Hamberley Properties (Stepney) Limited - Period Ending 2020-12-31

Hamberley Properties (Stepney) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 7

Hamberley Properties (Stepney) Limited

Company Information

Directors

D Kay D J McAlear T W Street

Registered office

1 Vine Street London W1J 0AH

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Hamberley Properties (Stepney) Limited

(Registration number: 11465472)
Balance Sheet as at 31 December 2020

	Note	2020  £	2019  £
Fixed assets
Tangible assets	4	6,710,318	6,729,581
Current assets
Debtors	5	5,839,883	4,991,282
Cash at bank and in hand		6,709	1,247
		5,846,592	4,992,529
Creditors: Amounts falling due within one year	6	(220,641)	(117,408)
Net current assets		5,625,951	4,875,121
Total assets less current liabilities		12,336,269	11,604,702
Creditors: Amounts falling due after more than one year	6	(6,601,594)	(6,621,102)
Deferred tax liabilities		(2,347)	-
Net assets		5,732,328	4,983,600
Capital and reserves
Called up share capital		100	100
Shareholder loans		4,785,342	4,527,660
Profit and loss account		946,886	455,840
Total equity		5,732,328	4,983,600

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 29 October 2021 and signed on its behalf by:
 

 

D J McAlear
Director

Hamberley Properties (Stepney) Limited

Notes to the 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:
1 Vine Street
London
W1J 0AH

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover is measured at the fair value of consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The company recognises revenue when the amount of revenue can be reliably measured, it is probably that future economic benefits will flow to the entity and specific criteria have been met for the company's activities.

Tax

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

The current 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.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Hamberley Properties (Stepney) Limited

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

Tangible assets

Tangible assets are stated in the balance sheet 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, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	2% on cost

Freehold land is not depreciated.

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.

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.

Certain loans from group undertakings are presented as shareholder loans within equity on the basis that the lender has no recourse to demand repayment of, or a fixed rate of return on the loans, which rank pari passu with the ordinary shares of the company.

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.

Hamberley Properties (Stepney) Limited

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

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

Hamberley Properties (Stepney) Limited

Notes to the 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 as follows:

	2020  No.	2019  No.
Directors	3	3

4

Tangible assets

	Freehold land and buildings £
Cost
At 1 January 2020	6,755,341
Additions	10,378
At 31 December 2020	6,765,719
Depreciation
At 1 January 2020	25,760
Charge for the year	29,641
At 31 December 2020	55,401
Carrying amount
At 31 December 2020	6,710,318
At 31 December 2019	6,729,581

Freehold land of £5,400,000 (2019 - £5,400,000) is not depreciated.

5

Debtors

	2020  £	2019  £
Amounts owed by group undertakings	5,839,883	4,991,282

Hamberley Properties (Stepney) Limited

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

6

Creditors

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	7	180,000	50,000
Amounts due to group undertakings		40,641	67,408
		220,641	117,408
Due after one year
Loans and borrowings	7	6,601,594	6,621,102

7

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	180,000	50,000

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	6,601,594	6,621,102

The bank borrowings are secured by a first legal charge over the freehold land and buildings and fixed and floating charges over all current and further assets of the company.

The effective interest rate applicable to the loans is Margin plus LIBOR. The Margin is 3.00% per annum if at any time the Net Leverage is less than 6.00:1, and 3.50% per annum at all other times.

8

Operating leases

Hamberley Properties (Stepney) Limited has contracted income of £18,446,036 (2019 - £19,246,028) in regards to an operating lease.

9

Parent and ultimate parent undertaking

The company's immediate parent undertaking is Hamberley Care Home Property Holding 1 S.a.r.l, incorporated in Luxembourg.

 The ultimate parent and controlling party is Patron Capital LP IV, a limited liability partnership registered in Guernsey.

10

Disclosure under Section 444(5B) CA 2006 relating to the independent auditor's report

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. Accordingly, the Independent Auditors’ Report has also been omitted.

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 29 October 2021 was Simon Worsley, who signed for and on behalf of Hazlewoods LLP.