Company registration number 09872947 (England and Wales)
PECKHAM LEVELS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
PECKHAM LEVELS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
PECKHAM LEVELS LIMITED (REGISTERED NUMBER: 09872947)
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,223,817
4,363,512
Current assets
Debtors
5
106,790
127,244
Cash at bank and in hand
26,394
270,941
133,184
398,185
Creditors: amounts falling due within one year
6
(652,351)
(1,633,711)
Net current liabilities
(519,167)
(1,235,526)
Total assets less current liabilities
3,704,650
3,127,986
Creditors: amounts falling due after more than one year
7
(2,990,898)
(2,851,820)
Net assets
713,752
276,166
Capital and reserves
Called up share capital
100
100
Share premium account
2,075,047
2,075,047
Profit and loss reserves
(1,361,395)
(1,798,981)
Total equity
713,752
276,166
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 21 December 2022 and are signed on its behalf by:
P Benson
Director
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Peckham Levels Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
95a Rye Lane, London, SE15 4ST.
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 £
1
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within its current funding levels into the foreseeable future.
true
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Despite the significant effect COVID-19 and the related government enforced restrictions have had on our ability to develop, then operate our venue, the directors are pleased to report the following:
-
• T
he venue
has t
ake
n
direct control of the on-site 4
5
0 capacity live music and events space
, as well as the main bar that is open to the public. Both venues are currently being refurbished. The venues are expected to generate additional revenue of over £1m, which is based upon the trading results of the previous tenants.
As a result of the above, the company can meet is short-term financial obligations to suppliers and employees.
The company has a positive and supportive relation with its lender, with long-term debt terms that will give the venue the time and space to recover and meet its obligations.
The financial statements therefore have been prepared on a going concern basis.
1.3
Turnover
Turnover from the supply of management services and rental income represents the value of the services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Rental income received in advance is recognised as deferred income on the statement of financial position and recognised as turnover over the rental contract term to which it relates.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the term of the lease
Plant and equipment
25% on cost
Fixtures and fittings
15% on cost
Computers
33.33% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
1.7
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.
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.
1.8
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.
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 6 -
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
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 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.
• Recoverability of amounts owed by group undertakings and related parties
Provision for impairment of the carrying value of amounts owed by group undertakings and related parties is made based on management's estimate of the prospect of recovering the amounts due, which includes considering the solvency of the counterparty and its future outlook, based on budgets and forecasts prepared by management.
• Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are considered. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
10
10
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2021
5,063,226
52,247
53,532
15,666
5,184,671
Additions
108,704
10,326
6,116
125,146
At 31 December 2021
5,171,930
52,247
63,858
21,782
5,309,817
Depreciation and impairment
At 1 January 2021
762,643
21,428
22,048
15,040
821,159
Depreciation charged in the year
247,559
5,731
9,584
1,967
264,841
At 31 December 2021
1,010,202
27,159
31,632
17,007
1,086,000
Carrying amount
At 31 December 2021
4,161,728
25,088
32,226
4,775
4,223,817
At 31 December 2020
4,300,583
30,819
31,484
626
4,363,512
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
44,308
10,868
Amounts owed by group undertakings
97
20,613
Other debtors
62,385
95,763
106,790
127,244
Amounts owed by group undertakings and related parties are unsecured, interest free and repayable on demand.
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
10,648
5,324
Trade creditors
175,211
91,723
Amounts owed to group undertakings
917,003
Taxation and social security
73,146
103,625
Other creditors
393,346
516,036
652,351
1,633,711
Amounts owed to group undertakings and related parties are unsecured, interest free and repayable on demand.
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
34,628
44,676
Other creditors
2,956,270
2,807,144
2,990,898
2,851,820
Bank loans are secured
by
fixed and floating charge
s
over the Company's assets. Floating charge
s
cover all the property and undertakings of the Company an
d
also contain
a
negative pledge. Interest is accruing at 2.5% per annum and is repayable
by
June 2026.
Other loans are secured
by
fixed and floating charge
s
over the Company's assets. Floating charge
s
cover all the property and undertakings of the Company an
d
also contain
a
negative pledge. Interest is accruing at 8% per annum and is repayable
by
December 2022.
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable by instalments
-
1,699,849
PECKHAM LEVELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
8
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.
A material uncertainty related to going concern exists and attention was drawn to note 1.2 of the financial statements which describes the basis upon which the financial statements are prepared and the material uncertainties related to going concern.
The senior statutory auditor was Declan McCusker and the auditor was Perrys Audit Limited.
9
Financial commitments, guarantees and contingent liabilities
Fixed and floating charges including a negative pledge are held over the company's assets.
10
Related party transactions
At the balance sheet date, the company
was
owed £97
from
a company under common control (2020: £Nil).
During the year, management charges were incurred from a group company prior to the change in ownership totalling £
87,168
(2020: £
180,000
).
During the year, loans owed to group companies prior to the change in ownership totalling £
1,011,172
(2020: £Nil) were written
off.
11
Parent company
Up to 4 November 2021, the immediate parent undertaking was Make Shift Community Ltd, a company incorporated in England and Wales. The ultimate parent undertaking and ultimate controlling party was The Collective (Living) Group Limited, a company incorporated in England and Wales.
From 4 November 2021, the parent company is Intelligere Investments Limited, a company incorporated in England and Wales.