RST1 South West Group Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 06442493

RST1 SOUTH WEST GROUP LIMITED

FILLETED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 September 2024

RST1 SOUTH WEST GROUP LIMITED

STATEMENT OF FINANCIAL POSITION

30 September 2024

	2024	2023
Note	£	£

Fixed assets

Investments	4	714	1,114

Current assets

Stocks	5	2,935,811	4,233,678
Debtors	6	5,044,861	5,045,448
Cash at bank and in hand		2,410	2,796
		-------------	-------------
		7,983,082	9,281,922

Creditors: amounts falling due within one year	7	( 7,903,524)	( 8,904,659)
		-------------	-------------
Net current assets		79,558	377,263
		---------	----------
Total assets less current liabilities		80,272	378,377
		---------	----------
Net assets		80,272	378,377
		---------	----------

Capital and reserves

Called up share capital	100	100
Profit and loss account	80,172	378,277
	---------	----------
Shareholder funds	80,272	378,377
	---------	----------

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 24 December 2025 , and are signed on behalf of the board by:

M Omirou

Director

Company registration number: 06442493

RST1 SOUTH WEST GROUP 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.

Consolidation

The financial statements contain information about RST1 South West Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken advantage of the exemption from preparing consolidated financial statements contained in Section 400 of the Companies Act 2006 on the basis that it and its subsidiary undertakings are included by a full consolidation in the consolidated financial statements of its ultimate parent company, Acorn PG PG Holdings Limited.

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.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover represents amounts receivable from inter group companies in the form of management charges.

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.

Investments

Investments in subsidiaries are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Stocks

Stocks represents property acquired for development together with work in progress on those properties. The resultant stock 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.

Financial instruments

The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transactions in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment. Financial liabilities - trade creditors and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.

4. Investments

	Shares in group undertakings
	£
Cost
At 1 October 2023	1,114
Disposals	( 400)
	-------
At 30 September 2024	714
	-------
Impairment
At 1 October 2023 and 30 September 2024	–
	-------

Carrying amount
At 30 September 2024	714
	-------
At 30 September 2023	1,114
	-------

The company owns 100% of the issued share capital of the following entities RST Devon Limited, RST Baltic Wharf Investments Limited, Citrus Apartments Limited, The Beach Porthtowan Limited, West Crantock Vale Limited, Falmouth Wharf Limited, RST Liner Investments Limited, RST1 SW Developments Limited, Padstow Harbour Investments Limited and RST Constantine Bay Investments Limited.

The company disposed of its interest in RST Oliver Barnstaple Investments Limited in the year.

The subsidiary companies have claimed the exemption from audit under section 479A of the Companies Act relating to subsidiary companies.

5. Stocks

	2024	2023
	£	£
Work in progress	2,935,811	4,233,678
	-------------	-------------

During the year finance costs capitalised in respect of the development amounted to £83,260 (2023 - £324,396). At the year end the remaining capitalised finance costs included within stock totalled £1,040,321 (2023 - £978,361).

6. Debtors

	2024	2023
	£	£
Trade debtors	99,167	–
Amounts owed by group undertakings and undertakings in which the company has a participating interest	4,905,574	4,910,720
Other debtors	40,120	134,728
	-------------	-------------
	5,044,861	5,045,448
	-------------	-------------

Included within trade debtors are balances of £74,400 receivable from group undertakings.

7. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	54,074	155,664
Amounts owed to group undertakings	7,260,709	5,587,156
Accruals and deferred income	–	1,422
Social security and other taxes	6,404	–
Amounts owed to related parties	116,960	40,754
Other creditors	465,377	3,119,663
	-------------	-------------
	7,903,524	8,904,659
	-------------	-------------

Included within other creditors is £443,000 (2023 - £520,000) which is secured against the assets of the company.

8. Operating leases

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

	2024	2023
	£	£
Not later than 1 year	60,180	54,000
Later than 1 year and not later than 5 years	40,500	94,500
	----------	----------
	100,680	148,500
	----------	----------

9. Other financial commitments

The company has granted floating charges over the assets of a number of its subsidiaries to a connected company, RST Securities Limited, These charges provide ad-hoc additional guarantees for debt recorded in other group companies' accounts to equity investors in various development companies as required in the course of their day-to-day business and only crystalise in the event of a default.

10. 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 .

11. 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.

12. Controlling party

RST Group Holdings 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.