Red Lions Estate Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 10342447

RED LIONS ESTATE LIMITED

FILLETED UNAUDITED FINANCIAL STATEMENTS

31 December 2024

RED LIONS ESTATE LIMITED

STATEMENT OF FINANCIAL POSITION

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	6	9,235,349	9,455,000

Current assets

Debtors	7	5,248,830	432,990
Cash at bank and in hand		424,771	614,944
		-------------	-------------
		5,673,601	1,047,934

Creditors: amounts falling due within one year	8	1,604,830	2,809,049
		-------------	-------------
Net current assets/(liabilities)		4,068,771	( 1,761,115)
		---------------	-------------
Total assets less current liabilities		13,304,120	7,693,885

Creditors: amounts falling due after more than one year	9	5,673,000	277,094

Provisions	10	2,516,836	2,264,426
		---------------	-------------
Net assets		5,114,284	5,152,365
		---------------	-------------

Capital and reserves

Called up share capital	2	2
Revaluation reserve	3,819,862	3,819,862
Profit and loss account	1,294,420	1,332,501
	-------------	-------------
Shareholders funds	5,114,284	5,152,365
	-------------	-------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- 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 Act with respect to accounting records and the preparation of financial statements .

RED LIONS ESTATE LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

31 December 2024

These financial statements were approved by the board of directors and authorised for issue on 20 June 2025 , and are signed on behalf of the board by:

Z Virani
Director

Company registration number: 10342447

RED LIONS ESTATE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Diamond House, 179 -181 Lower Richmond Road, Richmond, England, TW9 4LN.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

In accordance with the director's responsibilities, the director has considered the appropriateness of the going concern basis for the preparation of the financial statements. For this purpose, the director has considered the adequacy of the company's cash resources covering the period 12 months ahead of the approval of these financial statements. The director has reasonable expectations that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the director continues to adopt the going concern basis in preparing these financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Property valuations. Properties are valued annually at fair value by the directors. Fair value is ascertained through review of a number of factors to include market knowledge and market yields. There is an inevitable degree of judgement involved and value can only ultimately be reliably tested in the market itself.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. The company only provides for depreciation on those properties that are leasehold and where the unexpired term is than 20 years. Although this policy is in accordance with FRS 102, it is a departure from the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors, compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation is only one of many factors reflected in the annual valuation and the amount in respect of of this which might otherwise have been shown cannot be separately identified or quantified.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	20% straight line
Fixtures and fittings	-	20% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 27 (2023: 27 ).

5. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	82,599	–

Deferred tax:

Origination and reversal of timing differences	252,410	259,843
	----------	----------
Tax on profit	335,009	259,843
	----------	----------

Tax recognised as other comprehensive income or equity

The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £Nil (2023: £ 1,273,287 ).

6. Tangible assets

	Long leasehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost
At 1 January 2024	7,781,011	2,496,182	10,895	10,288,088
Additions	–	154,530	–	154,530
	-------------	-------------	---------	---------------
At 31 December 2024	7,781,011	2,650,712	10,895	10,442,618
	-------------	-------------	---------	---------------
Depreciation
At 1 January 2024	–	829,251	3,837	833,088
Charge for the year	–	372,416	1,765	374,181
	-------------	-------------	---------	---------------
At 31 December 2024	–	1,201,667	5,602	1,207,269
	-------------	-------------	---------	---------------
Carrying amount
At 31 December 2024	7,781,011	1,449,045	5,293	9,235,349
	-------------	-------------	---------	---------------
At 31 December 2023	7,781,011	1,666,931	7,058	9,455,000
	-------------	-------------	---------	---------------

In the opinion of the directors, the carrying value of the property as at 31 December 2024, which is based on the directors' valuation, is not significantly different from the open market fair value of the property

Tangible assets held at valuation

In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:

	Long leasehold property
	£
At 31 December 2024
Aggregate cost	2,612,030
Aggregate depreciation	–
	-------------
Carrying value	2,612,030
	-------------

At 31 December 2023
Aggregate cost	2,612,030
Aggregate depreciation	–
	-------------
Carrying value	2,612,030
	-------------

7. Debtors

	2024	2023
	£	£
Trade debtors	275,329	302,502
Amounts due from related parties	4,921,728	65,833
Other debtors	51,773	64,655
	-------------	----------
	5,248,830	432,990
	-------------	----------

8. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	–	54,520
Trade creditors	538,894	629,357
Accruals and deferred income	885,220	212,885
Corporation tax	82,599	–
Social security and other taxes	62,394	11,073
Amounts owed to related parties	–	1,850,535
Other creditors	35,723	50,679
	-------------	-------------
	1,604,830	2,809,049
	-------------	-------------

9. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	5,673,000	277,094
	-------------	----------

The bank loans are secured over the assets of the company.

10. Provisions

	Deferred tax (note 11)	Dilapidations	Total
	£	£	£
At 1 January 2024	1,764,426	500,000	2,264,426
Additions	252,410	–	252,410
	-------------	----------	-------------
At 31 December 2024	2,016,836	500,000	2,516,836
	-------------	----------	-------------

11. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 10)	2,016,836	1,764,426
	-------------	-------------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	743,549	552,281
Revaluation of tangible assets	1,273,287	1,273,287
Unused tax losses	–	( 61,142)
	-------------	-------------
	2,016,836	1,764,426
	-------------	-------------

12. Operating leases

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

	2024	2023
	£	£
Not later than 1 year	16,500	16,500
Later than 1 year and not later than 5 years	66,000	66,000
Later than 5 years	1,485,000	1,501,500
	-------------	-------------
	1,567,500	1,584,000
	-------------	-------------

13. Related party transactions

At 31 December 2024, creditors, amounts falling due within one year, included amounts owed to related parties amounting to £nil (2023: £1,850,535), in respect of loans. The parties are related by virtue of the significant common influence and control exerted. The loan is interest free, unsecured and repayable on demand. During the year, the company paid consultancy fees of £68,750 (2023: £60,000), to a shareholder with a participating interest in the company. At 31 December 2024, debtors included amounts due from related parties amounting to £4,921,728 (2023: £65,883), in respect of loans. The parties are related by virtue of the significant common influence and control exerted. The loans are interest free, unsecured and repayable on demand. Director's remuneration for the year amounted to £51,000 (2023: £nil). During the year, the director was paid consultancy fees of £59,500 (2023: £nil). During the year, the company paid management charges of £700,000 (2023: £nil) to a company over which significant influence and control is exerted by the directors and shareholders.