Angelrealm Limited is a private company limited by shares incorporated in England and Wales . The registered office is Kemp House, 152-160 City Road, London, United Kingdom, EC1V 2NX.
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 certain financial instruments at fair value.
Investments in joint developments where the property is held on trust by a nominee company are accounted for as joint controlled operations, accordingly Angelrealm Limited accounts for its own assets, liabilities and cash flows measured according to the terms of the nominee agreement governing the arrangement.
The financial statements have been prepared on the going concern basis, notwithstanding net liabilities of £ 2,306,176 (20 20 : £ 2,206,669 ) which the directors believe to be appropriate for the following reasons. The company is reliant on a blend of external finance and funds available from other companies within the group. The directors are confident that both external lenders and other group companies will continue to support the company. Where the company is reliant on funds provided to it by other companies within the group, those companies have provided the company with an undertaking that they will, for at least 12 months from the date of approval of these financial statements, continue to make available such funds as are needed by the company and in particular will not seek repayment of the amounts currently made available. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
The directors have carried out their assessment of going concern and taking into account the economic conditions and possible changes in trading performance, alongside the facts noted above, they have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. For example, the extent of the impact of coronavirus is unclear and it is difficult to evaluate all the potential implications on the company's trade, customers, suppliers and the wider economy.
Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.
Investment in subsidiaries
Interests in subsidiaries 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.
Significant judgements and estimates
The preparation of financial statements requires management 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 on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on a continuing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.
The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Funding arrangements
Management has assessed the substance of the development funding agreements and consider them to be financing arrangements. The sums advanced under these agreements are therefore included in creditors. Management has estimated, at the balance sheet date, future cash flows as per the project development plans and budgets and will continue to review and revise them as appropriate.
Profit recognition
Stock consists of the acquisition cost of the land and buildings, together with related legal and professional costs, development and borrowing costs which is recorded as incurred during a project. An apportionment of stock is transferred to the profit and loss account when properties are sold on a project. The proportion of stock transferred is calculated so as to achieve a consistent margin across each individual project and is reliant on management's estimation of the total selling price. Estimation of the selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the value of property.
Whilst the Directors exercise due care and attention to make reasonable estimates, taking into account all available information in estimating the future selling price, the estimates may differ from the actual selling prices achieved in future periods.
With the exception of the estimate described above, the directors consider that there are no other significant judgements or estimates in the preparation of these financial statements.
During the year finance costs capitalised in respect of the development amounted to £355,524 (2020: £8,075). At the year end capitalised finance costs included within stock totalled £363,599 (2020: £8,075).
The loan from another group company is secured by a first and second debenture over the company's assets.
Within other creditors above there are other loans of £2,929,316 which are secured by a first legal charge over the property known as Land on the West side of the Metropole Hotel Padstow PL28 8DB, and a personal guarantee provided by one of the directors.
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 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.
The directors regard RST Residential Investments Limited as the ultimate parent company. RST1 South West Group Limited is the immediate parent company. The registered offices of the immediate and the ultimate parent companies is Kemp House, 152 - 160 City Road, London, United Kingdom, EC1V 2NX. The largest group of undertakings for which group accounts have been drawn up is that headed by RST Residential Investments Limited. Copies of the group financial statements may be obtained from Companies House.