Company Registration No. 00674041 (England and Wales)
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
4
49,327
55,580
Investment properties
5
355,000
345,000
Investments
6
615,000
892,144
1,019,327
1,292,724
Current assets
Stocks
381,593
381,593
Debtors
7
8,364,884
8,796,544
Investments
8
893,920
726,299
Cash at bank and in hand
979,445
390,675
10,619,842
10,295,111
Creditors: amounts falling due within one year
9
(13,111,181)
(12,974,427)
Net current liabilities
(2,491,339)
(2,679,316)
Total assets less current liabilities
(1,472,012)
(1,386,592)
Provisions for liabilities
(16,291)
(14,690)
Net liabilities
(1,488,303)
(1,401,282)
Capital and reserves
Called up share capital
75,000
75,000
Non distributable reserve
280,765
284,589
Profit and loss reserves
(1,844,068)
(1,760,871)
Total equity
(1,488,303)
(1,401,282)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 3 December 2020 and are signed on its behalf by:
S J Wiseman
Director
Company Registration No. 00674041
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Charter House Square Finance Company Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
62 Grosvenor Street, London, England, W1K 3JF.
1.1
Accounting convention
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
1.2
Going concern
The company has support of the ultimate holding company, in providing adequate funds to meet it's liabilities as they fall due. In addition the Group's forecast and projections show that the Group should have adequate resources to continue in operational existence for at least 12 months after signing these financial statements. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover is represented by rental income; service charges; management fees; share dealings and dividends receivable on investments held.
Management fees are recognised when, and to the extent that, the company obtains the right to consideration in exchange for performance of management services.
Rental and service charge income is recognised on a receivable basis, exclusive of Value Added Tax. The cost of lease incentives is offset against the total rents due and the net income is then spread evenly over the duration of the lease.
Dividend income is recognised in the income statement on a receivable basis.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% on cost or 15% on written down value
Fixtures and fittings
20% on cost or 15% on written down value
Motor vehicles
25% on written down value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Investment properties
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 a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
1.9
Cash and cash equivalents
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.
1.10
Financial instruments
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
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.
Classification of financial liabilities
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
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
paymen
ts 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. A
m
ounts 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.
1.11
Equity instruments
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
2
Judgements and key sources of estimation uncertainty
Investment properties
The fair value of the company's investment property as at 31 December 201
9
was determined by the Directors. The valuations are in accordance with the Royal Institution of Chartered Surveyors ('RICS') Valuation - Professional Standards ("The Red Book") and the International Valuation Standards and were arrived at by reference to market transactions for similar properties. Fair values for investment properties are calculated using the present value income approach. The main assumptions underlying the valuations are in relation to rent profile and yields. A key driver of the property valuations is the terms of the leases in place at the valuation date. These determine the cash flow profile of the property for a number of years.
The valuation assumes adjustments from these rental values to current market rent at the time of the next rent review (where a typical lease allows only for upward adjustment) and as leases expire and are replaced by new leases. The current market level of rent is assessed based on evidence provided by the most recent relevant leasing transactions and negotiations.
The nominal equivalent yield is applied as a discount rate to the rental cash flows which, after taking into account other input assumptions such as vacancies and costs, generates the market value of the property. The equivalent yield applied is assessed by reference to market transactions for similar properties and takes into account, amongst other things, any risks associated with the rent uplift assumptions.
The net initial yield is calculated as the current net income over the gross market value of the asset and is used as a sense check and to compare against market transactions for similar properties. The valuation output, along with inputs and assumptions, are reviewed to ensure these are in line with what a market participant would use when pricing each asset.
There are inter relationships between all inputs as they are determined by market conditions. The existence of an increase in more than one input would be to magnify the input on the valuation. The impact on the valuation will be migrated by the interrelationship of two inputs in opposite directions.
Recoverability of investments
The directors remain in regular contact with Redress Solutions plc and are satisfied that the investment is represented at Fair Value as at the Balance Sheet date and the loan provided to the Company is recoverable.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
5
6
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2019
209,667
Additions
6,076
At 31 December 2019
215,743
Depreciation and impairment
At 1 January 2019
154,087
Depreciation charged in the year
12,329
At 31 December 2019
166,416
Carrying amount
At 31 December 2019
49,327
At 31 December 2018
55,580
5
Investment property
2019
£
Fair value
At 1 January 2019
345,000
Revaluations
10,000
At 31 December 2019
355,000
The fair value at 31 December 2019 is represented by:
Cost
60,411
Valuation in 2015
169,589
Valuation in 2017
70,000
Valuation in 2018
45,000
Valuation in 2019
10,000
355,000
If the investment property had not been revalued it would have been included at the historical cost of £60,411 (2018: £60,411).
Investment property was valued on an open market basis on 31 December 2019 by W Gear, a member of RICS.
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
6
Fixed asset investments
2019
2018
£
£
Shares in group undertakings and participating interests
15,000
15,100
Loans to group undertakings and participating interests
600,000
877,044
615,000
892,144
Movements in fixed asset investments
Shares in group undertakings and participating interests
Loans to group undertakings and participating interests
Total
£
£
£
Cost or valuation
At 1 January 2019
15,100
877,044
892,144
Disposals
(100)
-
(100)
At 31 December 2019
15,000
877,044
892,044
Impairment
At 1 January 2019
-
-
-
Impairment losses
-
277,044
277,044
At 31 December 2019
-
277,044
277,044
Carrying amount
At 31 December 2019
15,000
600,000
615,000
At 31 December 2018
15,100
877,044
892,144
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
53,060
5,064
Corporation tax recoverable
80,870
81,303
Amounts owed by group undertakings
1,237,619
1,236,585
Amounts owed by related parties
6,383,751
6,383,751
Other debtors
609,584
1,089,841
8,364,884
8,796,544
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
8
Current asset investments
2019
2018
£
£
Listed investments
893,920
726,299
9
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
10,257
15,517
Amounts owed to group undertakings
7,417,747
7,267,248
Amounts owed to related parties
5,464,522
5,463,498
Taxation and social security
139,160
164,228
Other creditors
79,495
63,936
13,111,181
12,974,427
Amounts owed to group undertakings are interest free and repayable on demand.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was David Green MA (Cantab) ACA.
The auditor was Azets Audit Services.
11
Ultimate controlling party
Corob Consolidated Limited, incorporated in England and Wales, is the company's immediate parent company, ultimate parent company and controlling party.
The largest and smallest group of undertakings for which group accounts are drawn up is that headed by Corob Consolidated Limited, the consolidated accounts of which are available from Companies House.
CHARTER HOUSE SQUARE FINANCE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
12
Post balance sheet events
On January 30, 2020, the World Health Organization declared the outbreak of coronavirus (“COVID-19”) to be a public health emergency of international concern.
The Company continues to carry out regular detailed reviews of the potential impacts of COVID-19 and monitor developments closely. As at the date of this report, the company’s position continues to remain strong and acknowledges that the full effect on the company’s income and property assets remains to be seen.
The Company has assessed the coronavirus pandemic as a non-adjusting post balance sheet event for these Financial Statements.
13
Related party transactions
Transactions with group companies
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Redress Solutions Plc
The company has advanced monies to a related undertaking, Redress Solutions Plc, an associated company that ha
d
a director in common in the prior year
.
During the year, the group was repaid £Nil (2018: £250,000) by the company and the loan was impaired by £277,044 (2018: £Nil), to bring the total invested to £615,000 (2018: £892,044). The loan is interest free and repayable on demand.
2019-12-31
2019-01-01
false
03 December 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
F Cook
S J Wiseman
J V Hajnal
Ms A L Corob
Ms L E Corob
Ms T A Corob
S N Bentley FCCA
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