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Financial Statements |
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for the Year Ended 31 December 2021 |
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for |
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BETHNAL GREEN REGENERATION LIMITED |
REGISTERED NUMBER:
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Financial Statements |
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for the Year Ended 31 December 2021 |
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for |
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BETHNAL GREEN REGENERATION LIMITED |
BETHNAL GREEN REGENERATION LIMITED (REGISTERED NUMBER: 11519292) |
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Contents of the Financial Statements |
for the year ended 31 December 2021 |
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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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BETHNAL GREEN REGENERATION LIMITED |
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Company Information |
for the year ended 31 December 2021 |
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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 |
BETHNAL GREEN REGENERATION LIMITED (REGISTERED NUMBER: 11519292) |
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Balance Sheet |
31 December 2021 |
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2021 | 2020 |
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 (liabilities)/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 | ( |
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Capital and reserves |
Called up share capital | 8 |
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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
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BETHNAL GREEN REGENERATION LIMITED (REGISTERED NUMBER: 11519292) |
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Notes to the Financial Statements |
for the year ended 31 December 2021 |
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1. | Statutory information |
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Bethnal Green Regeneration Limited is a
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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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Material uncertainty in relation to going concern |
There is a balance sheet deficit of £3,143,465 (2020: £27,042) at the year-end which relates to an outstanding balance with a third party through an option agreement taken out in relation to the purchase of a building and an intercompany loan balance owed to a parent company. |
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The work-in-progress balance was impaired in the year as an assessment in relation to the viability of the project determined that no further progress will be made on the project in its current form. |
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The directors recognise that there is material uncertainty related to the going concern of the company that casts significant doubt over the company's future until the issue around payment of the amount owed under the option agreement is resolved. Additionally, the future direction and viability of the company needs to be considered which includes determining how the repayment of the intercompany loan to the parent company can be achieved. There are no additional accounting entries that are required as a result of the above and therefore the financial statements have been prepared on a going concern basis. This basis is considered appropriate by the directors. |
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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. |
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There is uncertainty in the judgement of recoverability of stock. Management review recoverability on a periodic basis taking into the account the position of the project. Whilst every attempt is made to ensure that the recoverability of stock is as accurate as possible, there remains the risk that the judgements do not match the level recorded in stock. |
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Stocks |
Work-in-progress is initially recognised at cost and is held at the lower of this cost and its net realisable value. Net realisable value represents the estimated selling price less costs to complete. |
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Borrowing costs in respect of particular site developments are capitalised and included within work-in-progress. |
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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. |
BETHNAL GREEN REGENERATION LIMITED (REGISTERED NUMBER: 11519292) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
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2. | Accounting policies - continued |
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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. 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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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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3. | Employees and directors |
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The average number of employees during the year was NIL (2020 - NIL). |
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4. | Stocks |
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Work-in-progress of £3,099,528 was impaired at the year-end 31 December 2021. |
BETHNAL GREEN REGENERATION LIMITED (REGISTERED NUMBER: 11519292) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
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5. | Debtors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Client account funds | - | 4,443 |
VAT |
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6. | Creditors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Trade creditors |
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Accruals and deferred income |
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7. | Creditors: amounts falling due after more than one year |
2021 | 2020 |
£ | £ |
Other loans - 2-5 years |
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Loan interest | 245,753 | 340,417 |
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8. | Called up share capital |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
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Ordinary | 1 | 100 | 100 |
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9. | 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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BETHNAL GREEN REGENERATION LIMITED (REGISTERED NUMBER: 11519292) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
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10. | Related party disclosures |
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Under the terms of the loan agreement, a loan redemption premium is payable to increase loan interest accrued to £1,000,000 should loan interest not reach this threshold within 30 months of entering the agreement. Furthermore, should the loan not be repaid within 30 months a loan redemption premium is payable so that the total liability (including monies drawn down and interest accrued) shall increase to £2,000,000. |
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The loan was not repaid within 30 months and entered into the extended loan term during the year and therefore, there was a further interest charge of £230,217 to bring accrued interest to £1,000,000. Interest of £245,753 was then charged on the £2,000,000 loan balance for the period from the end of the initial loan term to the year-end date. |
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At the balance sheet date the company owed £2,000,000 (2020: £1,134,454) to a company with a participating interest. Included within creditors due after more than one year is £245,753 (2020: £340,417) accrued interest which is charged at a rate of 15% and compounded annually. The loan is unsecured. |
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Included within accruals and deferred income is £nil (2020: £118,438) relating to development costs incurred by an entity with a participating interest on behalf of the company. The balance was reversed during the year as the costs will not be recharged during a future period. |
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11. | Ultimate controlling party |
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Mace Finance Limited is regarded by the directors as being the company's ultimate parent company. These financial statements are available upon request from Companies House. |
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Mace Develop Limited is the immediate parent company with a 51% shareholding in the company. |
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The registered office address of both company's is the same as Bethnal Green Regeneration Ltd registered office address. |