Company No:
Contents
Note | 2021 | 2020 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 3 |
|
|
|
Investment property | 4 |
|
|
|
20,004,556 | 20,006,187 | |||
Current assets | ||||
Debtors | 5 |
|
|
|
Cash at bank and in hand |
|
|
||
971,435 | 1,047,574 | |||
Creditors | ||||
Amounts falling due within one year | 6 | (
|
(
|
|
Net current liabilities | (21,746,603) | (21,483,250) | ||
Total assets less current liabilities | (1,742,047) | (1,477,063) | ||
Provision for liabilities |
|
(
|
||
Net liabilities | (
|
(
|
||
Capital and reserves | ||||
Called-up share capital | 7 |
|
|
|
Other reserves |
|
|
||
Profit and loss account | (
|
(
|
||
Total shareholder's deficit | (
|
(
|
Directors' responsibilities:
The financial statements of Centurion (Parc Tawe I) Limited (registered number:
F F Whitcomb
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Centurion (Parc Tawe I) Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Management Suite, Parc Tawe, Swansea, SA1 2AL, Wales, United Kingdom.
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 items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
The financial statements have been prepared on a going concern basis. At the balance sheet date the company has net liabilities of £1,742,047 and net current liabilities of £21,746,603, of which liabilities of £21,889,913 are due to the company's immediate parent company.
The company is dependent on the support of its parent company. The parent company has provided confirmation that it would not request repayment of this balance until the business has sufficient resources to make a repayment. The company's tenants were adversely impacted due to Covid-19. This continues to have an impact on the tenant’s ability to pay rents. The business has seen some tenants go into administration and has supported others by offering rental deferrals. This has had an adverse impact on rents receivable in 2020 and 2021. However the company has reached agreements with a number of new tenants in 2021 and into 2022 and due to the way the business is financed the directors, whilst recognising that there can be no certainty, are satisfied that the company will continue to operate for the forseeable future, being a period of no less than twelve months from the date of approval of these financial statements.
Lease incentives and costs associated with entering into tenant leases are amortised over the lease term.
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 corporation 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
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and
loss account and other comprehensive income. 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.
Plant and machinery |
|
Computer equipment |
|
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 the Profit and Loss Account as described below.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Short term intra group debtors and creditors; and
• Cash and bank balances.
All financial instruments are classified as basic.
Basic financial assets comprise short term trade and other debtors and cash and bank balances. Basic financial liabilities comprise short term trade and other creditors. Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
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 net assets of the company.
Basic financial liabilities
Basic financial liabilities that have no stated interest rate and are payable within one year, such as trade creditors, are measured at transaction price.
Other basic financial liabilities are measured at amortised cost.
Government grants receivable comprises monetary assistance received from the government, government agencies and similar bodies whether local, national or international. Grants receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the entity with no future related costs, is recognised in income in the period in which it becomes receivable.
Grants are recognised when there is reasonable assurance that:
- The entity will adhere to the conditions which are attached to the grant, and
- The grant will be received.
Government grants received:
- Coronavirus Job Retention Scheme.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based upon historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
• Management estimate the amount of rent expected to be received over the period of a lease. Where that lease includes rental steps or holiday periods the minimum contracted rents expected to be received are spread evenly over the period of the lease.
• Management also use judgement in considering whether outstanding trade debtors will be recoverable and provide against these debts where recoverability is considered uncertain
• The company’s investment property is carried in the balance sheet at fair value. At 11 May 2022 an external independent valuation was undertaken by a professionally qualified external valuer and the directors do not consider the valuation at this date to be materially different to the valuation of the investment property as at 31 December 2021. The property was valued using the investment method of valuation. This approach involves applying market-derived capitalisation yields to future income streams with appropriate adjustments for income voids arising from vacancies or rent free periods. The capitalisation yields were derived from comparable property and leasing transactions and were considered key inputs. Other factors taken into account include the tenure of the property, tenancy details and structural conditions.
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
2021 | 2020 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year |
|
|
Plant and machinery | Computer equipment | Total | |||
£ | £ | £ | |||
Cost | |||||
At 01 January 2021 |
|
|
|
||
At 31 December 2021 |
|
|
|
||
Accumulated depreciation | |||||
At 01 January 2021 |
|
|
|
||
Charge for the financial year |
|
|
|
||
At 31 December 2021 |
|
|
|
||
Net book value | |||||
At 31 December 2021 |
|
|
|
||
At 31 December 2020 |
|
|
|
Investment property | |
£ | |
Valuation | |
As at 01 January 2021 |
|
Additions | 536,709 |
Fair value movement | (536,709) |
As at 31 December 2021 |
|
Valuation
A valuation of the investment property was undertaken on 11 May 2022 by an external independent valuer. The directors do not consider the valuation at this date to be materially different to the valuation of the investment property as at 31 December 2021.
Historic cost
If the investment properties had been accounted for cost accounting rules, the properties would have been measured as follows:
2021 | 2020 | ||
£ | £ | ||
Historic cost | 37,331,226 | 36,794,517 |
2021 | 2020 | ||
£ | £ | ||
Trade debtors |
|
|
|
Prepayments and accrued income |
|
|
|
VAT recoverable |
|
|
|
Other debtors |
|
|
|
|
|
2021 | 2020 | ||
£ | £ | ||
Trade creditors |
|
|
|
Amounts owed to Group undertakings |
|
|
|
Other creditors |
|
|
|
Accruals and deferred income |
|
|
|
Corporation tax |
|
|
|
Other taxation and social security |
|
|
|
|
|
2021 | 2020 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
|
|
|
Commitments
The total amount of financial commitments not included in the balance sheet is £10,580,608 (2019 - £11,091,208) in respect of rent receivable under non-cancellable operating leases.
Transactions with owners holding a participating interest in the entity
At the year end the company owed £21,889,913 (2020 - £21,417,384) to its parent. Interest accrues on the loan at 3% and the loan is repayable on demand.
Other related party transactions
At the year end the company owed £518,079 (2020 - £450,000) to an entity connected by virtue of common control. The loan is interest free and repayable on demand.
Other reserves represents a capital contribution reserve derived from the value of the waiver of an intercompany debt.