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Registered number: 00250828
The Gravesend & District Real Estate Company Limited
Unaudited
Financial statements
Information for filing with the registrar
For the year ended 31 March 2025
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The Gravesend & District Real Estate Company Limited
Chartered accountants' report to the board of directors on the preparation of the unaudited statutory financial statements of The Gravesend & District Real Estate Company Limited for the year ended 31 March 2025
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Gravesend & District Real Estate Company Limited for the year ended 31 March 2025 which comprise the Balance sheet, the Statement of changes in equity and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the Board of directors of The Gravesend & District Real Estate Company Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of The Gravesend & District Real Estate Company Limited and state those matters that we have agreed to state to the Board of directors of The Gravesend & District Real Estate Company Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Gravesend & District Real Estate Company Limited and its Board of directors, as a body, for our work or for this report.
It is your duty to ensure that The Gravesend & District Real Estate Company Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of The Gravesend & District Real Estate Company Limited. You consider that The Gravesend & District Real Estate Company Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of The Gravesend & District Real Estate Company Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
2nd Floor, Maritime Place
Quayside
Chatham Maritime
Chatham
Kent
ME4 4QZ
31 July 2025
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The Gravesend & District Real Estate Company Limited
Registered number: 00250828
Balance sheet
As at 31 March 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Page 2
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The Gravesend & District Real Estate Company Limited
Registered number: 00250828
Balance sheet (continued)
As at 31 March 2025
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 5 to 12 form part of these financial statements.
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The Gravesend & District Real Estate Company Limited
Statement of changes in equity
For the year ended 31 March 2025
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Transfer to/(from) profit and loss account
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Total transactions with owners
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The notes on pages 5 to 12 form part of these financial statements.
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Statement of changes in equity
For the year ended 31 March 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Transfer to/(from) profit and loss account
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Total transactions with owners
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The notes on pages 5 to 12 form part of these financial statements.
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Page 4
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
The Gravesend and District Real Estate Company is a private company limited by shares and incorporated in England and Wales. The address of the registered office is 49 & 50 Windmill Street, Gravesend, Kent, DA12 1BG. The principal activities are that of investment property rental and of holding investment property for income and capital appreciation purposes.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 functional currency of the Company is Pound Sterling and the financial statements are rounded to the nearest £1.
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover of the company comprises rent receivable and proceeds from the sale of property from trading stock. Rents receivable under operating leases are recognised on a straight line basis over the life of the lease. Proceeds from property sales from trading stock are recognised on exchange of contracts.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in 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 balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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 except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
External valuations are performed on a periodic basis with the director's valuations performed in the intervening years.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stock represents investment properties on the market for sale at the period end.
These are valued at fair value in line with other investment properties. Changes in fair value are reported in cost of sales.
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.
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
2.Accounting policies (continued)
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Cash and cash equivalents
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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.
Short-term 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 Company 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 Company's Balance sheet when the Company 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 Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
2.Accounting policies (continued)
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Financial instruments (continued)
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amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans 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.
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.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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The average monthly number of employees, including directors, during the year was 5 (2024 - 6).
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Investments in subsidiary companies
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Page 8
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
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Freehold investment property
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Long term leasehold investment property
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The 2025 valuations were made by the directors, on an open market value for existing use basis.
The historic costs of the investment properties at 31 March 2025 was £38,326,599 (2024 - £35,451,202).
Page 9
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
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Amounts owed by group undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Page 10
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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All bank loans are secured by charges on certain freehold and long leasehold investment properties. The loans bear interest on a margin above LIBOR or the Bank of England Base Rate of between 2.25% and 2.5%. The terms of the Company's banking arrangements include compliance with certain financial covenants, all of which were met during the year.
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Capital gains on revaluation
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Allotted, called up and fully paid
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4,440,000 (2024 - 4,440,000) Ordinary shares of £0.50 each
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Page 11
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The Gravesend & District Real Estate Company Limited
Notes to the financial statements
For the year ended 31 March 2025
Revaluation reserve
The revaluation reserve represents the difference between historic cost of the company's investment property and their current fair value. This is a non-distributable reserve. When an investment property is sold, the related value in the revaluation reserve is released to the profit and loss reserve. On an annual basis the fair value movement is transferred from the profit and loss reserve to the revaluation reserve.
Profit and loss account
The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.
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