Company Registration No. 10814024 (England and Wales)
CITYBLOCK LETTINGS (READING) LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2019
PAGES FOR FILING WITH REGISTRAR
CITYBLOCK LETTINGS (READING) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
CITYBLOCK LETTINGS (READING) LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2019
31 August 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
4,542
-
Investment properties
4
20,500,000
16,803,083
20,504,542
16,803,083
Current assets
Debtors
5
239,548
34,721
Cash at bank and in hand
343,674
8,889
583,222
43,610
Creditors: amounts falling due within one year
6
(15,615,055)
(16,328,208)
Net current liabilities
(15,031,833)
(16,284,598)
Total assets less current liabilities
5,472,709
518,485
Provisions for liabilities
(694,485)
(37,861)
Net assets
4,778,224
480,624
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
4,778,223
480,623
Total equity
4,778,224
480,624
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 3 April 2020 and are signed on its behalf by:
Mr J T Bargh
Director
Company Registration No. 10814024
CITYBLOCK LETTINGS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2019
- 2 -
1
Accounting policies
Company information
CityBlock Lettings (Reading) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
21 Castle Hill, Lancaster, LA1 1YN.
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, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is dependent on the continued financial support of its parent company CityBlock Holdings Limited and its funders. The parent company, and its directors, have confirmed their commitment to provide the necessary support for the foreseeable future.
true
After the balance sheet date, but before the approval of the accounts, there has been an escalation of measures taken within society to combat the Covid-19 pandemic. The directors consider the company to have a sufficient level of working capital to see it through the upcoming months and therefore it remains wholly solvent at this time. The directors have confirmed that the group has the support of its funders to support its cash flow for the foreseeable future, and bookings for the September 2020 academic year remain strong.
The directors do not consider there to be a material uncertainty at this time, and there is
a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus,
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
During the current period the company extended its year end from 31 March to 31 August. This was done to align the company's year end with the end of the academic year. The comparative amounts presented in the financial statements represent a 12 month period and therefore are not entirely comparable.
1.4
Turnover
Turnover
represents rental income from student accommodation which is recognised on a straight line basis over the term of the student lease agreement.
1.5
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.
CITYBLOCK LETTINGS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2019
1
Accounting policies
(Continued)
- 3 -
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:
Fixtures and fittings
3 years straight line
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
.
1.6
Investment properties
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 a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.7
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).
Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.
1.8
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.9
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.
CITYBLOCK LETTINGS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2019
1
Accounting policies
(Continued)
- 4 -
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 and loans from
fellow group companies, 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.
1.10
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.
1.11
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 profit and loss account 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
CITYBLOCK LETTINGS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2019
1
Accounting policies
(Continued)
- 5 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense,
.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (excluding directors) employed by the company during the period was 3 (2018 - 2).
3
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 April 2018
-
Additions
7,184
At 31 August 2019
7,184
Depreciation and impairment
At 1 April 2018
-
Depreciation charged in the period
2,642
At 31 August 2019
2,642
Carrying amount
At 31 August 2019
4,542
At 31 March 2018
-
4
Investment property
2019
£
Fair value
At 1 April 2018
16,803,083
Revaluations
3,696,917
At 31 August 2019
20,500,000
CITYBLOCK LETTINGS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2019
4
Investment property
(Continued)
- 6 -
Investment property comprises of the property held at 252-256 Kings Road, Reading. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 5th March 2018 by Knight Frank Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
195,678
-
Amounts owed by group undertakings
10,224
-
Other debtors
22,818
34,721
Prepayments and accrued income
10,828
-
239,548
34,721
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
18,405
-
Amounts owed to group undertakings
14,786,145
15,676,152
Taxation and social security
-
69,379
Other creditors
810,505
582,677
15,615,055
16,328,208
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary shares of £1 each
1
1
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.
The senior statutory auditor was Jenny McCabe.
The auditor was MHA Moore and Smalley.