REGISTERED NUMBER: |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
WESTGATE RESIDENTIAL ASSETS LIMITED |
REGISTERED NUMBER: |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
WESTGATE RESIDENTIAL ASSETS LIMITED |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
WESTGATE RESIDENTIAL ASSETS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Suite A, 2nd Floor, |
East West Building |
2 Tollhouse Hill |
Nottingham |
NG1 5FS |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
BALANCE SHEET |
30 JUNE 2024 |
30/6/24 | 30/6/23 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investment property | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings | ( |
) | ( |
) |
( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Westgate Residential Assets Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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"), the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime, and under the historical cost convention, modified to include certain financial instruments at fair value. The disclosure requirements of section 1A of FRS 102 have been applied. |
Going Concern |
Notwithstanding the net current liabilities of £13,778,645 (2023: £5,110,275 ) and net liabilities of £5,859,812 (2023: £60) at 30 June 2024, the financial statements have been prepared on a going concern basis which the Directors consider to be appropriate for the following reasons. |
The Directors have prepared forecasts for a period of 12 months from the date of approval of these financial statements. |
The forecasts prepared by the Directors are dependent on W A Capital Limited not seeking repayment of the amounts currently due to that company, which at 30 June 2024 amounted to £13,775,000. The parent company, W A Capital Limited has indicated its intention to continue to make available such funds as are needed by the company, and that it does not seek repayment of the amount owed to it at the balance sheet date, for the period covered by the forecasts or until the investment property is sold or other funding becomes available. |
As with any company placing reliance on other group companies for financial support, the Directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of the financial statements, they have no reason to believe that it will not do so. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". |
- the requirement of Section 7 Statement of Cash Flows; |
- the requirement of Section 33 Related Party Disclosure; |
- the requirement of Section 33.7 Key management personnel compensation. |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
The Directors are continually evaluating estimates and judgements based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. |
The Directors consider the valuation of investment properties to be the only critical accounting estimate to have a significant effect on the amounts recognised in the financial statements. |
Turnover |
Turnover represents rental income receivable on assets leased under operating leases on a straight-line basis over the term of the lease. It is measured at the fair value of the consideration received or receivable, excluding value added tax. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Fixtures and Fittings 25% on cost |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or |
valuation, net of depreciation and any impairment losses. |
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. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible |
and intangible 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. |
Investment property |
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. |
Subsequent to initial recognition |
i. Investment properties (including properties held under an operating lease) are initially measured at cost and subsequently measured at fair value. Changes in fair value are recognised in the profit and loss account; and |
ii. no depreciation is provided in respect of investment properties applying the fair value model. |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial instruments are recognised at amortised cost, with changes recognised in profit or loss. |
Basic financial assets |
Basic financial assets, which include other 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
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 group after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including other creditors and loans from fellow group companies, 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Equity instruments |
Equity instruments issued by the group are recorded at the fair value of 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 group. |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2023 - NIL). |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
and |
fittings |
£ |
COST |
Additions |
At 30 June 2024 |
DEPRECIATION |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
5. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 July 2023 |
Additions |
Revaluations | (5,589,611 | ) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Fair value at 30 June 2024 is represented by: |
£ |
Cost | 28,939,611 |
Fair value adjustment in 2024 | (5,589,611 | ) |
23,350,000 |
If the investment property were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows: |
30/06/24 | 30/06/23 |
£ | £ |
Cost | 28,939,611 | 5,110,215 |
The investment property was valued on 30th June 2024 by the Directors who are knowledgeable on the UK property market and utilise professional guidance where considered necessary. |
The property was valued on an Investment method basis by comparing the current passing rent and Market Rent for the property capitalised at an appropriate yield. The yield was derived from transactions over other similar properties for which price information was available. This rate was then adjusted to reflect differences in age, size, condition, location and any other factors considered relevant. |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30/6/24 | 30/6/23 |
£ | £ |
Prepayments and accrued income |
WESTGATE RESIDENTIAL ASSETS LIMITED (REGISTERED NUMBER: 13849248) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30/6/24 | 30/6/23 |
£ | £ |
Amounts owed to group undertakings |
Accruals and deferred income |
The company has loans from its parent company, W A Capital Limited which are repayable on demand. |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30/6/24 | 30/6/23 |
£ | £ |
Bank loans - 2-5 years |
On 29th February 2024 mortgages with a term of five years were secured against the properties. These mortgages are interest only with interest being charged on a quarterly basis at 1.5% above SONIA. |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Auditors' Report was unqualified. |
for and on behalf of |
10. | CAPITAL COMMITMENTS |
30/6/24 | 30/6/23 |
£ | £ |
Contracted but not provided for in the |
financial statements |
Capital commitments includes the cost of property plus related stamp duty and legal fees. |
11. | RELATED PARTY DISCLOSURES |
The smallest and largest group in which the results of the Company are consolidated is that headed by WA Capital Limited. The consolidated financial statements of WA Capital Limited are available from its registered office, Two Marlborough Court, Watermead Business Park, Syston, Leicestershire, LE7 1AD. |
The immediate and ultimate parent undertaking is WA Capital Limited, a company incorporated in England and Wales. |