Year Ended
Registration number:
Eldon Road Developments Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Eldon Road Developments Limited
Company Information
Directors |
Mr A A Dunn Mr A J A Dunn Mrs F Grossart Mr A C Michelin Mr M A Robertson |
Registered office |
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Accountants |
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Eldon Road Developments Limited
Balance Sheet
31 March 2022
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2022 |
2021 |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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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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Other reserves |
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Profit and loss account |
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Shareholders' funds |
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Eldon Road Developments Limited
Balance Sheet
31 March 2022
For the financial year ending 31 March 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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Company Registration Number: 07759641
Eldon Road Developments Limited
Notes to the Unaudited Financial Statements
Year Ended 31 March 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:
These financial statements were authorised for issue by the
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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.The financial statements have been prepared under the historical cost convention and in accordance with FRS 105 'The Financial Reporting Standard applicable to the Micro-entities Regime'.
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.
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.
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.
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.
Eldon Road Developments Limited
Notes to the Unaudited Financial Statements
Year Ended 31 March 2022
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
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.
Except for bank loans, 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.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Debtors |
Note |
2022 |
2021 |
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Trade debtors |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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Other debtors |
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Less non-current portion |
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Eldon Road Developments Limited
Notes to the Unaudited Financial Statements
Year Ended 31 March 2022
During 2020 a loan was issued that is secured against two properties that the company had been contracted to demolish and rebuild, behind the retained facade. The loan is secured and will be repaid from the sale proceeds. The company expect repayment will take place in the year to 31 March 2023. At 31 March 2022 the loan is held at its fair value of £6,347,417 (2021 - £5,937,629) . See note 7 for details of the assumptions underlying the fair value.
Included in other debtors is a deposit of £29,200 (2021 - £29,200). The deposit is recoverable at the completion of the project, expected to be in 2022, assuming no damage is caused to the party wall or that any damage caused is made right.
Details of non-current trade and other debtors
£Nil (2021 - £5,937,629) of amounts owed by group undertakings and undertakings in which the company has a participating interest is classified as non current.
£Nil (2021 - £29,200) of other debtors is classified as non current.
Eldon Road Developments Limited
Notes to the Unaudited Financial Statements
Year Ended 31 March 2022
Creditors |
Creditors: amounts falling due within one year
Note |
2022 |
2021 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Accruals and deferred income |
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Creditors: amounts falling due after more than one year
Note |
2022 |
2021 |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings |
2022 |
2021 |
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Loans and borrowings due after one year |
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Bank borrowings |
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2021 |
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Current loans and borrowings |
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Bank borrowings |
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The bank loan of £10,144,274 (2021 - £6,561,065) was issued in January 2020 and has a term of three years falling due for repayment in January 2023. The interest rate charge is 3.4% over LIBOR and the loan is secured against the two properties currently being developed which have a market value of between £6,500,000 and £7,000,000 each at 31 March 2022 (2021- £6,500,000 and £7,000,000)
Eldon Road Developments Limited
Notes to the Unaudited Financial Statements
Year Ended 31 March 2022
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
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No. |
£ |
No. |
£ |
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1,000.00 |
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1,000.00 |
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10.00 |
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10.00 |
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3,341,880 |
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3,000,000 |
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The company has issued 341,880 preference shares of £1 each during the year making the total of preference shares 3,341,880 at the end of the year, which carry no right to fixed income, do not carry voting rights.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £Nil
(2021 - £
Financial instruments |
Financial assets measured at fair value
Instruments measured at fair value through profit or loss
The fair value is £6,347,174
(2021 - £5,937,629)
and the change in value included in profit or loss is
£
409,545
(2021 - £350,189).
Eldon Road Developments Limited
Notes to the Unaudited Financial Statements
Year Ended 31 March 2022
A debtor balance disclosed in note 4 is held at its fair value through profit or loss. The agreement for this loan states that on sale of the properties being developments, the loan will be settled by cash payments equalling the total of:
• the value of the bank loan disclosed in note 6;
• cash loaned by the company to the owners of the property in respect of the development project (capped at £3m); and
• a share of the profit on sale of the properties being developed where sufficient profit is available.
The loan's fair value has been assessed by management based on present value of the expected future cash flows, which have been calculated based on management's assessment of the three elements detailed above.
The loan is secured over, and will be settled out of the sale proceeds from, the properties being developed. Management believe that the properties will sell at a profit and the return of the first two elements of the loan is reasonably certain.
The fair value movement of £409,544 (2021 - £350,189) is the only movement in the profit and loss relating to this loan. Since the settlement of this loan will come directly from the sale of the properties being developed, management do not have believe that any of this movement will relate to variation in credit risks.
The principal estimate which underlies the valuation of the loan relates to the company's share of the expected sales proceeds on sale of the properties being developed. As a result, variations in the property market between the reporting date and the sale date, expected to be in 2023, may materially affect the balance recognised.