| REGISTERED NUMBER: 11474633 (England and Wales) |
| Echo Liverpool Limited |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| REGISTERED NUMBER: 11474633 (England and Wales) |
| Echo Liverpool Limited |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| Echo Liverpool Limited (Registered number: 11474633) |
| Contents of the Consolidated Financial Statements |
| for the year ended 31 December 2024 |
| Page |
| Company Information | 1 |
| Report of the Directors | 2 |
| Report of the Independent Auditors | 4 |
| Consolidated Statement of Profit or Loss | 8 |
| Consolidated Statement of Profit or Loss and Other Comprehensive Income |
9 |
| Consolidated Statement of Financial Position | 10 |
| Company Statement of Financial Position | 11 |
| Consolidated Statement of Changes in Equity | 12 |
| Company Statement of Changes in Equity | 13 |
| Consolidated Statement of Cash Flows | 14 |
| Notes to the Consolidated Statement of Cash Flows | 15 |
| Notes to the Consolidated Financial Statements | 16 |
| Echo Liverpool Limited |
| Company Information |
| for the year ended 31 December 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and |
| Statutory Auditor |
| 28 Eaton Avenue |
| Matrix Office Park |
| Buckshaw Village |
| Chorley |
| Lancashire |
| PR7 7NA |
| Echo Liverpool Limited (Registered number: 11474633) |
| Report of the Directors |
| for the year ended 31 December 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of property development. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2024. |
| DIRECTORS |
| The directors who have held office during the period from 1 January 2024 to the date of this report are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| Echo Liverpool Limited (Registered number: 11474633) |
| Report of the Directors |
| for the year ended 31 December 2024 |
| AUDITORS |
| The auditors, McMillan & Co LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Echo Liverpool Limited |
| Opinion |
| We have audited the financial statements of Echo Liverpool Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK. |
| In our opinion: |
| - | the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2024 and of the group's loss for the year then ended; |
| - | the group financial statements have been properly prepared in accordance with IFRSs as adopted by the UK; |
| - | the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the UK and as applied in accordance with the provisions of the Companies Act 2006; and |
| - | the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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. |
| Conclusions relating to going concern |
| 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 group's and the parent 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Echo Liverpool Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| Echo Liverpool Limited |
| Auditors' responsibilities for the audit of the financial statements |
| 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 a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; |
| - | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
| - | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| - | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| - | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| - | performed analytical procedures to identify any unusual or unexpected relationships; |
| - | tested journal entries to identify unusual transactions, |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - | agreeing financial statement disclosures to underlying supporting documentation; |
| - | reading the minutes of meetings of those charged with governance; |
| - | enquiring of management as to actual and potential litigation and claims; and |
| - | reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| 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 Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Echo Liverpool Limited |
| Use of our report |
| 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 a Report of the Auditors 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 and |
| Statutory Auditor |
| Echo Liverpool Limited (Registered number: 11474633) |
| Consolidated Statement of Profit or Loss |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| CONTINUING OPERATIONS |
| Revenue | 2,491,142 | 2,490,264 |
| Cost of sales | (14,535 | ) | (71,157 | ) |
| GROSS PROFIT | 2,476,607 | 2,419,107 |
| Administrative expenses | (1,002,814 | ) | (953,152 | ) |
| OPERATING PROFIT | 1,473,793 | 1,465,955 |
| Finance costs | 4 | (2,114,578 | ) | (2,061,692 | ) |
| Finance income | 4 | 89,023 | - |
| LOSS BEFORE INCOME TAX | 5 | (551,762 | ) | (595,737 | ) |
| Income tax | 6 | - | - |
| LOSS FOR THE YEAR | ( |
) | ( |
) |
| Loss attributable to: |
| Owners of the parent | (551,762 | ) | (595,737 | ) |
| Echo Liverpool Limited (Registered number: 11474633) |
| Consolidated Statement of Profit or Loss and Other Comprehensive Income |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| £ | £ |
| LOSS FOR THE YEAR | (551,762 | ) | (595,737 | ) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(551,762 |
) |
(595,737 |
) |
| Total comprehensive income attributable to: |
| Owners of the parent | (551,762 | ) | (595,737 | ) |
| Echo Liverpool Limited (Registered number: 11474633) |
| Consolidated Statement of Financial Position |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| ASSETS |
| NON-CURRENT ASSETS |
| Investment property | 8 | 36,993,320 | 37,820,917 |
| Investments | 9 | - | - |
| 36,993,320 | 37,820,917 |
| CURRENT ASSETS |
| Trade and other receivables | 10 | 3,335,453 | 3,220,067 |
| Cash and cash equivalents | 11 | 4,482,502 | 2,276,382 |
| 7,817,955 | 5,496,449 |
| TOTAL ASSETS | 44,811,275 | 43,317,366 |
| EQUITY |
| SHAREHOLDERS' EQUITY |
| Called up share capital | 12 | 1,000 | 1,000 |
| Retained earnings | 13 | (2,239,282 | ) | (1,687,520 | ) |
| TOTAL EQUITY | (2,238,282 | ) | (1,686,520 | ) |
| LIABILITIES |
| NON-CURRENT LIABILITIES |
| Financial liabilities - borrowings |
| Interest bearing loans and borrowings | 15 | 22,325,000 | 22,325,000 |
| CURRENT LIABILITIES |
| Trade and other payables | 14 | 24,724,557 | 22,678,886 |
| TOTAL LIABILITIES | 47,049,557 | 45,003,886 |
| TOTAL EQUITY AND LIABILITIES | 44,811,275 | 43,317,366 |
| The financial statements were approved by the Board of Directors and authorised for issue on 23 May 2025 and were signed on its behalf by: |
| A Aslam - Director |
| Echo Liverpool Limited (Registered number: 11474633) |
| Company Statement of Financial Position |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| ASSETS |
| NON-CURRENT ASSETS |
| Investment property | 8 |
| Investments | 9 | 100 | 100 |
| CURRENT ASSETS |
| Trade and other receivables | 10 |
| Cash and cash equivalents | 11 |
| TOTAL ASSETS |
| EQUITY |
| SHAREHOLDERS' EQUITY |
| Called up share capital | 12 |
| Retained earnings | 13 | ( |
) | ( |
) |
| TOTAL EQUITY | ( |
) | ( |
) |
| LIABILITIES |
| NON-CURRENT LIABILITIES |
| Financial liabilities - borrowings |
| Interest bearing loans and borrowings | 15 |
| CURRENT LIABILITIES |
| Trade and other payables | 14 |
| TOTAL LIABILITIES |
| TOTAL EQUITY AND LIABILITIES |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Echo Liverpool Limited (Registered number: 11474633) |
| Consolidated Statement of Changes in Equity |
| for the year ended 31 December 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 | 1,000 | (1,091,783 | ) | (1,090,783 | ) |
| Changes in equity |
| Total comprehensive income | - | (595,737 | ) | (595,737 | ) |
| Balance at 31 December 2023 | 1,000 | (1,687,520 | ) | (1,686,520 | ) |
| Changes in equity |
| Total comprehensive income | - | (551,762 | ) | (551,762 | ) |
| Balance at 31 December 2024 | 1,000 | (2,239,282 | ) | (2,238,282 | ) |
| Echo Liverpool Limited (Registered number: 11474633) |
| Company Statement of Changes in Equity |
| for the year ended 31 December 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 December 2023 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 December 2024 | ( |
) | ( |
) |
| Echo Liverpool Limited (Registered number: 11474633) |
| Consolidated Statement of Cash Flows |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 2,256,153 | 1,180,274 |
| Interest paid | (2,114,578 | ) | (2,061,692 | ) |
| Net cash from operating activities | 141,575 | (881,418 | ) |
| Cash flows from investing activities |
| Cost of investment property development | (34,993 | ) | (435,629 | ) |
| Group loans advanced | 2,010,515 | 3,407,977 |
| Interest received | 89,023 | - |
| Net cash from investing activities | 2,064,545 | 2,972,348 |
| Increase in cash and cash equivalents | 2,206,120 | 2,090,930 |
| Cash and cash equivalents at beginning of year |
2 |
2,276,382 |
185,452 |
| Cash and cash equivalents at end of year |
2 |
4,482,502 |
2,276,382 |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Statement of Cash Flows |
| for the year ended 31 December 2024 |
| 1. | RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Loss before income tax | (551,762 | ) | (595,737 | ) |
| Depreciation charges | 862,590 | 854,895 |
| Finance costs | 2,114,578 | 2,061,692 |
| Finance income | (89,023 | ) | - |
| 2,336,383 | 2,320,850 |
| Increase in trade and other receivables | (115,966 | ) | (694,421 | ) |
| Increase/(decrease) in trade and other payables | 35,736 | (446,155 | ) |
| Cash generated from operations | 2,256,153 | 1,180,274 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 December 2024 |
| 31/12/24 | 1/1/24 |
| £ | £ |
| Cash and cash equivalents | 4,482,502 | 2,276,382 |
| Year ended 31 December 2023 |
| 31/12/23 | 1/1/23 |
| £ | £ |
| Cash and cash equivalents | 2,276,382 | 185,452 |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements |
| for the year ended 31 December 2024 |
| 1. | STATUTORY INFORMATION |
| Echo Liverpool Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| The amounts in the financial statements have been rounded to the nearest £1. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparation |
| Going concern |
| Despite the fact that the company has consolidated net current liabilities of £16.9m (2023: £17.2m), the financial statements have been prepared on a going concern basis which the directors consider to be appropriate. |
| The directors are of the opinion that the company will have sufficient funds to meet its liabilities as they fall due. Funds will be provided through funding from the ultimate parent company, Select Group Limited, if required, and funds have been secured post year end from an external funders. |
| The directors have considered the ability of Select Group Limited to provide financial support based on information provided by Select Group Limited. The ability of Select Group Limited to continue to provide this support is dependent on the group achieving its own cash flow forecast and the continued availability of shareholder loans to the Group. |
| Based on these indications, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate. |
| Basis of consolidation |
| These consolidated account incorporate the accounts of the Company and its subsidiary, which has been consolidated on a line-by-line basis. The financial accounts of the subsidiary have been prepared up to 31 December. |
| Subsidiaries |
| Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power of the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. |
| Transactions eliminated on consolidation |
| All intra-group balances and transactions, and any unrealised gains or losses and income or expenses arising from intra-group transactions, are eliminated in full in preparing these consolidated financial statements. Unrealised gains arising from transactions with equity accounted investments are eliminated to the extent of the Group's interest in the entity. |
| Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Critical accounting judgements and key sources of estimation uncertainty |
| The critical accounting judgement is the valuation of property, and the depreciation rate applied to it. |
| The property is maintained at cost, less depreciation. The useful economic life has been set at 50 years. The property has been professionally valued in the year, but the financial statements are not updated to reflect the uplift in the valuation as a cost model has been adopted. |
| Revenue recognition |
| Under IFRS 15 Revenue is recognised when the following criteria are met; |
| - the parties to the contract have approved the contract; |
| - the entity can identify each parties rights regarding the goods to be transferred; |
| - the entity can identify the payment terms; |
| - the contract has commercial substance; |
| - it is probable that the entity will collect the consideration we are entitled to in respect to the goods to be transferred. |
| Turnover from apartment rental is recognised on a straight line basis over the term of the rental contract, to the extent that it is probable that the economic benefits will flow to the company and it can be reliably measured. |
| Cash and cash equivalents |
| Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
| In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position. |
| Investment property |
| IAS 40 allows for two methods of measurement for Investment property following the initial measurement at cost, the fair value method or the cost method. The company's accounting policy is to use the cost model and therefore the property is held at cost and then depreciated. |
| Depreciation is calculated using a straight-line method to allocate the depreciation amounts over the estimated useful lives. The useful economic life of the property is 50 years. The property included an element of land, which is not depreciated. |
| Financial instruments |
| Financing expenses include interest payable, finance charges on shares classified as liabilities and finance charges on lease liabilities recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the income statement. Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial time to be prepared for use, are capitalised as part of the cost of that asset. |
| Financing income comprise interest receivable on funds invested, dividend income, interest income on lease receivables and net foreign exchange gains. |
| Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Dividend income is recognised in the income statement on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis. |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
| 3. | EMPLOYEES AND DIRECTORS |
| There were no staff costs for the year ended 31 December 2024 nor for the year ended 31 December 2023. |
| The average number of employees during the year was NIL (2023 - NIL). |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | - | - |
| 4. | NET FINANCE COSTS |
| 2024 | 2023 |
| £ | £ |
| Finance income: |
| Deposit account interest | 89,023 | - |
| Finance costs: |
| Bank loan interest | 1,373,759 | 1,294,285 |
| Interest payable | 740,819 | 767,407 |
| 2,114,578 | 2,061,692 |
| Net finance costs | 2,025,555 | 2,061,692 |
| 5. | LOSS BEFORE INCOME TAX |
| The loss before income tax is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Cost of inventories recognised as expense | 14,535 | 71,157 |
| Depreciation - owned assets | 862,590 | 854,896 |
| Auditors' remuneration | 13,260 | 13,000 |
| Foreign exchange differences | - | (7,351 | ) |
| 6. | INCOME TAX |
| Analysis of tax expense |
| No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023. |
| 7. | LOSS OF PARENT COMPANY |
| As permitted by Section 408 of the Companies Act 2006, the income statement of the parent company is not presented as part of these financial statements. The parent company's loss for the financial year was £(506,533) (2023 - £(489,807)). |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 8. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| COST |
| At 1 January 2024 | 39,815,673 |
| Additions | 34,993 |
| At 31 December 2024 | 39,850,666 |
| DEPRECIATION |
| At 1 January 2024 | 1,994,756 |
| Charge for year | 862,590 |
| At 31 December 2024 | 2,857,346 |
| NET BOOK VALUE |
| At 31 December 2024 | 36,993,320 |
| At 31 December 2023 | 37,820,917 |
| The investment property was professionally valued on 31 December 2023 by Avison Young at £43.74m. |
| The property is being depreciated over 50 years. The cost includes a value attributed to land of £3.9m, which is not subject to depreciation. |
| 9. | INVESTMENTS |
| Company |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 | 100 |
| NET BOOK VALUE |
| At 31 December 2024 | 100 |
| At 31 December 2023 | 100 |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 9. | INVESTMENTS - continued |
| Company |
| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2024 | 2023 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| Loss for the year | ( |
) | ( |
) |
| 10. | TRADE AND OTHER RECEIVABLES |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Current: |
| Trade debtors | 2,708,896 | 2,570,605 |
| Amounts owed by group undertakings | 569,395 | 569,975 |
| Prepayments and accrued income | 57,162 | 79,487 | 46,510 | 68,835 |
| 3,335,453 | 3,220,067 |
| 11. | CASH AND CASH EQUIVALENTS |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Bank accounts | 4,482,502 | 2,276,382 |
| 12. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 1,000 | 1,000 |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 13. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 January 2024 | (1,687,520 | ) |
| Deficit for the year | (551,762 | ) |
| At 31 December 2024 | (2,239,282 | ) |
| Company |
| Retained |
| earnings |
| £ |
| At 1 January 2024 | ( |
) |
| Deficit for the year | ( |
) |
| At 31 December 2024 | ( |
) |
| 14. | TRADE AND OTHER PAYABLES |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Current: |
| Trade creditors | 79,351 | 75,874 |
| Amounts owed to group undertakings | 23,704,979 | 21,695,044 |
| Other creditors | 178,313 | 186,644 |
| Accruals and deferred income | 575,152 | 551,943 |
| VAT | 186,762 | 169,381 | 210,023 | 196,661 |
| 24,724,557 | 22,678,886 |
| 15. | FINANCIAL LIABILITIES - BORROWINGS |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Non-current: |
| Bank loans - 2-5 years | 22,325,000 | 22,325,000 |
| The loan obtained in the year is repayable in 5 years, and is secured by a fixed and floating charge over the investment property. It has some performance covenants which are tested annually. |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 16. | FINANCIAL INSTRUMENTS RISK MANAGEMENT |
| The Group's principal financial instruments comprise of intercompany funding and cash and amounts payable to third party suppliers. The Group has various other assets and liabilities, such as trade and other receivables and other creditors, which arise directly from its operations. |
| The directors consider that the main risks arising from the the Group financial instruments are liquidity and credit risk. The policies for managing each of these risks are summarised below. |
| Liquidity risk |
| Liquidity risk arises from the groups management of working capital. The table below analyses the Group's financial instruments into relevant maturity groupings based on the remaining period at the financial statement date. |
| Due within one year |
| 2024 | 2023 |
| Assets | £ | £ |
| Debtors excluding Group debtors | 2,766,058 | 2,650,092 |
| Cash at bank and in hand | 4,482,502 | 2,276,382 |
| 7,248,560 | 4,926,474 |
| Group debtors | 569,395 | 569,975 |
| Liabilities |
| Creditors excluding group creditors | 1,019,578 | 983,842 |
| Group creditors | 23,704,979 | 21,695,044 |
| Credit risk |
| The Group's main exposure to credit risk is associated with the intercompany payable to the holding company. |
| At 31 December 2024 and 2023, there were no trade receivables past due or impaired. Within accruals and other payables, there are no impaired or past due amounts, and are therefore deemed low risk. The Group does not enter into derivatives to management credit risk. |
| 17. | RELATED PARTY DISCLOSURES |
| The following balances were present at the year end: |
| 2024 | 2023 |
| £ | £ |
| Sheffield One (Hotel) Limited | (24,000 | ) | (24,000 | ) |
| Harridge Developments Limited | 99,345 | 99,975 |
| Select Birmingham Limited | 120,000 | 120,000 |
| Select E Commerce Limited | 140,050 | 140,000 |
| Sheffield UK Limited | 210,000 | 210,000 |
| Select Investments Limited | (19,515,979 | ) | (21,671,044 | ) |
| Select Group Limited | (4,165,000 | ) | - |
| The balance with Select Investments Limited includes a loan balance of £18,630,671 (2023: £19,800,357). Interest is payable at 7%. Interest of £740,819 was paid in the year (2023: £767,407). |
| There is no interest payable on any other balance. |
| All balances are repayable on demand, and have accordingly be classified as due within 1 year. |
| Echo Liverpool Limited (Registered number: 11474633) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 18. | ULTIMATE CONTROLLING PARTY |
| The company is a wholly owned subsidiary of Select Investments Limited, a company registered in the Jabel Ali Free Trade Zone in the United Arab Emirates. This is a wholly owned subsidiary of Select Group Limited. The consolidated financial statements of Select Investments Limited and Select Group Limited are not publicly available. The ultimate controlling party is Rahail Aslam. |
| 19. | NEW AND AMENDED IFRS STANDARDS |
| Adoption of new and revised Standards |
| New and amended IFRS Standards that are effective for the current year |
| In the current year, the Company has adopted all the new and revised Standards and Interpretations issued by the International Accounting Standards Board (the IASB) and the International Financial Reporting Interpretations Committee (the IFRIC) of the IASB that are relevant to its operations and effective for an annual period that begins on or after 1 January 2024 all of which were endorsed in the UK. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. |
| - | Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current |
| - | Amendments to IAS 1 Presentation of Financial Statements: Non-current Liabilities with Covenants |
| - | Amendments to IAS 7 Statement of Cash Flows: Supplier Finance Arrangements |
| - | Amendments to IAS 12 Income Taxes: International Tax Reform - Pillar Two Model Rules |
| - | Amendments to IFRS 16 Lease Liability in a Sale and Leaseback |
| The Company has not adopted early any standards, interpretations or amendments that have been issued but are not yet effective. |
| Standards and interpretations published, but not yet applicable for the annual period beginning on 1 January 2024 |
| At the date of authorisation of these financial statement, the Company has not applied the following new and revised IFRS Standards and Interpretations that have been issued but are not yet effective and, in some cases, had not yet been adopted by the EU: |
| - | Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (applicable for annual periods beginning on or after 1 January 2025) |
| - | Amendments to IFRS 7 Amendments to the Classification and Measurement of Financial Instruments (applicable for annual periods beginning on or after 1 January 2026) |
| - | Amendments to IFRS 9 Contracts referencing Nature-dependent Electricity (applicable for annual periods beginning on or after 1 January 2026) |
| - | Amendments to Annual Improvements to IFRS Accounting Standards - Volume 11 (applicable for annual periods beginning on or after 1 January 2026) |
| - | Amendments to IFRS 18 Presentation and Disclosure in Financial Statements (applicable for annual periods beginning on or after 1 January 2027) |
| - | Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures (applicable for annual periods beginning on or after 1 January 2027) |
| It is expected that the standards and interpretations, not yet applicable, will have no significant impact on the Company's financial result or position. |