ACCOUNTS - Final Accounts preparation

Commitments under operating leases (lessor)

At 31 July 2024 the Company had future minimum lease income due under non-cancellable operating leases for each of the following periods:

Company registration number: 03101757

	UNAUDITED FINANCIAL STATEMENTS
	FOR THE YEAR ENDED 31 JULY 2024

	XL PROPERTIES LIMITED


XL PROPERTIES LIMITED

COMPANY INFORMATION

Directors	Mr J C Lucas
	Mrs D Lucas


Registered number	03101757


Registered office	Elstead House
	Mill Lane
	Alton
	Hampshire
	GU34 2QJ


Accountants	Menzies LLP
	Chartered Accountants
	2nd Floor
	Midas House
	62 Goldsworth Road
	Woking
	Surrey
	GU21 6LQ


XL PROPERTIES LIMITED

CONTENTS

	Page
Accountants' Report	1
Statement of Financial Position	2 - 3
Notes to the Financial Statements	4 - 9


XL PROPERTIES LIMITED

CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF XL PROPERTIES LIMITED
FOR THE YEAR ENDED 31 JULY 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of XL Properties Limited for the year ended 31 July 2024 which comprise the Statement of Financial Position and the related notes from the Company accounting records and from information and explanations you have given to us.

As a member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at:
www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of XL Properties Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of XL Properties Limited and state those matters that we have agreed to state to the Board of Directors of XL Properties Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than XL Properties Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that XL Properties Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the Company's assets, liabilities, financial position and profit. You consider that XL Properties Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of XL Properties Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Menzies LLP

Chartered Accountants

2nd Floor

Midas House

62 Goldsworth Road

Woking

Surrey

GU21 6LQ

7 April 2025

Page 1


XL PROPERTIES LIMITED REGISTERED NUMBER:03101757

STATEMENT OF FINANCIAL POSITION

AS AT 31 JULY 2024

		2024		2023
Note		£		£

Fixed assets
Investments	4		580,540		580,540
Investment property	5		4,765,289		4,765,289
			5,345,829		5,345,829
Current assets
Debtors: amounts falling due within one year	6	19,222		9,911
Cash at bank and in hand		16,025		90,161
		35,247		100,072
Creditors: amounts falling due within one year	7	(883,858)		(641,463)
Net current liabilities			(848,611)		(541,391)
Total assets less current liabilities			4,497,218		4,804,438
Creditors: amounts falling due after more than one year	8		-		(650,913)

Net assets			4,497,218		4,153,525

Capital and reserves
Called up share capital	1	1
Capital contribution	1,005,019	1,005,019
Profit and loss account	3,492,198	3,148,505
	4,497,218	4,153,525

Page 2


XL PROPERTIES LIMITED REGISTERED NUMBER:03101757

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 JULY 2024

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 April 2025.

................................................

Mr J C Lucas

Director

The notes on pages 4 to 9 form part of these financial statements.

Page 3


XL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

1.	General information

XL Properties Limited is a private company limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the registered office and principal place of business is disclosed on the company information page.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

Going concern

The accounts have been prepared on a going concern basis, despite the current liabilities exceeding current assets. The company has obtained confirmation from the group that it will continue to provide support for at least 12 months from the dates of signing these financial statements.
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

2.3

Revenue

The revenue shown in the Statement of Income and Retained Earnings represents rental income for the year.
Rental income is recognised during the period to which it relates.

2.4

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.5

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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.

Page 4


XL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

2.5

Financial instruments (continued)

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 5


XL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

2.6

Leased assets: the Company as lessor

Where assets leased to a third party give rights approximating to ownership (finance lease), the lessor recognises as a receivable an amount equal to the net investment in the lease i.e. the minimum lease payments receivable under the lease discounted at the interest rate implicit in the lease. This receivable is reduced as the lessee makes capital payments over the term of the lease.

A finance lease gives rise to two types of income: profit or loss equivalent to the profit or loss resulting from outright sale of the asset being leased, at normal selling prices, reflecting any applicable discounts, and finance income over the lease term.

2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.8

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Employees

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL).

Page 6


XL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

4.	Fixed asset investments

		Unlisted investments
		£
	Cost or valuation
	At 1 August 2023	580,540
	At 31 July 2024	580,540

5.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 August 2023	4,765,289
	At 31 July 2024	4,765,289

The Directors have considered that the value of the properties held have not moved in value from when they were acquired.

Debtors

					2024	2023
					£	£


Trade debtors	1,252	9,911
Other debtors	17,970	-
	19,222	9,911

Page 7


XL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

7.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank loans	166,147	55,535
Trade creditors	-	1,931
Amounts owed to group undertakings	-	199,387
Corporation tax	105,719	38,909
Other taxation and social security	39,029	10,774
Other creditors	569,684	333,846
Accruals and deferred income	3,279	1,081
	883,858	641,463

The bank loans are secured by a charge over the freehold of Elstead House, Mill Lane, Alton, Hampshire and there is debenture in place over the assets of the Company.

8.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Bank loans	-	650,913
	-	650,913

For details relating to securities held over bank loans above refer to note 7.

9.	Related party transactions
	The company has taken advantage of the exemption available under FRS 102 Section 33.1A not to disclose transactions where the group controls 100% of those companies' voting rights. Included in other creditors is a directors loan balance owing to one of the directors totalling £458,810 (2023: £323,273). Interest is accrued on this loan at a rate of 4%.

Not later than 1 year	33,846	41,500
Later than 1 year and not later than 5 years	278	31,124
	34,124	72,624

Page 8


XL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

11.	Parent company

The ultimate parent company is XLP Holdings Limited. The address of their registered office is; Elstead House, Mill Lane, Alton, Hampshire, GU34 2QJ.

Page 9