Company registration number 05743551 (England and Wales)
PROPERTY CAPITAL PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PROPERTY CAPITAL PLC
COMPANY INFORMATION
Directors
J S Hennessey
R S Lever
Mrs M Hennessey
(Appointed 2 April 2024)
Secretary
P J Bibby
Company number
05743551
Registered office
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
Business address
Ascot House
51 Water Street
Radcliffe
Manchester
M26 3DE
Bankers
Santander UK
Bridle Road
Bootle
Merseyside
L30 4GB
PROPERTY CAPITAL PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
PROPERTY CAPITAL PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Fair review of the business
Property Capital PLC is primarily a land trading company which identifies market opportunities to enhance the value of land through various strategic methods including improved planning, remediation and promotion.
Funding is a mixture of shareholder support together with existing generated income.
The directors are pleased with the current years performance and the company will continue to reinvest in new opportunities.
Principal risks and uncertainties
The company uses various financial instruments including loans and various other items, such as debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company’s operations.
The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. The directors review and agree policies for managing these risks. These policies have remained unchanged from previous years.
Market risk
Whilst there are short-term uncertainties within the market place due top inflation, interest rises and the Ukraine war, the Board are of the opinion that there is still as severe shortage in the number of new houses being built to meet market demand and population growth, we therefore continue to seek out opportunities that will supplement growth in a controlled manner and have faith in the market place in the medium term.
Liquidity risk
The company seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Interest rate risk
The company finances its operations through a combination of retained profits and loans. The group exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.
Key performance indicators
The company reviews and monitors its performance against a number of key performance indicators both financial and non-financial. The principal measures include net assets and fundamentally the performance and financial position of its trading subsidiary. These are reviewed by the management team and reported to the Board on a monthly basis.
The Directors have and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.
The main KPI’s and corresponding results are as follows:
| | | | | | |
Profit after tax for the year | | | | |
| | | | | |
| | | | | | |
The company objectives continue to be to maximise the long-term value of the assets under our control and enhance future revenue streams.
Future developments
We hold current contracts which are due for completion in 2025 and are currently negotiating several potential long term projects.
PROPERTY CAPITAL PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
J S Hennessey
Director
11 March 2025
PROPERTY CAPITAL PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company is that of property development and land trading.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J S Hennessey
R S Lever
Mrs M Hennessey
(Appointed 2 April 2024)
Auditor
Sumer Auditco Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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 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 statements; and
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.
PROPERTY CAPITAL PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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.
On behalf of the board
J S Hennessey
Director
11 March 2025
PROPERTY CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROPERTY CAPITAL PLC
- 5 -
Opinion
We have audited the financial statements of Property Capital Plc (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 30 September 2024 and of its profit 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PROPERTY CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROPERTY CAPITAL PLC
- 6 -
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 Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where 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.
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.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to health and safety, employment laws and data protection.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.
PROPERTY CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROPERTY CAPITAL PLC
- 7 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud
Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;
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.
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.
Alex Hesketh
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
11 March 2025
Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
PROPERTY CAPITAL PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
Year
Period
ended
ended
30 September
30 September
2024
2023
Notes
£
£
Turnover
3
127,735
3,878,512
Cost of sales
(186,036)
(2,716,852)
Gross (loss)/profit
(58,301)
1,161,660
Administrative expenses
(302,758)
(311,512)
Other operating income
1,493
Operating (loss)/profit
4
(359,566)
850,148
Interest payable and similar expenses
7
700,701
(812)
Profit before taxation
341,135
849,336
Tax on profit
8
35
(189,844)
Profit for the financial year
341,170
659,492
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PROPERTY CAPITAL PLC
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
418
557
Current assets
Stocks
12
2,290,367
1,201,388
Debtors
13
3,282,104
3,721,261
Cash at bank and in hand
15,671
371,983
5,588,142
5,294,632
Creditors: amounts falling due within one year
14
(4,530,139)
(5,144,677)
Net current assets
1,058,003
149,955
Total assets less current liabilities
1,058,421
150,512
Creditors: amounts falling due after more than one year
15
(583,464)
(16,690)
Provisions for liabilities
Deferred tax liability
17
104
139
(104)
(139)
Net assets
474,853
133,683
Capital and reserves
Called up share capital
19
50,000
50,000
Profit and loss reserves
424,853
83,683
Total equity
474,853
133,683
The financial statements were approved by the board of directors and authorised for issue on 11 March 2025 and are signed on its behalf by:
J S Hennessey
Director
Company registration number 05743551 (England and Wales)
PROPERTY CAPITAL PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 7 October 2022
50,000
924,191
974,191
Period ended 30 September 2023:
Profit and total comprehensive income
-
659,492
659,492
Dividends
9
-
(1,500,000)
(1,500,000)
Balance at 30 September 2023
50,000
83,683
133,683
Year ended 30 September 2024:
Profit and total comprehensive income
-
341,170
341,170
Balance at 30 September 2024
50,000
424,853
474,853
PROPERTY CAPITAL PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(1,607,141)
(2,424,509)
Interest paid
700,701
(812)
Income taxes paid
(189,877)
(109,828)
Net cash outflow from operating activities
(1,096,317)
(2,535,149)
Financing activities
Injection of borrowings
750,000
Repayment of bank loans
(9,995)
(9,990)
Dividends paid
(1,500,000)
Net cash generated from/(used in) financing activities
740,005
(1,509,990)
Net decrease in cash and cash equivalents
(356,312)
(4,045,139)
Cash and cash equivalents at beginning of year
371,983
4,417,122
Cash and cash equivalents at end of year
15,671
371,983
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Property Capital Plc is a private company limited by shares incorporated in England and Wales. The registered office is Fourth Floor, Unit 5B, The Parklands, Bolton, BL6 4SD.
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 disclosure requirements 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.
1.2
Business combinations
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.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements, the validity of which is dependant upon the continuing support of the company's shareholders which has been confirmed in writing.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
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.
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:
Land and buildings Leasehold
Over the life of the lease
Fixtures, fittings & equipment
25% p.a. 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.
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
1.9
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.
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.10
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.
1.11
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 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.
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
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.
The directors do not consider there to be any sources of estimation uncertainty which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
3
Turnover
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Project income
127,735
3,878,512
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
139
185
Cost of stocks recognised as an expense
186,036
2,716,852
Operating lease charges
32,700
43,600
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,000
15,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Average employees
2
2
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
135,442
144,800
Social security costs
16,230
17,552
Pension costs
49,856
850
201,528
163,202
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
559
812
Other finance costs:
Directors loan account interest
33,701
74,466
(700,701)
812
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
189,891
Deferred tax
Origination and reversal of timing differences
(35)
(47)
Total tax (credit)/charge
(35)
189,844
2024
2023
£
£
Profit before taxation
341,135
849,336
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.06%)
85,284
187,351
Tax effect of expenses that are not deductible in determining taxable profit
6,320
2,493
Tax effect of income not taxable in determining taxable profit
(178,654)
Unutilised tax losses carried forward
87,015
Taxation (credit)/charge for the year
(35)
189,844
9
Dividends
2024
2023
£
£
Final paid
1,500,000
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
10
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
884,657
8,008
892,665
Depreciation and impairment
At 1 October 2023
884,657
7,451
892,108
Depreciation charged in the year
139
139
At 30 September 2024
884,657
7,590
892,247
Carrying amount
At 30 September 2024
418
418
At 30 September 2023
557
557
11
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Landbank Capital Limited
40 Peter Street, Manchester, England, M2 5GP
Dormant company
Ordinary
65.00
The investment in Landbank Capital Limited has been fully impaired, Landbank Capital Limited remained entirely dormant throughout the period until it was dissolved on 12th March 2024.
12
Stocks
2024
2023
£
£
Work in progress
2,290,367
1,201,388
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
454,936
1,029,195
Other debtors
2,816,045
2,681,404
Prepayments and accrued income
11,123
10,662
3,282,104
3,721,261
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
10,000
10,000
Other borrowings
16
173,231
Trade creditors
93,086
64,274
Corporation tax
14
189,891
Other creditors
96,292
31,061
Accruals and deferred income
4,157,516
4,849,451
4,530,139
5,144,677
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
6,695
16,690
Other borrowings
16
576,769
583,464
16,690
16
Loans and overdrafts
2024
2023
£
£
Bank loans
16,695
26,690
Other loans
750,000
766,695
26,690
Payable within one year
183,231
10,000
Payable after one year
583,464
16,690
The loan borrowings are secured by a charge over a property within the company’s year end work in progress balance.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
104
139
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 October 2023
139
Credit to profit or loss
(35)
Liability at 30 September 2024
104
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,856
850
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1 each
50,000
50,000
50,000
50,000
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
20,000
20,000
Between two and five years
25,000
5,000
45,000
25,000
21
Financial commitments, guarantees and contingent liabilities
The company has provided a guarantee to a connected party, Ascot Homes (D’Urton) Limited, in favour of Home England in respect of project cost overruns, should they ultimately occur.
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
22
Related party transactions
At the year end, the balance included within accruals being accrued interest due to J S Hennessey was £Nil (2023: £714,616), J S Hennessey's directors loan account balance was £Nil (2023: £Nil), and there were accrued fees due to J S Hennessey of £739,412 (2023: £739,412). Interest totalling £Nil (2023: Nil) has been charged in respect of money loaned from the company.
Included within debtors amounts falling due within one year is £203,697 (2023: £90,307) owed from Earth Exchange UK Limited, a related party by virtue of common control. This balance is unsecured, non-interest bearing and repayable on demand.
Included within debtors amounts falling due within one year is £454,936 (2023: 1,029,195) owed from Ensco 2020 Limited, the parent company. This balance is unsecured, non-interest bearing and repayable on demand.
Included within creditors amounts falling due within one year is £80,178 (2023 debtor: £300,000) owed from Nationwide Building & Civils Ltd, a related party by virtue of common control. During the period sales were made to Nationwide Building & Civils Ltd of £110,000 (2023: £Nil). This balance is unsecured, non-interest bearing and repayable on demand.
Included within creditors amounts falling due within one year is £2,586,264 (2023: £2,274,000) owed from Ascot Homes (D'Urton) Limited, a related party by virtue of common control. During the period sales were made to Ascot Homes (D'Urton) Limited of £13,925 (2023: £Nil). This balance is unsecured, non-interest bearing and repayable on demand.
During the period the company also paid rent of £25,000 (2023: 45,000) into the director's pension fund. The balance outstanding at the year end was £12,381 (2023: £14,576) and is included within other creditors. This balance is unsecured, non-interest bearing and repayable on demand.
Also at the year end, a loan from the pension fund with a balance of £750,000 (2023: £Nil) is recorded within creditors. The borrowings are secured by a charge over a property within the company’s year end work in progress balance.
23
Control
The ultimate parent company is Ensco 2020 Limited, a company registered in England and Wales. J S Hennessey is deemed to be the ultimate controlling party by virtue of his shareholding in Ensco 2020 Limited.
24
Cash absorbed by operations
2024
2023
£
£
Profit after taxation
341,170
659,492
Adjustments for:
Taxation (credited)/charged
(35)
189,844
Finance costs
(700,701)
812
Depreciation and impairment of tangible fixed assets
139
185
Movements in working capital:
Increase in stocks
(1,088,979)
(856,362)
Decrease/(increase) in debtors
439,157
(2,432,299)
(Decrease)/increase in creditors
(597,892)
13,819
Cash absorbed by operations
(1,607,141)
(2,424,509)
PROPERTY CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
25
Analysis of changes in net funds/(debt)
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
371,983
(356,312)
15,671
Borrowings excluding overdrafts
(26,690)
(740,005)
(766,695)
345,293
(1,096,317)
(751,024)
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