended 31 May 2024.
Principal activities
The principal activity of the company is property investment by way of holding a lease in land and buildings.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R Tchenguiz
N Martin
Auditor
The auditor, Gerald Edelman LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
N Martin
Director
20 February 2025
RESTLANE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statement;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
RESTLANE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RESTLANE LIMITED
- 3 -
Opinion
We have audited the financial statements of Restlane Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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's 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 other 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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
RESTLANE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RESTLANE LIMITED (CONTINUED)
- 4 -
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 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
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.
Our audit procedures were primarily directed towards testing the accounting systems in operation which we have based our assessment of the financial statements for the year ended 31 May 2024.
We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.
The extent to which the audit was considered capable of detecting irregularities, including fraud
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
RESTLANE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RESTLANE LIMITED (CONTINUED)
- 5 -
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
Enquiring of management of whether they are aware of any non-compliance with laws and regulations.
Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.
Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journals.
Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation, data protection, anti-bribery, employment and health and safety.
Audit response to risks identified
Fraud due to management override
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships;
Audited the risk of management override of controls, including through testing journal entries for appropriateness;
Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
Irregularities and non-compliance with laws and regulations
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:
Agreeing financial statements disclosures to underlying supporting documentation.
Enquiring of management as to actual and potential litigation claims.
Reviewing correspondence with HMRC.
The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.
Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.
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.
RESTLANE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RESTLANE LIMITED (CONTINUED)
- 6 -
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.
Rowan Lindsay
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
25 February 2025
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
RESTLANE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
1,025,903
1,009,178
Administrative expenses
(143,898)
(268,153)
Exceptional item
3
4,162,708
Operating profit
882,005
4,903,733
Interest receivable and similar income
530,633
338,788
Interest payable and similar expenses
(1,879,555)
(1,936,766)
(Loss)/profit before taxation
(466,917)
3,305,755
Tax on (loss)/profit
(59,244)
(54,495)
(Loss)/profit for the financial year
(526,161)
3,251,260
The income statement has been prepared on the basis that all operations are continuing operations.
RESTLANE LIMITED
STATEMENT OF FINANCIAL POSITION
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Investments
5
1
1
Current assets
Debtors
7
17,813,592
17,301,549
Cash at bank and in hand
207,181
17,900
18,020,773
17,319,449
Creditors: amounts falling due within one year
9
(18,167,454)
(8,851,145)
Net current (liabilities)/assets
(146,681)
8,468,304
Total assets less current liabilities
(146,680)
8,468,305
Creditors: amounts falling due after more than one year
10
(8,148,067)
Provisions for liabilities
(1,083,361)
(1,024,118)
Net liabilities
(1,230,041)
(703,880)
Capital and reserves
Called up share capital
12
1
1
Profit and loss reserves
(1,230,042)
(703,881)
Total equity
(1,230,041)
(703,880)
These financial statements have been prepared 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:
N Martin
Director
Company registration number 04252158 (England and Wales)
RESTLANE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 May 2023:
Balance at 1 June 2022
1
(3,955,141)
(3,955,140)
Year ended 31 May 2023:
Profit and total comprehensive income
-
3,251,260
3,251,260
Balance at 31 May 2023
1
(703,881)
(703,880)
Year ended 31 May 2024:
Loss and total comprehensive income
-
(526,161)
(526,161)
Balance at 31 May 2024
1
(1,230,042)
(1,230,041)
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
1
Accounting policies
Company information
Restlane Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor Leconfield House, Curzon Street, London, W1J 5JA.
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. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
The company recorded a loss for the year of £526,161 (2023: restated profit of £3,251,260) and at the balance sheet date had net liabilities of £1,230,041 (2023: £703,880). In the prior year, the company restructured it's existing funding facilities resulting in the company significantly reducing it's indebtedness and it's quarterly interest payments. The majority of the interest incurred is rolled up into the facility provided by it's parent company. The directors are now confident that the company will be cash generative going forward.
Included within creditors due within 1 year is a Barclays finance facility of £8,200,000 which has been extended from it's due date of January 2025 to January 2026. There is scope to extend this facility through to January 2027.
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the works we have performed, we have not identified any material uncertainties relating to the events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for an period of at least twelve months from the financial statements are authorised or issued.
1.3
Turnover
Finance income on finance leases are recognised in the profit and loss account so as to produce a constant return on the carrying amount. The income is accrued quarterly on the finance lease debtor
Ground rent income is recognised on an invoiced basis, deferring any amounts that relate to future financial periods.
1.4
Fixed asset investments
Investments in associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
Investments are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately on profit or loss.
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 11 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.5
Cash and cash equivalents
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
Classification of 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 deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 12 -
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.
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. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
Current and deferred tax is charged or credited in profit or loss, except when it relates to items charged or credit to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charge or credited to other comprehensive income, or equity.
Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.9
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2
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.
Critical judgements
The following judgements were applicable on amounts recognised in the financial statements,
Deferred taxation
Deferred tax liabilities are assessed on the basis of assumptions regarding the future, the likelihood that assets will be realised and liabilities will be settled, and estimates as to the timing of those future events and as to the future rates that will be applicable.
3
Exceptional item
2024
2023
£
£
Income
Connected entity loan waiver
-
(4,162,708)
During the previous year, the company re-financed it's borrowings and as a result a balance of £4,162,708 was waived by a connected entity.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
2
2
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
1
1
6
Subsidiaries
Details of the company's subsidiaries at 31 May 2024 are as follows:
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
6
Subsidiaries
(Continued)
- 14 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Posthouse Investments Limited
Jersey
Ordinary
50.00
50.00
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
7,680,349
7,315,672
Other debtors
867,182
870,869
8,547,531
8,186,541
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
9,266,061
9,115,008
Total debtors
17,813,592
17,301,549
The amounts owed by group undertakings are unsecured and attract interest at 2% above base rate. In March 2022, the terms of the loan were amended so that the amounts fall due at the earlier of 31 July 2024 or the date at which the debtor notifies the company that it wishes to repay the loan in full and does so repay. The original cost of the finance lease was £6,826,872 (2023: £6,826,872).
The finance lease debtor of £9,266,061 (2023: £9,115,008) comprises the original principal balance, less repayments of the principle balance, plus interest arising on the balance. The finance lease principal repayment due within one year from the end of May 2024 is £829,561 (2023: £829,561) and the accrued interest arising on the outstanding balance within one year from the balance sheet date is £994,614 (2023: £980,630).
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
8
Finance lease receivables
2024
2023
£
£
Gross amounts receivable under finance leases:
Within one year
829,561
829,561
In two to five years
3,414,898
3,318,243
In over five years
59,872,027
60,798,243
64,116,486
64,946,047
Unearned finance income
(54,850,425)
(55,831,039)
Present value of minimum lease payments receivable
9,266,061
9,115,008
The present value is receivable as follows:
In over five years
9,266,061
9,115,008
The finance lease is set up in such a way that the debtor will increase until June 2049 as the unearned income will exceed the repayments until this time. Therefore the entire debtor balance is shown as amounts failing due after more than one year.
9
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
8,180,867
Trade creditors
7,200
Amounts owed to group undertakings
9,524,366
8,596,613
Taxation and social security
49,039
42,658
Other creditors
413,182
204,674
18,167,454
8,851,145
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
8,148,067
The loan bears interest at a rate of SONIA + margin of 1.8% and is repayable in full on the termination date.
The loan is secured by a fixed charge over the shares held in the associate entity by both Restmanor Limited and Restlane Limited.
There is a cross guarantee in place whereby the investment property held directly in Posthouse Investments Limited has been pledged as security against the loan. There is additionally a floating charge over all of the company's assets in relation to the loan.
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Other timing differences
1,083,361
1,024,118
2024
Movements in the year:
£
Liability at 1 June 2023
1,024,118
Charge to profit or loss
59,243
Liability at 31 May 2024
1,083,361
Other timing differences arise on the difference in recognition of net income from the finance lease over the lease term at a constant rate of return and that recognised for tax purposes. These timing differences are not expected to reverse until 2057.
12
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
The company's ordinary shares, which carries right to fixed income, each carry the right to one vote at general meetings of the company.
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
2,585,000
2,640,000
14
Events after the reporting date
The Barclays loan facility was renewed for a further year in January 2025.
RESTLANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
15
Related party transactions
The Company is related to other companies which are owned by trusts of which R Tchenguiz or his close family members are beneficiaries as follows;
At the balance sheet date companies include Rotch Property Group Limited ("Rotch"). During the year Rotch charged the Company management fees of £3,500 (2023: £3,500). Included in amounts owed to related parties is £6,000 (2023: £6,000) due to Rotch.
No interest accrues on these related party balances.
The company has taken advantage of the exemptions provided by Section 33 of FRS 102 'Related Party Disclosures' and has not disclosed transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is party to the transaction is wholly owned by a member of that group.
16
Parent company
The company's immediate parent company is Restmanor Limited, which is domiciled and incorporated in England.
The directors regard the ultimate holding company to be Epsilon Limited, a company incorporated in Guernsey.
The director considers the Company's ultimate controlling party to be the Tchenguiz Discretionary A Trust.
17
Prior period adjustment
Notes to adjustments
During the financial period it was noted that loan balances owed to an intercompany debtor was incorrectly offset against an intercompany creditor and the interest calculated on the net balance rather than the separate gross balances. We have now correctly separated the two balances so there has been an increase in debtors and creditors of £7,151,526.
Interest receivable has been increased by £164,146 with an equal rise in amounts owed by the parent undertaking within debtors and interest payable has been increased by £761,171 with a similar rise in amounts due to the parent undertaking within creditors. This has resulted in a reduction of £597,025 in the profit previously reported for the year ended 31 May 2024.
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