Registration number:
Parham Investment Limited
Year Ended 31 December 2022
Chartered Accountants
Parham Investment Limited
Contents
Company Information |
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Accountants' Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Parham Investment Limited
Company Information
Directors |
Mr J R Drax Mr P S Dove Mr E Q Drax Mrs L H Catford |
Company secretary |
Mr J R Drax |
Registered office |
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Accountants |
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Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Parham Investment Limitedfor the Year Ended 31 December 2022
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Parham Investment Limited for the year ended 31 December 2022 as set out on pages 3 to 10 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Parham Investment Limited, as a body, in accordance with the terms of our engagement letter dated 5 July 2023. Our work has been undertaken solely to prepare for your approval the accounts of Parham Investment Limited and state those matters that we have agreed to state to the Board of Directors of Parham Investment Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Parham Investment Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Parham Investment Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Parham Investment Limited. You consider that Parham Investment Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Parham Investment Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
Chartered Accountants
34 High East Street
Dorchester
Dorset
DT1 1HA
Parham Investment Limited
(Registration number: 02383522)
Balance Sheet as at 31 December 2022
Note |
2022 |
2021 |
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£ |
£ |
£ |
£ |
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Fixed assets |
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Investment property |
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Investments |
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Current assets |
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Debtors |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets/(liabilities) |
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( |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Profit and loss account |
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Total equity |
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For the financial year ending 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
Director
Parham Investment Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
The principal place of business is:
3rd Floor
18 Wells Street
London
W1T 3PG
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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.
Exemption from preparing group accounts
The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small sized group.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for rents receivable on properties held as investment properties in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, rebates and discounts and after eliminating sales within the company.
The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income 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.
Parham Investment Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2022
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Investment property
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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 rental income 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.
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.
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Parham Investment Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2022
Profit before tax |
Disclosed separately on the profit and loss is £nil (2021 - £160,000) relating to valuation adjustments on the investment properties and £5,155 (2021 - £Nil) relating to the loss on disposal of investment property.
Audit fees of £Nil (2021 - £7,400) in relation to the audit of this company are met by the parent.
Investment properties |
2022 |
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At 1 January |
74,645,000 |
Disposals |
( |
At 31 December |
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The investment properties class of fixed assets was revalued on 1 July 2020 by Colliers International Valuation UK LLP who are external to the company. The basis of this valuation was market value however this valuation did refer to material valuation uncertainty.
The inclusion of a material valuation uncertainty by Colliers in 2020 indicates that less certainty and a higher degree of caution should be considered when their valuations are taken into account. However, with the occupancy rate of the property portfolio continuing on a similar basis to previous years, this valuation, having compared previous and current rental returns of the properties, is still considered by the directors to provide an appropriate basis for consideration to values as at 31 December 2022. These valuations have been adjusted for any subsequent property transactions that have been agreed to date.
Recognising that a number of properties require refurbishment to attain the most competitive levels of return and capital value, and, recognising the ongoing volitility of price and availability of building materials has caused significant delay and difficulty in determining values for properties to which refurbishments are planned, has resulted in material valuation uncertainty when valuations have been considered by the directors for values as at 31 December 2022.
The directors consider the value of the investment properties at 31 December 2022 to be unchanged from the valuation figures provided by Colliers International on 1 July 2020, subject to variation where subsequent transactions have been secured. This class of assets has a current market value of £73,995,000 (2021 - £74,645,000).
Investments |
2022 |
2021 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost |
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At 1 January 2022 |
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Provision |
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Carrying amount |
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At 31 December 2022 |
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At 31 December 2021 |
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Parham Investment Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2022
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2022 |
2021 |
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Subsidiary undertakings |
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England & Wales |
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Subsidiary undertakings |
The Royce Trading Estate and Management Company Limited The principal activity of The Royce Trading Estate and Management Company Limited is |
Debtors |
Current |
Note |
2022 |
2021 |
Amounts owed by related parties |
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Prepayments |
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Other debtors |
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14,055,970 |
14,316,049 |
Parham Investment Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2022
Creditors |
Creditors: amounts falling due within one year
Note |
2022 |
2021 |
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Due within one year |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security |
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Accruals and deferred income |
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Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
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No. |
£ |
No. |
£ |
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15,000,000 |
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15,000,000 |
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of guarantees not included in the balance sheet is £22,750,000 (2021 - £23,750,000). The group has a bank loan facility; the loan capital is secured on the investment and development properties held within the group and the investment in shares of the subsidiary companies held by Parham Holdings Limited.
Parham Investment Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2022
Related party transactions |
Summary of transactions with parent
Balance is repayable on demand
All transactions of the company are made via the parent company and transferred to the subsidiary via an inter-company loan account transfer. The parent has also recharged interest charges of £757,000 (2021 - £502,000) and management charges of £1,632,000 (2021 - £1,006,000) to this company.
Summary of transactions with all subsidiaries
Transfer of property
Balance is repayable on demand
Loans from related parties
2022 |
Parent |
Total |
At start of period |
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Advanced |
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Repaid |
( |
( |
Interest transactions |
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At end of period |
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2021 |
Parent |
Total |
At start of period |
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Advanced |
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Repaid |
( |
( |
Interest transactions |
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At end of period |
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Terms of loans from related parties
Loans to related parties
2022 |
Subsidiary |
Total |
At start of period |
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Advanced |
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At end of period |
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Parham Investment Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2022
2021 |
Subsidiary |
Total |
At start of period |
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Advanced |
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Repaid |
( |
( |
At end of period |
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Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is