Company registration number 12252375 (England and Wales)
174 PORTOBELLO ROAD LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
174 PORTOBELLO ROAD LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 6
174 PORTOBELLO ROAD LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30 June 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment properties
3
6,000,000
2,984,747
Current assets
Debtors
4
414,063
193,521
Cash at bank and in hand
559
78,916
414,622
272,437
Creditors: amounts falling due within one year
5
(4,861,020)
(3,554,846)
Net current liabilities
(4,446,398)
(3,282,409)
Total assets less current liabilities
1,553,602
(297,662)
Provisions for liabilities
6
(509,777)
Net assets/(liabilities)
1,043,825
(297,662)
Capital and reserves
Called up share capital
7
100
100
Investment property revaluation reserve
1,529,332
Profit and loss reserves
(485,607)
(297,762)
Total equity/(deficit)
1,043,825
(297,662)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
174 PORTOBELLO ROAD LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2023
30 June 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
R J Todd
Director
Company Registration No. 12252375
174 PORTOBELLO ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information
174 Portobello Road Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 City Road, London, EC1Y AB.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis even though at the balance sheet date the company's current liabilities exceeded its current assets by £4,446,398.
The directors consider the going concern basis to be appropriate because, in their opinion, the company will continue to obtain sufficient funding from fellow group companies and if required from other companies under common control, to enable it to pay its debts as they fall due for at least 12 months from the date of approval of these financial statements.
1.3
Turnover
Turnover is represents rent receivable from letting of investment properties. Rent receivable from tenants is measured at fair value. Rental income is recognised in the period to which it arises on an accrual basis in accordance with the terms of the lease.
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the income statement.
The fair value model is determined by the director with the benefit of professional external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset.
1.5
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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.
174 PORTOBELLO ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
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 payments 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.
1.7
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.
1.8
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 income statement 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
174 PORTOBELLO ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
3
Investment property
2023
£
Fair value
At 1 July 2022
2,984,747
Additions
976,144
Revaluations
2,039,109
At 30 June 2023
6,000,000
No depreciation is provided for on these investment properties.
On a historical cost basis these would have been included at an original cost of £3,960,891 (2022: £2,984,747).
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
322,850
157,100
Other debtors
91,213
36,421
414,063
193,521
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
3,563,234
2,366,254
Amounts owed to group undertakings
335,254
220,141
Other creditors
962,532
968,451
4,861,020
3,554,846
Bank loans totalling £3,563,234 (2022: £2,366,254) were secured by fixed and floating charges over the assets owned by the company and its fellow subsidiary undertaking 96 GR Limited. The loans have a termination date of 2 March 2024 (see note 7), however it is repayable on demand.
96 GR Limited has provided a corporate guarantee totalling £1.5m plus interest and costs to the company's bankers in respect of the loan described above.
6
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
509,777
174 PORTOBELLO ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
8
Events after the reporting date
The bank loans were due to be repaid on 2 September 2023. Subsequently, the repayment date has been extended to 2 March 2024.
9
Related party transactions
The company has taken advantage of the exemption available under section 1A C.35 of FRS 102 "Related party disclosures" whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary of the group.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Other related parties
848,340
804,641
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
20,440
-
10
Directors' transactions
The company has entered into guarantees for its directors as follows:
W Todd has provided a personal guarantee totalling £1.5m plus interest and costs to the company's bankers in respect of the loan described in note 5.
11
Parent company
The ultimate parent company is Warrior 2 Limited and its registered office is 30 City Road, London, EC1Y 2AB.