REGISTERED NUMBER: |
Financial Statements for the Year Ended 30 March 2024 |
for |
Victoria Square Residential Limited |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 30 March 2024 |
for |
Victoria Square Residential Limited |
Victoria Square Residential Limited (Registered number: 10487642) |
Contents of the Financial Statements |
for the Year Ended 30 March 2024 |
Page |
Company Information | 1 |
Abridged Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Victoria Square Residential Limited |
Company Information |
for the Year Ended 30 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
56 English Street |
Armagh |
Co. Armagh |
BT61 7LG |
SECRETARY: |
Elemental COSEC Limited |
Victoria Square Residential Limited (Registered number: 10487642) |
Abridged Balance Sheet |
30 March 2024 |
30.3.24 | 30.3.23 |
£ | £ |
CURRENT ASSETS |
Debtors |
Cash at bank |
CREDITORS |
Amounts falling due within one year |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CREDITORS |
Amounts falling due after more than one year |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings | ( |
) | ( |
) |
( |
) | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Victoria Square Residential Limited (Registered number: 10487642) |
Notes to the Financial Statements |
for the Year Ended 30 March 2024 |
1. | STATUTORY INFORMATION |
Victoria Square Residential Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in sterling (£), which is also the functional currency of the company. |
Financial instruments |
Basic financial instruments are recognised at amortised cost. |
The directors consider that loans to and from group participating undertakings are basic financial instruments and are not included at fair value. The company has no non-basic financial instruments. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Revenue recognition |
Revenue is recognised when the sales contract or grant of the lease becomes unconditional. |
Deferred income |
Deferred income includes rental income received in advance which is released to the Income statement on a monthly basis. |
Leased asset |
In September 2021 the company was granted a 25-year leasehold interest in Victoria Square Woking Limited's residential asset "The Marches" on commercial terms. |
Tenant Allowances and Capital Contributions |
Accrued expenses include the accumulation of rent free period allowances and capital contributions which are released to the income statement over the life of the lease. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2023 - NIL). |
Victoria Square Residential Limited (Registered number: 10487642) |
Notes to the Financial Statements - continued |
for the Year Ended 30 March 2024 |
4. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
We draw attention to Note 8 in the financial statements, which indicates that the company incurred a net loss of £1,147,513 during the year ended 30 March 2024 and, as of that date, the company's current liabilities exceeded its total assets by £8,002,635. As stated in Note 8, these events or conditions, along with other matters as set forth in Note 8, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
UK Corporate Governance Code |
Our evaluation of the directors assessment of the company's ability to continue to adopt the going concern basis of accounting included: |
-Discussions with directors. |
-Communication with Woking Borough Council. |
-Review of all financial information available to us as the auditors. |
In relation to the company's reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors' statement in the financial statements about whether the directors' considered it appropriate to adopt the going concern basis of accounting and the directors' identification in the financial statements of the material uncertainty related to the company's ability to continue as a going concern over a period of at least twelve months from the date of approval of the financial statements. |
for and on behalf of |
5. | CONTINGENT LIABILITIES |
The company established an "Earn Your Deposit" scheme in April 2021. The scheme closed to new entrants in August 2023. The scheme provided qualifying tenants with the ability to build up a contribution towards a deposit for a first home. In addition to the limitation to first time buyers and a qualifying period of 2 years, there were a number of other criteria to be satisfied before a tenant became eligible. There were 5 qualifying tenants at the period end who had expressed interest in the scheme, a cost accrual has been made in the accounts. |
The company has reviewed its maximum potential liability at the period end which is estimated at £626,011 but as noted above the company has accrued for its expected actual liability in the financial statements. |
6. | POST BALANCE SHEET EVENTS |
As a result of Woking Borough Council's acquisition of Moyallen Holdings Limited's remaining interest in Victoria Square Woking Limited on 25 April 2024, Woking Borough Council became the Ultimate Controlling Party of the company. |
7. | ULTIMATE CONTROLLING PARTY |
Woking Borough Council is regarded by the directors as being the company's ultimate parent entity. |
Woking Borough Council prepares group accounts and their registered office is Civic Offices, Gloucester Square, Woking Surrey, GU21 6YL |
Victoria Square Residential Limited (Registered number: 10487642) |
Notes to the Financial Statements - continued |
for the Year Ended 30 March 2024 |
8. | GOING CONCERN |
The company has reported a loss of £1,147,513 for the year ended 30 March 2024 and at that date, the company's liabilities exceeded its total assets by £8,002,635. |
The company meets its day to day working capital requirements from funds made available by its parent company, Victoria Square Woking Limited. The company has provided security over its assets to support the loan facility that Victoria Square Woking Limited obtained from Woking Borough Council and acts as a guarantor of the loan facility. |
Victoria Square Woking Limited has reported a material uncertainty related to events or conditions which may cast significant doubt on its ability to continue as a going concern. The Company, as a cross guarantor of Victoria Square Woking Limited's debt obligations, is therefore subject to an equivalent material uncertainty. However, Woking Borough Council has committed to make funds available to Victoria Square Woking Limited pursuant to the loan facility until at least 31 March 2026. Thereafter, the continuation of additional funding to meet Victoria Square Woking Limited's further liabilities is subject to a further approval from Woking Borough Council. |
The directors have sought to mitigate any perceived operational and funding risks by: |
* Continuing to engage and co-operate with Woking Borough Council. |
* Seeking further support assurances from Woking Borough Council into the future. |
As stated above, there is a material uncertainty related to events or conditions, which may cast significant doubt on the company's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. However, having considered the circumstances outlined above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, the directors continue to adopt the going concern basis in the preparation of the financial statements. |