Company registration number 03978624 (England and Wales)
CITY LIFE PROJECTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
CITY LIFE PROJECTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 13
CITY LIFE PROJECTS LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
5
3,495,038
3,356,210
Current assets
Stocks
6
35,516
32,134
Debtors
7
234,415
142,014
Cash at bank and in hand
84,039
34,347
353,970
208,495
Creditors: amounts falling due within one year
8
(1,040,584)
(1,131,327)
Net current liabilities
(686,614)
(922,832)
Total assets less current liabilities
2,808,424
2,433,378
Creditors: amounts falling due after more than one year
9
(1,154,942)
(663,466)
Provisions for liabilities
Deferred tax liability
11
76,238
44,758
(76,238)
(44,758)
Net assets
1,577,244
1,725,154
Capital and reserves
Called up share capital
12
1
1
Distributable profit and loss reserves
1,577,243
1,725,153
Total equity
1,577,244
1,725,154
The notes on pages 4 to 13 form part of these financial statements.
CITY LIFE PROJECTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2023
31 October 2023
- 2 -
For the financial year ended 31 October 2023 the company was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 21 February 2025 and are signed on its behalf by:
Mr J Flanagan
Mr P P Flanagan
Director
Director
Company registration number 03978624 (England and Wales)
CITY LIFE PROJECTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 October 2022:
Balance at 1 November 2021
1
810,323
(965,346)
(155,022)
Effect of change in accounting policy
-
68,342
68,342
As restated
1
810,323
(897,004)
(86,680)
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
2,622,157
2,622,157
Other movements
-
(810,323)
-
(810,323)
Balance at 31 October 2022
1
1,725,153
1,725,154
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
-
(147,910)
(147,910)
Balance at 31 October 2023
1
1,577,243
1,577,244
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
1
Accounting policies
Company information
City Life Projects Limited is a private company limited by shares incorporated in England and Wales. The registered office is Atlantic House, 143 Sefton Street, Liverpool, England, L8 5SN.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Flanagan Group Limited. These consolidated financial statements may be obtained from Companies House,
1.2
Going concern
The hospitality industry continues to be impacted by the effects of the COVID pandemic. Atruet the time of approving the financial statements, the directors have recognise the company's requirement for additional financial support.The Flanagan Group Limited of which City Life Projects is a subsidiary refinanced its borrowing during the year. The company is now largely reliant on group financial support. In light of this the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised when services have been rendered. The turnover of the Company is derived primarily from rental of rooms, conference and banqueting, food and beverage sales.
Turnover is all rendering of goods and services.
Turnover is measured at fair value of the consideration received, excluding discounts, rebates and value added tax.
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.
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on valuation
Property improvements
2% on cost
Fixtures and fittings
10% on cost
Computers
25% reducing balance
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.
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. To the extent impairment loss exceeds the revaluation reserve relating to the assets that have been impaired, the the loss is recognised in the profit and loss account.
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
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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.
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 6 -
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
1.9
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 profit and loss account, 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.
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 7 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
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.
3
Exceptional item
The comparative figures include exceptional items which were a credit of £2,912,173 in respect of a settlement agreement and an expense of £1,614,764 for loss on revaluation of freehold properties.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
3
3
Bar and hotel staff
94
91
Total
97
94
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
4
Employees
(Continued)
- 8 -
Directors are remunerated in other Group entities.
5
Tangible fixed assets
Freehold land and buildings
Property improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost or valuation
At 1 November 2022
3,136,917
971,839
27,830
4,136,586
Additions
179,001
19,192
198,193
At 31 October 2023
3,136,917
179,001
991,031
27,830
4,334,779
Depreciation and impairment
At 1 November 2022
758,559
21,817
780,376
Depreciation charged in the year
2,619
53,394
3,352
59,365
At 31 October 2023
2,619
811,953
25,169
839,741
Carrying amount
At 31 October 2023
3,136,917
176,382
179,078
2,661
3,495,038
At 31 October 2022
3,136,917
213,280
6,013
3,356,210
The carrying value of land and buildings comprises:
2023
2022
£
£
Freehold
3,136,917
2,500,000
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Fixtures and fittings
6,949
8,032
The directors have revalued the hotel properties using the 2019 professional valuation as a reference point and considering subsequent market value movements. This has meant restating the position as at 31 October 2022.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been:-
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
5
Tangible fixed assets
(Continued)
- 9 -
2023
2022
£
£
Cost
3,599,782
3,599,782
Accumulated depreciation
(1,457,018)
(1,385,023)
Carrying value
2,142,764
2,214,759
6
Stocks
2023
2022
£
£
Finished goods and goods for resale
35,516
32,134
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
97,787
90,907
Amounts owed by group undertakings
15,000
Other debtors
121,736
51,215
Prepayments and accrued income
(108)
(108)
234,415
142,014
8
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
1,128
2,707
Other borrowings
10
25,561
36,209
Trade creditors
155,207
87,790
Corporation tax
490,126
539,864
Other taxation and social security
133,433
181,347
Other creditors
203,825
204,178
Accruals and deferred income
31,304
79,232
1,040,584
1,131,327
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
9
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
1,128
Other borrowings
10
1,154,942
662,338
1,154,942
663,466
Fellow subsidiary undertakings are not seeking repayment of loans within the next twelve months.
10
Loans and overdrafts
2023
2022
£
£
Loans from related parties
1,154,942
662,338
Other loans
25,561
36,209
1,180,503
698,547
Payable within one year
25,561
36,209
Payable after one year
1,154,942
662,338
On 24 June 2020, a government Bounce Back loan was taken out totalling £50,000.00 to help with difficulties as a result of the Coronavirus pandemic. The repayment terms of which are over 6 years with 1 year interest free with 2.5% interest on the subsequent 5 years.
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
76,238
44,758
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11
Deferred taxation
(Continued)
- 11 -
2023
Movements in the year:
£
Liability at 1 November 2022
44,758
Charge to profit or loss
31,480
Liability at 31 October 2023
76,238
The deferred tax liability set out above relates to accelerated capital allowances.
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
The company has one class of ordinary share which carries full voting rights, full rights in respect of dividends and full rights in respect of capital.
13
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2023
2022
£
£
Other related parties
-
128,591
Rent payable
2023
2022
£
£
Other related parties
-
3,600
2023
2022
Amounts due to related parties
£
£
Other related parties
1,154,942
662,338
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
13
Related party transactions
(Continued)
- 12 -
During the year the company rented part of a property owned by a related party. Rent was charged at a commercial rate.
The balance outstanding due from the directors at year end was £4,655 (2022: £nil)
No interest has been charged to the company in respect of these loans which are repayable on demand and classified as debtors due within one year.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
15,000
-
14
Ultimate controlling party
Flanagan Group Limited is deemed to be the Company's controlling party by virtue of it's 100% holding of the entity's issued share capital. Voting rights follow the shareholdings
Flanagan Group Limited is the parent undertaking of the largest (and smallest) group for which group accounts are drawn and of which the reporting entity is a member. Copies of the group accounts can be obtained from Companies House.
Largest group
Flanagan Group Ltd
Smallest group
Flanagan Group Ltd
16
Prior period adjustment
CITY LIFE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
16
Prior period adjustment
(Continued)
- 13 -
Reconciliation of changes in equity
1 November
31 October
2021
2022
£
£
Adjustments to prior year
Reversal of property impairment
-
636,917
Late invoiced accommodation sales
68,342
-
Total adjustments
68,342
636,917
Equity as previously reported
(155,022)
1,019,895
Equity as adjusted
(86,680)
1,656,812
Analysis of the effect upon equity
Profit and loss reserves
68,342
636,917
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Reversal of property impairment
636,917
Profit as previously reported
1,985,240
Profit as adjusted
2,622,157
Notes to reconciliation
Correction of fair value of hotel properties and recognition of accommodation sales invoiced late
2023-10-312022-11-01falsefalsefalse21 February 2025CCH SoftwareCCH Accounts Production 2024.310No description of principal activityMr J FlanaganMr P P FlanaganMr J M FlanaganMr P P FlanaganFor the financial year ended 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.039786242022-11-012023-10-31039786242023-10-31039786242022-10-3103978624core:LandBuildingscore:OwnedOrFreeholdAssets2023-10-3103978624core:LeaseholdImprovements2023-10-3103978624core:FurnitureFittings2023-10-3103978624core:ComputerEquipment2023-10-3103978624core:LandBuildingscore:OwnedOrFreeholdAssets2022-10-3103978624core:LeaseholdImprovements2022-10-3103978624core:FurnitureFittings2022-10-3103978624core:ComputerEquipment2022-10-3103978624core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-3103978624core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-3103978624core:Non-currentFinancialInstrumentscore:AfterOneYear2023-10-3103978624core:Non-currentFinancialInstrumentscore:AfterOneYear2022-10-3103978624core:CurrentFinancialInstruments2023-10-3103978624core:CurrentFinancialInstruments2022-10-3103978624core:Non-currentFinancialInstruments2023-10-3103978624core:Non-currentFinancialInstruments2022-10-3103978624core:ShareCapital2023-10-3103978624core:ShareCapital2022-10-3103978624core:RetainedEarningsAccumulatedLosses2023-10-3103978624core:RetainedEarningsAccumulatedLosses2022-10-3103978624core:RevaluationReservecore:PriorPeriodIncreaseDecrease2021-10-3103978624core:RetainedEarningsAccumulatedLossescore:PriorPeriodIncreaseDecrease2021-10-3103978624core:ShareCapital2021-10-3103978624core:RevaluationReserve2021-10-3103978624core:RetainedEarningsAccumulatedLosses2021-10-31039786242021-10-3103978624core:RevaluationReserve2022-10-3103978624core:RevaluationReserve2023-10-3103978624bus:Director12022-11-012023-10-3103978624bus:CompanySecretaryDirector12022-11-012023-10-3103978624core:RetainedEarningsAccumulatedLosses2021-11-012022-10-31039786242021-11-012022-10-3103978624core:RetainedEarningsAccumulatedLosses2022-11-012023-10-3103978624core:LandBuildingscore:OwnedOrFreeholdAssets2022-11-012023-10-3103978624core:LeaseholdImprovements2022-11-012023-10-3103978624core:FurnitureFittings2022-11-012023-10-3103978624core:ComputerEquipment2022-11-012023-10-3103978624core:LandBuildingscore:OwnedOrFreeholdAssets2022-10-3103978624core:LeaseholdImprovements2022-10-3103978624core:FurnitureFittings2022-10-3103978624core:ComputerEquipment2022-10-31039786242022-10-3103978624bus:PrivateLimitedCompanyLtd2022-11-012023-10-3103978624bus:FRS1022022-11-012023-10-3103978624bus:AuditExempt-NoAccountantsReport2022-11-012023-10-3103978624bus:Director22022-11-012023-10-3103978624bus:Director32022-11-012023-10-3103978624bus:CompanySecretary12022-11-012023-10-3103978624bus:SmallCompaniesRegimeForAccounts2022-11-012023-10-3103978624bus:FullAccounts2022-11-012023-10-31xbrli:purexbrli:sharesiso4217:GBP