Company registration number 11747311 (England and Wales)
SOUTH TEES DEVELOPMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
SOUTH TEES DEVELOPMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
SOUTH TEES DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
4,410
4,410
Current assets
Debtors
6
2,496,312
6,230,961
Cash at bank and in hand
2,630,395
2,667,493
5,126,707
8,898,454
Creditors: amounts falling due within one year
7
(5,534,544)
(9,306,291)
Net current liabilities
(407,837)
(407,837)
Net liabilities
(403,427)
(403,427)
Capital and reserves
Called up share capital
1
1
Other reserves
9,252,900
9,252,900
Profit and loss reserves
(9,656,328)
(9,656,328)
Total equity
(403,427)
(403,427)

The directors of the company have elected not to include a copy of the profit and loss account 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 12 March 2025 and are signed on its behalf by:
Mr J Barnes
Director
Company Registration No. 11747311
SOUTH TEES DEVELOPMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
1
-
(9,669,488)
(9,669,487)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
13,160
13,160
Other movements
-
9,252,900
-
9,252,900
Balance at 31 March 2023
1
9,252,900
(9,656,328)
(403,427)
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
0
-
0
Balance at 31 March 2024
1
9,252,900
(9,656,328)
(403,427)
SOUTH TEES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information

South Tees Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Teesside Airport Business Suite, Teesside International Airport, Darlington, DL2 1NJ.

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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

At 31 March 202true4 the company reports net current liabilities of £407,837 (2023: £407,837). The significant creditors on the balance sheet relate to amounts owed to South Tees Development Corporation, the immediate parent company, and Tees Valley Combined Authority, the ultimate parent undertaking. The company meets its day to day working capital requirements through cash generated from operations and borrowings and grants from group entities. The directors have received confirmation that the company's ultimate parent undertaking, Tees Valley Combined Authority, will continue to provide financial support to the company for a period of at least twelve months from the date on which these financial statements are signed.Thus, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

The company recognises revenue from the following major sources: Government grants for revenue purposes from Tees Valley Combined Authority are recognised as income over the period in which the company recognises the related costs for which the grant was intended to fund, making neither profit or loss in accordance with FRS 102. Contracts with customers comprise of contracts to manage site assets in the form of a management agreement for services including electricity and site security. This contract revenue is recognised in accordance with FRS 102. The company acts as principal as it controls the site and all activities and hence revenue is recorded as the gross amount billed. The contract is cancellable with notice of not less than one year. Following the year end contracts will either be cancelled or novation will occur with other Tees Valley Combined Authority group members. Other revenue is recognised when goods or services are provided in accordance with the purchase order received from the customer or with written instructions received from an authorised customers.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Freehold land
Not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SOUTH TEES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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.

1.7
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 balance sheet 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.

SOUTH TEES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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.

1.8
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.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

SOUTH TEES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of services
10,005,002
17,948,009
2024
2023
£
£
Other revenue
Grants received
18,367,703
22,635,688

During the period the company received grant funding of £18,367,703 (2023: £31,888,588) from its ultimate parent undertaking, Tees Valley Combined Authority, to cover operational costs and capital works on the site for the period to 31 March 2024.

4
Employees

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

2024
2023
Number
Number
Total
14
16
5
Tangible fixed assets
Land and buildings
£
Cost
At 1 April 2023
4,410
Additions
12,334,105
At 31 March 2024
12,338,515
Depreciation and impairment
At 1 April 2023
-
0
Impairment losses
12,334,105
At 31 March 2024
12,334,105
Carrying amount
At 31 March 2024
4,410
At 31 March 2023
4,410
SOUTH TEES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Tangible fixed assets
(Continued)
- 7 -

Included within the net book value of land and buildings above is £4,410 (2023 - £4,410) in respect of freehold land and buildings.

The tangible fixed assets relate to parcels of land on the Teesworks Site. The land was independently valued by Knight Frank and due to the extensive remediation required the value determined was a significant net negative liability and as such a notional value of a £1 was attributed. Options exist over the site that are in line with the independent valuation.

6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
459,713
3,595,158
Amounts owed by group undertakings
-
0
1,709,148
Other debtors
447,854
-
0
Prepayments and accrued income
1,588,745
926,655
2,496,312
6,230,961

 

7
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts owed to group undertakings
1,860,636
176,037
Taxation and social security
9,338
42,524
Other creditors
1,000,000
1,002,816
Accruals and deferred income
2,664,570
8,084,914
5,534,544
9,306,291

Other creditors includes a £1,000,000 retention amount due as part of the acquisition of freehold land.

8
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:
Joanne Regan FCA
Statutory Auditor:
Azets Audit Services
9
Financial commitments, guarantees and contingent liabilities

The total amount of financial commitments not included in the statement of financial position is £2,774,630 (2023 - £7,819,663 ).

SOUTH TEES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
10
Parent company

The company's immediate parent is South Tees Development Corporation. The most senior parent entity producing publicly available financial statements is Tees Valley Combined Authority. These financial statements are available upon request from on request from Tees Valley Combined Authority, Teesside International Aiport Limited, Darlington, DL2 1LU.

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