Gallions Developments Limited - Period Ending 2019-09-30

Gallions Developments Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Gallions Developments Limited

Company Information

Directors

Mr HL Shah Mr N Aston

Registered office

76 Canterbury Road Croydon Surrey CR0 3HA

Auditors

UHY Hacker Young Chartered Accountants and Statutory Auditors 6 Broadfield Court Broadfield Way Sheffield S8 0XF

Gallions Developments Limited

(Registration number: 11912402)
Balance Sheet as at 30 September 2019

	Note	2019 £
Current assets
Stocks	4	7,325,000
Debtors	5	1
		7,325,001
Creditors: Amounts falling due within one year	6	(6,968,127)
Total assets less current liabilities		356,874
Creditors: Amounts falling due after more than one year	6	(350,362)
Net assets		6,512
Capital and reserves
Called up share capital	7	1
Profit and loss account		6,511
Total equity		6,512

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 11 August 2020 and signed on its behalf by:
 

.........................................

Mr HL Shah
Director

Gallions Developments Limited

Notes to the Financial Statements for the Period from 28 March 2019 to 30 September 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The company was formerly known as Inland Bucks Limited or Inland Barking Limited.

The address of its registered office is:
76 Canterbury Road
Croydon
Surrey
CR0 3HA
England

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Pound Sterling, which is the functional currency of the company.

Disclosure of long or short period

This is the first set of accounts prepared from the company's date of incorporation of 28 March 2019, and thus, the set of accounts prepared spans a period shorter than one year.

Gallions Developments Limited

Notes to the Financial Statements for the Period from 28 March 2019 to 30 September 2019 (continued)

2	Accounting policies (continued)

Going concern

The financial statements have been prepared on a going concern basis as the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This is based on the company’s cash flow forecast for the foreseeable future and the directors’ expectation that the value of the property with the benefit of planning consent will be sufficient to meet all the liabilities of the company.

Post year end, the company appointed consultants to assist in the property to be taken through the planning process for a residentially led scheme for development. This process is continuing and a planning application is expected to be submitted in December 2020.

At the same time, the company also increased the loan facility available from Inland Limited, the company's former parent, by an additional £200,000, which the company can draw down from whenever required.

There is significant uncertainty arising from the COVID-19 pandemic which may result in delays in the planning process and may impact the valuation of property. The directors have been informed that the local planning authority is progressing with planning applications since 31 March 2020 and therefore do not expect any significant delays from the local authority. The directors expect the property will gain planning consent and do not expect the land value, with the benefit of planning to fall to a level where the liabilities of the company’s liabilities would not be satisfied.

The directors believe that the company has adequate resources for at least 12 months from the date of these accounts and have therefore adopted the going concern basis of accounting in the preparation of these accounts.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 11 August 2020 was Andrew Hulse, who signed for and on behalf of UHY Hacker Young.

Comparatives

Since this is the first accounting period of the company, there are no comparative figures.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The tax expense for the period comprises of current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expenses recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Gallions Developments Limited

Notes to the Financial Statements for the Period from 28 March 2019 to 30 September 2019 (continued)

2	Accounting policies (continued)

Stocks

Stocks comprise of work in progress and are stated at the lower of cost and net realisable value. Cost comprises of the historic price of the stocks, together with the overheads incurred in bringing the stocks to their present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Gallions Developments Limited

Notes to the Financial Statements for the Period from 28 March 2019 to 30 September 2019 (continued)

2	Accounting policies (continued)

Financial instruments

Classification
The classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Financial liabilities are classified as either financial liabilities at fair value through profit or loss (FVTPL) or other 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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited directly to equity.

 Recognition and measurement
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. The financial assets are initially measured at fair value plus transaction costs, other than those classified as fair value through profit and loss, which are measured at fair value.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method calculating the amortised cost of a financial liability by allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.

Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled or they expire.

 Impairment
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

 

Gallions Developments Limited

Notes to the Financial Statements for the Period from 28 March 2019 to 30 September 2019 (continued)

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 3.

4

Stocks

	2019 £
Other inventories	7,325,000

5

Debtors

	2019 £
Other debtors	1
	1

6

Creditors

Creditors: amounts falling due within one year

	2019 £
Due within one year
Trade creditors	6,958,750
Taxation	1,527
Accruals and deferred income	7,850
	6,968,127

Creditors: amounts falling due after more than one year

	Note	2019 £
Due after one year
Loans and borrowings	8	350,362

7	Share capital

Allotted, called up and not fully paid shares

Gallions Developments Limited

Notes to the Financial Statements for the Period from 28 March 2019 to 30 September 2019 (continued)

7	Share capital (continued)

	2019
	No.	£
100 Ordinary Shares of £0.01 each	100	1

8	Loans and borrowings

	2019 £
Non-current loans and borrowings
Other borrowings	350,362

The borrowings of £366,250 is the amount owed to Inland Limited, the former parent of the Company. This amount was unsecured, interest free and repayable once the company has sold the Gallions Close property. This amount has been discounted at a rate of 3% per annum to obtain its net present value.

Gallions Developments Limited

Notes to the Financial Statements for the Period from 28 March 2019 to 30 September 2019 (continued)

9	Related party transactions

Summary of transactions with former parent

From the date of incorporation 28 March 2019 to 25 September 2019, the company was owned by Inland Ltd (the former parent company). On 26 September 2019, Inland Ltd sold its entire holding in the company.

Inland Ltd paid a deposit of £366,250 for the purchase of a property situated at Gallions Close, Barking. On 16 September 2019, Inland Ltd assigned the contract for the purchase of this property to the company.

As at the balance sheet date the amount owed to Inland Ltd stood at £366,250. This amount was unsecured, interest free and repayable when the company has sold the Gallions Close property.
 

10	Non adjusting events after the financial period

On 29 November 2019, the company was purchased by new shareholders, who altogether provided a loan of £8,687,750 to the company under normal market conditions. This loan was used to complete the purchase of the property at Gallions Close, Barking. On the same day, Inland Limited entered into an option agreement with the company to purchase the property, subject to planning permission. Inland Limited also increased the loan facility available to the company by £200,000 and took a third legal charge over the property. As referred to in the going concern section of the principal accounting policies, we are carefully monitoring the situation concerning COVID-19 pandemic and any impact it may have on the Company. Any such impact has been treated as a non-adjusting post balance sheet event for the purpose of considering the carrying values of assets included in the balance sheet as at 30 September 2019. Given the current uncertainties, any potential financial effect cannot be estimated.