Company Registration No. 13842020 (England and Wales)
110/116 Cheshire Street Limited
Financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
110/116 Cheshire Street Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
110/116 Cheshire Street Limited
Statement of financial position
As at 31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
4
22,446,689
19,034,672
Current assets
Debtors
5
792,419
37,108
Cash at bank and in hand
230,186
114,554
1,022,605
151,662
Creditors: amounts falling due within one year
6
(23,526,549)
(19,226,089)
Net current liabilities
(22,503,944)
(19,074,427)
Net liabilities
(57,255)
(39,755)
Capital and reserves
Called up share capital
8
1,000
1,000
Profit and loss reserves
(58,255)
(40,755)
Total equity
(57,255)
(39,755)

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 12 May 2025 and are signed on its behalf by:
Mr K K Khimji
Director
Company Registration No. 13842020
110/116 Cheshire Street Limited
Notes to the financial statements
For the year ended 31 December 2023
2
1
Accounting policies
Company information

110/116 Cheshire Street Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14 Bedford Square, London, United Kingdom, WC1B 3JA.

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 sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

Although the company has a shareholder deficit it trades with the continued financial support of related partiestrue and group as well as funding through external loan provider.

 

At the time of approving the financial statements, the directors have a strong expectation that the company has financial resources to continue trading for the foreseeable future. Thus, the directors confidently continue to adopt the going concern basis of accounting in preparing the financial statements. The company has undertaken property development work during the financial year and post year end, with completion of work and release of the first stage of units in April 2025.

 

The company benefits from continued financial support from related parties who have provided funding as needed, as well as external lender with secured debt. While related party loans from the parent company are presented as a creditor due within one year, the parent company has provided written assurances of continued support for at least 12 months from the date of approval of the financial statements.

 

At the balance sheet date, the maturity date for all external facilities was due within a year. Since the year end the company has successfully secured an extension on its loan facility to 27 November 2025. This extension is intended to bridge the period for completion of all property work ahead of refinancing with the works completed and relevant property leases in place. The directors are confident on the going concern and further refinancing in the going concern period, this based on both the timeline for development works, extension of the current loan and indicative independently assessed post completion property valuation which would support a further refinancing.

 

In the preparation of future financial projections the company has considered the areas of uncertainty, in particular those relating to cost management and working capital management. Specifically, considering any ongoing impact of wider property market and macro-economic factors. From these considerations the directors deem that the company can continue to have sufficient levels of cash to meet its going concern requirements. The company has undertaken property development work during the financial year and post year end, with completion of work and release of the first stage of units in April 2025, with forecasted revenue following completion of works.

 

110/116 Cheshire Street Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
3
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Investment property

Investment property, which is property held to by the company to earn rentals or for capital appreciation, or both.

 

Investment property is initially recognised at purchase cost, including directly attributable acquisition expenses. It is subsequently measured at fair value, except for investment property under construction or redevelopment at the balance sheet date, which is held at cost until construction or redevelopment is complete.

 

The fair value of investment property reflects, among other things, rental income from current leases, assumptions about rental income from future leases in light of current market conditions and consideration of the return on development work.

 

Subsequent expenditure is added to the assets carrying amount only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the profit and loss account during the financial period in which they are incurred.

 

Any movement in the fair value of the properties is reflected within the profit and loss account for the year.

 

A gain or loss arising on the disposal of investment properties is determined as the difference between the net sales proceeds and the carrying value of the asset at the beginning of the period and is recognised in the profit and loss account.

1.5
Borrowing costs related to fixed assets

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially 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.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

110/116 Cheshire Street Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
4
1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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.

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
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.

110/116 Cheshire Street Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
5
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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 judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Fair value of investment properties

The company's investment property at the balance sheet date was in the process of redevelopment. In accordance with the company's accounting policies it is recognised at costs plus directly attributable expenses, then subsequently measured at fair value upon completion of development work. The directors have considered the fair value and potential impairment of costs at the year end.

 

The annual consideration of investment property valuation is sensitive to the changes in the property market and the economic climate of the surrounding area. The properties are valued by either relevant property experts or the directors each year at the balance sheet date.

110/116 Cheshire Street Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
3
Employees

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

2023
2022
Number
Number
Total
-
0
-
0
4
Investment property
2023
£
Fair value
At 1 January 2023
19,034,672
Additions
3,412,017
At 31 December 2023
22,446,689

On 22 May 2022 the company acquired an investment property. Additions reflect the cost of the property as well as directly attributable costs of development work in period to 31 December 2023,

 

The directors consider the carrying value of £22,446,689 to accurately reflect the fair value of the property at the balance sheet date.

 

At the balance sheet date the property was in development stage.

5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
632,474
-
0
Other debtors
99,301
37,108
Prepayments and accrued income
60,644
-
0
792,419
37,108
110/116 Cheshire Street Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
7
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
15,829,352
11,560,080
Trade creditors
68,485
91,293
Amounts owed to group undertakings
7,601,037
7,381,255
Taxation and social security
-
0
4,456
Other creditors
27,675
189,005
23,526,549
19,226,089
7
Loans and overdrafts
2023
2022
£
£
Bank loans
15,829,352
11,560,080
Payable within one year
15,829,352
11,560,080

The bank loan due within one year of £15,829,352 is both secured by fixed and floating charges over the assets of the company and a first legal charge over the investment property held by the company. This loan facility at the yea end had a maturity date of 27 September 2024, and is further supported by cross guarantees with related parties, ensuring additional security for the lender. Since the year-end the facility has been amended with a maturity date of 27 November 2025.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
12,500
12,500
125
125
B Ordinary Shares of 1p each
50,000
50,000
500
500
B Preference Shares of 1p each
37,500
37,500
375
375
100,000
100,000
1,000
1,000
9
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:
Roger Weston
Statutory Auditors:
Saffery LLP
Date of audit report:
12 May 2025
110/116 Cheshire Street Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
8
10
Related party transactions

Soul Development Holdings Limited

The balance due to Soul Development Holdings Limited, a company incorporated in England & Wales, at the balance sheet date was £6,093,768. Mr K K Khimji and Mrs S A Merchant are also the directors of Soul Development Holdings Limited. The loan is interest free and repayable upon demand.

 

FF Propco 2 Limited

The balance due from FF Propco 2 Limited, a company incorporated in England & Wales, at the balance sheet date was £78,820. Mr K K Khimji and Mrs S A Merchant are also the directors of FF Propco 2 Limited. The loan is interest free and repayable upon demand.

 

Soul Development Services Limited

The balance due from Soul Development Services Limited, a company incorporated in England & Wales, at the balance sheet date was £553,654. Mr K K Khimji is also a director of Soul Development Services Limited. The loan is interest free and repayable upon demand.

 

Pelicans Manufacturing Company Limited

The balance due to Pelicans Manufacturing Co. Ltd, a company incorporated in England & Wales, at the balance sheet date was £1,507,269. This is a connected company by virtue of having common directors. The loan is interest free and repayable upon demand

11
Parent company

The parent company of 110/116 Cheshire Street Limited is Soul Development Holdings Limited and its registered office is Fieldfisher Riverbank House, 2 Swan Lane, London, United Kingdom, EC4R 3TT

There is no ultimate controlling party

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