For the financial year ended 31 October 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 director acknowledges his 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 director of the company has elected not to include a copy of the income statement within the financial statements.true

Chalk Lane Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Bickenhall Mansions, Bickenhall Street, London, W1U 6BP.

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. The principal accounting policies adopted are set out below.

At 31 October 202true4, the company had total net liabilities of £12.70m (2023 - £6.46m) comprising net current liabilities of £12.32m (2023 - £6.30m) less long term liabilities of £0.38m (2023 - £0.16m). The current liabilities include a loan from the company's bankers and loans of £10.71m (2023 - £10.14m) from the director and companies separately controlled by each of the two shareholders.

Progress on the development was impacted by various issues and stopped in 2024. A further impairment of £5.97m (2023 - £1.2m) has been made against the developments carrying value. The total impairment provided is £11.87m (2023 - £5.9m).

The director, together with the first charge lender, have decided to find a buyer for the partially completed development. Once the property is sold, the company will be put into liquidation. In the meantime, the company can meet ongoing expenses and the accounts have been prepared on a going concern basis.

Stock consists of property in the course of development and is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises associated acquisition costs, direct materials and subcontract work, other direct costs, capitalised interest and those overheads that have been incurred in bringing the stocks to their present location and condition.

Interest has been capitalised into stock as it relates to bringing the asset into its final marketable form.

Net realisable value is the estimated selling price at completion less the estimated costs of completion including the estimated costs necessary to make the sale. Net realisable value was assessed by estimating selling prices and cost (including sales and marketing expenses), taking into account current market conditions at the balance sheet date.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

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 statement of financial position 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, 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.

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.

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.

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other periods 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.

The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was:

The company's bank loan is secured by a fixed and floating first charge, which was created on 21 December 2020 over the freehold land, property or undertaking of the company.

In addition, a further loan provided by a related party, and included in other creditors due within one year, is secured by a fixed charge over the property of the company. This charge was created on 10 September 2018.

During the period a director lent the company £2,206 (2023: £236,818). No repayments were made during the year. At the balance sheet date the company owed the director £780,573 (2023: £778,367). This loan is interest free.

At the balance sheet date, a company controlled by the director was owed £275,584 (2023: £219,463). This loan is interest free.

At the balance sheet date, a company controlled by the former director was owed £9,649,412 (2023: £9,144,331).

A director has given a personal guarantee in respect of part of the company's bank borrowings.