These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. The accounts comply with The Direction for Private Registered Providers of Social Housing (The Direction) and The Statement of Recommended Practice 2019 (SORP).

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

Blue Square Residential Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 72-74 Chiswick High Road, London, Greater London, UK, W4 1SY.

The company is a Public Benefit Entity as defined by FRS 102.

These financial statements have been prepared in accordance with The Accounting Direction for Private Registered Providers of Social Housing 2022, The Statement of Recommended Practice for registered social housing providers 2018 (SORP), Governance and financial viability standard code of practice, 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Income and expenditure are included in the financial statements as they become receivable or due and when it is probable that economic benefits will flow to or from the entity.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount. being the fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in surplus or deficit or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such as gains and losses are recognised in surplus or deficit.

All properties currently held for the purpose of providing social housing are fully complete and no properties are currently under construction.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

The company has obtained exemption from the Revenue Commissioners in respect of corporation tax, it being a company not carrying on a business for the purposes of making a profit.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that 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 reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Revenue

Revenue is recognised on a receivable basis in accordance with the lease agreements held with tenants.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

A key estimation in the financial statements is the recoverability of trade debts for which the company has provided against. This has been calculated by retrospectively reviewing the prior years required provision and applying an effective percentage to the trade debts balance at the year end in arriving at an appropriate provision.

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

During the year key management personnel were paid £196,000 (2024: £188,314).

Non-executive directors were remunerated £17,000 (2024: £16,000) for attending board meetings.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 2).

The carrying value of land and buildings comprises:

Land and buildings with a carrying amount of £425,000 were revalued at 1 November 2023 by Whitman & Co, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors deem that this value is appropriate for the 31 July 2024 value of the property.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £381,622 being cost of £410,656 and depreciation of £29,034.

Included within Rent and service charges due is a £67,949 (2024: £72,267) provision for bad and doubtful debts.

Provisions included in the financial statements are in relation to rent dilapidations which will be incurred at the end of the lease, for supported housing property leases managed by Independent Housing UK Limited. These are provided for evenly across the length of the lease. The provisions are based on costs incurred in relation to similar rental agreements that have ended in the current year.

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

At the year end the Company owed Jacaroo Investments Ltd £42,738 (2024: £52,956), a company owned and controlled by Mr S Drummond, a director.

The Company leased nine properties from Jacaroo Investments Ltd which were subsequently leased to unconnected third party tenants. During the year £557,656 (2024: £473,191) was paid to Jacaroo Investments Ltd in the way of rent before any management charges were deducted. The company in return charged Jacaroo Investments Ltd management charges amounting to £50,507 (2024: £47,318) for acting as an agent for these properties.

During the year the company paid rent to S Drummond amounting to £45,600 (2024: £3,800) for a property he owns personally.

At the year end the Company was owed £13,266 (2024: £13,266) by Capital Housing Associates Ltd a company owned and controlled by Mr S Drummond.

During the year the Company received £20,000 (2024: £20,000) in rent from Capital Housing Associates Ltd ("CHA") and £43,012 (2024: £31,524) for contribution to staff wages due to Blue Square Residential Limited staff performing admin tasks for CHA.

During the year the company paid £17,000 (2024: £16,000) to board members in fees.

All amounts are unsecured.

No guarantees have been given or received by the directors during the year.

The average number of residential units managed during the year was 488 (2024: 536 units). The increase is due to the renewal of some of our shorter term leases.

Prepayments regarding rental payments on leased properties was incorrectly calculated in year ended 31 July 2024 by £164,267. The comparative figures for this year have been restated to reflect this.

Therefore, prepayments and accrued income have been reduced to £203,915 from £368,181.

Total debtors reduced to £832,367 from £996,633.

Cost of sales has been increased to £6,202,787 from £6,038,521.

Surplus for the year ended 31 July 2024 has been reduced to £317,815 from £482,081.

Income and expenditure reserves have been reduced to £2,063,438 from £2,227,704 at 31 July 2024.