POWER_TOWER_COMPANY_INVES - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 October 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

COVID-19

Due to the outbreak of Coronavirus (COVID-19), declared by the World Health Organisation as ‘Global Pandemic’ on 11 March 2020 has impacted the global financial markets and, as such, market activity has been impacted in many sectors. There is an initial concern on the impact of Covid-19 on the rental income and annual income which has not shown any significant change and an estimate of the effects of these subsequent events cannot be made at present.

Brexit

On 31 December 2020, it was declared that the United Kingdom left the European Union consequent to the 2016 referendum. This creates economic and other uncertainties about both the process and its consequences which are risks that affect the real estate industry, particularly market values of investment property which are reliant on pool of investors and availability of financing. There is no evidence at 31 December 2020 that Brexit has adversely affected the Company’s activities and the uncertainty in relation to the impact on the UK and EU economies as a result may impact the valuation of the Company’s investment in the coming years.

Power Tower Company Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tavistock House South, Tavistock Square, London, WC1H 9LG.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 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 director has considered the potential impact of Covid-19 and has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future as a result of shareholder investment. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Revenue represents rents receivable on residential lets.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Where fair value cannot be achieved without under cost or effort, investment property is accounted for as tangible fixed assets

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 balance sheet 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

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 deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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

The investment properties 36, 44, 52, 68, 76 and 84 Belvedere Row Apartments (White City Living), Fountain Park Way, London W12 7JFH, were purchased at a total cost of £6,926,608. The directors believe the carrying amount for the freehold property approximates fair value, therefore, no

adjustment was required at the year end.

Investment properties also comprises flats in Battersea Power Station which are currently being constructed, the company has paid a total of £2,143,303 to date. The remaining amounts due have been disclosed in the capital commitment note 11.

Any gain or loss arising from a change in fair value is recognised in the income statement.

The above Barclays loans are secured against investment properties known as 36, 44, 52, 68, 76 and 84 Belvedere Row Apartments, Fountain Park Way, London W12 7JFH.

The loans are interest-only loans, capital will be repaid in full at the end of the term of each loan. The loans bear interest at 1.6% per annum above London Inter Bank Offer Rate and have a maturity date of 21 July 2026.

The bank loans are secured by a first charge over the investment properties. In addition, a personal guarantee has been provided by the shareholder of the company.

Amounts contracted for but not provided in the financial statements:

The above capital commitment was due to be completed by 2022.

On 14th March 2022 the contracts were rescinded as the properties were competed by a connected company.

On 14th March 2022 the contracts to purchase the Battersea Power Station properties were rescinded.

As this was decided after the year end the Battersea Power Station properties continue to be recognised in investment properties and so too are the related capital commitments. These will be derecognised in the 2022 accounts.

At the year end the company owed £3,693,798 (2020: £3,546,283) to the shareholder of the company. The amount of £3,560,750 is interest free and has no set repayment date. The amount of £133,048 bear interest at 6% per annum and has a maturity date of 5 March 2026. The total balance is included within creditors due after one year as per note 9.

At the year end the company owed £931,336 (2020: £0) to connected parties of the company. The loans bear interest at 6% per annum and have a maturity date of 5 March 2026. The total balance is included within creditors due after one year as per note 9.