Company registration number 11107512 (England and Wales)
CROSSROADS REAL ESTATE (EUROPE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CROSSROADS REAL ESTATE (EUROPE) LIMITED
COMPANY INFORMATION
Directors
D N J Gillerman
I R Gear
Company number
11107512
Registered office
5th Floor
64 North Row
Mayfair
London
W1K 7DA
Auditor
BKL Audit LLP
Chartered Accountants
5 Fleet Place
London
EC4M 7RD
CROSSROADS REAL ESTATE (EUROPE) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
CROSSROADS REAL ESTATE (EUROPE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

A summary of the results of the year's trading is given on page 9.

During the year the company provided investment advice to the general partners of two existing Luxembourg based funds (“Crossroads I” and “Crossroads II” and together “the Funds”). Fee income is expected to remain constant throughout the coming year through the provision of investment advice to the Funds which will look to deploy capital in opportunistic real estate investments throughout continental Europe. Crossroads I is fully invested and holds net assets of ca. €141 million as at 31 December 2023. A first close of Crossroads II was held on 18 December 2020 and during 2021 and 2022 further capital was raised from existing and new investors to provide a diversified investment vehicle which holds net assets of ca. €112 million as at 31 December 2023.

 

Principal risks and uncertainties

Aside from the systematic risks that exist in the financial sector, the key business risks facing the company are:

 

 

 

Key performance indicators

Key performance indicators are as follows:

 

2023
2022
£
£
Revenue
4,079,629
5,176,008
Profit/ (Loss) for the financial year
518,475
(504,416)
Net assets
762,391
243,916
CROSSROADS REAL ESTATE (EUROPE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Statement by the directors in performance of their duties in accordance with s172(1) Companies Act 2006

The Directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 and include a duty to promote the success of the Company and are summarised as follows:

 

'A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

 

•    the likely consequences of any decision in the long term,

•    the interests of the company's employees,

•    the need to foster the company's business relationships with suppliers, customers and others,

•    the impact of the company's operations on the community and the environment,

•    the desirability of the company maintaining a reputation for high standards of business conduct, and

•    the need to act fairly as between members of the company.’

 

The following paragraphs summarise how the Directors fulfil their duties:

 

Risk Management

 

We provide investment advisory services to our clients, often in highly regulated environments, and across multiple jurisdictions. As we grow, our business and our risk environment also become more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks we face, and that we continue to evolve our approach to risk management. Alongside the principal risks set out above we engage external consultants and advisors to ensure that we monitor and maintain an effective oversight of regulatory changes and compliance with our ongoing legal and regulatory requirements.

 

Our People

 

The Company is committed to being a responsible business. Our behaviour is aligned with the expectations of our people, clients, investors and the community as a whole. People are fundamental to our business so, in order to succeed, we need to manage our people’s performance and develop their talent whilst rewarding them appropriately and ensuring we operate as efficiently as possible. Alongside this we look to share common values that inform and guide our behaviour so that we achieve our goals in the right way. Being a relatively small company with less than 10 employees we achieve this through regular dialogue and events with employees which allows all staff to share our common values.

 

Business Relationships

 

As a key requirement for building the business of the Company, the Board is very aware of the need to foster good relationships with clients, investors and other important stakeholders. The Board looks to discharge these duties by engaging in regular dialogue with both customers and service providers and attending industry events to further build and gain new relationships with key people within the industry.

 

Community and Environment

 

The Company’s approach is to use our position as an advisor to real estate investment funds to ensure that those businesses interact with their local communities in a beneficial and environmentally friendly manner. The Company also looks to make a positive impact on under privileged parts of society through regular charitable donations.

Shareholders
As the Board of Directors, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so that all stakeholders may benefit from the success of the business.
CROSSROADS REAL ESTATE (EUROPE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Maintaining a reputation for high standards of business conduct
As the Board of Directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and, which in doing so, will help the business grow over the coming years.

On behalf of the board

I R Gear
Director
30 May 2025
CROSSROADS REAL ESTATE (EUROPE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is that of the provision of investment advice.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D N J Gillerman
I R Gear
M Becker
(Resigned 17 July 2024)
Financial instruments - Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

The company will continue to service the Crossroads Real Estate Europe fund and additional funds introduced.

Auditor

Wilson Wright LLP acted as auditor of the company up until 2 April 2024. On 2 April 2024, Wilson Wright LLP transferred its audit business to BKL Audit LLP. The members subsequently consented to the appointment of BKL Audit LLP as auditor to the company. BKL Audit LLP will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
I R Gear
Director
30 May 2025
CROSSROADS REAL ESTATE (EUROPE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual report 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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 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.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CROSSROADS REAL ESTATE (EUROPE) LIMITED
- 6 -
Opinion

We have audited the financial statements of Crossroads Real Estate (Europe) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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).

In our opinion the financial statements:

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 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 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CROSSROADS REAL ESTATE (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROSSROADS REAL ESTATE (EUROPE) LIMITED
- 7 -
Matters on which we are required to report by exception

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 strategic report and the directors' report.

 

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:

 

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 5, 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 is 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 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 company or to cease operations,or have no realistic alternative but to do so.

Auditor's 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 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.

 

Capability of the audit in detecting irregularities, including fraud:

 

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, health and safety regulations, FCA regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:

 

 

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROSSROADS REAL ESTATE (EUROPE) LIMITED
- 8 -

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 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.

Warren Baker FCA (Senior Statutory Auditor)
2 June 2025
for and on behalf of BKL Audit LLP
Chartered Accountants and Statutory Auditors
5 Fleet Place
London
EC4M 7RD
CROSSROADS REAL ESTATE (EUROPE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
3
4,079,629
5,176,008
Administrative expenses
(4,160,717)
(5,780,421)
Other operating income
526,677
288,318
Operating profit/(loss)
4
445,589
(316,095)
Investment income
8
17,419
14,420
Finance costs
9
128,741
(202,741)
Profit/(loss) before taxation
591,749
(504,416)
Tax on profit/(loss)
10
(73,274)
-
0
Profit/(loss) for the financial year
518,475
(504,416)

The income statement has been prepared on the basis that all operations are continuing operations.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
11
-
0
11,000
Property, plant and equipment
12
6,007
7,485
Investments
13
2,708
2,708
8,715
21,193
Current assets
Trade and other receivables
15
3,229,731
2,395,110
Cash and cash equivalents
174,350
975,020
3,404,081
3,370,130
Current liabilities
16
(2,529,074)
(2,520,062)
Net current assets
875,007
850,068
Total assets less current liabilities
883,722
871,261
Non-current liabilities
17
(121,331)
(627,345)
Net assets
762,391
243,916
Equity
Called up share capital
19
200,100
200,100
Share premium account
219,900
219,900
Distributable retained earnings
342,391
(176,084)
Total equity
762,391
243,916
The financial statements were approved by the board of directors and authorised for issue on 30 May 2025 and are signed on its behalf by:
I R Gear
Director
Company registration number 11107512 (England and Wales)
CROSSROADS REAL ESTATE (EUROPE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 January 2022
200,100
219,900
328,332
748,332
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(504,416)
(504,416)
Balance at 31 December 2022
200,100
219,900
(176,084)
243,916
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
518,475
518,475
Balance at 31 December 2023
200,100
219,900
342,391
762,391
CROSSROADS REAL ESTATE (EUROPE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(753,589)
153,909
Interest paid
(9,757)
(13,746)
Income taxes (paid)/refunded
(26,194)
49,793
Net cash (outflow)/inflow from operating activities
(789,540)
189,956
Investing activities
Purchase of property, plant and equipment
(3,727)
(3,434)
Repayment of loans
(24,822)
(468,258)
Interest received
17,419
14,420
Net cash used in investing activities
(11,130)
(457,272)
Net decrease in cash and cash equivalents
(800,670)
(267,316)
Cash and cash equivalents at beginning of year
975,020
1,242,336
Cash and cash equivalents at end of year
174,350
975,020
CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Crossroads Real Estate (Europe) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor, 64 North Row, Mayfair, London, W1K 7DA.

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.

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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue represents the amounts recoverable for the services provided to clients for the provision of investment advice, excluding value added tax, under contractual obligations which are performed gradually over time. Revenue in respect of ongoing contracts at the statement of financial position date are brought into account with reference to the value of unbilled work performed and are disclosed in the financial statements as accrued income.

 

If, at the statement of financial position date, completion of contractual obligations is dependent on external factors (and thus outside the control of the company), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the statement of financial position date are carried forward as work in progress.

1.4
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of trade and assets of Crossroads Real Estate LLP, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight line basis over its useful economic life, which is five years. Provision is made for any impairment.

1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
33.3% straight line
Computer equipment
33.3% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Non-current investments

Interests in subsidiaries, associates and jointly controlled entities 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.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
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.

1.9
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.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, 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.

 

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
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.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Investment Advisory Fees
4,079,629
5,176,008
CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Revenue
(Continued)
- 18 -
2023
2022
£
£
Revenue analysed by geographical market
European Union
4,079,629
5,176,008
2023
2022
£
£
Other revenue
Interest income
17,419
14,420
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange losses
73,046
52,236
Depreciation of owned property, plant and equipment
5,205
4,979
Amortisation of intangible assets
11,000
44,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
40,500
40,500
For other services
All other non-audit services
21,650
17,520
6
Employees

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

2023
2022
Number
Number
Management
3
3
Administration
8
6
Total
11
9
CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,505,959
4,051,862
Social security costs
340,847
417,581
Pension costs
88,626
66,148
2,935,432
4,535,591
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,133,478
2,053,809
Company pension contributions to defined contribution schemes
33,000
33,000
1,166,478
2,086,809
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
502,482
904,418
Company pension contributions to defined contribution schemes
15,000
15,000
8
Investment income
2023
2022
£
£
Interest income
Other interest income
17,419
14,420
9
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
9,757
13,746
Other finance costs:
Exchange differences on financing transactions
(138,498)
188,995
(128,741)
202,741
CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
73,274
-
0

The corporation tax rate applicable to UK companies increased from 19% to 25% as of 1 April 2023.

 

During the financial year ended 31 December 2023, the effective corporation tax rate applicable to Crossroads Real Estate (Europe) Limited was 23.5%.

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
591,749
(504,416)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
139,061
(95,839)
Tax effect of expenses that are not deductible in determining taxable profit
8,054
12,275
Tax effect of utilisation of tax losses not previously recognised
(72,958)
25,789
Unutilised tax losses carried forward
-
0
58,936
Effect of change in corporation tax rate
121
-
0
Permanent capital allowances in excess of depreciation
(1,004)
(1,161)
Taxation charge for the year
73,274
-
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
220,000
Amortisation and impairment
At 1 January 2023
209,000
Amortisation charged for the year
11,000
At 31 December 2023
220,000
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
11,000
CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Property, plant and equipment
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 January 2023
33,819
29,658
63,477
Additions
-
0
3,727
3,727
At 31 December 2023
33,819
33,385
67,204
Depreciation and impairment
At 1 January 2023
31,064
24,928
55,992
Depreciation charged in the year
1,364
3,841
5,205
At 31 December 2023
32,428
28,769
61,197
Carrying amount
At 31 December 2023
1,391
4,616
6,007
At 31 December 2022
2,755
4,730
7,485
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
2,708
2,708
14
Subsidiary

Details of the company's subsidiary at 31 December 2023 is as follows:

Name of undertaking
Class of
% Held
shares held
Direct
Crossroads Real Estate (Iberia), S.L
Ordinary
100

Registered office address:

Avenida Felipe II, 17, 1, Office 1 28009, Madrid, Spain

The subsidiary has been excluded from consolidation as its inclusion is not material for the purpose of giving a true and fair view.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
698
-
0
Other receivables
2,539,800
1,720,302
Prepayments and accrued income
689,233
674,808
3,229,731
2,395,110
16
Current liabilities
2023
2022
£
£
Trade payables
32,833
46,210
Amounts owed to group undertakings
2,708
2,708
Corporation tax
167,493
120,413
Other taxation and social security
61,191
52,394
Other payables
532,866
212,623
Accruals and deferred income
1,731,983
2,085,714
2,529,074
2,520,062
17
Non-current liabilities
2023
2022
£
£
Other payables
121,331
627,345
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,626
66,148

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
19
Share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
200,100 Ordinary Shares of £1 each
200,100
200,100

 

20
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
267,323
248,906
Between two and five years
22,409
20,824
289,732
269,730
21
Related party transactions
Transactions with related parties

At 31 December 2023, £1,397,794 (2022: £604,404) was outstanding from a company in which the shareholder has a interest. The balance is interest free and repayable on demand. Post year end, £1,355,386 of the balance outstanding has been repaid.

22
Directors' transactions

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

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors' loan accounts
2.50
807,314
201,140
17,419
(200,000)
825,873
807,314
201,140
17,419
(200,000)
825,873
23
Ultimate controlling party

The ultimate controlling party is D N J Gillerman.

CROSSROADS REAL ESTATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
24
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit/(loss) after taxation
518,475
(504,416)
Adjustments for:
Taxation charged
73,274
-
0
Finance costs
(128,741)
202,741
Investment income
(17,419)
(14,420)
Amortisation and impairment of intangible assets
11,000
44,000
Depreciation and impairment of property, plant and equipment
5,205
4,979
Movements in working capital:
(Increase)/decrease in trade and other receivables
(809,799)
552,151
Decrease in trade and other payables
(405,584)
(131,126)
Cash (absorbed by)/generated from operations
(753,589)
153,909
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
975,020
(800,670)
174,350
2023-12-312023-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100D N J GillermanI R GearM Becker111075122023-01-012023-12-3111107512bus:Director12023-01-012023-12-3111107512bus:Director22023-01-012023-12-3111107512bus:Director32023-01-012023-12-3111107512bus:RegisteredOffice2023-01-012023-12-31111075122023-12-31111075122022-01-012022-12-3111107512core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3111107512core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3111107512core:Goodwill2023-12-3111107512core:Goodwill2022-12-31111075122022-12-3111107512core:FurnitureFittings2023-12-3111107512core:ComputerEquipment2023-12-3111107512core:FurnitureFittings2022-12-3111107512core:ComputerEquipment2022-12-3111107512core:ShareCapital2023-12-3111107512core:ShareCapital2022-12-3111107512core:SharePremium2023-12-3111107512core:SharePremium2022-12-3111107512core:RetainedEarningsAccumulatedLosses2023-12-3111107512core:RetainedEarningsAccumulatedLosses2022-12-3111107512core:ShareCapital2021-12-3111107512core:SharePremium2021-12-3111107512core:RetainedEarningsAccumulatedLosses2021-12-3111107512core:ShareCapitalOrdinaryShareClass12023-12-3111107512core:ShareCapitalOrdinaryShareClass12022-12-31111075122022-12-31111075122021-12-3111107512core:Goodwill2023-01-012023-12-3111107512core:FurnitureFittings2023-01-012023-12-3111107512core:ComputerEquipment2023-01-012023-12-3111107512core:UKTax2023-01-012023-12-3111107512core:UKTax2022-01-012022-12-3111107512core:Goodwill2022-12-3111107512core:FurnitureFittings2022-12-3111107512core:ComputerEquipment2022-12-3111107512core:Non-currentFinancialInstruments2023-12-3111107512core:Non-currentFinancialInstruments2022-12-3111107512core:Subsidiary12023-01-012023-12-3111107512core:Subsidiary112023-01-012023-12-3111107512core:CurrentFinancialInstruments2023-12-3111107512core:CurrentFinancialInstruments2022-12-3111107512core:Non-currentFinancialInstruments12023-12-3111107512core:Non-currentFinancialInstruments12022-12-3111107512bus:OrdinaryShareClass12023-01-012023-12-3111107512core:WithinOneYear2023-12-3111107512core:WithinOneYear2022-12-3111107512core:BetweenTwoFiveYears2023-12-3111107512core:BetweenTwoFiveYears2022-12-3111107512bus:PrivateLimitedCompanyLtd2023-01-012023-12-3111107512bus:FRS1022023-01-012023-12-3111107512bus:Audited2023-01-012023-12-3111107512bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP