Company Registration No. 11536887 (England and Wales)
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
PAGES FOR FILING WITH REGISTRAR
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2021
31 August 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investment properties
5
7,219,065
7,200,000
Current assets
Debtors
6
302,547
530,956
Cash at bank and in hand
212,990
294,043
515,537
824,999
Creditors: amounts falling due within one year
7
(7,139,210)
(7,760,160)
Net current liabilities
(6,623,673)
(6,935,161)
Total assets less current liabilities
595,392
264,839
Provisions for liabilities
(105,247)
Net assets
490,145
264,839
Capital and reserves
Called up share capital
8
2
2
Profit and loss reserves
490,143
264,837
Total equity
490,145
264,839
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 16 May 2022 and are signed on its behalf by:
Mr J T Bargh
Mrs A J Bargh
Director
Director
Company Registration No. 11536887
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
- 2 -
1
Accounting policies
Company information
CityBlock Lettings (Lancaster 6) 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
The directors consider the company and its group 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 both the September 2021 and September 2022 academic years 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
Turnover
Turnover
represents rental income from student accommodation which is recognised on a straight line basis over the term of the student lease agreement.
1.4
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.
Changes in fair value are recognised in profit or loss.
1.5
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include deposits held at call with banks
.
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 3 -
1.6
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.
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
, 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.
1.7
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
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.
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 4 -
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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Exceptional item
2021
2020
£
£
Expenditure
Covid-19 related costs
19,417
-
The company incurred exceptional costs in relation to Covid-19 in the year which are presented as an exceptional expense as they do not relate to the underlying performance of the company.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 5 -
5
Investment property
2021
£
Fair value
At 1 September 2020
7,200,000
Additions
19,065
At 31 August 2021
7,219,065
Investment property comprises of the property at Marton Street, Lancaster. The fair value of the investment property has been arrived at on the basis of a valuation carried out at January 2020 by CBRE 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. The directors do not believe there to be a material change in the valuation of the property since its last valuation.
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
39,332
316,951
Unpaid share capital
2
Amounts owed by group undertakings
248,925
202,980
Other debtors
240
Prepayments and accrued income
14,050
11,023
302,547
530,956
7
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
9,044
25,877
Amounts owed to group undertakings
6,854,215
7,200,350
Taxation and social security
27,436
Other creditors
275,951
506,497
7,139,210
7,760,160
8
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
CITYBLOCK LETTINGS (LANCASTER 6) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 6 -
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 Jenny McCabe and the auditor was MHA Moore and Smalley.
10
Financial commitments, guarantees and contingent liabilities
The assets of the company are offered as security as part of a cross party guarantee with the company's immediate parent company, CityBlock (Lancaster 6) Limited.