Company registration number 11172308 (England and Wales)
LODGECREST INVESTMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
LODGECREST INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
LODGECREST INVESTMENTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
3
11,569,736
8,264,241
Current assets
Debtors
4
81,511,517
83,624,720
Cash at bank and in hand
3,310
7,278
81,514,827
83,631,998
Creditors: amounts falling due within one year
5
(86,214,447)
(85,235,350)
Net current liabilities
(4,699,620)
(1,603,352)
Total assets less current liabilities
6,870,116
6,660,889
Provisions for liabilities
(139,218)
(139,218)
Net assets
6,730,898
6,521,671
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
6,730,897
6,521,670
Total equity
6,730,898
6,521,671
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 11172308 (England and Wales)
LODGECREST INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
1
Accounting policies
Company information
Lodgecrest Investments 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 by the revluation 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 proceeds from property sales and rental income generated from properties held as investments.
Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes and is recognised on the following basis;
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
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 company responsible for land acquisitions and property sales, with extensive experience in the construction industry.
The fair value is determined as follows:
Commercial investment properties are valued using a capitalisation of rental income approach, applying a yield range of 8% to 12% to current rental income, consistent with prevailing market yields.
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 Company's investment properties in accordance with FRS 102.
LODGECREST INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 3 -
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.
LODGECREST INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies 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.
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
LODGECREST INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
3
Investment property
2024
£
Fair value
At 1 January 2024
8,264,241
Additions
3,487,346
Revaluations
(181,851)
At 31 December 2024
11,569,736
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
94,375
21,760
Amounts owed by group undertakings
81,321,343
83,454,123
Other debtors
95,799
148,837
81,511,517
83,624,720
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
698
Trade creditors
27,491
21,096
Amounts owed to group undertakings
85,860,433
84,707,146
Corporation tax
43,278
Other taxation and social security
17,297
Other creditors
308,528
463,830
86,214,447
85,235,350
6
Secured debts
The group bank facility within Pure Resi Limited is secured by way of fixed and floating charges over the assets in this and the following group companies:
Lodgecrest Holdings PLC
Pure Resi 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
LODGECREST INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
8
Operating lease commitments
2024
2023
Future amounts receivable under operating leases:
£
£
Total commitments
1,595,894
814,615
9
Parent company
At 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.