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Financial Statements |
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for the Year Ended 31 December 2019 |
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for |
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BDC PHASE 2 LIMITED |
REGISTERED NUMBER:
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Financial Statements |
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for the Year Ended 31 December 2019 |
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for |
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BDC PHASE 2 LIMITED |
BDC PHASE 2 LIMITED (REGISTERED NUMBER: 11028382) |
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Contents of the Financial Statements |
for the year ended 31 December 2019 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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BDC PHASE 2 LIMITED |
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Company Information |
for the year ended 31 December 2019 |
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Directors: |
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Secretary: |
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Registered office: |
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Registered number: |
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Auditors: |
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Chartered Accountants |
Statutory Auditor |
Aissela |
46 High Street |
Esher |
Surrey |
KT10 9QY |
BDC PHASE 2 LIMITED (REGISTERED NUMBER: 11028382) |
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Balance Sheet |
31 December 2019 |
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2019 | 2018 |
Notes | £ | £ |
Current assets |
Stocks | 4 |
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Debtors | 5 |
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Cash at bank |
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Creditors |
Amounts falling due within one year | 6 |
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Net current assets |
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Total assets less current liabilities |
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Creditors |
Amounts falling due after more than one
year |
7 |
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Net (liabilities)/assets | ( |
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Capital and reserves |
Called up share capital | 9 |
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Retained earnings | ( |
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Shareholders' funds | ( |
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In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
signed on its behalf by: |
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BDC PHASE 2 LIMITED (REGISTERED NUMBER: 11028382) |
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Notes to the Financial Statements |
for the year ended 31 December 2019 |
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1. | Statutory information |
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BDC Phase 2 Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | Accounting policies |
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Basis of preparing the financial statements |
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Going Concern |
There is a balance sheet deficit of £8,580 (2018: £2 surplus) at the year end. |
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The Financial Statements have been prepared on a going concern basis. This basis is considered appropriate |
by the directors. |
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The directors have prepared detailed cash flow forecasts covering the duration of the development project and |
subject to the company's ability to achieve its predicted results, in the ordinary course of business the company |
will be able to satisfy its cash obligations and trade out of its balance sheet deficit. |
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In particular, in response to the COVID-19 pandemic, the directors have considered the impact on the |
company's development project. With the appropriate social distancing measures in place, the project has |
continued as planned, with minimal disruption. The directors therefore consider the resulting impact of |
COVID-19 on the project to be minimal. |
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Based on their assessment, given the measures that could be undertaken to mitigate the current adverse |
conditions, and the current resources available, the Directors have concluded that they can continue to adopt |
the going concern basis in preparing the annual report and accounts. |
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The financial statements do not include any adjustments to the value of the balance sheet which would result |
from the going concern basis not being valid. As mentioned above, the company's ability to achieve the results |
as detailed in the cash flow forecast prepared by the directors are of paramount importance in adopting the |
going concern basis. |
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Key source of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires |
management to make estimates and judgement that affect the reported amounts of assets and liabilities as well |
as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of |
revenues and expenses during the reporting period. Key areas of estimation and judgement include the |
following: |
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a) Valuation of work-in-progress |
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When determining the net realisable value of work-in-progress, key estimates and judgements are applied by |
the directors. This includes an estimation of the costs remaining to complete the development (including work |
completed by subcontractors but not yet billed) as well as an estimation of future revenue. The application of |
these estimates includes a degree of uncertainty. Should these estimates change unfavourably, then a write |
down of work-in-progress may be required. |
BDC PHASE 2 LIMITED (REGISTERED NUMBER: 11028382) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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2. | Accounting policies - continued |
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Work-in-progress |
Work-in-progress includes costs directly attributable to the purchase of and development of land sites. The |
purchase of land and other property is recognised upon legal completion. Costs include amounts expended on |
land acquisition, construction and related planning costs, legal and professional fees as well as other costs |
directly attributable to the development of the sites. |
Borrowing costs in respect of particular site developments are capitalised and included within work-in-progress. |
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Work-in-progress is carried forward at the lower of cost and net realisable value. |
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The company undertakes developments on such terms that it cannot determine profit until the development is |
complete. Therefore, no attributable profit is taken on such uncompleted developments. |
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Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a |
party to the contractual provisions of the instrument. |
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Trade and other debtors and creditors are classified as basic financial instruments and measured at initial |
recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the |
effective interest rate method. A provision is established when there is objective evidence that the company will |
not be able to collect all amounts due. |
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Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank |
and bank overdrafts. |
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Financial liabilities and equity instruments issued by the company are classified in accordance with the |
substance of the contractual arrangements entered into and the definitions of a financial liability and an equity |
instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company |
after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds |
received, net of direct issue costs. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, |
except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the balance sheet date. |
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3. | Employees and directors |
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The average number of employees during the year was NIL (2018 - NIL). |
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4. | Stocks |
2019 | 2018 |
£ | £ |
Work-in-progress |
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Included within work-in-progress are amounts totalling £1,487,658 (2018: £nil) in respect of |
borrowing costs that have been capitalised. |
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5. | Debtors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Other debtors |
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VAT |
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BDC PHASE 2 LIMITED (REGISTERED NUMBER: 11028382) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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6. | Creditors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Trade creditors |
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Related party creditors | 500,000 | - |
Accrued expenses |
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7. | Creditors: amounts falling due after more than one year |
2019 | 2018 |
£ | £ |
Related party creditors | 18,535,416 | - |
Accrued interest | 1,487,658 | - |
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8. | Secured debts |
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The following secured debts are included within creditors: |
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2019 | 2018 |
£ | £ |
Related party creditors | 18,535,416 | - |
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There is a fixed and floating charge over all the property and undertaking of the company. |
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9. | Called up share capital |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
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Ordinary A | 1 | 1 | 1 |
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Ordinary B | 1 | 1 | 1 |
2 | 2 |
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10. | Disclosure under Section 444(5B) of the Companies Act 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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11. | Related party disclosures |
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Re-financing and transaction with parent undertaking |
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During the year, land and work-in-progress amounting to £18,535,416 in respect of phase 2 of the property |
development at Botley, Oxford has been transferred to BDC Phase 2 Limited. |
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Consideration for this transfer was received by way of a reduction in the loan balance owed to the parent |
undertaking. A new loan was then introduced between BDC Phase 2 Limited and the parent undertaking. The |
amount owing at the end of the year to the parent undertaking is £20,023,074 (2018: £nil). Interest of |
£1,487,658 (2018: £nil) was accrued on the loan for the year at a rate of 10.5%. |
BDC PHASE 2 LIMITED (REGISTERED NUMBER: 11028382) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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12. | Post balance sheet events |
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The directors have identified the COVID-19 pandemic as a significant event occurring after the balance sheet |
date. They consider this to be a non-adjusting event. Disclosures relating to the impact of COVID-19 on the |
company's ability to continue as a going concern have been made in note 2 to the financial statements. |
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13. | Controlling party |
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The Company is a wholly owned subsidiary of Botley Developments (Holdings) Limited. The company is a |
member of the group whose parent company is Mace Limited. Both companies are registered in England and |
Wales. The results of the Company are included in the consolidated accounts of Mace Limited, copies of which |
are available from Companies House. |