New Road (Crouch End) Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 09061402

NEW ROAD (CROUCH END) LIMITED

FILLETED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 September 2024

NEW ROAD (CROUCH END) LIMITED

STATEMENT OF FINANCIAL POSITION

30 September 2024

	2024	2023
Note	£	£

Current assets

Stocks	5	1,683,132	1,679,497
Debtors	6	1,228	9,179
Cash at bank and in hand		1,130	881
		-------------	-------------
		1,685,490	1,689,557

Creditors: amounts falling due within one year	7	( 2,442,581)	( 2,164,339)
		-------------	-------------
Net current liabilities		( 757,091)	( 474,782)
		----------	----------
Total assets less current liabilities		( 757,091)	( 474,782)

Provisions	8	( 117,472)	–
		----------	----------
Net liabilities		( 874,563)	( 474,782)
		----------	----------

Capital and reserves

Called up share capital	4	4
Profit and loss account	( 874,567)	( 474,786)
	----------	----------
Shareholder deficit	( 874,563)	( 474,782)
	----------	----------

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 income and retained earnings has not been delivered.

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.

These financial statements were approved by the board of directors and authorised for issue on 17 December 2025 , and are signed on behalf of the board by:

M Omirou

Director

Company registration number: 09061402

NEW ROAD (CROUCH END) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 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 29 York Street, London, W1H 1EZ.

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 in sterling on the historical cost basis.

Going concern

The company is part of the Acorn Property Group and the ultimate parent company is Acorn PG Holdings Limited. The group has made a loss and has net liabilities however has unrealised profits on future development projects and is managing group cashflows to ensure liabilities are being paid as they fall due for payment. The group is receiving financial support from related companies to provide it with adequate working capital for a period of at least 12 months from the date of signing the financial statements and the ultimate parent company has provided group support. For these reasons, the directors have prepared the company’s financial statements on a going concern basis.

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 actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. The key judgements and sources of estimation uncertainty 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: (i) Funding arrangements Management has assessed the substance of funding agreements for other loans and consider them to be financing arrangements. The sums advanced under these agreements are therefore included in creditors as financial liabilities. The financial liabilities are measured at transaction price, including any transaction costs and subsequent measurement is at amortised cost using the effective interest rate method. (ii) Profit recognition Stock consists of the acquisition cost of the land and buildings, together with related legal and professional costs, development and borrowing costs which is recorded as incurred during a project. An apportionment of stock is transferred to the profit and loss account when properties are sold on a project. The proportion of stock transferred is calculated so as to achieve a consistent margin across each individual project and is reliant on management's estimation of the total selling price. Estimation of the selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the value of property. Whilst the Directors exercise due care and attention to make reasonable estimates, taking into account all available information in estimating the future selling price, the estimates may differ from the actual selling prices achieved in future periods.

Stocks

Stocks represents property acquired for development together with work in progress on those properties. The resultant tock and work in progress is valued at the lower of cost or net realisable value. Cost comprises the acquisition cost of the land and buildings, together with related legal and professional costs, development and borrowing costs. In considering net realisable value, it is assumed that developments will be completed and sold in the ordinary course of business and not placed on the market for immediate sale in their current state of development. 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.

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.

4. Exceptional costs

Included within profit and loss is a provision for £117,472 (£66,500 included within cost of sales and £50,972 included within administrative costs). Please see the provisions note for more details.

5. Stocks

	2024	2023
	£	£
Work in progress	1,683,132	1,679,497
	-------------	-------------

During the year finance costs capitalised in respect of the development amounted to £nil (2023 - £nil). At the year end the remaining capitalised finance costs included within stock totalled £nil (2023 - £nil).

6. Debtors

	2024	2023
	£	£
Amounts owed by group undertakings and undertakings in which the company has a participating interest	3	3
Other debtors	1,225	9,176
	-------	-------
	1,228	9,179
	-------	-------

7. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	29,971	16,600
Amounts owed to group undertakings	955,492	787,651
Accruals and deferred income	–	40,430
Other creditors	1,457,118	1,319,658
	-------------	-------------
	2,442,581	2,164,339
	-------------	-------------

Other loans of £1,000,000 which are included in other creditors, are secured by a debenture containing a fixed and floating charge over all assets, and a legal mortgage in respect of the freehold property known as 3 New Road, Crouch End.

Included within other creditors is £457,118 (2023 - £319,658) which is secured.

8. Provisions

	Dispute with Fornacelli (New Road) Ltd
	£
At 1 October 2023	–
Additions	117,472
	----------
At 30 September 2024	117,472
	----------

Dispute with Fornacelli (New Road) Ltd As at 30 September 2024, the Company was in dispute with Fornacelli (New Road) Ltd (“FNR”) regarding obligations under a 2017 property sale and associated commercial lease arrangements. The matters under dispute related to the transfer of a commercial unit, overage provisions, service charges and related guarantees. Following year end, on 5 June 2025 the Company entered into a Settlement Deed with FNR and its guarantor, Gian-Franco Cencelli. Under the terms of the Deed, the Company made total payments of £117,472, comprising: £65,000 in respect of the property transfer price; £44,743.50 as a settlement sum; £6,228.44 towards service charge arrears; and £1,500 as a contribution to planning (Section 106) costs. The Settlement Sum was treated as outside the scope of VAT, while the other amounts were inclusive of VAT where applicable. Each party bore its own legal and professional costs. Nature of obligation and timing of outflows: The provision reflects the Company’s obligation arising from the resolution of the disputes with FNR. The outflows were settled in June 2025 following execution of the Settlement Deed. Uncertainties: While the precise allocation of settlement amounts between disputed items was subject to negotiation, the total obligation has been reliably measured at £117,472. No significant uncertainties remain regarding the timing or amount of the settlement.

9. Summary audit opinion

The auditor's report dated 24 December 2025 was unqualified , however, the auditor drew attention to the following by way of emphasis.

We draw attention to note 3 in the financial statements, which indicates that the company is reliant on support from the ultimate parent undertaking, Acorn PG Holdings Limited. We note the group is receiving financial support from related companies. The ability of the company to continue as a going concern is dependent on continuing financial support by the ultimate parent undertaking, which in turn is dependent on the continuing financial support of these related companies. These conditions, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

The senior statutory auditor was Jonathan Day , for and on behalf of Streets Audit LLP .

10. Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group. Several related parties hold debentures over the assets of the company.

11. Controlling party

New Road (Crouch End) Investments Limited is the immediate parent company. Acorn PG Holdings Limited is the ultimate parent company. The registered office of the companies is 29 York Street, London, England, W1H 1EZ. Copies of the financial statements for the parent company and group can be obtained from Companies House.