Company No: 10041904 (England and Wales)

Contents

• Company information
• Accountant's Report
• Balance Sheet
• Notes to the financial statements

DIRECTOR	M.R.A Merchant
REGISTERED OFFICE	14 Bedford Square
	London
	WC1B 3JA
	United Kingdom
COMPANY NUMBER	10041904(England and Wales)
ACCOUNTANT	Deloitte LLP
	1 New Street Square
	London
	EC4A 3HQ
	United Kingdom

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Collective Acton 2 Limited for the year ended 31 March 2019 which comprises the Balance Sheet and the related notes 1 to 7 from the Company’s accounting records and from information and explanations you have given us.

We are subject to the ethical and other professional requirements of the Institute of Chartered Accountants in England and Wales (ICAEW) which are detailed at _http://www.icaew.com/en/members/regulations-standards-and-guidance/_

It is your duty to ensure that The Collective Acton 2 Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of The Collective Acton 2 Limited. You consider that The Collective Acton 2 Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of The Collective Acton 2 Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report is made solely to the Director of The Collective Acton 2 Limited, as a body, in accordance with the terms of our engagement letter dated 25 April 2019. Our work has been undertaken solely to prepare for your approval the financial statements of The Collective Acton 2 Limited and state those matters that we have agreed to state to you in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Collective Acton 2 Limited and its Director as a body for our work or for this report.

Deloitte LLP
Accountant

1 New Street Square
London
EC4A 3HQ
United Kingdom

20 December 2019

		2019		2018
	Note	£		£
Fixed assets
Tangible assets	3	1,816,600		895,685
		1,816,600		895,685
Current assets
Debtors	4	56,214		33,568
Cash at bank and in hand		13,003		933
		69,217		34,501
Creditors
Amounts falling due within one year	5	( 1,892,898)		( 935,776)
Net current liabilities		(1,823,681)		(901,275)
Total assets less current liabilities		(7,081)		(5,590)
Net liabilities		(7,081)		(5,590)
Called-up share capital		100		100
Profit and loss account		( 7,181)		( 5,690)
Total shareholders' deficit		(7,081)		(5,590)

For the year ending 31 March 2019 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• the members have not required the Company to obtain an audit of its financial statements for the year in accordance with section 476;
• the director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements; and
• these financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of The Collective Acton 2 Limited (registered number: 10041904) were approved and authorised for issue by the Director on 20 December 2019. They were signed on its behalf by:

M.R.A Merchant Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the year and to the preceding year.

General information and basis of accounting

The Collective Acton 2 Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 14 Bedford Square, London, WC1B 3JA, United Kingdom.

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council.

The functional currency of The Collective Acton 2 Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

Going concern

The directors believe that notwithstanding current year losses, net current liabilities and net liabilities, the Company's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support from investors will be adequate to meet the Company's needs for a period of at least 12 months from the date of approval of these financial statements.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a basis over its expected useful life as follows:

Assets under the course of construction are not depreciated until the asset is brought into use.

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort on an ongoing basis are measured at fair value annually with any change recognised in the Profit and Loss Account.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through the Profit and Loss Account, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.

Deferred tax assets and liabilities are not discounted.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

2. Employees

	2019	2018
	Number	Number
Monthly average number of persons employed by the Company during the year, including directors	1	1

3. Tangible fixed assets

	Assets under construction	Total
	£	£
Cost/Valuation
At 01 April 2018	895,685	895,685
Additions	920,915	920,915
At 31 March 2019	1,816,600	1,816,600
Accumulated depreciation
At 01 April 2018	0	0
At 31 March 2019	0	0
Net book value
At 31 March 2019	1,816,600	1,816,600
At 01 April 2018	895,685	895,685

Assets under the course of construction represent costs incurred during the year in the development of investment property, which remains under construction at the year end.

Included within asset under construction is capitalised finance cost of £75,201 (2018: nil).

4. Debtors

	2019	2018
	£	£
Amounts owed by Group undertakings (note 6)	100	100
Other debtors	56,114	33,468
	56,214	33,568

Amounts owed by Group undertakings are interest free and repayable on demand.

5. Creditors: amounts falling due within one year

	2019	2018
	£	£
Trade creditors	259,926	377,300
Amounts owed to Group undertakings	274,240	557,036
Other creditors	1,358,732	0
Accruals and deferred income	0	1,440
	1,892,898	935,776

Amounts owed to Group undertakings are interest free and repayable on demand.

The Company has a fixed and floating charge over all the property or undertakings of the Company.

6. Related party transactions

The Company has taken advantage of the exemption available under FRS 102.33.1A not to disclose transactions with other wholly owned Group entities. Included within creditors is an amount of £1,200 (2018: nil) owed to The Collective (Living) Limited, an entity under common control where M.R.A Merchant is a director.

7. Ultimate controlling party

The immediate parent company is TCA Holdco Limited and the ultimate parent entity is The Collective Partners LLP, a Partnership incorporated and registered at 14 Bedford Square, London, WC1B 3JA.

The ultimate controlling party is M R A Merchant by virtue of his shareholding.