Company registration number 09636025 (England and Wales)
UNION PROPERTY DEVELOPMENT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
UNION PROPERTY DEVELOPMENT LIMITED
COMPANY INFORMATION
Directors
Mrs P Sehgal
Mr R K Sehgal
Mr N Abrol
Company number
09636025
Registered office
c/o Union Property Services Ltd
Cobalt 3.1 Silver Fox Way
Cobalt Business Park
Newcastle upon Tyne
Tyne and Wear
NE27 0QJ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
UNION PROPERTY DEVELOPMENT LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
UNION PROPERTY DEVELOPMENT LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
3
4,350,000
4,700,000
Investments
4
1,667,723
1,667,724
6,017,723
6,367,724
Current assets
Debtors
6
34,034,938
33,912,726
Cash at bank and in hand
1,995,144
90,452
36,030,082
34,003,178
Creditors: amounts falling due within one year
7
(34,540,376)
(31,872,514)
Net current assets
1,489,706
2,130,664
Total assets less current liabilities
7,507,429
8,498,388
Provisions for liabilities
9
(91,386)
(69,995)
Net assets
7,416,043
8,428,393
Capital and reserves
Called up share capital
11
100
100
Profit and loss reserves
7,415,943
8,428,293
Total equity
7,416,043
8,428,393

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 14 March 2025 and are signed on its behalf by:
Mr R K Sehgal
Director
Company registration number 09636025 (England and Wales)
UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
1
Accounting policies
Company information

Union Property Development Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o Union Property Services Ltd, Cobalt 3.1 Silver Fox Way, Cobalt Business Park, Newcastle upon Tyne, Tyne and Wear, NE27 0QJ.

1.1
Accounting convention

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”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 financial statements are prepared in UK sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

The financial statements have been prepared on a going concern basis which, in the opinion of the directors, is the appropriate basis. The company's ability to continue trading is dependent upon the ongoing support of its bankers, its directors and shareholders and other related parties. In the event that the company is unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amount.true

1.3
Turnover

Turnover is recognised as follows:-

 

Sales of development properties are recognised on legal completion (exclusive of VAT where there are options to tax on properties).

 

Sales of property development services (net of Value Added Tax) are recognised at the completion of each appropriate stage of the contract.

 

Rents receivable are recognised in accordance with the underlying property leases and exclusive of Value Added Tax where there are options to tax on properties. Lease incentives (such as rent free periods) are spread over the entire period of the lease.

1.4
Investment properties

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

 

The methods and significant assumptions used to ascertain the fair value of £4,350,000 and fair value movement of £350,000 debited to profit/loss for the year are as follows:

 

The investment property is valued at fair value based on a valuation performed in November 2023 by Lambert Smith Hampton, a registered RICS valuer.

 

 

UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.6
Impairment of assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

1.7
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 and deferred taxation assets and liabilities are not discounted.

Current tax

The tax currently payable is based on taxable profit for the year. 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 liabilities are generally recognised for 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.

1.8
Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

1.9
Leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

1.10

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

1.11

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
-
0
-
0
3
Investment property
2024
£
Fair value
At 1 June 2023
4,700,000
Revaluations
(350,000)
At 31 May 2024
4,350,000

The investment property is valued at fair value based on a valuation performed in November 2023 by Lambert Smith Hampton, a registered RICS valuer.

The historic cost of the investment property is £3,688,515 (2023 £3,688,515).

4
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
1,667,723
1,667,724
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023
1,667,724
Disposals
(1)
At 31 May 2024
1,667,723
Carrying amount
At 31 May 2024
1,667,723
At 31 May 2023
1,667,724
5
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
5
Subsidiaries
(Continued)
- 5 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Union Property Development (Gosforth) Limited
England and Wales
Property development
Ordinary
100.00
Union Property Development (Hexham) Limited
England and Wales
Property development
Ordinary
100.00
Union Property Development (Assembly Rooms) Limited
England and Wales
Property development
Ordinary
100.00
Union Property Development (Cobalt) Limited
Jersey
Property investment
Ordinary
100.00
LPH Paddington Holding Limited
England and Wales
Investment holding
Ordinary
70.00
LPH Paddington Limited
England and Wales
Property development
Ordinary
70.00
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,500
477
Unpaid share capital
100
100
Amounts owed by group undertakings
18,522,625
19,376,194
Other debtors
15,352,947
14,403,668
Prepayments and accrued income
157,766
132,287
34,034,938
33,912,726
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
8
3,012,000
3,055,000
Trade creditors
23,467
32,348
Amounts owed to group undertakings
1,957,090
329,540
Corporation tax
-
0
175,668
Other taxation and social security
50,978
64,555
Other creditors
28,601,254
27,310,796
Accruals and deferred income
895,587
904,607
34,540,376
31,872,514
8
Loans and overdrafts
2024
2023
£
£
Bank loans
3,012,000
3,055,000
Payable within one year
3,012,000
3,055,000
UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
8
Loans and overdrafts
(Continued)
- 6 -

The bank loan is secured on the company's investment property.

 

9
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
10
91,386
69,995
UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
10
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
(62,920)
(66,936)
Tax losses carried forward
-
(104,875)
Revaluation of investment property
154,306
241,806
91,386
69,995
Movements in the year:
£
Liability at 1 June 2023
69,995
Charge to profit or loss
21,391
Liability at 31 May 2024
91,386
11
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary of £1 each
100
100
100
100
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:
Peter Charles BSc FCA
Statutory Auditor:
Robson Laidler Accountants Limited
Date of audit report:
14 March 2025
UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
13
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Description of
Income
Payments
transaction
2024
2023
2024
2023
£
£
£
£
Other related parties
Loan interest payable
-
0
-
0
27,965
10,800
Other related parties
Property management fees payable
-
0
-
0
229,405
12,750
Other related parties
Rent payable
-
0
-
0
14,000
2,000
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Key management personnel
-
0
-
0
1,250,009
1,412,890
Other related parties
15,222,947
14,273,668
27,351,245
25,897,906

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

2024
2023
£
£
Entities over which the entity has control, joint control or significant influence
199,375
-
Other related parties
-
20,000
Other information

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

UNION PROPERTY DEVELOPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
14
Directors' transactions

Dividends totalling £0 (2023 - £0) were paid in the year in respect of shares held by the company's directors.

No interest has been charged on the loans below.

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Closing balance
£
£
Mr N Abrol - director
-
130,000
130,000
130,000
130,000
15
Parent company

Union Property Development Holdings Limited, a company registered in England and Wales, is regarded by the directors as being the company's ultimate parent company.

16
Off balance sheet arrangements

The company entered into an omnibus guarantee arrangement with Union Retail Properties Limited, MPS 6 Limited and MPS 5 Limited in respect of a shared bank loan facility. At the year end the bank loan facility within Union Retail Properties Limited was £10,437,500, the bank loan facility within MPS 6 Limited was £1,092,500 and the bank loan facility within MPS 5 Limited was £466,318.

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