Company registration number 05342160 (England and Wales)
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investment properties
4
44,891,422
44,525,683
Current assets
Debtors
5
494,799
284,088
Cash at bank and in hand
1,489
494,799
285,577
Creditors: amounts falling due within one year
6
(12,581,748)
(12,611,423)
Net current liabilities
(12,086,949)
(12,325,846)
Total assets less current liabilities
32,804,473
32,199,837
Creditors: amounts falling due after more than one year
7
(22,201,355)
(22,220,890)
Provisions for liabilities
(925,750)
(949,629)
Net assets
9,677,368
9,029,318
Capital and reserves
Called up share capital
111
111
Profit and loss reserves
9
9,677,257
9,029,207
Total equity
9,677,368
9,029,318
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 20 September 2022 and are signed on its behalf by:
Juin Yong Chin
Martyn David Giles
Director
Director
Company Registration No. 05342160
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Station Road Developments (Cambridge) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Hilton London Syon Park, Syon Park, London Road, Brentford, Middlesex, UK, TW8 8JF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
The directors regard the foreseeable future as no less than twelve months following the publication of its annual financial statements. The
directors
have considered the Company's working capital forecasts and projections, support from it's ultimate parent undertaking, taking account of reasonable possible changes in trading performance, impact of Covid-19, the war in Ukraine and the current state of it's operating market, and are satisfied that the Company should be able to remain in operational existence.
Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
1.4
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.
1.5
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.
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
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.
1.6
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.
1.7
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.
1.8
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The company reviews on an annual basis the carrying amounts of investments in order to determine if there is an indication of impairment. If any such indication exists, an impairment review is carried out in order to determine the extent of the impairment loss.
Valuation of debtors is based upon ongoing assessments of the probable estimated losses inherent in the trade and other debtors portfolio. Assessments are conducted by the board employing a methodology and guidelines, which are continually monitored and improved. The primary component of this methodology comprises specific allowances and collective allowances.
A debtor is subject to impairment test when valid indications exist, at the assessment date, which demonstrate that the customer will not be able to meet his obligations and/or when the flow of receipts decelerates over time. Usually such indications include failure of communication with the customers and indications of significant financial difficulty.
Amounts individually provided for concern claims evaluated individually for impairment based upon management’s best estimate of the present value of the cash flows which are expected to be received.
The accuracy of provisions depends on the accuracy of future cash flows for specific allowances and the model assumptions and parameters used in determining collective allowances. While this necessarily involves judgment, management believes that their provisions are reasonable and supportable.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
4
1
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
4
Investment property
2021
£
Fair value
At 1 January 2021
44,525,683
Additions
365,739
At 31 December 2021
44,891,422
Investment property to the sum of £44.4m was valued by an external valuer (CBRE) on 13th November 2019 and the directors believe this to be in line with current valuations.
Fair value at 31 December 2021 is represented by:-
Total
£
Valuation in 2019
10,045,328
Cost
34,846,094
44,891,422
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2021
2020
£
£
Cost
34,846,094
34,480,355
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
6,829
Other debtors
494,799
277,259
494,799
284,088
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
128,367
164,063
Amounts owed to group undertakings
11,642,320
11,481,164
Taxation and social security
95,197
167,524
Other creditors
715,864
798,672
12,581,748
12,611,423
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
22,201,355
22,220,890
8
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
In over five years
22,201,355
22,220,890
The company is committed to a 150 year lease on the property at 27-29 Station Road, Cambridge, CB1 2FB with an annual rent charge payable to a third party.
9
Profit and loss reserves
Included within profit and loss reserves are non-distributable reserves amounting to £
9,186,879
(2020: £
6,162,672
)
which relate to the revaluation of investment property.
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 Sadikali Gulamabas Premji FCCA and the auditor was FLS Accounting Solutions Limited T/A SP Vinshaw.
STATION ROAD DEVELOPMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
11
Related party transactions
The company has taken advantage of FRS 102, Section 33.1A, for the disclosure of transactions entered into between two or
more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.
Amounts owed to and from group companies are therefore shown in aggregate.
Included in creditors is an amount of £11,642,320 (20
20
: £11
,4
81
,1
64) owed to group undertakings.
12
Controlling party
The immediate parent company is Ability Cambridge Nine Ltd, incorporated in England & Wales.
The
ultimate parent undertaking is A.P. The Ability Group Limited, incorporated in Cyprus.
The ultimate controlling party is The Costas Panayiotou 1997 (No 2) Settlement Trust.