Company registration number 11172261 (England and Wales)
PURE RESI LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
PURE RESI LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
PURE RESI LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
3
88,310,000
88,065,000
Current assets
Debtors
4
43,919,825
40,213,446
Cash at bank and in hand
31,994
43,919,825
40,245,440
Creditors: amounts falling due within one year
5
(82,871,566)
(116,387,307)
Net current liabilities
(38,951,741)
(76,141,867)
Total assets less current liabilities
49,358,259
11,923,133
Creditors: amounts falling due after more than one year
6
(35,475,000)
Provisions for liabilities
(1,043,250)
(950,063)
Net assets
12,840,009
10,973,070
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
12,840,008
10,973,069
Total equity
12,840,009
10,973,070
PURE RESI LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 2 -
For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
R Kelly
Director
Company registration number 11172261 (England and Wales)
PURE RESI LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
1
Accounting policies
Company information
Pure Resi Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old Courthouse, 267-273 High Street, Dorking, Surrey, RH4 1RY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have confirmed that they, along with other group undertakings, will continue to support the company in order for it to continue in operational existence for the foreseeable future. On the basis of receiving this confirmation the directors have a reasonable expectation that the company will be able to continue as a going concern for the foreseeable future and at least 12 months from the date of these financial statements. For this reason the directors continue to adopt the going concern basis in preparing these financial statements.
1.3
Turnover
Turnover comprises of rental income generated from properties held as investments. Rental income is recognised on an accrual basis in the period to which it relates.
1.4
Investment property
Investment properties are stated at fair value at each reporting date, in accordance with Section 16 of FRS 102. Changes in fair value are recognised in profit or loss in the period in which they arise. A full review of the fair value of the investment property portfolio is carried out at the year end. The review is led by M Bright, a director of the group responsible for land acquisitions and property sales, with extensive experience in the construction industry.
The fair value is determined as follows:
Complete residential properties (long leasehold) are valued at market value assuming the property is vacant and available for immediate occupation. This valuation utilises the following:
An independent external valuer's report, prepared by a professionally qualified valuer; and
Comparable market data including advertised sale prices and actual sales evidence obtained from the UK Land registry.
Residential ground rent freehold investments are valued using a capitalisation of ground rent income approach, applying a 4% yield.
The directors consider that this valuation methodology provides a reliable estimate of fair value for the Group's investment properties in accordance with FRS 102.
PURE RESI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
No depreciation is provided. Changes in fair value are recognised in the profit and loss account for the period. Deferred taxation is provided on these changes at the rate expected to apply when the property is sold.
The Companies Act 2006 requires all properties to be depreciated. However this requirement conflicts with the generally accepted accounting principle set out in FRS 102. The directors consider that, because investment properties are not held for consumption, but for their investment potential, to depreciate them would not give a true and fair view.
If this departure from the Companies Act 2006 had not been made to give a true and fair view, the profit for the year would have been reduced by depreciation. However the amounts of depreciation cannot reasonably be quantified, because depreciation is only one of many factors reflected in the annual valuation and the amount relating to depreciation of the property cannot be separately identified.
1.5
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.
1.6
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets 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.
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.
PURE RESI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
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.
1.8
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 profit and loss account 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.
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.
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 profit and loss account, 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
3
PURE RESI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
3
Investment property
2024
£
Fair value
At 1 January 2024
88,065,000
Disposals
(128,750)
Revaluations
373,750
At 31 December 2024
88,310,000
The fair value is determined as follows:
Complete residential properties (long leasehold) are valued at market value assuming the property is vacant and available for immediate occupation. This valuation utilises the following:
An independent external valuer's report, prepared by a professionally qualified valuer; and
Comparable market data including advertised sale prices and actual sales evidence obtained from the UK Land registry.
Residential ground rent freehold investments are valued using a capitalisation of ground rent income approach, applying a 4% yield.
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
15,158
26,943
Amounts owed by group undertakings
43,900,926
40,119,191
Other debtors
3,741
67,312
43,919,825
40,213,446
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
139,715
31,850,000
Trade creditors
11,499
14,544
Amounts owed to group undertakings
81,321,343
83,454,123
Corporation tax
474,283
270,865
Other creditors
924,726
797,775
82,871,566
116,387,307
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
35,475,000
PURE RESI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Creditors: amounts falling due after more than one year
(Continued)
- 7 -
The long-term loans are secured by fixed and floating charges over the assets in the following companies:
- Lodgecrest Holdings PLC
- Lodgecrest Investments Limited
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
8
Parent company
At the year end, the company was a wholly owned subsidiary of Lodgecrest Holdings PLC, a company registered in England and Wales. This is the only group into which the results of the company are consolidated. Copies of the group financial statements of Lodgecrest Holdings PLC are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
9
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
2,851,542
2,768,546