The directors present the strategic report for the year ended 31 March 2024.

Coin Street Community Builders Limited ("CSCB" or "the Company") is a development trust and social enterprise that works to create and support a resilient adaptable neighbourhood, of people and places, where everyone's diverse needs are met. The Company’s income arises from owning, developing and managing property. Profits are not distributed but are used to support the Company's public service objectives.

Since 1984, CSCB has been the driving force behind 13 acres of vibrant community on London’s South Bank. Our journey began with a campaign to protect homes and spaces in Waterloo and North Southwark, fighting for local people to have the opportunity to live, work, and play in their own neighbourhood. Now, as then, we’re proud to have delivered award winning homes, alongside parks, shops, restaurants, galleries, and dynamic spaces designed for connection and creativity.

CSCB operates as the landlord to a range of businesses that operate across the Coin Street site. The company offers conference and meeting spaces and a nursery for preschool children, both of which operate from the Coin Street Neighbourhood Centre. The building also provides spaces for the delivery of family support counselling and for the delivery of healthcare to local residents.

The Company’s long-term intention is to continue to develop the land it owns to meet its overall strategic aims and manage its assets in a financially sustainable model within its social enterprise objectives.

CSCB heads a group of five subsidiary investments (“the Group”) and these consolidated financial statements present the results as if they formed a single entity.

OBJECTIVES

CSCB’s overall objective is the provision of public service within the United Kingdom otherwise than for the purpose of gain including the following specific objects:

• To promote, encourage and assist in the provision of housing, employment, recreational and educational opportunities and facilities for the benefit of those living in Waterloo and North Southwark.

• To promote and encourage economic growth within Waterloo and North Southwark and the extension of the range of employment opportunities for residents of Inner London.

• To provide assistance in any form whatsoever to any person who is homeless or who is, in the opinion of the Company, in any way in housing need.

• To promote and encourage an increased awareness of the social and economic needs and problems of local communities and to provide support for projects which will in the absolute discretion of the Company benefit one or more local community.

• To publicise the objects and activities of the Company and to encourage the involvement of members of local communities in such activities.

Key Strategic Aims

During the year under review, CSCB was working towards the five strategic pillars agreed by the Board to allow the company to deliver on its overall strategy:

• High quality spaces to live work and play

• Best start for children and families

• Health & wellbeing for everyone

• Homes that support our community

• Enterprise, creativity and lifelong learning

To achieve these strategic outcomes CSCB has worked with a range of local and national stakeholders, including:

• Coin Street Secondary Housing Co-operative;

• Coin Street Centre Trust;

• Colombo Street Community & Sports Centre;

• the London Boroughs of Lambeth and Southwark;

• The Mayor of London;

• The Greater London Authority;

• South Bank Employers' Group;

• the Department for Education;

• Guy's & St Thomas's NHS Foundation Trust;

• Lloyds Bank;

• NatWest;

• South Bank BID;

• South Bank & Waterloo Neighbours (SoWN)

• Rambert

CSCB has also worked with Central Government, Locality, Social Enterprise UK and others to strengthen the wider social enterprise movement.

High quality spaces to live, work and play

A site-wide asset management review of the whole estate is underway, to ensure effective management of the site and to identify future plans for development within the Company’s objectives.

A major mixed development scheme including housing, a public swimming pool and indoor leisure centre is being planned for the Doon Street site adjacent to the National Theatre.

The company has consent for a substantial upgrading of Bernie Spain Gardens and a new garden adjacent to the riverside walkway.

Best start for children and families

The Coin Street Neighbourhood Centre incorporates a children's centre for our area serving parents and children across Lambeth and Southwark. Our day nursery is a key resource for families in the local area and provides quality, affordable education and childcare for children aged three months to five years.

Our family case workers provide support for those families facing complex challenges such as parental mental health, substance misuse, domestic violence, housing need, debt, and family breakdown. We provide intensive one to one support for parents and carers as well as access to specialists such as counsellors and health professionals, legal advisors, and employment support.

Our partnership with 1st Place Children and Parent's Centre in joint delivery of children's centre support across the Borough, Bankside and Walworth area continues to develop and flourish. We are an active member of the network of Children and Family Centres that are supported as part of the Southwark Council Keeping Families Strong offer.

Health and wellbeing for everyone

CSCB works closely with Coin Street Centre Trust and Colombo Street Community & Sports Centre to provide a wide range of community activities and facilities across a range of age groups. Our approach is responsive to the needs and opportunities within our community.

The activities we run at the Colombo Centre in partnership with Colombo Street Community & Sports Centre remain popular as one of the few remaining youth clubs operating in the area.

Our health suite at the Coin Street Neighbourhood Centre hosts antenatal appointments and post-natal check-ups from the midwife team at Guy's and St Thomas' NHS Foundation Trust. Appointments are available across the year in our specialist suite, enabling parents to get the advice they need in a relaxed community setting.

Homes that support our community

As well as the long-standing and evolving work with Coin Street Secondary Housing Co-op, we plan to include affordable housing in our Doon Street mixed use development.

Enterprise, creativity and lifelong learning

Getting alongside young people to build on their talents, nurture their resilience and support them to access opportunities around sports, the arts, enterprise, wellbeing, and social action continues to form a core part of the work of our youth & community team.

Supported by many volunteers and donations, we have been able to continue to offer a programme of activities to local residents of all ages, including gardening, health & fitness, arts, and social programmes. Our continued partnership with Rambert supports members of our community of all ages to access dance, movement and music to nurture their creative skills.

The most significant strategic risks are:

Health & Safety. Failure to take reasonable steps to ensure health & safety of both residential, and commercial tenants, public realm and fulfilling duty of care to staff could result in death, injury or ill health. CSCB has identified this as a key priority for resourcing to ensure it meets statutory and regulatory compliance.

Financial sustainability. If income does not keep pace with rising property management costs and salary costs, CSCB’s future plans might be impacted. To date, income levels remain steady, but the group has started to feel the impact on expenditure of faster rates of inflation for building materials, fuel and labour and the work required to maintain the site.

Long term business planning is used to establish the timing and cash requirements for estate maintenance and regeneration to ensure enough is held in reserve to allow for future investment and organisational sustainability. CSCB uses bank borrowing to finance the Group's operations.

Borrowing requirements are assessed and managed through CSCB’s long term planning and forecasting process. The principal risks associated with bank borrowing relate to liquidity, cash flow and compliance with lender covenants. CSCB’s Board manages the banking relationship to ensure that suitable bank facilities are available to meet expected cash flow requirements and that the organisation is complying and is forecast to comply with lender covenants. Bank facilities are considered to be sufficient to support the company’s operations for the foreseeable future.

Asset management adequacy. If there is insufficient information regarding the asset management plan for effective long term financial planning, available resources might be inadequate to cover required works. This could delay CSCB’s investment and activity plans as well as its ability to reach carbon neutral targets. A long term asset management plan and associated business planning has been introduced to ensure these plans are underpinned by the necessary resources.

Governance effectiveness. Gaps or lack of clarity and effectiveness in roles and responsibility between the companies CSCB works closely with: Coin Street Secondary Housing Co-operative, Coin Street Centre Trust and Colombo Street Community & Sports Centre could lead to regulatory or business failure. A strategic review of governance structure is underway to ensure compliance and optimise service delivery.

Staffing vulnerability. Any failure to have in place appropriate resilience and succession plans to deal with changes in executive team and the Board exposes the organisation to foreseeable risk. CSCB is undertaking succession planning and review of systems and process to reduce over reliance on key persons.

FINANCIAL REVIEW

During the 2023-24 financial year, CSCB commissioned a formal external valuation to establish fair value of all the group’s property assets, in line with best practice and to provide a robust base for future accounting periods. In previous years, due to the complexities of valuing such a unique site, CSCB had relied on a valuation dating back to 1995 for certain parts of the estate.

As a result, the 2024 accounts include several items relating to the revaluation of property assets. Although these are not realised profits, the adjustments have materially affected the accounts, increasing profits on paper by £3.084m (2023: £2.931m). Details are set out in notes 11 and 14 to the accounts.

At 31 March 2024, CSCB reported a post-tax profit of £1.353m (2023: £3.61m) and reported cash and cash equivalents on the balance sheet of £5,635m. This cash balance represented 6 months’ cover of total operating costs for the company.

Going Concern Review

The directors have reviewed CSCB’s cash flow, operating plans and long-term financial projections. Their review has incorporated cash flow forecasts that cover at least 12 months from the date of signing off these financial statements. The directors are of the opinion that they have considered all the information currently available to them. The directors are mindful of the challenging macro-economic factors of the cost-of-living crisis and its impact, monitoring income and gauging levels of expenditure, and prioritising vital investment by the organisation both in its staff and in the site.

The directors’ going concern review also covers the forecast of the compliance of the Group and Company with their banking lender covenants. They have concluded that the Group and Company will comply with the agreed banking covenants, and that there will be sufficient financial resources to allow the company to operate for the foreseeable future, being a period of at least 12 months from the date of signing of these financial statements.

To date the Group and Company have met their covenants and lenders have recently renewed their loan financing arrangement.

Based on the sustained recovery of income to the organisation, the strength of the balance sheet, the expectation that the Group and Company will continue to meet all liabilities as they fall due and remain in operational existence for at least 12 months from the date of signing of these financial statements, the directors consider it appropriate to prepare these financial statements on a going concern basis.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2024.

The results for the year are set out on page 11.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Qualified opinion on financial statements

We have audited the financial statements of Coin Street Community Builders Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

Included within tangible fixed assets in the Group and Parent company financial statements and within note 11 as investment properties are portions of land that have been revalued to fair value in the year.  In the prior year these had been held at the historic valuation undertaken in 1995.  We have been unable to determine how much of the revaluation adjustment relates to prior periods which consequently impacts the current year profit and loss account.  We have not identified any issues with the valuation as at 31 March 2024.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.

Conclusions relating to going concern

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 and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• The information given in the 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 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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our knowledge and experience;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company.

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims;

• reviewing relevant correspondence.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our 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 auditor's 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.

The notes on pages 18 to 38 form part of these financial statements.

The notes on pages 18 to 38 form part of these financial statements.

The notes on pages 18 to 38 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £334,133 (2023 - £81,872 profit).

The notes on pages 18 to 38 form part of these financial statements.

The notes on pages 18 to 38 form part of these financial statements.

The notes on pages 18 to 38 form part of these financial statements.

Coin Street Community Builders Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Coin Street Neighbourhood Centre, 108 Stamford Street, London, SE1 9NH.

Coin Street Community Builders Limited is a public benefit entity.

The group consists of Coin Street Community Builders Limited and all of its subsidiaries.

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.

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, 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 Companies Act 2006.

The principal accounting policies adopted are set out below.

In preparing the separate financial statements of the Parent Company, advantage has been taken of the following disclosure exemptions available to qualifying entities:

• No cash flow statement or net debt reconciliation has been presented for the Parent Company;

• Disclosures in respect of the details of the Parent Company's income, expense, net gains and net losses on financial instruments measured at amortised cost have not been presented as equivalent disclosures have been provided in respect of the Group as a whole; and

• No disclosure has been given for the aggregate remuneration of the key management personnel of the Parent Company as their remuneration is included in the totals for the Group as a whole.

The consolidated financial statements present the results of Coin Street Community Builders Limited and its subsidiaries ("the Group") as if they formed 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 Statement of Financial Position, 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

In preparing the financial statements, the directors are required to make an assessment of the ability of the Group and Company to continue as a going concern. The directors have prepared cash flow forecasts that cover at least 12 months from the date of signing of these financial statements and have considered all information currently available to them. The directors are mindful of the challenging macro-economic factors of the cost-of-living crisis and its impact, monitoring income and gauging levels of expenditure, prioritising vital investment in the organisation both its staff and the site.

The directors review and forecast the compliance of the Group and Company with their lender covenants monthly and it is expected that there will be sufficient headroom for the foreseeable future, being a period of at least 12 months from the date of signing of these financial statements. To date the Group and Company have met their covenants and lenders have recently entered into a new loan financing arrangement.

Based on the sustained recovery of income to the organisation, the strength of the balance sheet, the expectation that the Group and Company will continue to meet all liabilities as they fall due and remain in operational existence for at least 12 months from the date of signing of these financial statements, the directors consider it appropriate to prepare these financial statements on a going concern basis.

The financial statements do not include the adjustments that would be required should the going concern basis of preparation no longer be appropriate.

Turnover is measured at the transaction price, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services.

Turnover from the rendering of services is recognised according to the period in which the service was provided or the period to which the service relates.

Rent receivable and service charge income is invoiced in advance depending on contract terms. Invoices for a future period are deferred until the date of that period. Deferred turnover is reflected as a current liability.

Site hire income is invoiced upon booking. The income is deferred and released to the period in which the event takes place.

Car park income is invoiced on a monthly basis and recognised over the period to which it relates.

Nursery fee income is invoiced in advance and recognised in the month that it is earned.

Revenue grants received

Revenue grants are recognised according to the performance model. Revenue grants are reflected as income in the period performance conditions of the grant is met. Revenue grants received in advance are deferred until the performance conditions are met. Deferred grants are reflected as a current liability.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Tangible fixed assets are measured at cost or valuation less accumulated depreciation and any accumulated depreciation impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, other than freehold investment properties and property in the course of construction, over their expected useful lives, using the straight-line method. The rates applicable are:

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Property in the course of construction are not depreciated until they are ready for use at which point they are transferred to the asset class under which they will be reported and depreciated.

In accordance with FRS 102 Section 16 'Investment Property', such assets are held for long term investment and are included in the Statement of Financial Position at their open market values (as disclosed in Note 11). No depreciation is provided. Changes in fair value are recognised in profit or loss.

Other freehold property held for own use has been accounted for under the revaluation model. The cumulative unrealised valuation movement is recognised within the revaluation reserve with movement going through other comprehensive income.

In the Company's individual accounts, investments in subsidiaries are measured at cost less accumulated impairment.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value (NRV).

NRV is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale.

When an inventory property is sold, the carrying amount of the property is recognised as an expense in the period in which the related revenue is recognised. The carrying amount of inventory property recognised in profit or loss is determined with reference to the directly attributable costs incurred on the property sold and an allocation of any other related costs based on the relative size of the property sold.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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.

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit or loss, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

• the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

• any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date date.

Short-term employee benefits and contributions to defined contribution pension plans are recognised as an expense in the period in which they are incurred.

Where assets are leased to a third party and give rights approximating to ownership (finance leases), he assets are treated as if they have been sold outright. The amount removed from the fixed assets is the net book value on disposal of the asset. The profit on disposal, being the excess of the present value of the minimum lease payments over net book value is credited to profit or loss.

Finance lease payments are analysed between capital and interest components so that the interest element of the payment is credited to profit or loss over the term of the lease and represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts owed by the lessee.

All other leases are treated as operating leases. Their annual rentals are credited to profit or loss on a straight line basis over the term of the lease.

In preparing these financial statements, the directors have made the following judgements:

• Determine whether leases entered into by the Group as a lessor are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

• Determine whether there are indicators of impairment of the Group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

• Determine whether there are any indicators of impairment of the carrying value of inventory property. Professional judgement is applied in determining whether the carrying value of inventory property is in excess of the net realisable value. Factors taken into consideration in reaching such a decision include the development potential, planning prospects and prevailing market conditions.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Investment properties are valued annually and the key sources of estimation uncertainty are detailed in note 11.

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

Their aggregate remuneration comprised:

All staff are employed by the Company and therefore the above figures represent the employee costs and the numbers of both the Group and Company.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The freehold properties shown above are treated as investment properties in accordance with FRS 102.

In accordance with FRS 102, Section 16 'Investment Properties', investment properties should be included at their fair value.

An external valuation was carried out for the 31 March 2024 year end by the Group's property advisors Montagu Evans and Savills, chartered surveyors, on the Group and Company's freehold and owner occupied properties which determined an open market value of £50,375,000 (2023: £42,585,000). The directors of the Company believe this best represents the fair value of these property assets at the year end.

The investment properties aside from the properties in relation to Doon Street have been valued in accordance with the Valuations Standard (2022 Edition) of the Royal Institution of Chartered Surveyors, on the basis of 'Market Value'. The key assumptions used in the valuation were the rental yield, with a range of between 4.0% and 7.0% adopted depending on the function of the property, and the terms of the underlying rental agreements.

The Group appointed Savills as an external valuer of the portion of the Doon Street development site held in the subsidiary companies. They have valued it in accordance with the RICS Valuation - Global Standards (incorporating the IVSC International Valuation Standards) effective from 31 January 2022 together, where applicable, with the UK National Supplement effective 14 January 2019, together the "Red Book", on the basis of 'Market Value' using the residual method. The method assesses the current value based on the anticipated end value and costs of a proposed scheme on the site, as residual appraisal is generally the accepted method used to value property with potential for redevelopment. This involves assessing the value of the completed development and deducting the estimated cost of work, including professional fees, finance (on land and works) and developer's profit, to arrive at the residual/current market value of the property.

For the property under lease by PA3 Lease Limited the residual calculations showed a negative residual value. Savills was of the view that a negative residual value didn't reflect the true value of the site and that the site has value in an active market. To provide a more realistic market value Savills took the value at the transfer date from the Company to the subsidiary and applied a discount of 60% to reflect market movement for development sites between October 2021 and 31 March 2024 for similar sites in that location. Savills have determined this discount based on comparable data and their professional judgement.

In addition, as set out in Note 23, the properties valued by Savills are also subject to unique restrictive covenants which include restriction on the permitted use. There are ongoing negotiations concerning the removal of the restrictive covenants which would be significant part of the planned development.

In order to reflect what effect such restrictive covenants might have on the value Savills have adopted a 25% discount to Market Value, which materially reduces the value of the asset. So unique are the covenants without comparison, that determining the level of discount required application of their professional judgement. The covenants are accompanied by a legal mechanism to obtain consent for a new use, which moderates the level of discount applied, recognising both the potential and manageable risks associated with the negotiation.

Directors take assurance that the valuation had been carried out by one of Savills RICS Registered Valuer and countersigned by at least one other RICS Registered Valuer as well as undertaking wide discussions with agents and their own capital market teams to test the reasonableness of the level of discount. They provide assurance that their Valuer has sufficient current knowledge of the particular market and sufficiently developed skills and understanding to undertake the valuation competently.

Therefore, the directors of the Company believe this best represents the fair value of these property assets at the year end.

Details of the company's subsidiaries at 31 March 2024 are as follows:

Each of the above undertakings has the same registered office address as the Company.

The inventory property relates to a portion of the Doon Street development site that is held within PA1 Tower Lease Limited. The planned use of the property differs from the remaining Doon Street development site and is therefore classified as inventory property.

During the year, the land valuation was reduced to its estimated net realisable value as provided by Savills, chartered surveyors. This resulted in the Company incurring impairment losses of £3,167,968 during the year. The intention of the Company is to develop on this land in line with its principal activity.

Amounts owed by group companies are unsecured, interest free and repayable on demand.

The group has established a sinking fund to spread the cost of major works on Oxo Tower Wharf. The tenants on the site contribute to the fund annually via service charge. The fund’s disposition is entirely at the discretion of the company.

The Company has two loans outstanding at the reporting date with National Westminster Bank Pic which are secured by a fixed charge on the following assets: Oxo Tower Wharf, Barge House Street, London, SE1 9GY, The Mulberry Bush Public House, 89 Upper Ground, London, SE1 9PP and Bargehouse OXO Tower Wharf, Barge House Street, London, SE1 9PH. The Company has also granted National Westminster Bank Pic a floating charge over all other assets except the Doon Street property.

The group has established a sinking fund to spread the cost of major works on Oxo Tower Wharf. The tenants on the site contribute to the fund annually via service charge. The fund’s disposition is entirely at the discretion of the company.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in and independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £158,312 (2023 - £129,679). Contributions totalling £Nil (2023 - £Nil) were payable to the fund at the reporting date and are included in creditors.

Represents the cumulative unrealised valuation movement on tangible fixed assets held under the revaluation model net of any deferred tax.

Profit and loss account represents cumulative profits or losses net of dividends paid and other adjustments.

Certain sites owned by the Group are subject to restrictive covenants. There is provision for a 'claw back' of any additional land value attributable to any consent to vary these restrictive covenants. These are currently under negotiation with the covenant holder. The outcome of these negotiations is uncertain.

The Group and Company leased out certain investment properties under non-cancellable operating leases for the following future minimum lease payments. There are no contingent rents.

At 31 March 2024 and 31 March 2023 the Group and Company had no material capital commitments.

All directors and the senior management team who have the authority and responsibility for planning, directing and controlling the activities of the Group are considered to be key management personnel. Total remuneration (including pension contributions) in respect of these individuals is £550,329 (2023 - £559,206).

The Company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the Company in the event of liquidation.