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REGISTERED NUMBER: 04893064 (England and Wales)







FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MELL SQUARE LIMITED

MELL SQUARE LIMITED (REGISTERED NUMBER: 04893064)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


MELL SQUARE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: P Q Carroll
M Clayton





SECRETARY: A P Kinsey





REGISTERED OFFICE: Council House
Manor Square
Solihull
West Midlands
B91 9QS





REGISTERED NUMBER: 04893064 (England and Wales)





AUDITORS: Prime
Chartered Accountants
Statutory Auditor
Corner Oak
1 Homer Road
Solihull
B91 3QG

MELL SQUARE LIMITED (REGISTERED NUMBER: 04893064)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Investment property 4 25,800,000 26,454,467

CURRENT ASSETS
Debtors 5 2,638,499 2,914,187
Cash at bank 71,418 971,420
2,709,917 3,885,607
CREDITORS
Amounts falling due within one year 6 2,166,407 2,973,362
NET CURRENT ASSETS 543,510 912,245
TOTAL ASSETS LESS CURRENT
LIABILITIES

26,343,510

27,366,712

CREDITORS
Amounts falling due after more than one
year

7

(32,241,747

)

(32,377,909

)

PROVISIONS FOR LIABILITIES (572,043 ) (695,890 )
NET LIABILITIES (6,470,280 ) (5,707,087 )

CAPITAL AND RESERVES
Called up share capital 1,000 1,000
Share premium 15,058,226 15,058,226
Retained earnings (21,529,506 ) (20,766,313 )
SHAREHOLDERS' FUNDS (6,470,280 ) (5,707,087 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2025 and were signed on its behalf by:





M Clayton - Director


MELL SQUARE LIMITED (REGISTERED NUMBER: 04893064)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024


1. STATUTORY INFORMATION

Mell Square Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern
At 31 December 2024 the company has net current assets of £543,510 (2023 £912,245) and net liabilities of £6,470,280 (2023 £5,707,087). The directors have prepared a cash flow for the period through to April 2026 which shows that the company is able to meet its obligations as they fall due. The directors would like to note that during the year, the terms of the loan agreement with the parent company were fully complied with, but a waiver of the covenants has been received. Having considered future cash flow scenarios, and whilst the expectation is that the terms of the loan agreement will be complied with, in a reasonable and plausible downside scenario the company will require the parent company to either defer loan interest, capital repayments or head lease payments.

In preparing these cash flow forecasts, the Directors have received confirmation from its parent company, SMBC, that it would be prepared to defer loan interest, capital repayments and head lease payments to 30 April 2026, in the event that this was required to enable the Company to maintain a positive cash balance. This confirmation is not legally binding but based on the previous support from the parent company, the directors believe there is a reasonable expectation to rely on this and have concluded that is appropriate to prepare the financial statements on a going concern basis.

Preparation of financial statements
The company's ultimate parent undertaking, Solihull Metropolitan Borough Council ('SMBC') includes the Company in its consolidated financial statements. The consolidated financial statements of SMBC are prepared in accordance with proper accounting practices. The council is required under the Accounts and Audit regulations 2015 to prepare an annual Statement of Accounts in accordance with proper accounting practices. These practices primarily comprise the CIPFA / LASAAC Code of Practice 2020/21, supported by International Financial Reporting Standards (IFRS) and statutory guidance issued under section 21(2) of the Local Government Act 2003. The accounts are available to the public and may be obtained at
https://www.solihull.gov.uk/About-the-Council/Financial-documents

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.


MELL SQUARE LIMITED (REGISTERED NUMBER: 04893064)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2023 - NIL).

4. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 January 2024 26,454,467
Revaluations (654,467 )
At 31 December 2024 25,800,000
NET BOOK VALUE
At 31 December 2024 25,800,000
At 31 December 2023 26,454,467

Fair value at 31 December 2024 is represented by:
£   
Valuation in 2023 (39,393,904 )
Valuation in 2024 (654,466 )
Cost 65,848,370
25,800,000

The property was revalued on 9 May 2024 on an open market basis by Cushman & Wakefield.
The directors consider that this valuation represents fair value at 31 December 2024.

MELL SQUARE LIMITED (REGISTERED NUMBER: 04893064)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 725,485 817,664
Other debtors 1,913,014 2,096,523
2,638,499 2,914,187

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Amounts owed to group undertakings 1,310,931 1,579,587
Taxation and social security - 381,286
Other creditors 855,476 1,012,489
2,166,407 2,973,362

Amounts owed to the parent undertaking of £1,310,931 (2023: £1,579,587) relates to accrued interest and other balances settled by Solihull Metropolitan Borough Council ('SMBC') on the company's behalf. The balance is payable on demand.

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Loan over 1 year 32,241,747 32,377,909

8. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Other loans 136,162 128,333

Amounts falling due between one and two years:
Other loans - 1-2 years 32,241,747 32,377,909

Loans owed to the company's parent undertaking represents loans to Solihull Metropolitan Borough Council of £32,241,747 (2023: £32,377,909). The loan terms were documented in a facility agreement dated 20 July 2022 which confirmed the rate of interest from the loan inception on 9 April 2021 with the term of 50 years at 6.01%. Quarterly instalments of £518,633.25 inclusive of interest are schedule up to the final repayment date on 9 April 2071.

MELL SQUARE LIMITED (REGISTERED NUMBER: 04893064)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 2,320,303 2,320,303
Between one and five years 9,281,208 9,281,208
In more than five years 138,728,631 141,048,933
150,330,142 152,650,444

The total future minimum lease payments receivable under non-cancellable operating leases are as follows:


2024 2023
£ £
Within one year 4,289,482, 4,952,580
Between one year and five years 9,885,826 11,980,093
After five years 48,369,236 49,487,917
62,544,544 66,420,591

10. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Luke Edwards ACA FCCA (Senior Statutory Auditor)
for and on behalf of Prime

11. RELATED PARTY DISCLOSURES

The company has taken advantage of the exception conferred by FRS 102 paragraph 33.1A not to disclose transactions with wholly owned subsidiaries within the group.

12. ULTIMATE CONTROLLING PARTY

The ultimate controlling party and parent is Solihull Metropolitan Borough Council.