Company registration number 08132245 (England and Wales)
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2021
PAGES FOR FILING WITH REGISTRAR
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
BALANCE SHEET
AS AT
31 JULY 2021
31 July 2021
- 1 -
2021
2020
Notes
£
£
£
£
Current assets
Stocks
3
5,500,000
5,500,000
Debtors
4
125,395
113,853
5,625,395
5,613,853
Creditors: amounts falling due within one year
5
(4,685,670)
(3,298,063)
Net current assets
939,725
2,315,790
Creditors: amounts falling due after more than one year
6
(1,860,000)
(2,740,000)
Net liabilities
(920,275)
(424,210)
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
(920,277)
(424,212)
Total equity
(920,275)
(424,210)
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 12 December 2022 and are signed on its behalf by:
Mr P Hylander
Mr D Soning
Director
Director
Company Registration No. 08132245
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2021
- 2 -
1
Accounting policies
Company information
The Third Quarter (Rosebery Avenue) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
2nd Floor, Hygeia House, 66 College Road, Harrow, Middlesex, England, HA1 1BE.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
company has adequate resources to continue in operational existence for the foreseeable future. Thus the
directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Stocks
Stocks constitutes property held by the company and associated development costs and is valued at the lower of cost and net realisable value.
Borrowing costs are included in development costs during periods of development and excluded during periods when no development takes place.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also 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.
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 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 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
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2021
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
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.
1.9
Borrowing costs directly attributable to the acquisition and construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the costs of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in the
p
rofit and
l
oss
a
ccount in the period in which they occurred.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
2
2
3
Stocks
2021
2020
£
£
Stock of properties
5,500,000
5,500,000
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2021
- 5 -
4
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
26,149
26,553
Other debtors
99,246
87,300
125,395
113,853
5
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
903,753
17
Trade creditors
61,996
3,150
Taxation and social security
10,260
10,260
Other creditors
3,709,661
3,284,636
4,685,670
3,298,063
6
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
1,860,000
2,740,000
The bank loans are secured by a legal charge, including fixed and floating charges, over the company's stock of property. See also Note 6 for additional security provided for the bank loans.
7
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 A C Shah and the auditor was Lawrence Grant LLP.
THE THIRD QUARTER (ROSEBERY AVENUE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2021
- 6 -
8
Related party transactions
At the year end an amount of £
2,225,921
(2020: £
2,013,701
) was due to Mr P Hylander, a director and shareholder of the company. Interest at the rate of 10% p.a. was due on the loan and interest totalling £
1,284,329
(2020: £
1,075,070
) had been accrued as at the year end. Interest charged during the year was £
209,259
(2020: £
191,602
). The interest charge is included in stock per the accounting policy.
In addition to the above, at the year end the directors Mr P Hylander and Mr D Soning were owed £61,438 (2020: £61,438) each by the company.
A bank guarantee was provided as security for the bank loan facility by Mr P Hylander for an unlimited amount.
At the year end an amount of £1,761 (2020: £1,761) was due to London & Newcastle (East London) Limited, a company in which a close relative of Mr D Soning is a director.
At the year end an amount of £
97
,
006
(2020: £
96
,
766
) was due from The Third Quarter Limited, a
c
ompany under common control.