Company registration number 14602344 (England and Wales)
Red Interests Holdings Limited
Unaudited Financial Statements
For The Year Ended 5 April 2025
Pages For Filing With Registrar
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
BALANCE SHEET
AS AT
5 APRIL 2025
05 April 2025
- 1 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investment property
3
4,016,250
2,870,000
Investments
4
100
100
4,016,350
2,870,100
Current assets
Debtors
6
60,073
59,098
Cash at bank and in hand
21,442
23,185
81,515
82,283
Creditors: amounts falling due within one year
7
(669,809)
(401,253)
Net current liabilities
(588,294)
(318,970)
Total assets less current liabilities
3,428,056
2,551,130
Creditors: amounts falling due after more than one year
8
(2,695,729)
(2,002,053)
Provisions for liabilities
(223,000)
(183,000)
Net assets
509,327
366,077
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
509,227
365,977
Total equity
509,327
366,077
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
BALANCE SHEET (CONTINUED)
AS AT
5 APRIL 2025
05 April 2025
- 2 -
For the financial year ended 5 April 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 10 July 2025 and are signed on its behalf by:
Mr D A Makin
Director
Company Registration No. 14602344
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2025
- 3 -
1
Accounting policies
Company information
Red Interests Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lantern House, 15 Shilton Road, Burford, Oxfordshire, OX18 4PA.
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 £1.
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
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
Turnover
Turnover represents amounts receivable for rental services.
Rental income represents amounts receivable in respect of the rent of properties and is recognised on an accrued straight line basis over the period of occupation.
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Fixed asset 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2025
1
Accounting policies
(Continued)
- 4 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
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.
1.7
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, 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.
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2025
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
1.9
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.
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 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.
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2025
1
Accounting policies
(Continued)
- 6 -
1.10
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 fixed 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Total
4
4
3
Investment property
2025
£
Fair value
At 6 April 2024
2,870,000
Additions
988,000
Revaluations
158,250
At 5 April 2025
4,016,250
The fair values of the investment properties have been arrived at on the basis of a valuation carried out by the directors at the end of the accounting period. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The original cost of the investment properties was £3,126,013 and the directors are carrying out a review of this annually.
4
Fixed asset investments
2025
2024
£
£
Shares in group undertakings and participating interests
100
100
5
Subsidiaries
Details of the company's subsidiaries at 5 April 2025 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Red Interests Limited
United Kingdom
Ordinary
100.00
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2025
- 7 -
6
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
4,649
1,580
Other debtors
55,424
57,518
60,073
59,098
7
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
1,754
457
Amounts owed to group undertakings
647,012
378,101
Other creditors
21,043
22,695
669,809
401,253
8
Creditors: amounts falling due after more than one year
2025
2024
£
£
Bank loans and overdrafts
2,505,729
1,812,053
Other creditors
190,000
190,000
2,695,729
2,002,053
Long-term loans of £2,505,729 are secured by negative pledges and fixed charges over the properties known as:
44 Ridge Close, Gloucester, GL52 3PL
11 Honyatt Road, Gloucester, GL1 3EB
67 Oxford Road, Gloucester, GL1 3EE
16 Honyatt Road, Gloucester, GL1 3DU
14 Worcester Parade, Gloucester, GL1 3AR
82 Oxford Road, Gloucester, GL1 3EE
89 Oxford Road, Gloucester, GL1 3EE
8 Stroud Road, Gloucester, GL1 5AA
36 Priory Road, Gloucester, GL1 2RB
87 Oxford Road, Gloucester, GL1 3EE
80a Oxford Road, Gloucester, GL1 3EE
9
Related party transactions
2025
2024
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
647,012
378,101
RED INTERESTS HOLDINGS LIMITED
Red Interests Holdings Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2025
- 8 -
10
Profit and loss reserves
Included within retained earnings are unrealised profits of £509,227 (2024 - £365,977) which relate to cumulative fair value gains made on investment properties, net of deferred tax provided thereon. As these gains are unrealised they are not permitted to be distributed to shareholders.