Company Registration No. 08083935 (England and Wales)
BLUE SQUARE RESIDENTIAL LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
PAGES FOR FILING WITH REGISTRAR
BLUE SQUARE RESIDENTIAL LTD
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Statement of cash flows
3
Notes to the financial statements
4 - 12
BLUE SQUARE RESIDENTIAL LTD
STATEMENT OF FINANCIAL POSITION
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
460,230
466,954
Current assets
Debtors falling due after more than one year
8
28,104
50,346
Debtors falling due within one year
8
968,529
1,071,843
Cash at bank and in hand
1,492,710
834,977
2,489,343
1,957,166
Creditors: amounts falling due within one year
9
(398,987)
(549,211)
Net current assets
2,090,356
1,407,955
Total assets less current liabilities
2,550,586
1,874,909
Provisions for liabilities
Provisions
10
300,325
106,729
(300,325)
(106,729)
Net assets
2,250,261
1,768,180
Reserves
Revaluation reserve
22,557
22,557
Income and expenditure account
2,227,704
1,745,623
Members' funds
2,250,261
1,768,180
The directors of the company have elected not to include a copy of the income and expenditure 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 accounts comply with The Direction for Private Registered Providers of Social Housing (The Direction) and The Statement of Recommended Practice 2019 (SORP).
The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
Mr. J S Drummond
Director
Company registration number 08083935 (England and Wales)
BLUE SQUARE RESIDENTIAL LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Revaluation reserve
Income and expenditure
Total
£
£
£
Balance at 1 August 2022
1,874,027
1,874,027
Year ended 31 July 2023:
Deficit
-
(128,404)
(128,404)
Other comprehensive income:
Revaluation of tangible fixed assets
22,557
-
22,557
Total comprehensive income
22,557
(128,404)
(105,847)
Balance at 31 July 2023
22,557
1,745,623
1,768,180
Year ended 31 July 2024:
Surplus and total comprehensive income
-
482,081
482,081
Balance at 31 July 2024
22,557
2,227,704
2,250,261
BLUE SQUARE RESIDENTIAL LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
17
661,773
(367,221)
Investing activities
Purchase of tangible fixed assets
(4,149)
(3,819)
Interest received
109
139
Net cash used in investing activities
(4,040)
(3,680)
Net increase/(decrease) in cash and cash equivalents
657,733
(370,901)
Cash and cash equivalents at beginning of year
834,977
1,205,878
Cash and cash equivalents at end of year
1,492,710
834,977
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
1
Accounting policies
Company information
Blue Square Residential Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 72-74 Chiswick High Road, London, Greater London, UK, W4 1SY.
The company is a Public Benefit Entity as defined by FRS 102.
1.1
Accounting convention
These financial statements have been prepared in accordance with The Accounting Direction for Private Registered Providers of Social Housing 2022, The Statement of Recommended Practice for registered social housing providers 2018 (SORP), Governance and financial viability standard code of practice, 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.
1.2
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.
1.3
Income and expenditure
Income and expenditure are included in the financial statements as they become receivable or due and when it is probable that economic benefits will flow to or from the entity.
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.
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
None - Held at valuation
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
25% straight line
Motor vehicles
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 surplus or deficit.
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 5 -
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount. being the fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in surplus or deficit or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such as gains and losses are recognised in surplus or deficit.
All properties currently held for the purpose of providing social housing are fully complete and no properties are currently under construction.
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.
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.8
Taxation
The company has obtained exemption from the Revenue Commissioners in respect of corporation tax, it being a company not carrying on a business for the purposes of making a profit.
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 6 -
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
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.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.14
Revenue is recognised on a receivable basis in accordance with the lease agreements held with tenants.
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.
A key estimation in the financial statements is the recoverability of trade debts for which the company has provided against. This has been calculated by retrospectively reviewing the prior years required provision and applying an effective percentage to the trade debts balance at the year end in arriving at an appropriate provision.
3
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
8,400
8,400
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Employees
14
17
During the year key management personnel were paid £188,314 (2023: £187,798).
Non-executive directors were remunerated £16,000 (2023: £15,500) for attending board meetings.
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
188,314
187,798
Company pension contributions to defined contribution schemes
1,449
1,449
189,763
189,247
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
99,500
99,500
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
6
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 August 2023
425,000
14,177
35,562
55,172
529,911
Additions
1,942
2,207
4,149
At 31 July 2024
425,000
16,119
37,769
55,172
534,060
Depreciation
At 1 August 2023
8,942
31,305
22,710
62,957
Depreciation charged in the year
861
1,896
8,116
10,873
At 31 July 2024
9,803
33,201
30,826
73,830
Carrying amount
At 31 July 2024
425,000
6,316
4,568
24,346
460,230
At 31 July 2023
425,000
5,235
4,257
32,462
466,954
The carrying value of land and buildings comprises:
2024
2023
£
£
Long leasehold
425,000
425,000
Land and buildings with a carrying amount of £425,000 were revalued at 1 November 2023 by Whitman & Co, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors deem that this value is appropriate for the 31 July 2024 value of the property.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £389,835 being cost of £410,656 and depreciation of £20,821.
7
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
908,028
807,020
Carrying amount of financial liabilities
Measured at amortised cost
396,617
421,751
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Rent and service charges due
512,303
668,266
Other debtors
88,045
86,800
Prepayments and accrued income
368,181
316,777
968,529
1,071,843
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
28,104
50,346
Total debtors
996,633
1,122,189
Included within Rent and service charges due is a £74,012 (2023: £67,392) provision for bad and doubtful debts.
9
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
158,118
318,697
Gross amounts owed to contract customers
3,690
Taxation and social security
16,560
17,665
Deferred income
133,911
132,879
Other creditors
76,993
56,230
Accruals
13,405
20,050
398,987
549,211
10
Provisions for liabilities
2024
2023
£
£
Rent dilapidations
300,325
106,729
Provisions included in the financial statements are in relation to rent dilapidations which will be incurred at the end of the lease, for supported housing property leases managed by Independent Housing UK Limited. These are provided for evenly across the length of the lease. The provisions are based on costs incurred in relation to similar rental agreements that have ended in the current year.
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Provisions for liabilities
(Continued)
- 10 -
Movements on provisions:
Rent dilapidations
£
At 1 August 2023
106,728
Additional provisions in the year
193,597
At 31 July 2024
300,325
11
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
12
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:
Steve Reynolds
Statutory Auditor:
Clifford C Palmer & Co Ltd
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
3,362,274
3,651,995
Between two and five years
12,468,155
11,052,988
In over five years
37,223,022
31,809,209
53,053,451
46,514,192
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
479,188
980,154
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
14
Related party transactions
At the year end the Company owed Jacaroo Investments Ltd £52,956 (2023: £39,229), a company owned and controlled by Mr S Drummond, a director.
The Company leased nine properties from Jacaroo Investments Ltd which were subsequently leased to unconnected third party tenants. During the year £473,191 (2023: £369,820) was paid to Jacaroo Investments Ltd in the way of rent before any management charges were deducted. The company in return charged Jacaroo Investments Ltd management charges amounting to £47,318 (2023: £39,435) for acting as an agent for these properties.
During the year the company paid rent to S Drummond amounting to £3,800 (2023: £3,800) for a property he owns personally.
At the year end the Company was owed £13,266 (2023: £12,558) by Capital Housing Associates Ltd a company owned and controlled by Mr S Drummond.
During the year the Company received £20,000 (2023: £20,000) in rent from Capital Housing Associates Ltd ("CHA") and £31,524 (2023: £31,524) for contribution to staff wages due to Blue Square Residential Limited staff performing admin tasks for CHA.
During the year the company paid £16,000 (2023: £15,500) to board members in fees.
All amounts are unsecured.
15
Directors' transactions
No guarantees have been given or received by the directors during the year.
16
Residential accommodation managed
The average number of residential units managed during the year was 536 (2023: 504 units). The increase is due to the renewal of some of our shorter term leases.
17
Cash generated from/(absorbed by) operations
2024
2023
£
£
Surplus/(deficit) for the year after tax
482,081
(128,404)
Adjustments for:
Investment income
(109)
(139)
Depreciation and impairment of tangible fixed assets
10,873
14,769
Increase/(decrease) in provisions
193,596
(68,867)
Movements in working capital:
Decrease/(increase) in debtors
125,556
(141,564)
Decrease in creditors
(151,256)
(26,119)
Increase/(decrease) in deferred income
1,032
(16,897)
Cash generated from/(absorbed by) operations
661,773
(367,221)
BLUE SQUARE RESIDENTIAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
18
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
834,977
657,733
1,492,710
2024-07-312023-08-01false29 November 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedMr. J S DrummondMs D MicunovicMr S MiltonMr O E ChambersMr J A BaxterMs C J Boydfalsefalse080839352023-08-012024-07-31080839352024-07-31080839352023-07-3108083935core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-07-3108083935core:FurnitureFittings2024-07-3108083935core:ComputerEquipment2024-07-3108083935core:MotorVehicles2024-07-3108083935core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-07-3108083935core:FurnitureFittings2023-07-3108083935core:ComputerEquipment2023-07-3108083935core:MotorVehicles2023-07-3108083935core:Non-currentFinancialInstrumentscore:AfterOneYear2024-07-3108083935core:Non-currentFinancialInstrumentscore:AfterOneYear2023-07-3108083935core:CurrentFinancialInstrumentscore:WithinOneYear2024-07-3108083935core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-3108083935core:CurrentFinancialInstruments2024-07-3108083935core:CurrentFinancialInstruments2023-07-3108083935core:RevaluationReserve2024-07-3108083935core:RevaluationReserve2023-07-3108083935core:RetainedEarningsAccumulatedLosses2024-07-3108083935core:RetainedEarningsAccumulatedLosses2023-07-3108083935core:RevaluationReserve2022-07-3108083935core:RetainedEarningsAccumulatedLosses2022-07-3108083935bus:Director12023-08-012024-07-3108083935core:RetainedEarningsAccumulatedLosses2022-08-012023-07-31080839352022-08-012023-07-3108083935core:RetainedEarningsAccumulatedLosses2023-08-012024-07-31080839352023-07-31080839352022-07-3108083935core:LandBuildingscore:LongLeaseholdAssets2023-08-012024-07-3108083935core:FurnitureFittings2023-08-012024-07-3108083935core:ComputerEquipment2023-08-012024-07-3108083935core:MotorVehicles2023-08-012024-07-3108083935core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-07-3108083935core:FurnitureFittings2023-07-3108083935core:ComputerEquipment2023-07-3108083935core:MotorVehicles2023-07-3108083935core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-012024-07-3108083935core:LandBuildingscore:LongLeaseholdAssets2024-07-3108083935core:LandBuildingscore:LongLeaseholdAssets2023-07-3108083935core:Non-currentFinancialInstruments2024-07-3108083935core:Non-currentFinancialInstruments2023-07-3108083935core:CurrentFinancialInstruments12024-07-3108083935core:CurrentFinancialInstruments12023-07-3108083935core:WithinOneYear2024-07-3108083935core:WithinOneYear2023-07-3108083935core:BetweenTwoFiveYears2024-07-3108083935core:BetweenTwoFiveYears2023-07-3108083935core:MoreThanFiveYears2024-07-3108083935core:MoreThanFiveYears2023-07-3108083935bus:CompanyLimitedByGuarantee2023-08-012024-07-3108083935bus:SmallCompaniesRegimeForAccounts2023-08-012024-07-3108083935bus:FRS1022023-08-012024-07-3108083935bus:Audited2023-08-012024-07-3108083935bus:Director22023-08-012024-07-3108083935bus:Director32023-08-012024-07-3108083935bus:Director42023-08-012024-07-3108083935bus:Director52023-08-012024-07-3108083935bus:Director62023-08-012024-07-3108083935bus:FullAccounts2023-08-012024-07-31xbrli:purexbrli:sharesiso4217:GBP