Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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AELTON RESIDENTIAL LIMITED
COMPANY INFORMATION
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AELTON RESIDENTIAL LIMITED
CONTENTS
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AELTON RESIDENTIAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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 to 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.
The directors who served during the year were:
The auditor, S&W Partners Audit Limited, will be proposed for reappointment in accordance with section 485 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.
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AELTON RESIDENTIAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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AELTON RESIDENTIAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AELTON RESIDENTIAL LIMITED
We have audited the financial statements of Aelton Residential Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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AELTON RESIDENTIAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AELTON RESIDENTIAL LIMITED (CONTINUED)
The other information comprises the information included in the Directors' Report and Financial Statements other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Directors' Report and Financial Statements. 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.
In our opinion, based on the work undertaken in the course of the 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.
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 Directors' Report.
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AELTON RESIDENTIAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AELTON RESIDENTIAL LIMITED (CONTINUED)
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.
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:
We obtained a general understanding of the Company’s legal and regulatory framework through enquiry of management in respect of their understanding of the relevant laws and regulations. We obtained an understanding of the entity’s policies and procedures in relation to compliance with relevant laws and regulations. We also drew on our existing understanding of the Company’s industry and regulation. We understand that the Company complies with the framework through:
∙Updating operating procedures and internal controls as legal and regulatory requirements change.
∙The directors’ close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly.
In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Company’s ability to conduct business and where failure to comply could result in material penalties. The only specific laws and regulations which are significant in the context of the Company is that they must abide by the Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.
To gain evidence about compliance with the significant laws and regulations above we reviewed board meeting minutes, made enquires of the directors and obtained written management representations. The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. The key areas identified as part of the discussion were the accuracy (valuation) of investment properties and the risk of manipulation of the financial statements through manual journal entries. These areas were communicated to the other members of the engagement team who were not present at the discussion. The procedures carried out to gain evidence in the above areas included;
∙Testing of a sample of manual journal entries, selected through applying specific risk assessments applied based on the Company's processes and controls surrounding manual journals; and
∙Testing of the accuracy (valuation) of investment properties, through review of the significant assumptions and judgements adopted by management in determining fair value.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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AELTON RESIDENTIAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AELTON RESIDENTIAL LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
45 Gresham Street
EC2V 7BG
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AELTON RESIDENTIAL LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AELTON RESIDENTIAL LIMITED
REGISTERED NUMBER: 08814868
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 9 to 15 form part of these financial statements.
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AELTON RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Aelton Residential Limited is a private company, limited by shares, domiciled and incorporated in England and Wales (registered number: 08814868). The registered office address is 26 St. James's Square, London, England, SW1Y 4JH. The principal activity of the Company is to acquire, develop and hold investment property with a view to generating long-term rental and capital appreciation.
The Company's functional and presentational currency is GBP.
2.Accounting policies
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:
The Company has a net assets position as at 31 December 2024 of £45,297 (2023 - £216,468 net Liability position) but a net current liabilities position of £6,636,103 (2023 - £6,610,770). Net current liabilities includes a loan amount payable to the Company's parent of £6,530,773 which at the balance sheet date, was due for repayment on 30 June 2025 but subsequent to year end was extended and is now due for repayment on 30 June 2026.
There is also a loan due to an external bank of £7,935,000 which is due for repayment on 31 March 2026 and is therefore due for repayment within 12 months of the date of approval of these financial statements. However the Directors are in the process of discussing with the parent company regarding a draw down or further funds from their £16,000,000 interest free loan facility of which £9,469,227 remained undrawn at year end. It is anticipated that this will be agreed in the coming months and the funds would then be used to repay the bank finance, which is likely to be repaid early as a result. If there was not sufficient funding in the existing facility, the company would look to agree an extension to the facility. If an agreement could not be reached with the parent company, the Company would need to seek alternative sources of finance in order to be able to meet the repayment due however the directors consider this situation is not probable and that the parent company funding will be obtained in due course. Notwithstanding the loan arrangement described above, the Company has sufficient cash resources (totalling £103,749 at 31 December 2024) and contractually guaranteed rental income to meet its operational cash requirements and liabilities as they fall due for the foreseeable future. On this basis, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the signing of the financial statements. Accordingly the going concern basis has been adopted in preparing the financial statements and related notes.
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AELTON RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.
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AELTON RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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AELTON RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The fair value of the Company's investment property at 31 December 2024 was determined based on a valuation of the property carried out with an effective date of 31 December 2024 by a RICS certified independent valuation agent not connected with the Company.
The valuation was prepared in accordance with the RICS valuation - Global Standards, which incorporate the International Valuation Standards (IVS) and the RICS UK Valuation Standards (RICS Red Book) edition current at the valuation date. The assumptions on which the valuations have been based include, but are not limited to, matters such as the tenure and tenancy details for the property, the structural condition of the property and comparative market transactions.
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AELTON RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AELTON RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AELTON RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The immediate parent undertaking is
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