Natural Land 3 Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 07050162 (England and Wales)

NATURAL LAND 3 LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTOR:

T Dennis

REGISTERED OFFICE:

Suites 2g6, 2g8, 2g9

Glasshouse Alderley Park

Congleton Road

Nether Alderley

Macclesfield

SK10 4TG

REGISTERED NUMBER:

07050162 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

FIXED ASSETS

Property, plant and equipment

4

43,120

2,783

Investment property

5

8,628,000

9,647,000

8,671,120

9,649,783

CURRENT ASSETS

Debtors

6

17,073

18,300

Cash at bank

286,850

3,358

303,923

21,658

CREDITORS

Amounts falling due within one year

7

(8,794,128

)

(3,127,448

)

NET CURRENT LIABILITIES

(8,490,205

)

(3,105,790

)

TOTAL ASSETS LESS CURRENT LIABILITIES

180,915

6,543,993

CREDITORS

Amounts falling due after more than one year

8

-

(5,982,833

)

NET ASSETS

180,915

561,160

CAPITAL AND RESERVES

Called up share capital

4

4

Fair value reserve

1,257,195

1,582,686

Retained earnings

(1,076,284

)

(1,021,530

)

180,915

561,160

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 12 December 2022 and were signed by:

T Dennis - Director

1.	STATUTORY INFORMATION

Natural Land 3 Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 07050162 and its registered office address is Suites 2g6, 2g8, 2g9, Glasshouse Alderley Park, Congleton Road, Nether Alderley, Macclesfield, SK10 4TG.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The board has prepared detailed financial forecasts and cash flows, taking account of the support of the loan holder (and major shareholder of the ultimate parent company), the support of the ultimate parent company and an indicative view of trading performance.

The statement of financial position shows net assets of £180,915 (2020: £561,160). While the development of the company's property has finished, units are still being furnished and made available and rental of these is only just commencing and so the company is reliant on group support to cover its working capital requirements.

The current cash funding requirements prepared by management have given the director a reasonable expectation that the company will have sufficient resources available to continue in operational existence for the foreseeable future, with the confirmed continued support of its parent company and loan holder. The loan holder is considered to have adequate capabilities to provide support to the company and its parent undertaking as required for at least the next 12 months.

The director has considered the business risks and believes that the company is well placed to manage these risks successfully, thus the going concern basis of accounting has been adopted in preparing these financial statements.

Critical accounting estimates and judgements

In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered key judgements in calculating an appropriate depreciation charge.

Determining the value of investment property is considered to be a key judgement.

Revenue

Rental income is recognised on a straight line basis over the term of the lease. Lease incentives are recognised as a reduction to the income over the term of the lease.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

33.3% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Investment property

Investment properties, which are properties held to earn rentals and/or for capital appreciation, are recognised at fair value. Revaluation surpluses are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2020 - 1 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Plant and

machinery

etc

£

COST

At 1 January 2021

7,544

Additions

52,926

At 31 December 2021

60,470

DEPRECIATION

At 1 January 2021

4,761

Charge for year

12,589

At 31 December 2021

17,350

NET BOOK VALUE

At 31 December 2021

43,120

At 31 December 2020

2,783

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2021

9,647,000

Additions

134,517

Disposals

(1,035,363

)

Revaluations

(118,154

)

At 31 December 2021

8,628,000

NET BOOK VALUE

At 31 December 2021

8,628,000

At 31 December 2020

9,647,000

The investment properties were valued on an open market basis at 31 December 2021 based on a valuation by the directors.

The historic cost of the investment properties is £7,370,805 (2020: £8,117,164).

Fair value at 31 December 2021 is represented by:

£

Valuation in 2019

1,973,751

Valuation in 2020

(598,402

)

Valuation in 2021

(118,154

)

Cost

7,370,805

8,628,000

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

96

1,880

Other debtors

16,977

16,420

17,073

18,300

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

7,367

18,590

Amounts owed to group undertakings

5,552,007

-

Amounts owed to related party

15,216

-

Taxation and social security

102,284

-

Other creditors

3,117,254

3,108,858

8,794,128

3,127,448

Amounts owed to group undertakings are unsecured, repayable on demand and no interest charged during the year.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Amounts owed to group undertakings

-

5,982,833

In prior years, amounts owed to group undertakings were unsecured and subject to varying rates of interest at the discretion of the parent company. There were no fixed terms of repayment but a minimum of twelve months notice would be given.

9.	SECURED DEBTS

The bank holds a debenture for any borrowings, which includes a fixed charge over all present freehold and leasehold property; a first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and a first floating charge over all assets and undertakings both present and future.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Richard Taylor (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

11.	RELATED PARTY DISCLOSURES

The company has entered into a composite unlimited multilateral guarantee in respect of the bank borrowings of other group companies. At 31 December 2021 the total borrowings covered by the guarantee amounted to £6,686,226 (2020: £9,855,328).

The bank holds a debenture for any borrowings, which includes a fixed charge over all present freehold and leasehold property; a first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and a first floating charge over all assets and undertakings both present and future.

12.	PARENT COMPANY

The company is wholly owned by Natural Assets Investments Limited, a company registered in England and Wales, which is the immediate controlling party and the ultimate parent company. Natural Assets Investments Limited prepares consolidated financial statements, copies of which can be obtained from its registered office address: Suites 2g6, 2g8, 2g9, Glasshouse Alderley Park, Congleton Road, Nether Alderley, Macclesfield, SK10 4TG.

The ultimate controlling party is Mr D Gorton.