| REGISTERED NUMBER: |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| MELL SQUARE LIMITED |
| REGISTERED NUMBER: |
| 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: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 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 |
| CURRENT ASSETS |
| Debtors | 5 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 6 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
| NET LIABILITIES | ( |
) | ( |
) |
| CAPITAL AND RESERVES |
| Called up share capital |
| Share premium |
| Retained earnings | ( |
) | ( |
) |
| SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| 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 |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 |
| Revaluations | (654,467 | ) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 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 |
| Other debtors |
| 6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Amounts owed to group undertakings |
| Taxation and social security |
| Other creditors |
| 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 |
| 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 |
| Amounts falling due between one and two years: |
| Other loans - 1-2 years | 32,241,747 |
| 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 |
| Between one and five years |
| In more than five years |
| 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. |
| for and on behalf of |
| 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. |