Irwell Square Retail Limited
Irwell Square Retail Limited
Registered number: 04361045
Financial Statements
For The Year Ended
31 December 2020
Irwell Square Retail Limited
Financial Statements
For The Year Ended
31 December 2020
Financial Statements
| Contents | |
| Page | |
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| Statement of Financial Position | 1—2 |
| Notes to the Financial Statements | 3—5 |
Irwell Square Retail Limited
Statement of Financial Position
As at
31 December 2020
Statement of Financial Position
Registered number:
04361045
For the 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.
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| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible Assets | 4 |
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| CURRENT ASSETS | |||||
| Debtors | 5 |
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| Creditors: Amounts Falling Due Within One Year | 6 |
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| NET CURRENT ASSETS (LIABILITIES) |
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| TOTAL ASSETS LESS CURRENT LIABILITIES |
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| PROVISIONS FOR LIABILITIES | |||||
| Deferred Taxation | 7 |
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| NET ASSETS |
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| CAPITAL AND RESERVES | |||||
| Called up share capital | 8 |
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| Income Statement |
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| SHAREHOLDERS' FUNDS | 225,978 | 228,385 | |||
Page 1
Irwell Square Retail Limited
Statement of Financial Position (continued)
As at
31 December 2020
Directors' responsibilities:
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The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. -
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. -
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime. - The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Income Statement.
On behalf of the board
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Director
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The notes on pages 3 to 5 form part of these financial statements.
Page 2
Irwell Square Retail Limited
Notes to the Financial Statements
For The Year Ended
31 December 2020
Notes to the Financial Statements
1.
Accounting Policies
1.1.
Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 1.3).
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 pound.
1.1.1. Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• The requirements of Section 7 Statement of Cash Flows.
1.2.
Going Concern Disclosure
At the signing date of the statutory accounts the Covid-19 Pandemic is impacting the global economy. The directors have assessed the financial performance and note that as at
31 December 2020
the company had net assets of £225,978 and net current liabilities of £202,652.
The company has £202,040 that is owed to group undertakings as at
31 December 2020
. These are repayable on demand and not interest bearing. However, the directors have received confirmation from the parties that these liabilities will not be demanded within the next 12-month period from the signing date of the accounts. Furthermore, no additional funds are anticipated in the company’s cashflow forecasts.
Therefore, the board considers that the company will be able to continue to trade as a going concern and meet its liabilities as they fall due.
1.3.
Significant judgements and estimations
In preparing these financial statements, the directors have had to make the following judgements:
• Determine whether leases entered into by the company either as a lessor or a lessee are operating or lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
• Investment properties are valued annually by the directors, who have significant experience in the valuing of similar real estate, using a yield methodology using market rental values capitalised at a market capitalisation rate, but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself. A yield valuation of 6.5% (2019: 6.5%) less cost to complete based on the latest internal appraisal, has been calculated for the investment property.
1.4.
Turnover
Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.
1.5.
Investment Properties
All investment properties are carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided for. Changes in fair value are recognised in the statement of comprehensive income.
1.6.
Financial Instruments
Financial assets
Financial assets, other than investments and derivatives, are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment.
Financial liabilities and equity
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. Financial liabilities, excluding convertible debt and derivatives, are initially measured at transaction price (including transaction costs) and subsequently held at amortised cost.
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Irwell Square Retail Limited
Notes to the Financial Statements (continued)
For The Year Ended
31 December 2020
1.7.
Taxation
Deferred Taxation
Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position date, except:
• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
• Where timing differences relate to interests in subsidiaries, associates, branches and joint ventures and the group can control their reversal and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax.
Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
1.8.
Contingent liabilities
A contingent liability is either a possible but uncertain obligation or a present obligation that is not recognised because it is either not probable or the obligation cannot be estimated reliably. A contingent liability is recognised within the note to the accounts unless the possibility of an outflow of resources is remote.
2.
Average Number of Employees
Average number of employees, including directors, during the year was as follows:
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| Directors |
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4.
Tangible Assets
| Investment Properties | |
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| Cost | |
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| Net Book Value | |
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The directors, who have significant experience in the valuation of similar real estate, have given an open market valuation on an existing use basis of £444,055 (2019: £444,055) for the investment property as at
31 December 2020
. This has resulted in a nil gain or loss on revaluation (2019: £nil). The valuation assumes the redevelopment of the site up to a premium commercial property for rental.
5.
Debtors
| 2020 | 2019 | ||
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| £ | £ | ||
| Due within one year | |||
| Prepayments and accrued income |
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Irwell Square Retail Limited
Notes to the Financial Statements (continued)
For The Year Ended
31 December 2020
6.
Creditors: Amounts Falling Due Within One Year
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| £ | £ | ||
| Trade creditors |
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| Amounts owed to group undertakings |
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The amounts due to group undertakings are repayable on demand and not interest bearing.
7.
Deferred Taxation
| 2020 | 2019 | ||
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| Deferred tax |
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9.
Financial Instruments
The company considers that the fair value of cash and cash equivalents, loans, trade and other receivables, and trade and other payables are not materially different to their carrying value. There are no financial instruments held at fair value through profit and loss.
10.
Contingent Liabilities
The company is guarantor to a £1.7m loan taken out by Spinningfields Estate Limited, a fellow group company. The lender also holds a charge over Irwell Square Retail Limited. The directors consider it not probable that this guarantee will be called upon, hence its disclosure as a contingent liability.
11.
Related Party Transactions
The company has taken advantage of the exemption allowed by Financial Reporting Standard 102, "Related party disclosures" Section 33.1A not to disclose details of related party transactions with entities that are included in the consolidated financial statements of Allied London Properties Limited and are 100% owned.
12.
Ultimate Controlling Party
The company's immediate parent company is
Allied London Properties Limited
. The ultimate parent company is Capital Holdco Limited, a company incorporated in the British Virgin Islands.
13.
General Information
Irwell Square Retail Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
04361045
. The registered office is C/O Allied London, Suite 1, Bonded Warehouse, 18 Lower Byrom Street, Manchester, Greater Manchester, M3 4AP.
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