Withdean Commercial Property Limited - Period Ending 2020-12-31

Withdean Commercial Property Limited

Contents

Company Information	1
Statement of Financial Position	2 to 3
Notes to the Unaudited Financial Statements	4 to 9

Withdean Commercial Property Limited

Company Information

Directors

Mrs C. Bauer Mr R. Bloom Mrs J. Frost Maidment

Registered office

21 Tongdean Road Hove East Sussex BN3 6QE

Accountants

Henton Ransom Limited 18 Lucastes Lane Haywards Heath West Sussex RH16 1LD

Withdean Commercial Property Limited

(Registration number: 10317420)
Statement of Financial Position as at 31 December 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	4	820	-
Current assets
Stocks	5	6,350,622	6,193,570
Debtors	6	2,743	3,652
Cash at bank and in hand		10,737	5,539
		6,364,102	6,202,761
Creditors: Amounts falling due within one year	7	(104,838)	(6,271,108)
Net current assets/(liabilities)		6,259,264	(68,347)
Total assets less current liabilities		6,260,084	(68,347)
Creditors: Amounts falling due after more than one year	7	(6,334,521)	-
Net liabilities		(74,437)	(68,347)
Capital and reserves
Called up share capital	8	100	100
Profit and loss account		(74,537)	(68,447)
Shareholders' deficit		(74,437)	(68,347)

For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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 Income Statement has been taken.

Withdean Commercial Property Limited

(Registration number: 10317420)
Statement of Financial Position as at 31 December 2020

Approved and authorised by the Board on 9 September 2021 and signed on its behalf by:
 

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

Mr R. Bloom

Director

Withdean Commercial Property Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

1	General information

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

The address of its registered office is:
21 Tongdean Road
Hove
East Sussex
BN3 6QE

These financial statements were authorised for issue by the Board on 9 September 2021.

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 presentational currency is sterling. All amounts in the financial statements have been rounded to the nearest £1.

Going concern

The financial statements have been prepared on a going concern basis. The principal factor in this consideration is the continued support of Regent Exhibitions Limited (note 10). The directors have actively considered the next 12 months of operations. Particular attention has been paid to the likely effects of the covid-19 pandemic on the business. The directors are of the opinion that the company will have adequate resources to continue to operate for the foreseeable future and therefore the financial statements have been prepared on the assumption that the going concern basis of preparation is appropriate.

Revenue recognition

The company operates as a property developer. Revenue consists of sales of property net of discounts and sales incentives. Sales are recognised on unconditional exchange and where appropriate construction is complete.
Property rentals are also included within turnover.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction, over their estimated useful lives as follows:

Withdean Commercial Property Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

Asset class	Depreciation method and rate
Computer equipment	3 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for property sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks and land and buildings held for development are held at the lower of cost and net realisable value.

Work in progress is valued at cost, where the outcome is assessable with reasonable certainty, estimated profits attributable to the state of completion, less provision for any known or anticipated losses and progress payments receivable on account. Net realisable value is based on estimated sales price less estimated costs of disposal.

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 Income Statement 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.

Withdean Commercial Property Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2019 - 3).

4	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
Additions	1,135	1,135
At 31 December 2020	1,135	1,135
Depreciation
Charge for the year	315	315
At 31 December 2020	315	315
Carrying amount
At 31 December 2020	820	820

5

Stocks

	2020 £	2019 £
Work in progress	6,350,622	6,193,570

6

Debtors

	2020 £	2019 £
Prepayments	2,664	2,315
Other debtors	79	1,337
	2,743	3,652

Withdean Commercial Property Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

7

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019 £
Due within one year
Loans and borrowings	9	-	6,166,465
Trade creditors		475	468
Taxation and social security		3,511	3,520
Accruals and deferred income		1,352	1,155
Other creditors		99,500	99,500
		104,838	6,271,108

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	9	6,334,521	-

8	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary 'A' shares of £1 each	96	96	96	96
Ordinary 'B' shares of £1 each	2	2	2	2
Ordinary 'C' shares of £1 each	2	2	2	2
	100	100	100	100

9	Loans and borrowings

	2020 £	2019 £
Non-current loans and borrowings
Other borrowings	6,334,521	-

Withdean Commercial Property Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

	2020 £	2019 £
Current loans and borrowings
Other borrowings	-	6,166,465

10	Related party transactions

Summary of transactions with entities with joint control or significant interest

Regent Exhibitions Limited.
Mr R. Bloom is a director and 35% shareholder in Regent Exhibitions Limited. Mrs C. Bauer is a director and 20% shareholder in Regent Exhibitions Limited.
 

Loans from related parties

2020	Entities with joint control or significant influence £	Key management £	Total £
At start of period	6,166,465	99,500	6,265,965
Advanced	105,824	-	105,824
Interest transactions	62,232	-	62,232
At end of period	6,334,521	99,500	6,434,021

2019	Entities with joint control or significant influence £	Key management £	Total £
At start of period	5,959,950	99,500	6,059,450
Advanced	146,218	-	146,218
Interest transactions	60,297	-	60,297
At end of period	6,166,465	99,500	6,265,965

Terms of loans from related parties

During the year Regent Exhibitions Limited advanced £105,824 to the company. The total amount loaned to the company is £6,148,791 (2019: £6,042,968). The entire loan is unsecured and incurs interest at 1% per annum. At 31 December 2020 the loan balance of £6,148,791 and accrued interest of £185,730 was outstanding. There is no fixed date for the repayment of the loan.
 
During 2017 Mr R. Bloom made a loan of £99,500 to the company. The loan is unsecured, interest free and repayable on demand.
 

Withdean Commercial Property Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

11	Non adjusting events after the financial period

Since the year end the company has entered into negotiations with a third party with regard to the sale of the freehold land currently held within stock. It is anticipated that a significant loss on disposal will occur on completion. The sale includes the development of the land in accordance with the obtained planning permission. The company has continued to incur additional costs since the year end and therefore the potential size of the loss is currently unquantifiable. The directors are fully aware of expected loss and have undertaken to support the company as required.