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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
COMPANY INFORMATION
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BASINGHALL (MH) LIMITED
CONTENTS
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BASINGHALL (MH) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
The Company is a real estate holding company that, though its wholly owned subsidiaries, owns the commercial real estate asset known as 1 Basinghall, situated in the City of London. The asset currently serves as the global head quarters for a multinational bank and is undergoing an extensive redevelopment to suit the tenant’s operational and sustainability needs.
During the financial year, the Group achieved significant milestones, reinforcing its commitment to maintaining and enhancing the value of its real estate asset:
Property Upgrades The redevelopment project at 1 Basinghall commenced according to all key milestones during the year. Capital expenditures remain fully funded, with some headroom available to further enhance the tenant experience through additional upgrades at the building. During the year, the redevelopment progressed according to milestone dates committed to our Tenant, with an expected completion date in late 2025. Reserve for Debt Interest To safeguard against potential cash flow variability, particularly in relation to meeting future leasing targets, the company has established a dedicated cash reserve to cover potential interest shortfalls. This prudent approach underscores our commitment to financial stability. The cash reserve increased during the financial year.
The directors are aware of the potential risks associated with tenant occupancy, market conditions, and interest rate fluctuations. However, the proactive measures taken, including tenant lease extensions, fixed-rate debt, and the creation of a dedicated reserve, mitigate these risks effectively.
The directors utilize specific KPIs to measure performance and ensure effective risk management. These KPIs reflect the company’s strategic objectives and include:
De-Risked Capital Expenditure (CapEx) Program The Group has substantially fixed its contract with the appointed contractor, minimizing provisional sums and reducing risks associated with cost overruns. This approach ensures greater predictability in the delivery of the upgrade works. Fixed Interest Costs The refinancing of debt with a fixed-rate facility has effectively mitigated risks associated with interest rate fluctuations, providing financial certainty through to October 2027.
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BASINGHALL (MH) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Enhanced Sustainability and Efficiency Standards
As part of the redevelopment plan, the Group has reallocated savings within the development budget to upgrade the building’s central plant to best-in-class standards. This initiative will position 1 Basinghall as one of the most energy-efficient and sustainable buildings in the City of London, supporting the Group’s commitment to ESG principles and enhancing the building’s market appeal. Financial Position and Performance The Group remains in a strong financial position, with sufficient liquidity to meet both operational and investment requirements. The refinancing of debt and extension of the tenant lease have bolstered future cash flow predictability, while the capital expenditure program is expected to enhance asset value.
Looking ahead, the Group remains focused on the strategic enhancement of 1 Basinghall while maintaining financial discipline. The continued partnership with the tenant, ongoing property upgrades, and a strengthened ESG profile position the Group well to capitalize on market opportunities and deliver sustainable value to stakeholders.
This report was approved by the board and signed on its behalf.
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BASINGHALL (MH) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £2,084,208 (2023 - profit £2,916,568).
No interim or final dividends were declared for the year ended 31 December 2024.
The directors who served during the year were:
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BASINGHALL (MH) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Group since the year end.
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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BASINGHALL (MH) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASINGHALL (MH) LIMITED
We have audited the financial statements of Basinghall (MH) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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BASINGHALL (MH) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASINGHALL (MH) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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BASINGHALL (MH) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASINGHALL (MH) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
∙the nature of the company, including its management structure and control systems (including the opportunity for management to override such controls);
∙management’s incentives and opportunities for fraudulent manipulation of the financial statements including the company’s remuneration and bonus policies and performance targets; and
∙the industry and environment in which it operates.
We also considered UK tax legislation, laws and regulations relating to employment, pension legislation and the preparation and presentation of the financial statements such as the Companies Act 2006.
Based on this understanding we identified the following matters as being of significance to the group:
∙laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax legislation, pension legislation and distributable profits legislation;
∙the timing of the recognition of income;
∙valuation of tangible fixed assets, specifically property;
∙significant external loan liabilities and compliance with covenants in agreements;
∙compliance with legislation relating to UK employment law, GDPR and health and safety;
∙management bias in selecting accounting policies and determining estimates;
∙use of journal entries;
∙manipulation of specific performance measures to meet remuneration targets;
∙recoverability of debtors, including intercompany debtors; and
∙understating liabilities.
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
∙enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
∙enquiries with the same concerning any actual or potential litigation or claims;
∙discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud;
∙inspection of relevant legal correspondence;
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BASINGHALL (MH) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BASINGHALL (MH) LIMITED (CONTINUED)
∙assessment of matters reported to management and the result of the subsequent investigation;
∙obtaining an understanding of the relevant controls;
∙obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
∙review documentation relating to compliance with the regulations relating to GDPR, Health and Safety;
∙challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to valuation of tangible fixed assets, accrued income and accruals;
∙testing the key assumptions in the valuation of the property and obtaining corrobative evidence to support the valuation;
∙identifying and testing journal entries, in particular any unusual journal entries and non-standard journal entries;
∙assessing the recovery of debtors, including intercompany debtors, in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
∙confirming the validity of significant liabilities and compliance with loan covenants;
∙reviewing the financial statements for compliance with the relevant disclosure requirements;
∙performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
∙reviewing the correspondence with HMRC; and
∙evaluating the underlying business reasons for any unusual transactions.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
14th Floor
33 Cavendish Square
W1G 0PW
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BASINGHALL (MH) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
REGISTERED NUMBER: 14478171
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 29 form part of these financial statements.
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BASINGHALL (MH) LIMITED
REGISTERED NUMBER: 14478171
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 29 form part of these financial statements.
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BASINGHALL (MH) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Basinghall (MH) Limited (the 'Company) is a private limited by shares and is incorporated in England and Wales. The Company's registered office is at 71 Queen Victoria Street, Floor 8, London, United Kingdom, EC4V 4AY. The Company is a holding entity of a property investment group.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. Included within the Group's current liabilities are loans due to related parties totalling £143m, which have been subordinated in favour of other loans that are due after more than one year. The losses incurred includes significant non-cash items and related party charges. After adjusting for these transactions, the management's forecasts shows that the Group expects to generate sufficient cash flows to meet their liabilities as they fall due for at least 12 months from the date of approval of these financial statements. This is supported by the creation of a cash reserve to ensure sufficient coverage for potential interest shortfalls. Based on these factors, the directors believe it is appropriate to prepare the financial statements on a going concern basis.
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Other operating income relates to one-off fees charged to a related entity which has been recognised in the period.
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. Valuation of investment properties The investment properties are carried in the balance sheet at fair value. The fair value is determined annually by the directors. The valuation of the investment properties is inherently subjective as it utilises, among other factors, comparable sales data and the expected future rental revenues. If any assumptions made in the valuation prove to be inaccurate, this may mean that the value of the investment properties in the accounts differs from the actual valuation, which could have a material effect on the financial position of the Group. Investment property valuations are a key source of estimation uncertainty for the Group. Amortisation of negative goodwill The negative goodwill is being amortised over an estimated useful life of 10 years. As per the accounting standards the estimate useful life is deemed to be finite and will not exceed this. Accruals Management estimation is required to determine the amount of various liabilities incurred during the year and still due at the year end.
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 23
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 24
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 25
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The 2024 valuations were made by directors, on an open market value for exisiting use basis.
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Particulars of the loans are disclosed in note 18 of the financial statements.
Profit and loss account
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BASINGHALL (MH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company is part of a joint guarantee arrangement comprising the £211m total external group loans.
The group had entered into a development agreement with an entity that is controlled by the parent undertaking. At the year end, the group had contracted capital commitments in respect of this development amounted to £9.5m (2023: £23.6m), which have not been provided for in the financial statements.
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