Company Registration No. 09174440 (England and Wales)
A.I.P. (DERWENT RIVERSIDE) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
A.I.P. (Derwent Riverside) Ltd
A.I.P. (DERWENT RIVERSIDE) LTD
Company information
Directors
Cllr M A Fryer
(Appointed 20 June 2023)
Mr D W Taylor
Mr E S Rice
Cllr L M Brown
(Appointed 15 March 2024)
Company number
09174440
Registered office
4 Riversway Business Village
Unit 4 Navigation Way
Aston-On-Ribble
Preston
Lancashire
England
PR2 2YP
Auditor
DJH Audit Limited
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
A.I.P. (DERWENT RIVERSIDE) LTD
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cashflows
9
Notes to the financial statements
10 - 19
A.I.P. (DERWENT RIVERSIDE) LTD
Directors' report
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities and operations
The principal activity of the company is that of the buying and selling of real estate.
The company had originally been set up as a special purpose vehicle to undertake a development project at a site referred to as Derwent Riverside by the parent LLP, Allerdale Investment Partnership LLP. This was completed in 2023 but a small parcel of land remains.
This is a 50:50 joint venture partnership between Cumbria Partnerships Limited and Cumberland Council. (This was Allerdale Borough Council until it ceased to exist at 1 April 2023 when it combined with three other Councils to form a new unitary authority known as Cumberland Council).
The Group is effectively financed through loans made available by the designated members in the parent LLP, which can be for land or finance. It is the parent LLP that then provides financial support to the subsidiary to meet its direct costs and overheads.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Cllr M A Fryer
(Appointed 20 June 2023)
Mr M A Johnson
(Resigned 15 March 2024)
Mr D W Taylor
Mr E S Rice
Mr C Sharpe
(Resigned 20 June 2023)
Cllr L M Brown
(Appointed 15 March 2024)
All the directors who are eligible offer themselves for re-election at the forthcoming Annual General Meeting.
Auditor
The auditor, DJH Audit Limited, has indicated its willingness to continue in office and will be proposed for re-appointment in accordance with section 485 of the Compnaies Act 2006.
A.I.P. (DERWENT RIVERSIDE) LTD
Directors' report (continued)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
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.
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and
the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415a of the Companies Act 2006.
On behalf of the board
Cllr M A Fryer
Mr D W Taylor
Director
Director
27 March 2025
27 March 2025
A.I.P. (DERWENT RIVERSIDE) LTD
Independent auditor's report
TO THE MEMBERS OF A.I.P. (DERWENT RIVERSIDE) LTD
- 3 -
Opinion
We have audited the financial statements of A.I.P. (Derwent Riverside) Ltd (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss for the year then ended;
have been properly prepared in accordance with UK adopted international accounting standards; 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.
A.I.P. (DERWENT RIVERSIDE) LTD
Independent auditor's report (continued)
TO THE MEMBERS OF A.I.P. (DERWENT RIVERSIDE) LTD
- 4 -
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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
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.
Explanation as to what extent the audit was considered capable of detecting irregularities including fraud
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.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.
A.I.P. (DERWENT RIVERSIDE) LTD
Independent auditor's report (continued)
TO THE MEMBERS OF A.I.P. (DERWENT RIVERSIDE) LTD
- 5 -
Our approach was as follows:
We obtained an understanding of the legal and regulatory framework that is applicable to the company and determined that the most significant are frameworks which are directly relevant to the assertions in the financial statements including amounts and disclosures; those that relate to reporting framework IFRS; the Companies Act 2006 and UK taxation legislation.
We assessed how the company is complying with those frameworks by:
- making enquiries of management;
- reviewing minutes of meetings of those charged with governance; and
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations together with the use of an appropriate software package to check the disclosures required by the relevant accounting standards and legislation.
We assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur. The risk of fraud associated with management override of controls is always deemed high and we performed audit procedures to address this specific risk including testing journal entries and other adjustments for appropriateness; also assessing whether judgements and assumptions used in accounting estimates were indicative of potential bias.
A fuller description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditors responsibilities. 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.
Desirie Lea FCA FCCA (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited
28 March 2025
Accountants
Statutory Auditor
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
A.I.P. (DERWENT RIVERSIDE) LTD
Income statement
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Revenue
3
-
1,225,000
Cost of sales
(4,880)
(955,565)
Gross (loss)/profit
(4,880)
269,435
Administrative expenses
(10,783)
(38,611)
Operating (loss)/profit
4
(15,663)
230,824
Income tax expense
6
-
(57,983)
(Loss)/profit for the year
13
(15,663)
172,841
The income statement has been prepared on the basis that all operations are continuing operations.
The notes form part of these financial statements.
A.I.P. (DERWENT RIVERSIDE) LTD
Statement of financial position
AS AT
31 MARCH 2024
31 March 2024
- 7 -
2024
2023
Notes
£
£
Current assets
Inventories
7
12,500
-
Trade and other receivables
8
155
675
Cash and cash equivalents
227,247
1,464,749
239,902
1,465,424
Total assets
239,902
1,465,424
Current liabilities
Trade and other payables
9
8,375
244,910
Current tax liabilities
57,983
Borrowings
10
525,341
8,375
828,234
Non-current liabilities
Borrowings
10
390,000
Total liabilities
8,375
1,218,234
Equity
Called up share capital
12
1
1
Retained earnings
13
231,526
247,189
Total equity
231,527
247,190
Total equity and liabilities
239,902
1,465,424
The financial statements were approved by the Board of directors and authorised for issue on 27 March 2025
Signed on its behalf by:
Cllr M A Fryer
Mr D W Taylor
Director
Director
Company Registration No. 09174440
The notes form part of these financial statements.
A.I.P. (DERWENT RIVERSIDE) LTD
Statement of changes in equity
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Share capital
Capital reserve
Retained earnings
Total
£
£
£
£
Balance at 1 April 2022
1
336,281
(261,933)
74,349
Profit for the year
-
-
172,841
172,841
Total comprehensive income for the period
-
-
172,841
172,841
Transfer between reserves
-
(336,281)
336,281
-
Balance at 31 March 2023
1
247,189
247,190
Loss for the year
-
-
(15,663)
(15,663)
Total comprehensive income for the period
-
-
(15,663)
(15,663)
Balance at 31 March 2024
1
231,526
231,527
The notes form part of these financial statements.
A.I.P. (DERWENT RIVERSIDE) LTD
Statement of cash flows
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash (absorbed by)/generated from operations
16
(1,179,519)
1,457,052
Tax paid
(57,983)
Net cash (outflow)/inflow from operating activities
(1,237,502)
1,457,052
Net cash used in investing activities
-
-
Net cash used in financing activities
-
-
Net (decrease)/increase in cash and cash equivalents
(1,237,502)
1,457,052
Cash and cash equivalents at beginning of year
1,464,749
7,697
Cash and cash equivalents at end of year
227,247
1,464,749
The notes form part of these financial statements.
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information
A.I.P. (Derwent Riverside) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 4 Riversway Business Village, Unit 4 Navigation Way, Aston-On-Ribble, Preston, Lancashire, England, PR2 2YP. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, (except as otherwise stated).
The financial statements have been prepared on the historical cost basis, with the exception of financial instruments. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany 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
Revenue
Revenue represents the fair value of the consideration received or receivable in respect of land transactions entered into in the normal course of business, net of discounts and VAT. This is recognised on legal completion.
1.4
Borrowing costs
Borrowing costs directly attributable to the acquisition and development of a qualifying asset are added to the cost of those assets, until such time as the assets are ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
1.5
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.
1.6
Fair value measurement
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the Company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the Company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.7
Cash and cash equivalents
Cash and cash equivalents 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.
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.
2
Critical accounting estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities. The estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable and constitute management’s best judgement at the date of the financial statements. In the future, actual experience could differ from those estimates.
The principal estimates and judgements that could have a significant effect upon the financial results are inter company balances and loan account positions between the parent LLP and the company. It is assumed that fair value can be based on their carrying value of amortised cost, which is calculated based on an effective rate of interest of 12%. As all of these inter company balances have now been repaid, the potential impact on the accounts is now minimal.
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Sales of land
-
1,225,000
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Fees payable to the company's auditor for the audit of the company's financial statements
2,340
3,200
Cost of inventories recognised as an expense
-
955,565
Impairment of inventories
2,750
-
5
Employees
There were no staff costs for the year ended 31 March 2024 or 31 March 2023.
6
Income tax expense
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
57,983
The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:
2024
2023
£
£
(Loss)/profit before taxation
(15,663)
230,824
Expected tax (credit)/charge based on a corporation tax rate of 19.00% (2023: 19.00%)
(2,976)
43,857
Effect of expenses not deductible in determining taxable profit
63,893
Utilisation of tax losses not previously recognised
(49,767)
Adjustment in respect of prior years
2,976
Taxation charge for the year
-
57,983
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
7
Inventories
2024
2023
£
£
Work in progress
12,500
-
8
Trade and other receivables
2024
2023
£
£
VAT recoverable
155
Prepayments
675
155
675
9
Trade and other payables
2024
2023
£
£
Trade payables
300
Accruals
8,375
6,154
Social security and other taxation
238,456
8,375
244,910
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
10
Borrowings
2024
2023
£
£
Secured borrowings at amortised cost
Loan notes issued to parent undertaking
390,000
Amounts due to parent undertaking
-
525,341
915,341
Analysis of borrowings
Borrowings are classified as due within the next 12 months where there is no formal agreement in place regarding their repayment and it is anticipated that they will be settled within 12 months. When it is not anticipated that they will be repaid within twelve months, they are shown at amortised cost.
Borrowings had also previously been classified as non-current liabilities as they were included in line with the terms of the loan note instrument which has a repayment date of 23 September 2034.
All borrowings have now been repaid.
2024
2023
£
£
Current liabilities
525,341
Non-current liabilities
390,000
915,341
The above debts are secured by way of a fixed and floating charge over all assets and undertakings of the company.
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
11
Financial Instruments
Financial instruments include amounts due to the parent undertaking and fellow subsidiary. Financial instruments can give rise to liquidity, credit and interest rate risk. Information about these risks and how they are managed is set out below.
2024
2023
£
£
Financial assets
Cash and cash equivalents
227,247
1,464,749
Trade and other receivables
Cash and receivables
227,247
1,464,749
Financial liabilities
£
£
Loan notes due to parent undertaking
390,000
Amounts due to parent undertaking
-
525,341
Trade and other payables
8,375
6,454
Liabilities at amortised cost
8,375
921,795
Total net financial instruments
218,872
542,954
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
11
Financial Instruments
(Continued)
- 17 -
The directors consider that the carrying amounts of financial liabilities to the extent that they are carried at amortised cost in the financial statements approximate to their fair values.
Liquidity risk
The ultimate responsibility for liquidity risk management lies with the board of directors, which has developed an appropriate liquidity management framework for the management of the company's liquidity risk. The company manages liquidity risk by maintaining inter-company borrowing facilities.
Liquidity risk arises from the company's ongoing financial obligations being amounts owed to group undertakings. As these have now all been repaid, the director's consider the liquidity risk to be low.
Credit risk
Credit risk arises when one party to a financial instrument causes loss for the other party by failing to discharge an obligation.
The credit risk on liquid funds is limited because a leading high street bank is used.
Interest rate risk
Interest rate risk arises from cash and cash equivalents and interest bearing investments and loans.
Interest is not earned on cash deposits of £227,247.
Loan notes included within amounts due to group undertakings are interest free. As a consequence the board does not consider interest rate risk to be relevant.
Capital Contribution
Amounts due to group undertakings, including loan notes and inter-company loans, have been recognised initially at fair value. The difference between the face value and the fair value of the loans on initial recognition has been recognised as a capital contribution in reserves. As all of the interest has now been recognised in cost of sales, the capital contribution has been transferred to retained earnings.
12
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary of £1 each
1
1
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
13
Retained earnings
£
At 1 April 2022
(261,933)
Profit for the period ended 31 March 2023
172,841
Transfer from capital reserve
336,281
At 31 March 2023
247,189
Loss for the year
(15,663)
At 31 March 2024
231,526
14
Ultimate controlling party
Allerdale Investment Partnership LLP has the direct interest by virtue of its shareholding of 100%.
Allerdale Investment Partnership LLP has been set up as a 50:50 joint venture partnership between Cumbria Partnerships Limited and and Cumberland Council. (This was Allerdale Borough Council until it ceased to exist at 1 April 2023 when it combined with three other Councils to form a new unitary authority known as Cumberland Council).
15
Related party transactions
Other transactions with related parties
During the period ended 31 March 2015 the company issued loan notes to the value of £390,000 to the parent entity Allerdale Investment Partnership LLP and at the statement of financial position date the amount due to the parent was £nil (2023: £390,000) at face value. The loan notes were repaid in the year.
During the year Allerdale Investment Partnership LLP paid additional costs on behalf of the company to the value of £nil (2023: £35,994). The company paid costs on behalf of the parent in the sum of £nil (2023: £1,198) and at the statement of financial position date the amount outstanding was £nil (2023: £525,341) at face value.
During the year Allerdale Investment Partnership LLP charged a management fee to the company in the sum of £nil (2023: £28,000). These amounts were paid off via the inter-company loan balance.
A.I.P. (DERWENT RIVERSIDE) LTD
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
16
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(15,663)
172,841
Adjustments for:
Taxation charged
-
57,983
Movements in working capital:
(Increase)/decrease in inventories
(12,500)
857,500
Finance costs included within inventories
-
94,528
Repayment of intercompany borrowings
(915,341)
-
Decrease in trade and other receivables
520
458
(Decrease)/increase in trade and other payables
(236,535)
238,946
New intercompany loans in the period
-
34,796
Cash (absorbed by)/generated from operations
(1,179,519)
1,457,052
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200Cllr M A FryerMr M A JohnsonMr D W TaylorMr E S RiceMr C SharpeMr M FryerCllr L M Brownfalse091744402023-04-012024-03-3109174440bus:Director12023-04-012024-03-3109174440bus:Director32023-04-012024-03-3109174440bus:Director42023-04-012024-03-3109174440bus:Director72023-04-012024-03-3109174440bus:Director22023-04-012024-03-3109174440bus:Director52023-04-012024-03-3109174440bus:Director62023-04-012024-03-3109174440bus:RegisteredOffice2023-04-012024-03-31091744402024-03-3109174440core:ContinuingOperations2023-04-012024-03-31091744402022-04-012023-03-3109174440core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3109174440core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31091744402023-03-31091744402023-03-31091744402022-03-3109174440core:CurrentFinancialInstruments2024-03-3109174440core:CurrentFinancialInstruments2023-03-3109174440core:Non-currentFinancialInstruments2024-03-3109174440core:Non-currentFinancialInstruments2023-03-3109174440core:FinancialLiabilitiesAmortisedCostcore:Unsecured2024-03-3109174440core:FinancialLiabilitiesAmortisedCostcore:Unsecured2023-03-3109174440core:ShareCapital2024-03-3109174440core:ShareCapital2023-03-3109174440core:RetainedEarningsAccumulatedLosses2024-03-3109174440core:RetainedEarningsAccumulatedLosses2023-03-3109174440core:ShareCapital2022-03-3109174440core:CapitalRedemptionReserve2022-03-3109174440core:RetainedEarningsAccumulatedLosses2022-03-3109174440core:CapitalRedemptionReserve2023-03-3109174440core:CapitalRedemptionReserve2024-03-3109174440core:OtherMiscellaneousReserve2022-03-3109174440core:LoansReceivables2023-04-012024-03-3109174440core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2024-03-3109174440core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2023-03-3109174440bus:OrdinaryShareClass12023-04-012024-03-3109174440bus:PrivateLimitedCompanyLtd2023-04-012024-03-3109174440bus:Audited2023-04-012024-03-3109174440bus:FullIFRS2023-04-012024-03-3109174440bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP