| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Year Ended 31 October 2023 |
| for |
| X1 Media City Limited |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Year Ended 31 October 2023 |
| for |
| X1 Media City Limited |
| X1 Media City Limited (Registered number: 08617887) |
| Contents of the Financial Statements |
| for the Year Ended 31 October 2023 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 4 |
| Income Statement | 8 |
| Other Comprehensive Income | 9 |
| Balance Sheet | 10 |
| Statement of Changes in Equity | 11 |
| Cash Flow Statement | 12 |
| Notes to the Cash Flow Statement | 13 |
| Notes to the Financial Statements | 14 |
| X1 Media City Limited |
| Company Information |
| for the Year Ended 31 October 2023 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 116 Duke Street |
| Liverpool |
| England |
| L1 5JW |
| X1 Media City Limited (Registered number: 08617887) |
| Strategic Report |
| for the Year Ended 31 October 2023 |
| The directors present their strategic report for the year ended 31 October 2023. |
| REVIEW OF BUSINESS |
| The company, X1 Media City Limited acquires land to develop into high specification apartments that are mainly purchased by overseas investors. The wider X1 group has attracted extensive investment in the UK and around the world and established an outstanding track record for high end buy to let properties. |
| The results for the year show sales revenue of £48m and a gross profit margin of 12%. |
| Whilst the company does not have any direct employees the construction of the developments generates high levels of local employment through the main contractor on site. |
| The company is developing six different towers, X1 Eastbank, X1 The Plaza and X1 Media City Towers 1 to 4. At 31st October 2023 five of the six towers have completed. In the year to 31 October 2024 a further £9m of sales have completed in respect of Media City Tower 3. At the date of this report construction has begun on Tower 4 with completion expected in 2026. As each tower completes the net asset position of the company improves and at 31 October 2023 the company is in a net asset position. |
| The company is now focused on delivering the final tower at Media City. We expect both year end 2023 and 2024 to be another successful year for this company and the wider group with further developments now in the planning stages. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The main risks that are faced by the company are the availability of finance and the continued interest from investors. Financial risk is minimised by ensuring a high demand for our developments and investor satisfaction. The company has support from within the group and several third party lenders as well as investors. The company ensures it meets its liabilities as they fall due. |
| The Company has had the availability of profits from the wider group to generate cash and reduce the requirement for external funding and increased interest rates. 2024-25 has seen a reduction in the Bank of England base rate that is being passed on to consumers with lower rates for funding required. |
| The company ensures that the pricing applied to off plan sales is sufficient to cover any potential price increases that may occur on contract variations. The business model of off plan sales and staged deposits reduces cash flow risk and the requirement for funding. |
| ON BEHALF OF THE BOARD: |
| X1 Media City Limited (Registered number: 08617887) |
| Report of the Directors |
| for the Year Ended 31 October 2023 |
| The directors present their report with the financial statements of the company for the year ended 31 October 2023. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 October 2023. |
| FUTURE DEVELOPMENTS |
| Information regarding future developments is included in the strategic report. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, 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 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: |
| - | 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 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. |
| 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 company's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| X1 Media City Limited |
| Opinion |
| We have audited the financial statements of X1 Media City Limited (the 'company') for the year ended 31 October 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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: |
| - | give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| X1 Media City Limited |
| 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 or 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, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the 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 three, 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 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. |
| Report of the Independent Auditors to the Members of |
| X1 Media City 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: |
| Identifying and Assessing Potential Risks Related to Irregularities |
| - Enquiring of management, including obtaining and reviewing supporting documentation concerning the company’s policies and procedures relating to: |
| - Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance |
| - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud |
| - the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations |
| - discussing among the engagement team including significant component audit teams and involving relevant internal specialists, including tax, valuations, pensions and IT regarding how and where fraud might occur in the financial statements and any potential indicators of fraud |
| - obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006, Pension legislation, Tax legislation, and Health and Safety requirements. |
| Audit Response to Risks Identified |
| In addition to the above, our procedures to respond to risks identified included the following: |
| - reviewing the Financial Statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
| - enquiring of management concerning actual and potential litigation and claims; |
| - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and |
| - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
| We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
| 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 |
| X1 Media City 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 |
| 116 Duke Street |
| Liverpool |
| England |
| L1 5JW |
| X1 Media City Limited (Registered number: 08617887) |
| Income Statement |
| for the Year Ended 31 October 2023 |
| 31.10.23 | 31.10.22 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| 5,506,856 | (447,756 | ) |
| Other operating income |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 5,631,538 | 175,196 |
| Interest payable and similar expenses | 7 |
| PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
| Tax on profit/(loss) | 8 | ( |
) |
| PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
| X1 Media City Limited (Registered number: 08617887) |
| Other Comprehensive Income |
| for the Year Ended 31 October 2023 |
| 31.10.23 | 31.10.22 |
| Notes | £ | £ |
| PROFIT/(LOSS) FOR THE YEAR | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
| X1 Media City Limited (Registered number: 08617887) |
| Balance Sheet |
| 31 October 2023 |
| 31.10.23 | 31.10.22 |
| Notes | £ | £ |
| CURRENT ASSETS |
| Stocks | 9 |
| Debtors | 10 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 11 |
| NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
| CREDITORS |
| Amounts falling due after more than one year |
12 |
( |
) |
| PROVISIONS FOR LIABILITIES | 15 | ( |
) |
| NET ASSETS/(LIABILITIES) | ( |
) |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Retained earnings | 17 | ( |
) |
| SHAREHOLDERS' FUNDS | ( |
) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| X1 Media City Limited (Registered number: 08617887) |
| Statement of Changes in Equity |
| for the Year Ended 31 October 2023 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 November 2021 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 October 2022 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 October 2023 |
| X1 Media City Limited (Registered number: 08617887) |
| Cash Flow Statement |
| for the Year Ended 31 October 2023 |
| 31.10.23 | 31.10.22 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) |
| Interest paid | ( |
) | ( |
) |
| Finance costs paid | (60,620 | ) | - |
| Tax paid |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Amounts loaned to participating interest | ( |
) |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) |
| Intercompany loan repayments | (7,049,479 | ) | 22,281,097 |
| Payments on account | (415,204 | ) | 66,405 |
| Amount withdrawn by directors | (1,177,898 | ) | (711,964 | ) |
| Net cash from financing activities | ( |
) |
| Increase/(decrease) in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
270,122 |
| Cash and cash equivalents at end of year | 2 | 351,075 | 175,907 |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Cash Flow Statement |
| for the Year Ended 31 October 2023 |
| 1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Profit/(loss) before taxation | ( |
) |
| Guarantee provision | 161,121 | - |
| Sales deposits held | (16,589,633 | ) | - |
| Finance costs | 3,541,564 | 2,293,065 |
| Finance income | (64,864 | ) | (56,884 | ) |
| (10,861,838 | ) | 118,312 |
| Decrease/(increase) in stocks | ( |
) |
| Decrease in trade and other debtors |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 October 2023 |
| 31.10.23 | 1.11.22 |
| £ | £ |
| Cash and cash equivalents | 351,075 | 175,907 |
| Year ended 31 October 2022 |
| 31.10.22 | 1.11.21 |
| £ | £ |
| Cash and cash equivalents | 175,907 | 270,122 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.11.22 | Cash flow | At 31.10.23 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 175,907 | 175,168 | 351,075 |
| 175,907 | 351,075 |
| Debt |
| Debts falling due within 1 year | (18,322,897 | ) | 10,242,177 | (8,080,720 | ) |
| Debts falling due after 1 year | - | (2,291,653 | ) | (2,291,653 | ) |
| (18,322,897 | ) | 7,950,524 | (10,372,373 | ) |
| Total | (18,146,990 | ) | 8,125,692 | (10,021,298 | ) |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements |
| for the Year Ended 31 October 2023 |
| 1. | STATUTORY INFORMATION |
| X1 Media City Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Significant judgements and estimates |
| There are no judgements (apart from those involving estimates) that have had a significant effect on amounts recognised in the financial statements. |
| Key accounting estimates- provisions |
| Upon the sale of property to an investor the company guarantees a return of a specified amount for a specified period of time. The rental income received on the property may not always meet the liability due to running costs and vacant periods so a provision is made against this cost. The provision is reviewed and updated annually. The provision included at 31 October 2023 is £161,122. |
| Turnover |
| The company's turnover, derived from ordinary activities and excluding VAT where applicable, represents property income from the sale of developed properties. Income from property sales is recognised when the sale completes. |
| Government grants |
| Government grants are accounted for under the accruals model of FRS 102 Section 24. During the year the company has received a grant from Homes England in respect of cladding costs that the company is incurring to ensure the safety of a previous development. A grant that becomes receivable as compensation for expenses or losses already incurred of for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable. Grant income of £59,818 (2022: £560,515) has been received during the year and is included within other operating income. |
| Stocks |
| Stock and work in progress represents real estate inventory held for short term sale. The total value represents two developments totalling more that 500 units. |
| Work in progress in recorded at the lower of cost and net realisable value. Sale completion occurs as soon as the construction is complete. Any deposits that are held on exchange of the units are recorded in creditors due within one year as payments on account. Income is not recognised in the financial statement until the sale completes and the title passes to the buyer. |
| The company develop this property for short term sale rather than for long term capital appreciation or rental income. |
| Work in progress is assessed at the end of the reporting date for any signs of impairment. |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 October 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| Deep discounted bonds |
| The company has issued several deep discounted bonds that have redemption dates varying from within one year to more that one year. The bonds attract interest at 12%,through the profit and loss account. The bonds are stated at ammortised cost. |
| Loans |
| Loans are initially recognised at the fair value of the proceeds, net of related transaction costs. The loans are then stated at amortised cost using the effective interest method. |
| Payments on account |
| Prior to sale completion the buyer will place a reservation fee and a deposit on the property and this is deferred until the sale completes. The funds are then used to fund the development and also other developments within the group. |
| Inter company balances |
| Balances due from/to related parties are recorded at cost less impairment. All balances are repayable on demand and are interest free. Any impairment losses would be taken to the profit and loss account. There are no impairment losses in the year. |
| Other debtors |
| Directors loans and intercompany loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. |
| Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 October 2023 |
| 3. | TURNOVER |
| The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 31.10.23 | 31.10.22 |
| £ | £ |
| 4. | EMPLOYEES AND DIRECTORS |
| There were no staff costs for the year ended 31 October 2023 nor for the year ended 31 October 2022. |
| The average number of employees during the year was NIL (2022 - NIL). |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Directors' remuneration |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Auditors' remuneration |
| Other non- audit services |
| 6. | EXCEPTIONAL ITEMS |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Exceptional items | (59,817 | ) | (401,829 | ) |
| Exceptional items in the current and previous year relate to costs that have been incurred in relation to cladding repairs on a development that was completed in 2017. During the year the company has received a grant from Homes England in respect of these cladding costs. The grant is included in other operating income and is equal to the costs incurred during the year. |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Deep discount bond interest |
| Loan |
| Arrangement fee |
| Included in interest payable is £1,775,286 (2022 £666,984) to group undertakings. |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 October 2023 |
| 8. | TAXATION |
| Analysis of the tax credit |
| The tax credit on the profit for the year was as follows: |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior period adjustment | (65,759 | ) | - |
| Tax on profit/(loss) | ( |
) |
| Reconciliation of total tax credit included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Profit/(loss) before tax | ( |
) |
| Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) |
| Utilisation of tax losses | ( |
) |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| Losses not utilised | - | 395,481 |
| Changes in corporation tax rates | (68,064 | ) | - |
| Total tax credit | (63,867 | ) | - |
| The UK corporation tax rate increased from 19% to 25% on 1 April 2023. The effective rate of tax for the year is 22.27%. |
| 9. | STOCKS |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Work-in-progress |
| Work in progress relates to developed land and property. The secured loans are secured on land and buildings included in work in progress. The value of work in progress pledged as security is £12,343,071 (2022 £37,008,970). |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 October 2023 |
| 10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Amounts owed by participating interests | 2,937,835 | - |
| Other debtors |
| Payments on account | 170,682 | 1,045,374 |
| Directors' current accounts | 3,458,463 | 2,280,565 |
| VAT |
| Prepayments and accrued income |
| 11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Deep discounted bonds (see note 13) |
| Other loans (see note 13) |
| Payments on account |
| Trade creditors |
| Amounts owed to group undertakings |
| Amounts owed to participating interests | 12,963,717 | - |
| Tax |
| Other creditors |
| Accruals and deferred income |
| 12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Deep discounted bonds (see note 13) |
| Deep discounted bonds due after more than one year mature between November 2024 and January 2025. The rate of interest is fixed at 12% per annum. |
| 13. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Deep discounted bond | 6,746,664 | 14,939,429 |
| Other loans |
| Amounts falling due between one and two years: |
| Deep discounted bond | 2,291,653 | - |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 October 2023 |
| 13. | LOANS - continued |
| Deep discounted bonds are between 1 and 2 years. The loans are unsecured and attract interest at 12% per annum. |
| Other loans relate to a secured loan from District and County Investments Limited, interest is charged at 14.15% per annum, the loan is repaid within one year and is secured over land and buildings included in work in progress. |
| Secured loans from Oakmore Investments Limited, a fellow subsidiary, are repayable on demand and carry interest at 14.15% per annum. The loan is secured over land and buildings included in work in progress of this company and of fellow subsidiaries, X1 The Landmark Limited and X1 Chatham Waters Limited. |
| 14. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Other loans |
| Amounts owing to group | 7,854,376 | 13,613,784 |
| Oakmore Investments Limited hold a charge on land included in work in progress in relation to a loan that is classified as amounts owing to group undertakings. In relation to the secured loan, Oakmore Investments Limited holds charges over land and buildings owned by X1 The Landmark Limited and X1 Chatham Waters Limited.. |
| District and County Investments Limited holds a charge over land and buildings included in work in progress in respect of other loans. |
| 15. | PROVISIONS FOR LIABILITIES |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Other provisions | 161,122 | - |
| Other |
| provisions |
| £ |
| Provided during year |
| Balance at 31 October 2023 |
| Provisions (described in Note 2) represent the future commitment in relation to the sale of property and the guarantees given to the buyer on completion. |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.10.23 | 31.10.22 |
| value: | £ | £ |
| Ordinary | £1 | 1 | 1 |
| Each share carries one vote and has the right to receive dividends. |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 October 2023 |
| 17. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 November 2022 | ( |
) |
| Profit for the year |
| At 31 October 2023 |
| 18. | ULTIMATE PARENT COMPANY |
| The immediate parent company is Stoneoak Investments Limited a company registered in Gibraltar, registered office No.1 Grand Ocean Plaza, Ocean Village, Gibraltar. |
| The ultimate parent company is The Acorn Group Limited (previously named Quartz Holdings Limited), a company registered in Guernsey, registered office Roseneath, The Grange, St Peter Port, Guernsey, GY1 2QJ. |
| The results of this company are not included in the consolidation of Quartz Holdings Limited as Quartz Holdings Limited does not exercise control over X1 Media City Limited. |
| In the opinion of the directors there is no controlling party. |
| 19. | OTHER FINANCIAL COMMITMENTS |
| Together Commercial Finance Limited and Charles Street Commercial Investments Limited hold a charge over land and property included in work in progress in respect of a loan that has been provided to X1 Manchester Waters Limited, a company that is controlled by the director of X1 Media City Limited. |
| 20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 October 2023 and 31 October 2022: |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| Interest has been charged at 3% . The loan is repayable on demand. |
| 21. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| X1 Media City Limited (Registered number: 08617887) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 October 2023 |
| 21. | RELATED PARTY DISCLOSURES - continued |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Interest | (1,918,406 | ) | (466,984 | ) |
| Amount due to related party | ( |
) | ( |
) |
| 31.10.23 | 31.10.22 |
| £ | £ |
| Amount due from related party |
| Amount due to related party | ( |
) | ( |
) |
| 22. | ULTIMATE CONTROLLING PARTY |
| The immediate parent company is Stoneoak Investments Limited. The ultimate parent company is Quartz Holdings Limited, a company registered in Guernsey. Registered office address is Roseneath, The Grange, St Peter Port, Guernsey, GY1 2QJ. |
| In the opinion of the directors there is no ultimate controlling party. |