Company Registration No. 06357779 (England and Wales)
RST MUSWELL HILL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
PAGES FOR FILING WITH REGISTRAR
RST MUSWELL HILL LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
RST MUSWELL HILL LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2019
30 September 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investments
3
205
305
Current assets
Stocks
4
66,402
1,100,000
Debtors
5
724,286
120,484
Cash at bank and in hand
1,557
4,035
792,245
1,224,519
Creditors: amounts falling due within one year
6
(3,219,793)
(2,043,941)
Net current liabilities
(2,427,548)
(819,422)
Total assets less current liabilities
(2,427,343)
(819,117)
Creditors: amounts falling due after more than one year
7
-
(2,364,452)
Net liabilities
(2,427,343)
(3,183,569)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(2,427,344)
(3,183,570)
Total equity
(2,427,343)
(3,183,569)
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 17 September 2020 and are signed on its behalf by:
M Omirou
Director
Company Registration No. 06357779
RST MUSWELL HILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 2 -
1
Accounting policies
Company information
RST Muswell Hill Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN.
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 and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Preparation of consolidated financial statements
The financial statements contain information about RST Muswell Hill Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its ultimate parent, RST Residential Investments Limited, whose registered office is 2nd Floor, Region House, 45 King William Street, London, United Kingdom EC4R 9AN and its principal place of business is 1 Frederick Place, London N8 8AF.
1.3
Going concern
The financial statements have been prepared on the going concern basis, notwithstanding net liabilities of £2,427,343 (2018: £3,183,569) which the directors believe to be appropriate for the following reasons. The company is reliant on a blend of external finance and funds available from other companies within the group. The directors are confident that both external lenders and other group companies will continue to support the company. Where the company is reliant on funds provided to it by other companies within the group, those companies have provided the company with an undertaking that they will, for at least 12 months from the date of approval of these financial statements, continue to make available such funds as are needed by the company and in particular will not seek repayment of the amounts currently made available. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
The directors have carried out their assessment of going concern and taking into account the economic conditions and possible changes in trading performance, alongside the facts noted above, they have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. For example, the extent of the impact of coronavirus is unclear and it is difficult to evaluate all the potential implications on the company's trade, customers, suppliers and the wider economy.
1.4
Turnover
Turnover is measured at the fair value of the consideration received or receivable from the sale of developed residential and commercial property and other related income. Turnover from property sales is recognised at the date of legal completion of the sale
RST MUSWELL HILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.5
Fixed asset investments
Investments in subsidiaries are accounted for at cost less impairment in the financial statements.
1.6
Stocks
Stocks represents property acquired for development together with work in progress on those properties. The resultant stock and work in progress is valued at the lower of cost or net realisable value. Cost comprises the acquisition cost of the land and buildings, together with related legal and professional
costs, development and borrowing costs.
In considering net realisable value, it is assumed that developments will be completed and sold in the ordinary course of business and not placed on the market for immediate sale in their current state of development.
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.
1.7
Trade and other debtors
Trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment.
1.8
Trade and other creditors
Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.
1.9
Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against future taxable profits or against the reversal of deferred tax liabilities. Deferred tax relating to a non-depreciable asset that is measured using the revaluation model, or to investment properties measured at fair value, is measured using the tax rates and allowances that apply to the sale of the asset.
Deferred tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
RST MUSWELL HILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 4 -
2
Judgements and key sources of estimation uncertainty
The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 a continuing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years.
The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Funding arrangements
Management has assessed the substance of the development funding agreements and consider them to be financing arrangements. The sums advanced under these agreements are therefore included in creditors. Management has estimated, at the balance sheet date, future cash flows as per the project development plans and budgets and will continue to review and revise them as appropriate.
Profit recognition
Stock consists of the acquisition cost of the land and buildings, together with related legal and professional costs, development and borrowing costs which is recorded as incurred during a project. An apportionment of stock is transferred to the profit and loss account when properties are sold on a project. The proportion of stock transferred is calculated so as to achieve a consistent margin across each individual project and is reliant on management's estimation of the total selling price. Estimation of the selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the value of property.
Whilst the Directors exercise due care and attention to make reasonable estimates, taking into account all available information in estimating the future selling price, the estimates may differ from the actual selling prices achieved in future periods.
With the exception of the estimates described above, the directors consider that there are no other significant judgements or estimates in the preparation of these financial statements.
3
Fixed asset investments
2019
2018
£
£
Shares in group undertakings and participating interests
205
305
RST MUSWELL HILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
3
Fixed asset investments
(Continued)
- 5 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 October 2018 & 30 September 2019
305
Impairment
At 1 October 2018
-
Disposals
100
At 30 September 2019
100
Carrying amount
At 30 September 2019
205
At 30 September 2018
305
4
Stocks
2019
2018
£
£
Stocks
66,402
1,100,000
During the year finance costs capitalised in respect of the development amounted to £nil (2018: £7,965). Sales in the year of completed properties resulted in £222,130 of these finance costs being released to cost of sales (2018: £1,461,898). At the year-end the remaining capitalised finance costs included within stock totalled £nil (2018: £222,130).
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
175,547
-
Other debtors
213,747
120,484
389,294
120,484
2019
2018
RST MUSWELL HILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
5
Debtors
(Continued)
- 6 -
Amounts falling due after more than one year:
£
£
Deferred tax asset
334,992
-
Total debtors
724,286
120,484
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans
-
424,173
Trade creditors
22,652
89,532
Amounts owed to group undertakings
2,610,515
197,696
Other creditors
586,626
1,332,540
3,219,793
2,043,941
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Amounts owed to group undertakings
-
2,364,452
8
Secured debts
The following secured debts are included within creditors:
2019
2018
£
£
Bank loans
-
424,173
Other loans
57,968
779,503
57,968
1,203,676
Other loans, within other creditors, above, are secured by a first fixed legal charge over stock a debenture over the assets of the company and a first fixed legal charge over land owned by FGA Developments Limited (a company working with RST Muswell Hill one of the developments).
RST MUSWELL HILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 7 -
9
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 Alison Nayler BSc FCA.
The auditor was Azets Audit Services.
10
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group.
11
Ultimate parent company
The directors regard RST Residential Investments Limited as the ultimate parent company and RST London Limited as the immediate parent company. The registered offices of the ultimate and immediate parent companies is 2nd Floor, Region House, 45 King William Street, London, United Kingdom EC4R 9AN. The largest group of undertakings for which group accounts have been drawn up is that headed by RST Residential Investments Limited. Copies of the group accounts may be obtained from Companies House.