Registration number:
Crown International Estates Limited
for the Year Ended 31 December 2023
Crown International Estates Limited
Contents
Company Information |
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Statement of Financial Position |
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Notes to the Financial Statements |
Crown International Estates Limited
Company Information
Director |
P G Prickett |
Registered office |
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Auditors |
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Crown International Estates Limited
(Registration number: 08183566)
Statement of Financial Position as at 31 December 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
1 |
1 |
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Revaluation reserve |
8,650,460 |
8,650,460 |
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Retained earnings |
(11,332,388) |
(9,428,824) |
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Shareholders' deficit |
(2,681,927) |
(778,363) |
Approved and authorised by the
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Crown International Estates Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentation currency of the financial statements is Pound Sterling (£) rounded to the nearest Pound.
Disclosure of long or short period
Crown International Estates Limited
Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Going concern
Administration of Holding Company: On 28th January, 2025 the holding company, Redbookinternational Limited, entered into administration due to financial pressure and to streamline the group companies. The appointed administrators are Paul Davies and Sandra Mundy of James Cowper Kreston. The administration process is ongoing, and the administrators are working to realize the assets of the Group and settle its liabilities.
Sale of Subsidiaries: Subsequent to the year-end date, on 29th April, 2025, the administrators completed the sale of the company's subsidiaries, Bricks Leicester Capital Limited, Bricks Salford 2 Capital Limited, Bricks Swansea Capital Limited and LCA Capital Limited, including subsidiaries of these companies to Uniquarters Limited. The sale was part of the strategy to maximize returns to creditors. The financial impact of this transaction will be reflected in the next financial period.
The Management has assessed the implications of the sale on the Company’s ability to continue as a going concern and concluded that the going concern basis of preparation remains appropriate as at the date of approval of these financial statements.
Notwithstanding this assessment, the Director recognises that there are issues which indicates that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.
The company generated losses of £1,903,564 in the year ended 31 December 2023 and has net liabilities of £2,681,927 at 31 December 2023. As a result company is reliant on the on the financial support of its subsidiaries and ultimate parent company not recalling the loan due to it. The subsidiaries have material uncertainties with respect to going concern due to administration of immediate parent undertaking which has resulted in all the intercompany liabilities to ultimate parent undertaking recoverable on demand. There
is therefore a risk that such debts cannot be repaid on demand.
The company holds a loan which at the balance sheet date had value of £58,404,139 and is overdue as at the date of approval of the financial statements and therefore its repayments calls into question the ability of the company to continue as a going concern.
Although
the
Director is
strongly of
the view
that subsidiaries
will
be
able
to
re‑finance
these
loans,
such
that
the company will
be
able
to
operate
as
a
going
concern,
he
recognises
that
the
issues
above
may
cast
significant
doubt
on the
ability
of
the
subsidiaries
to
provide
this
company
the
financial
support
referred
to
above.
Accordingly
significant doubt
exists
about
this
company's
ability
to
continue
as
a
going
concern and,
therefore,
that
it
may
be
unable
to realise
its
assets
and
discharge
its
liabilities
in
the
normal
course
of
business.
Crown International Estates Limited
Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Audit report
The name of the Senior Statutory Auditor who signed the audit report on
.........................................
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Finance income and costs policy
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Crown International Estates Limited
Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
‑ The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
‑ Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible assets
Land is carried at fair value at the balance sheet date. Revaluations are undertaken with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the
Balance Sheet date.
Fair values are determined by the director following guidance from professionally qualified valuers. No depreciation is charged on land.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Crown International Estates Limited
Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.
Financial instruments
Classification
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Tangible assets |
Freehold land |
Total |
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Valuation |
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At 1 January 2023 |
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At 31 December 2023 |
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Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 |
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The cost of the freehold land was £6,856,723 (£6,853,717).
Revaluations are shown through the income statement and deferred tax is calculated on these as appropriate.
Any unrealized gains/losses on the revaluation of properties are shown in a non-distributable reserve on the statement of financial position.
Debtors |
Current |
Note |
2023 |
2022 |
Amounts owed by group undertakings |
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Other debtors |
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Crown International Estates Limited
Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
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Due within one year |
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Loans and borrowings |
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- |
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Amounts owed to group undertakings |
- |
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Accruals and deferred income |
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Other creditors |
- |
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At 31 December 2023, there was a technical breach in the roundshield facility covenant. Roundshield have not recalled the loan balance. The loan was due for repayment in August 2023.
Deferred taxation |
2023 |
2022 |
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Deferred tax |
(2,957,159) |
(2,957,159) |
(2,957,159) |
(2,957,159) |
Loans and borrowings |
Current loans and borrowings
2023 |
2022 |
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Bank borrowings |
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- |
Financial commitments, guarantees and contingencies |
The company has cross‑guaranteed group borrowings, meeting the definition of a contingent liability as set out in FRS 102, totalling £83.999m (2022: £83.585m).
Related party transactions |
As permitted by FRS102, the company has taken advantage of the exemptions from disclosing the transactions entered into between wholly owned group companies and those group company transactions that have been done on an arm's length basis.
Crown International Estates Limited
Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)
Relationship between entity and parents |
The parent of the largest group in which these financial statements are consolidated is
The address of Bricks Group Holdings Limited is:
Subsequent events after the reporting period |
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Off-balance sheet arrangements |
Charges
There exists charges over the company's assets in favour of Rs Lender Iii, S.A.R.L. as follows:
- Fixed and floating charge with negative pledge relating to land on the north east side of Connaught Road, London as per supplemental debenture dated 21st February 2022.
- Fixed and floating charge with negative pledge relating to properties in the London City Airport Development, Birmingham, Glasgow and Salford Quay as per security agreement dated 31st August 2018.